Jeremy Fulton, Financial Wellness Coach

Tag: home

  • Is my landlord responsible for covering my stuff?

    Is my landlord responsible for covering my stuff?

    The smoke detector goes off, awaking you from sleep.  You grab your spouse, children, and pet and rush outside through the smoke.  As you stand on the front lawn, you watch your home disappear in a mix of flame and smoke.  Family heirlooms, photos, your clothes, furniture, and everything is gone in an instant, but you and your family are safe.

    Next comes the recovery.  After finding a new place to live, you call your old landlord expecting him to send you the check to cover your belongings.  Then the other shoe falls; he is not only not liable for your things, but isn’t legally allowed to cover them with his insurance.  What now?

    Fire 2We all know someone or of someone who has lost their home to a fire, flood, or other natural disaster.  We come alongside them and offer them our support, prayers, and hugs.  We wonder why this happened to them.

    Had this family had renter’s insurance, their possessions would have been covered, and they probably would have received money to help them while they found a new home.

    You might be thinking, “Last thing I need now is another insurance payment while I’m working on [insert goal here]!”  What if I told you that the average renter’s insurance premium was only $15-20 a month!

    For the cost of a pizza, you can get $30,000 of coverage!

    So, what are you still doing here, reading?  Get a quote from your auto insurance company (bundling can save $$) now!

    After you buy a policy, please share below what it cost, what city/state you live in, and if it’s an apartment, single- or multi-family house.  Let’s see just how inexpensive it is!

    And as always, if you have any questions on what you need for coverage, let’s talk!

  • 6 reasons why now is the perfect time to buy a home

    6 reasons why now is the perfect time to buy a home

    Its a new year.  Things are going to be different this year!  You have set goals for yourself, your family, and your career.  But there is one thing that is still bugging you.

    You feel like you are still throwing money away every time you write out that rent check.

    “I could be building equity in my own home, not having to live in this crowded apartment building, and not having to worry about the rent going up, again.”

    If this is you, now could be the perfect time to buy your first home!

    1. 2.93% APR
    Rates can’t drop much more than that for a 15 year fixed rate mortgage!  Many analysts think that the rates will be increasing in the next 3-12 months.  Why didn’t I quote the 30 year rate? Because you should stay away!  Not only is it a point higher, but you will end up paying a LOT more in interest charges over the life of the loan.  And besides, who wants to be in debt for 30 years?

    2. Weak housing market (at least in CT)
    Home prices are still down, but the market is improving!  This could be unlike any other time in history or the future for prepared homebuyers!  Opportunity favors the prepared!

    3. You’ve lived in the area you want to buy in for a while
    Learn from my mistakes, don’t pick an area to buy in until you know the area a bit.  Where will you be spending your time?  Are there areas you want to live at a distance from? Close to?  Where do you work and socialize?  If you live too far, you can end up feeling isolated, or end up spending more in fuel than you anticipated driving all over.

    4. You have a down payment saved
    After the housing debacle a few years ago, it’s almost impossible to get a 0% down loan (a few options, such as VA, are much more expensive than conventional loans); most banks require at least 10%, but 20% is still the magic number!

    5. You are debt free
    And I mean all debt (including so-called good debt)!  Becoming debt free is a much higher priority to reaching financial peace then owning a home.  Once your income is freed from the burden of debt, you can maximize it’s wealth-building capabilities, including building equity in a home.

    6. You have a fully funded emergency fund
    When you own a home, you are liable for ALL maintenance and repairs!  No landlord to call at 4 am when the heater quits in February!  You need to have that 3-6 month reserve to cover whatever Murphy throws at you.  Also, what happens if you lose your job?  You’ll still need to pay the mortgage!

    Bonus:
    Now how do you determine how much house you can afford?  It’s a very simple calculation; no need to find an online calculator.  Don’t spend more than 25% of your after-tax pay on a 15 year, fixed rate mortgage.  Being house poor is no fun, better to have a modest home and money to spend, invest, and give.

    Double Bonus:
    When figuring out your payment, don’t forget to include property tax and homeowners insurance!  Depending on where you live, those can add $400-600 a month to your payment!

    Not ready to buy yet?  Lets develop a plan and get you ready, together!