Second Mortgage vs. HELOC: What’s the Difference?

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When choosing the loan that’s right for you, it’s important to understand the differences between a second mortgage and a home equity line of credit (HELOC).

But before we jump into differences, let’s look at what each option has in common:

HELOCs are often thought of as a type of second mortgage because both borrow from the equity you’ve built in your home. Both loans come from the bank that provides your original mortgage and both use your existing home as collateral.

OK, now for the differences:

The most obvious “pro” in favor of a second mortgage is a fixed rate that is locked in for the life of the loan. With this comes the peace of mind knowing years in advance how much you’ll be paying monthly. Conversely, HELOCs come with variable rates which can prove costly, even if you are approved for the HELOC at a low rate. Your rate may increase because of decisions made by the Federal Reserve. It could go down as well, though this has not been the case this past year — along with the fact that rates are still historically low.

So why would I want a home equity line of credit? The main benefit is that you can use the funds as you need them. A second mortgage loan is paid to you in a lump sum at the start of the loan. A HELOC can make money available to you only when you need it. If you need less than you thought, your monthly payment will be smaller.

Just be careful: you could easily make impulse-buy decisions over the years on home improvement projects that, little-by-little, could max out the full amount of the line of credit.

Typically, a second mortgage is used to purchase a second home or to make large-scale home improvements on the original home. In addition, second mortgages can help the homeowner with debt consolidation from high interest auto loans, credit cards, life events and medical bills.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

National Peach Month

We know Justin Bieber gets his peaches out in Georgia, but did you know that August is National Peach Month?

In 1982, Ronald Reagan choose the peach to represent adding more nutritious fruits into the American diet. Because peaches are a summer fruit, he chose August as the month to celebrate them.

So what are the nutritional benefits of peaches?

  1. They’re packed with nutrients and antioxidants.
  2. They help contribute to healthy digestion.
  3. They contain compounds that help lower cholesterol and blood pressure.
  4. Peach skin and flesh are rich in carotenoids and caffeic acid — two types of antioxidants with anti-cancer properties.
  5. They may reduce allergy symptoms. In addition to eating peaches, Test-tube studies report that peach extracts may be effective as well and limit the inflammation commonly seen in allergic reactions.

Home Improver: Do Air Purifiers Really Work?

Let’s face it: there’s a lot of dust, odors, and toxins that we breathe in throughout the various rooms in our homes. What’s the easiest way to minimize the negative effects in the air we breathe? Get an air purifier.

These room refreshers have come a long way in recent years and they are reasonably priced for what they do. When used properly they can reduce household odors as well as common allergens that make you sick.

If you suffer from allergies, an air purifier can help mitigate symptoms, but don’t expect 100% relief. For those concerned about Covid-19, the CDC says: “Ventilation systems can be supplemented with portable high efficiency particulate air (HEPA) cleaners to reduce the number of infectious particles in the air and provide enhanced protection from transmission between persons.”

One of the most popular and highly rated air purifiers is this one from Conway, (shown above) for just $200. One thing to remember before you buy: Will the air purifier you choose cover the size of your large room?

Mortgage Rates on the Rise: Don’t Hit the Panic Button

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We thought it was important to address the elephant in the room: Mortgage rates have surged and may continue to increase. Having this happen during a time of the highest rate of inflation since 1982 may make you think buying a new home is impossible. But there are a few things to consider before hitting the panic button.
  1. Mortgage rates are still historically low. They were just under 7% for a 30-year fixed loan before the recession in 2018. In 2000, they were at 8.62% and in 1981 they topped out at 16.63%. Yikes!
  2. A market correction could happen sooner than we think. Experts believe that rising rates may bring the housing market back down. With the mortgage frenzy of the past few years slowing, home prices should become more affordable, especially if it reduces the number of bidding wars that have put some homes out of reach for buyers on a budget.
  3. Common sense from Jim Gaines, research economist at Texas A&M’s Real Estate Center. Jim says, “the Fed and the government historically want to encourage homeownership. They really don’t want the mortgage rate to get that high that it will be a detriment to the market.”
Keep in mind that everything is relative. You sell high to buy high and you sell low to buy low. The market dictates that. All we can do as buyers and/or sellers, is to make smart fiscal decisions with the data points we have. If this is all too confusing and causing you anxiety, get in touch and we’ll discuss your options for buying or refinancing your next home.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Happy 4th of July Weekend!

It’s supposed to be hot and mostly sunny on Sunday and Monday, so grab your sunscreen and have some outdoor fun as we celebrate our nation’s 246th birthday. Here’s some trivia about July 4th that you can share to amaze your friends and family.

July 4th or July 2nd?
Although the Declaration of Independence was dated July 4, congress voted for independence from Great Britain two days prior on July 2, 1776. It apparently wasn’t signed by everyone until a month later on August 2, 1776.

Population in 1776.
While the current US population is more than 330 million, the population in 1776 was just 2.5 million. That’s just 0.75% of the current number of US residents.

Hot Dog!
Americans consume a staggering 150 million hot dogs every Independence Day. That’s about 800 dogs per second. Pass the mustard, please!

A New Constitution?
Thomas Jefferson wrote to James Madison that he believed a new Constitution should be written for each generation. Read this.

Home Improver: Do-It-Yourself Carpet Cleaning

What’s the best way to clean your carpets? Everyone has an opinion: steam, shampoo, cold water, hot water, etc. But other variables exist as well: call in a professional, rent a machine, hands-and-knees scrub, and more. The fact is, any of these methods will leave your carpets cleaner, but what are the risks involved?

Are liquid carpet cleaners toxic? Most are safe for the general public, but at any given point, you and your family could be exposed to:

  • Perchloroethylene, a popular dry cleaning chemical known to cause nausea, dizziness and fatigue.
  • Naphthalene, a popular cleaning solution that helps dissolve dirt. Naphthalene is derived from coal tar and is commonly used as a pesticide to kills moths and other small insects.
  • Butyloxy Ethanol, which can enter your body by both breathing it in and by coming in direct contact with your skin.

(Source: Chem-Dry)

How Much Can I Deduct? Mortgage Interest & Tax Deductions

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You may be just a few weeks removed from filing your 2021 income taxes, but did you understand the numbers related to your mortgage interest deductions? Like many Americans, you probably put your trust in a seasoned tax preparer and hoped for the best. Let’s clear up the mystery and confusion around mortgage interest deductions.

What is it? Mortgage interest deduction allows you to lower your taxable income by the amount of interest paid on your mortgage. This law has been in effect since the 2018 tax year. The IRS allows the deduction of interest on your mortgage loan when it is used to purchase, construct, or make substantial improvements to a primary or secondary residence.

How much is the deduction? You may deduct the interest on up to $750,000 of qualified residence loans. If you’re married and filing separately, you can deduct interest on up to $375,000 of qualified debt. Note: The amount decreased from $1 million ($500,000 for married filing separately) under the Tax Cuts and Jobs Act. If your loan was approved before Dec. 15, 2017, you can deduct the previous limit of $1 million (or half that amount if filing separately from your spouse).

Let’s see an example. In January of 2021, you were approved for a $350,000 loan to purchase a $400,000 home. You used the home as collateral to secure the loan. Later in 2021, you borrowed $150,000 for repairs on your summer residence, valued at $200,000. You used the summer home to secure that loan.

Your total in loans on both homes is now $500K, which falls below the $750,000 limit. Because you’re using the money specifically to buy and make improvements to your primary and secondary homes, you may deduct the interest you pay for these loans from your taxable income. It can be a considerable deduction.

Can I deduct from a home equity loan? Yes, but only if under the right conditions. Similar to your mortgage, a home equity loan is considered a qualified residence loan by the IRS. You’re OK to deduct if, like the example above, you’re using the money for home-related improvements. You may not deduct interest if the money is used to pay for personal debt reduction or other expenses like student loans.

What if I’m paying my son’s mortgage? You may deduct the interest, but only if you are listed as the legal owner of the home. If not, your parental generosity will not be rewarded by the IRS.

More details, please click here for Publication 936: Home Mortgage Interest Deduction.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Sauce It Up

With Memorial Day weekend signaling the unofficial start of summer, we know lots of grills and “Kiss the Cook” aprons will be brought back into action. Just one thing: you may know how to barbecue like a grill master, but how well do you know your barbecue sauces? Get to know them and you’ll have friends and neighbors in your yard all summer long.

  • St. Louis Style. This is a must for those baby-back ribs you’re defrosting. St. Louis blends many ingredients from other regions for a tangy deliciousness.
  • Memphis Style. You may think this is a trick question, because most barbecue joints in Memphis serve their meats without sauce. But that doesn’t stop our friends from Tennessee. Memphis sauce complements the dry-rubbed pork, and is often served as a side condiment.
  • Texas Style. Perhaps the most savory of the sauces, beef bouillon is the secret ingredient for peak sauciness.
  • Kansas City Style. This is probably the style you’re most familiar with, because this sauce goes with all meats. Tangy and sweet with a touch of molasses, Kansas City’s barbecue sauce is legendary.

Too much meat? Here are some recipes to grill for your vegetarian and vegan friends and family.

Home Improver: Stop Ants with Home Remedies

If you’re like a growing segment of America, you’re noticing you’ve got too many toxic sprays in your home. But how else do you get rid of ants without a toxic spray?

Try a home remedy: DIY ant repellent. There are several natural ingredients to keep the little food-seeking armies away from your home.

  1. Vinegar. Fill a spray bottle with a 50-50 mix of vinegar and water. Spay directly on ants. Wipe them up and dispose of the dead insects.
  2. Mint. We may find it a refreshing scent, but ants can’t stand mint. Wipe down ant entryways with a few drops of peppermint essential oil and ants will head to the neighbor’s house instead.
  3. Cayenne or Black Pepper. If you spot an ant entryway (typically cracks or openings in windows, doors and floors), create a little wall of pepper to keep ants out. Use the 50-50 water/cayenne method (see “vinegar” above) to chase ants away. If you feel bad for the little critters and just want to stun them so they run away, this method should get the job done.

The Downside of Down Payment Assistance

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In this time of skyrocketing inflation, buyers are looking for any help they can find — and there is help out there. Sort of. Let me explain.

You may have seen ads or read articles on Down Payment Assistance (DPA). These programs are designed to provide loans or grants to buyers struggling with coming up with a typical 20% down payment.

While this sounds like a great opportunity, many DPA programs just don’t work. Often there are restrictions related to location, credit, and income.

Here’s the problem: Let’s say houses in your area average $400K. In order to qualify, your income will need to be low enough for the application to be approved. But the income restriction can be so low that you can only afford a $300K home and that means you’ve been priced out of your area before you even start to look.

Even if you did qualify to buy a home in your area, you may not stand a chance with a DPA loan when your competition is ready to put down 20% cash down (or more).

Sometimes the answer is simply to wait until you’ve saved your 20% down payment. But variables exist and there are sometimes ways to get you into a new home faster. That’s how I help. Contact me to review your credit and finances, and I’ll give you an honest opinion on your best path to a new home.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Celebrating May

Suddenly, it’s almost May. How did that happen? May starts on Sunday and we thought it would be fun to take a look at some very random events that occurred on May 1 through the years.

  • 1931: The Empire State Building opens in Manhattan.
  • 1941: Citizen Kane, considered by many to be the greatest film ever made, premieres.
  • 1956: Dr. Jonas Salk’s polio vaccine is made available to the public.
  • 1961: Harper Lee wins the Pulitzer Prize for To Kill a Mockingbird.
  • 1971: Amtrak begins railway operations.
  • 1991: Rickey Henderson steals the 939th base of his career, surpassing Lou Brock’s MLB record.

Home Improver: Let It Go: Declutter Your Home

Take Elsa’s advice and Let it Go. It’s time to declutter your home. As shown in the photo above, there are several things you can do with unwanted items: keep, donate, trash, sell, recycle. Let’s focus today on donating and selling.

Donate items to Ukrainian refugees. Many people fled their homes and came here with little money and only the clothes on their backs. Be careful of scammers, and seek out reputable nonprofits willing to accept your donations.

Sell online. Want to make a few bucks on that iPad you used for a month or those boots you forgot to return? You have several options:

  1. eBay. The most popular online marketplace for used items. If you own it, someone on eBay is probably willing to buy it.
  2. Let Go/Offer Up. These companies merged midway through the pandemic. Think eBay, but local. That means in addition to shippable items, you can list your old snowblower or that exercise bike you never use, and your buyer can come pick them up.
  3. Savers. Feeling overwhelmed and just want everything out of the house? Box it up and drive it to the nearest Savers. They may not take everything, but they’ll take most of your stuff to resell.
  4. PangoBooks. Have unwanted stacks of books? Set up a PangoBooks account and sell your books online. It only takes a few minutes to set up and start adding books to your online store.

Playing it Smart in a Volatile Market

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Last month we talked about inflation and its impact on the housing market. That trend continues and Russia’s war with Ukraine is directly affecting the world economy. Gas prices around the globe have surged, and even though they’re coming down a bit, an average of $4.24 per gallon is still much higher than anyone wants to pay.

Food costs continue to rise as well, in addition to new car sales and other big-ticket items. So where’s the good news?

COVID-19 rates are inching upward with the latest strains, but severe illness is at a pandemic low, thanks to vaccinations and a steadily weakening virus.

Mortgage rates are up, too. Your best course of action here is to control what you can. With an uncertain future it makes sense to lock in a fixed rate to avoid any spikes that could cost you thousands of dollars with a variable rate mortgage. Protecting your largest asset is a priority in a volatile market. Refinancing is always an option if you’re concerned about future rate hikes.

Even if you’re only exploring possibilities related to your mortgage and finances, contact me for some helpful advice to figure out your next steps.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

April Fools’ Day

Everyone knows that on April 1, it’s become customary to play funny but harmless practical jokes on our friends, family and colleagues. But did you know that April Fools’ Day dates back centuries?

We don’t know exactly when and why this “holiday” came to exist, but we have discovered a few theories.

Theory 1: In 1582, France switched from the Julian calendar to the Gregorian calendar, moving the first day of the new year from April 1 to January 1. News didn’t travel that quickly in those days, so those who were still celebrating the new year at the spring equinox were thought to be April fools.

Theory 2: In Scotland, during the 1700s, the tradition became a two-day event, starting with “Hunting the Gowk,” in which people were sent on phony errands (“Gowk” is another word for “Cuckoo”) and it was followed by Tailie Day. Pranks played on people’s behinds, such as pinning fake tails or “kick me” signs on them became a regular tradition.

Home Improver: 3 Uses for Fabric Softener Sheets

Those dryer sheets you’ve been using to remove static and soften your clothes and towels have alternative uses. Here are three of our favorites.

  1. Freshen Up Your Gym Bag. A good workout can lead to unwanted odors that get trapped inside your gym bag, only to burst forth the next time you open it. Even the cleanest bag can get a little funky, so drop a few dryer sheets in it to neutralize odors. Pro tip: stick them in your sneakers to minimize foot odor.
  2. Soap Scum. A few drops of water applied to your favorite fabric softener sheet will remove soapy buildup from your shower tiles. It’s like magic! Give it a try!
  3. Remove Pet Hair. A dryer sheet can combat pet hair on your furniture. Wipe down shelves, tables, counters, and furniture with a dryer sheet and you’ll forget you have pets in the house. Works great on clothing too, so check your sweaters before leaving the house. You’ll want to remove dog or cat hair that may have latched onto your sleeve. Grab a sheet and wipe it right off!

The One Thing You Can Do To Avoid Inflation Risks

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With inflation rising faster than it has in 40 years, it’s time to look at your current debt and make some adjustments before it costs you more than you could have imagined.

Have you noticed how much more expensive groceries have become? According to the Bureau of Economic Analysis, meat and dairy are the most affected. Here’s how much these staples have gone up from just one year ago:

  • Beef +16%
  • Milk +14%
  • Eggs +13.1%
  • Seafood +12.7%
  • Chicken +10.3%

Groceries are always a good measure of inflation. It’s a relatable concept that’s easy to grasp. On a larger scale, inflation has also affected big-ticket items like auto sales, renovations, and new home sales. So what’s the one thing you can do to stop past purchases from rising inflation costs? Assess your current debt.

Is any of your debt tied to variable rates? Look at car loans, credit cards, and your mortgage. The one thing you can do to avoid paying top dollar on your rising debt is to fix your rates. Lock in what you can. Refinance your car loan and mortgage.

Look at the soaring grocery rates above and expand that out to what you’re paying on larger variable rate purchases. It is well worth the effort to stave off any increased debt.

If you’ve been thinking about a purchase but you’re concerned about inflation, fluctuations in the market, or any other obstacles, give me a call. We’ll talk through your concerns and help you make the decision that makes the most sense financially.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Snow Day Activities

Just when we thought an early spring was on its way, Mother Nature decided we need more snow in our lives. What can you do at home with the kids when there’s a winter storm approaching? Get crafty!

For more crafty ideas, click here.

Home Improver: Change Your Curtains Seasonally

It’s been an odd February with temperatures close to zero some days, 65 this week, and another snowstorm heading to us tomorrow. This made us think about curtains and their function. Why? Read on.

  1. Function. Heavier curtains in fall and winter insulate your home from drafts. During spring and summer months, lighter curtains filter sunlight and provide an airier feel. There are some who believe in heavy curtains year-round because they tend to keep both winter cold and blazing summer heat from invading your home. That’s fine, but make sure you clean and rotate them out regularly because…
  2. Hygiene. Curtains are magnets for dust, pet hair, germs and grime. I know, it’s gross when you think about it, but not when you seasonally clean and change them. If you have allergies, they may be exacerbated by your curtains. If can’t seem to get the mildewy smell out of your carpet, it may not be the carpet. Check the drapes!
  3. Fashion. One easy way to freshen the look of your home is to switch out your window coverings. You can create the look of a fresh makeover just by adding new curtains this spring.

Want some inspiration? Click here for 55 curtain designs.

2022 Mortgage Loan Limits to Skyrocket

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If you sold your home this year, you probably got more than you expected for it. In Massachusetts, homes sold at a rate that was 16.5% higher than the first 10 months of 2020, according to the Mass. Association of Realtors.

The median single-family home sold for $520,000. Given the low inventory of available houses and the high demand, it’s no surprise that sellers made it to closing in almost half the time of the typical sales cycle.

There is some good news for buyers trying to stay competitive. Loan limits are about to take a record-setting jump. The FHFA has announced that for most of the US, mortgage loan limits are increasing by 18% in 2022, from $548,000 to $647,200.

With rates still very low, now is the time to buy. There’s no reason to wait out the market. In fact, there is a chance that increased loan limits could ultimately drive up the price of homes once again.

If you’ve been thinking about a purchase but you’re concerned about fluctuations in the market, give me a call. We’ll talk through your concerns and help you make the decision that makes the most sense financially.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

2022: Let’s Celebrate

We’re just over a week away from welcoming in 2022, and if you thought I was going to talk about resolutions, you’d be incorrect.
This month, let’s focus on a myth we often choose as a New Year’s goal: work-life balance.

We all want it, and if it seems impossible to achieve, it’s because it pretty much is impossible. Family, work, kids, finances, vacations, physical and mental health can’t be balanced evenly. Instead, try to shoot for work-life harmony.

When we think of “balance,” we tend to think of time and how we manage it. We certainly can’t balance it. But when we think of “harmony,” we focus not on time but on energy. Balance is more about the “who, what, and when” while harmony focuses on the all-important “why.”

To learn more, read this article.

Home Improver: Moth Myths: Do They Really Eat Sweaters?

If you’ve been carefully storing your best sweaters in fear of having moths eat holes in them, we’re here to tell you that moths are not the enemy. This is a moth myth.

The fact is, adult moths don’t eat clothing. I know, we’re shocked! How can this myth have survived for generations and, more to the point, what exactly is eating holes in your beautiful cashmere (or wool) sweaters?

The answer is… moths. It’s kind of a trick question, so let’s explain. Adult moths don’t have the mouth structure to chew holes. The real culprit is moth larvae. Kids gotta eat! Just like caterpillars that chew on leaves before they become butterflies, moth larvae need to chew, too — and their preference is natural fibers, like your delicious wool sweaters.

So what can you do to avoid baby moths-in-the-making from eating your sweaters? Keep them clean and stored away. Hanging them in a closet is like hanging a salami in an Italian deli. It will attract the hungry. Instead, store them in plastic bins with airtight lids or in compression storage bags.

Sorry, Suze Orman. We Disagree.

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Suze Orman is an excellent resource for people seeking tried-and-true financial advice. She’s a bestselling author, columnist, and speaker. She knows her stuff. But that doesn’t mean we can’t take issue with her advice.

For instance, in her recent blog post, Suze says this about refinancing:

“The big mistake is that after spending years paying down their existing 30-year mortgage, people then refinance into a new 30-year mortgage. This is so very wrong. Let’s say you have been paying your original mortgage for 14 years. Now you decide to refinance and you take out a fresh 30-year mortgage. Sure, the new mortgage is at a lower interest rate, but you just extended your mortgage-payment on this home to 44 years! That’s 44 years of interest payments.”

OK, Suze, we get it. What you’re saying makes sense — but only if you’ve been financially stable for quite some time with considerable savings in the bank. That, however, is not the world we’re living in these days.

A refinance relieves the stress of mounting debt that plagues so many people who have been directly affected by the pandemic, whether it’s job- or health-related. Because we’re in a period of historically low rates, a refi will beat any bank loan you could hope to get.

The people I have worked with are looking for the financial relief a refinance provides. No one should feel ashamed for seeking help, even if they have made poor financial choices in the past. We’re not all perfect. Not even Suze.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Home Improver: Is the Water Table Rising?

This has been one of the rainiest springs and summers in a long time. What does that mean for the water table? Is it rising? How can it affect your home?

Let’s start with a definition, from our friends at National Geographic:
“Well beneath the ground, at various depths depending on geography, topography and weather conditions, pockets of water, called aquifers, exist. The water table marks the boundary between that available water and the dry surface.”

Water tables can rise when they take on more water than they drain off. This can be from unusually high amounts of rain, or excess water from higher elevations. They are sometimes above the level of basement floors or crawlspaces. This may put your home at risk for flooding.

Watch for lingering puddles in your yard after a couple of days of heavy rain. It is very likely that the puddle is the top of the table and has temporarily exceeded what the yard can handle. There’s not much you can do to stop the flooding once it’s happening, but there are preventative measures that can be taken.

Basement and foundation waterproofing professionals, as well as landscaping contractors, can help homeowners develop a plan to mitigate water damage. This can include the installation of drains and pumps to move water away from the house. Special paints and sealants also can protect the foundation.

Pandemic Babies and Divorce Rates

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You’d think with everyone cooped up during the pandemic there would be huge spike in birth rates. But it seems familiarity breeds contempt, not babies, as birth rates have dropped and divorces have increased.

It may be a case of social distancing taken a little too far, but the baby bust maybe the result of spouses spending their free time binging episodes of Tiger King and The White Lotus while strategically avoiding intimacy.

According to FormsPal, a website that provides free legal forms, there are some very surprising facts about pandemic-era divorces:

  • At least 60% of the divorced have been married for no more than a year
  • Compared to 2020, the COVID-19 crisis has triggered a nearly 21% increase in divorce agreements initiated by couples in 2021
  • In 2021, around 7% of divorcing Americans have been unable to withstand even a month of marriage

There’s no question that the pandemic has created tension within some marriages. It’s bound to happen when job status, mounting debt, and both partners living and working from home cause cracks in the foundation of otherwise healthy marriages.

Working with Debbie brings a human element absent from online services. She’s empathetic to your situation and takes a holistic approach that considers your whole financial picture. That beats a computer algorithm every time. Computers don’t care, but Debbie does. It’s one of the reasons her clients trust her to take care of their home sales and purchases — and why they often refer their friends and family to her as well.

This pandemic has changed our lives forever. In cases where divorcing spouses need help finding new homes that make financial sense for both parties, Debbie should be your first call.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Happy Labor Day

Oh, no! Summer is almost over and next Monday is Labor Day! Wasn’t it just Memorial Day with the whole summer stretched out before us?

I don’t know about you, but this pandemic blur has me questioning the passage of time. It seems frustratingly slow in our attempts to return to pre-Covid days, while time is flying by as we think about all the friends and family we haven’t been as close to the past 18 months.

We hope you’ve had a wonderful summer in spite of everything. If you haven’t had a chance to get away, even for a day or two, try your best to work in some downtime before the official start of fall on September 22.

Maybe a barbecue with a close group of friends? A day trip with the family? A surprise visit with a loved one you haven’t seen in months?

Enjoy the remaining days of summer while they’re still here. It won’t be long before sweater weather is upon us.

Home Improver: Make Your Own Honey (Yes, Bees Are Involved)

Deciding to be a beekeeper is a little bit like deciding to take care of other animals, but you have to consider what’s needed for successful beekeeping.

Do you have ample space in your yard for your bees? Are they allowed? Check your local zoning regulations first to make sure your city or town permits beekeeping.

Important: Get your family tested for bee allergies to prevent bad reactions.

Also, consider your neighbors. Are they bee-friendly? You can always bribe them with a lifetime supply of honey.

Speaking of which, to extract honey from the hive, you will need beekeeping tools. This fascinating video shows you how to extract the honey. This is the time of year when honey is typically extracted. If you don’t already have active hives set up, you can plan for a very sweet 2022!

Accelerating and Recasting Your 30-Year Mortgage

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It’s tempting to choose a 15-year fixed rate mortgage for a few reasons:

  • It’s a lower interest rate than a 30-year mortgage
  • It’s paid in half the time
  • You build equity faster

There is, of course, one major trade-off: your monthly payment is significantly higher. Even if you can swing it, the extra cash you’re paying out each month can limit your ability to afford other items as needed: a new car, home repairs, health-related costs, unforeseen income interruption, etc.

For these reasons, a 30-year fixed rate mortgage is a safer bet. Yes, mortgage-for-mortgage, you’ll be paying a higher interest rate for a longer period, but your monthly payment will be significantly less, and that affordability makes it the more attractive option for most homeowners.

There are ways to pay down your 30-year mortgage faster. Accelerating your mortgage means you can pay more than your monthly obligation. You make your monthly payment and then pay more that month, with the second payment applied to reduce the principal balance of your mortgage. An extra $300 per month can typically cut months and even years off the length of the mortgage, saving you tens of thousands of dollars.

Another option is to recast your mortgage. Let’s say you get a large, unexpected bonus at work or win the lottery or inherit money from a long-lost relative. You could apply that money to your mortgage in a lump sum which will lower your monthly payment. Once the payment is made, your mortgage is recasted (i.e. recalculated) to reflect a lower monthly payment based on the new balance and reducing the interest you’ll pay over the life of the loan.

With options of refinancing, accelerating, and recasting, you may find yourself paying considerably less than you thought when you first purchased your home.

If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Daytripping in MA

Ready for a Day Trip or a fun summer weekend with friends and family? Don’t let August go by without hitting the road for a fun trip that’s local and doesn’t require a week away from home or work. Here are a few suggestions for Day Trips in Massachusetts!

Salem is an incredible experience in summer. It’s an amazing walking city, filled with history (Salem Witch Trials, Maritime Historic Site and the real-life House of the Seven Gables).

Go back in time on a day trip to Plymouth. See Plymouth Rock, step aboard the Mayflower II and visit Plimouth Plantation, a living history museum that replicates 17th century colonial life of the Pilgrims.

Head downtown and explore the history, architecture, food, and attractions that make Boston one of the country’s best walking cities. Whether you’re walking the Freedom Trail or cruising around the city streets (and waterways) on a guided Duck Boat tour, there’s so much to do and see for kids and adults.

Enjoy the summer and be sure to take some time to relax and recharge by getting away, even if it’s for one really fun day.

Home Improver: Rain Barrels for Water Conservation

This feels like the rainiest summer in years! Why not take advantage of all the wet stuff falling out of the sky? If you’ve never used rain barrels to gather water, there are several reasons to consider investing in them.

Rain barrels collect water from your roof that runs from the gutter, through the downspout, and into your rain barrel. The collected water can be used to water your lawn and garden. Other used include wash your car, filling a koi pond, or cleaning around the house.

According to the Massachusetts EPA, rain water is “soft,” meaning it is free from minerals and chemicals like chlorine, fluoride, and calcium, which are often found in tap water. Rain water is ideal for watering plants, washing cars and windows.

Owning rain barrels saves you money on your water bill and teaches your children about the importance of conservation.

Feeling in a DIY mood? You can build your own rain barrel.