Build A Home For The Future

One of the best things about the New Year is that it is a time to start making plans for the spring and summertime. It’s especially exciting if we are planning on building a new home. It seems that we have renewed energy to start the building projects as soon as the snow leaves.

This is a great time to be building a new home if you plan on doing the work yourself. Once you have decided that a new home is on your “to do” list, you need to know where to start and what steps can help you get there the quickest.

The first place to start is the basic plan of what you need according to the people who will be living in the house. A good starting plan will have just what your family needs and you can worry about the wants after the needs are assessed. All homes regardless of size should have at least two bathrooms. Single bathroom homes won’t easily sell these days.

Ideally, each person should have his or her own room, but sometimes our pocketbook dictates whether we get that or not. A sensible kitchen is a must. Modern kitchens need to have more space than ever before. As a whole, people are wider than ever before and even if you personally aren’t losing the battle of the bulge, some prospective buyer further down the road probably will be.

Families have more junk than ever before so they need more space to put it in. We are now seeing very large TV entertainment systems and surround sound packages similar to theaters. That means the family room needs to be bigger than it was only a decade ago.

A full-sized laundry room is a must because almost everyone has a washer and dryer. Two decades ago people would just go to the Laundromat because they didn’t have a formal laundry room. It was considered a luxury when older homes were being built.

Many modern homes are being built without dining rooms because the family sitting at the table is now the family in front of the TV or computer. Dining rooms will be much less significant in the future than they are now and were in the past. Besides that, kitchens are bigger with island counters and bars. That is taking the place of dining rooms.

Older homes had libraries built as part of the necessary home components. A person needed a lot more space to study in just a few decades ago. That has all changed with computers. Even the largest Encyclopedia sets are available on DVD’s or the Internet so formal library study rooms are no longer needed.

There is also a big change in Living rooms. A living room to us in the west is the same as a formal reception room, salon or parlor. It’s a place where you meet your guests, sit down, and talk about things. That is no longer considered a necessity or even a luxury in modern homes.

The simple truth about that is that we as a whole don’t entertain guests like we used to. The only guests we invite are good friends and family, which are perfectly comfortable in our family rooms.

Almost all homes need some sort of office or business room. We are more business oriented than ever before. We now build bill-paying rooms. That’s a funny thing. A century ago, people would have laughed at that, but in our modern day, we will spend many hours paying bills. An office really is necessary.

After you have decided what you need, then you can decide what you want. That’s where it gets fun. Most of the fun extras will also be a selling point, but remember not to overdo the specialty home components, because realtors and bank appraisers when determining the cost of your home if you sell it will overlook most of those extras. Those are considered diminishing returns. A fireplace might be nice for you, but further down the road, they may be considered dirty and hazardous to the environment.

The evolution of homes is ever changing. The difference between homes built thirty years ago and now is dramatic.

Build for the foreseeable future if you can. Your home will have a lot more value. I have mentioned just a few areas of modern changes that should be considered when planning a home. Enjoy your home and planning for it.

Enjoying The Log Home Lifestyle

So you’ve taken the plunge and bought your dream log home. Congratulations! Whether it was purchased as your main home or as a vacation home, there are many reasons why the log home lifestyle is different from living in a traditional home. Here are some tips to help you enjoy the true log home lifestyle.

Proper Decor

First and foremost, your decor should be a good match to the rugged, rustic beauty of the log interior and exterior walls. The logs should be the backdrop to decor that reflects your own personal style without clashing with the primitive uniqueness of the logs. Whether you choose furniture made from logs and twigs, traditional wood antiques, ranch style decor, an old western motif or just a comfy cabin style with a modern edge, there are many styles that will go well with a log home interior. If practicality, usability and cost is your main goal, then even simple wood furniture from places like IKEA would be a good fit. However, if you really want to stay true to the tradition of log home interiors, then consider spending more on some antiques and handcrafted wood furniture. Extremely modern furniture with straight edges and bright colors may not match well with your log home’s interior but you can always mix and match to find that perfect eclectic feel that best reflects your personality. A type of furniture that would go perfect in any log home is log furniture. You’ll find there are talented craftsmen who create beautiful chairs, beds, tables and benches completely from logs.


One of the reasons people buy a log home is to be closer to nature. Whether they buy a log cabin deep in the woods as a vacation getaway or ski lodge, or whether they choose a larger log home in a forested but sparsely populated area, you can bet the setting will more than likely be somewhere where nature and wildlife is bountiful. You can better enjoy nature by having a patio, deck or balcony where you can have meals outside. Also, don’t obstruct the view from your windows with furniture, lamps or curtains that can’t be opened completely. You want to be able to see the beauty outside your windows during every season. You may also want to bring nature into your home to help decorate it. You can make gorgeous decorations for holidays and year round by using pinecones, fallen leaves, twigs and branches. Pinecones can even make a beautiful centerpiece for your hall table or dinner table. You can also decorate your art and picture frames with found twigs and branches.


I’m not just talking about heat here, it’s obvious you should keep your log home at a warm yet comfortable temperature. I’m talking about adding a warm and cozy feeling to your log home so you and your visitors will feel comfortable and at ease. Increase the warmth of your log home by having lots of throw blankets available, hang them over your couch or sofa. Add lots of pillows. Have candles around to light when the mood strikes or when guests visit. Lighting also plays a huge part in the sense of warmth of your home. You’ll find many types of lighting that works well with the interior of your log home. If you’re going for the rustic look, a chandelier made from a wagon wheel or antlers would work great. For a slightly more modern look, consider metal lighting such as lamps with punched tin lampshades or lighting fixtures made of wrought iron. Lighting placement is also important, but even more important for a log home since a log home’s interior tends to be darker than a traditional home’s interior. Typically, you’ll want to have a couple lamps in each room, but you may also want either a hanging lamp to give light to the whole room or a third lamp. Test your lighting schemes to see what works best for your particular interior environment as some log home interiors may have a lighter finish or even a finished and painted interior. Whatever lighting you choose, it should enhance the nighttime ambience of your home while remaining practical.


If your log home is a true vacation getaway home, then you may not want to have distracting things like a huge TV, video game consoles, massive stereos and computers. Instead, have things available that will truly enhance the peace and calmness in your home like books, puzzles and board games. Also, have plenty of tea, coffee and/or hot cocoa handy. Just sitting by the fire drinking hot cocoa and reading a book, or sitting by a window with some herbal tea watching the snow fall, these are some of the true joys of log home living.

Why Should I Buy a Prefab Residential Metal Building Package?

There are many reasons that the informed purchaser would choose a metal building package for their new home. Quality, aesthetics, health, and environmental impact head up that list.

Homes fabricated from light gauge metal stud framing offer purchasers one of the best strength to weight ratios of all construction methods. What this means to the home buyer is that a metal framed building is stronger and lighter than conventionally framed structures.

Metal framing does not warp, twist, split, crack, or shrink like wood framing. The purchaser of a metal framed home will therefore have fewer problems with nail popping and the subsequent repairs and redecorating required to fix the damage.

A panelized metal framed home has the added advantage of being prefabricated in a controlled factory-like environment. The panels are sent to your building site and erected in place speeding up the site erection time required.

This item is the second largest concern for most home buyers – What will my new home look like? A metal stud framed home can be finished just like any wood framed home, and with fewer problems caused by the problems with wood framing identified in the previous section. Walls that are installed straight, square and true remain that way.

Metal framed buildings are recommended by the Healthy House Institute for good indoor air quality. Steel framing resists mould spores that can lead to chronic illness. Pesticides and toxins are not required to protect the metal framing from termites and other vermin as may be the case in wood structures.

The Environment
Metal framing offers home buyers an environmentally-friendly alternative to wood framing. There is little waste in a metal framed building when compared toa wood framed structure. What little there may be is totally recyclable. An average wood framed home has about 50 cubic feet of landfill waste while a steel framed home has about 1.5 cubic feet of RECYCLABLE waste. It would take about 25 old-growth trees to build a 2,500 square foot home. The same home framed in metal would take about 7 recycled automobiles.

You would of course have to do your homework to find the manufacturer and builder that suits your needs and desires. As always, it’s ‘Buyer Beware’. However, the advantages of steel framing will certainly make your decision easier.

Building A Home: 6 Things Your Builder Will Not Tell You

Buying a newly constructed home should be an enjoyable experience. Sadly, for most consumers, it’s a nightmare that will stay with them the rest of their life. A common statement made by many new homebuyers is that they will never have another home built for them.

Here’s 6 things your builder will probably never tell you.

“We market that our company only uses the finest craftsmen to build our homes when in reality, we use the cheapest trades we can find, which means that many are not skilled and are day laborers.”

Custom and spec homebuilders bid out the work on your home to the lowest bidder. Kinda like the U.S. Government. There is few Custom builders left who do their own work and have their own crews.

“I have a binding contract that will prevent you from suing me should you have major defects in your home after you move in. And better yet, there is little you can do to get me to fix it!”

Read the fine print on your contract. Better yet, have a real estate attorney read it for you and explain to you what legal recourse you have should there be problems after you close. I bet you’ll come out of the attorney’s office amazed at how little rights you have if you sign the builders contract.

“If you’re really smart, you’ll hire your own third party, code certified, home inspector because the public inspectors and even my own inspectors aren’t here with your best interest at heart!”

Builders today search out third party inspectors to perform “Quality Assurance” inspections. Problem is, this is just more marketing hype than anything. In most states, these third party inspectors do not have to be licensed to perform “Construction Inspections”. My inspectors and I find a long list of items that these inspectors either miss or ignore on every new home we inspect. Not once have we found a home that the builders inspector found a majority of the defects.

City and county inspectors are generally about the same as the builders inspector or worse. Many of these inspectors are so piled up with work that they can only spend 15 to 20 minutes in a home. Besides, it is not the City or County’s inspectors job to look for workmanship issues, they are only there looking for health and safety issues and protecting the City and County’s interest. Just like the builders inspectors are there protecting the builders interest, not yours!

If you don’t know a good code certified home inspector ask around or check out the American Society of Home Inspectors at

“My sales people and I can tell you anything we want because we’re not regulated by the State”

In many states, you’ll find that the sales people for builders are not licensed with the real estate commission like Real Estate Agents are. This lets them tell you whatever they need to so you’ll buy a home from them. I’ve heard just about sales people promising homebuyers just about anything you can imagine they’d buy from their builder. Buyer beware and get them to put it in writing before you sign the contract!

“Your home is built over a landfill or swamp… maybe both.”

As prime land is filling up with new homes, real estate developers and builders are turning to sub prime land. Here in my market, we have subdivisions sitting on landfills, swamps and former rice patties. None are prime areas for building a home on.

“If you back out of the contract for any reason, we’ll keep your earnest money an upgrade money”

Many people are surprised to find this is true. In Texas most builders will, check with the Attorney General in your state to see if this is legal. Again, the builder or sales people may tell you different, but most contracts have a clause that says you’ll forfeit your earnest money or upgrade money if you back out of the home. Get it in writing what happens if you back out and the steps you must take to get your money back. Don’t think it won’t happen to you because I see it happen all the time.

As each state, county and city is different, you should check with a knowledgeable inspector in your area plus your real estate attorney before purchasing a newly constructed home. Also, GET EVERYTHING FROM THE BUILDER IN WRITING! If he promises you he’ll throw in a few extra outlets in the garage, get him to put it in the contract.

Budgeting Your Log Home – Creating a Checklist

If you’ve read my first article, BUDGETING YOUR LOG HOME: Where do you start?, you’ve got a very basic overview of the process. However, there are still a number of questions I’d like to address. Again, many of these questions will come up if you build any custom home, but I’d venture to guess the log home owners find themselves deeper in the decision-making process than someone dealing with a custom builder. After all, the differences become apparent immediately as the owners have to find their own manufacturer.

Unless you have a pocket full of cash, you’re going to have to follow the construction loan mindset throughout the budgeting process. I plan to devote a whole article to the construction loan, but this pursuit will serve as a preliminary step before going to the bank.

The biggest part of your budget will be the purchase of the land. With today’s new construction market – especially in New Jersey – the raw land constitutes 30%-40% of the total project (of course, in other states the land won’t be so much but your overall costs will be less, too). It helps to purchase the land first so you know how much money you’re going to have left over.

Then you need to figure out how much to set aside for your excavation, your driveway, and your septic system. Before you can get to this number, it helps to hire a civil engineer to draw up a survey and plot plan (you’ll need the survey for the mortgage company anyway). This will cost you a few hundred dollars. The plot plan will diagram where the house will go (and footprint of the house), the length of the driveway, where the septic and well will go. With this document, you can go to the excavator for a quote.

Since most log homes tend to be built in rural areas, you will probably have to install your own septic and well. The excavator who does your driveway will most likely be the one who will dig your septic. The well driller will probably be a different company. These are both “wild cards”, because the cost of the septic will depend on how well the land percs (short for percolate), and you don’t know how deep your well will go.

Once again, the engineer will design a septic plan which will have to be approved by the county (in most states). The cost of your septic could range anywhere from $10,000 – $30,000. If you are setting the house way back from the road, you must budget for that extra-long driveway. And if your lot is heavily wooded, you will have to pay extra for tree removal; remember that you need to clear plenty of space to accommodate both the house and a large area around the house for the machinery to maneuver. You also have to consider a space to put the logs after delivery.

Once the location and footprint of the house is determined, you may need to use a different contractor for the foundation. Foundations are not provided by the log home manufacturer (with rare exceptions). There are several ways to go: you can build on a slab, a crawl space, or a full basement. You can use a block foundation, a precast foundation, a poured concrete foundation (these are the main choices). Poured concrete is the most expensive. These days, many people choose precast foundations for log homes, because they are so accurate and don’t require a footer. If you go this route, you’ll have to hire a mason to pour the floor after the precast foundation is erected. Remember that if you choose to build on a slab, you’re going to have problems routing your wiring, because this is normally done from the basement.

Your log home manufacturer is going to give you a quote for the package. Many people want the manufacturer to quote on a “turnkey” house or at least a weathered-in shell, as a matter of convenience. However, this might not be the way to go if you live in a different state from the mill. Do you really want to pay shipping for plywood? In the end, having your contractor purchase lumber locally could save you thousands of dollars, even it it’s a little less convenient to calculate it initially. Your local builder will gladly give you a quote as long as he has a good set of preliminary plans to work from.

I started with a simple check list to sort out my budget. Luckily, I found a contractor who was willing to take over the project and hire his own subs; his itemized quote helped me visualize all the elements that went into the project. Then I added subs that I hired separately (excavator, mason, landscaper, etc.). Here are some line items that went on the checklist: Air Conditioner, Appliances, Builder’s Profit, Doors (interior), Doors (exterior), Driveway, Electrician, Fireplace, Flooring, Foundation, Furnace (or Boiler), HVAC Installation, Insulation, Interior Trim, Kitchen, Labor, Landscaping (Grass seed), Lift equipment, Lighting Fixtures, Logs, Lumber (plywood, joists, 2x6s), Mason, Permits, Plumbing, Plumbing Fixtures (sinks, bathtubs, toilets), Roof, Sanding and Staining, Septic, Staircase (if not included in log quote), Tiles (kitchen & bath), Utilities, Well, Windows.

Depending on your job site, you may have other expenses. If the flatbed truck carrying your logs cannot make it to the site, you’ll have to make provisions to off-load the logs elsewhere and have them brought in. If you are set way back from the road, you may have to pay for telephone poles, or pay for the trenching. Also, your builder may require that you bring power to the site for his tools (most allow you a few days of generator power, but not for the whole job).

It took a while to fill in all the blanks on my check list, but once I started looking at each task individually, the project as a whole made sense. Actually, the log package was the easiest part to deal with. In our case, the manufacturer provided the logs only (and the design), which came out to less than 1/6 the total cost of the house (not counting the land work). For the rest, the costs are like any other custom home; then the question becomes “Who does what?”. After all, a little sweat equity goes a long way.

Before Selling Your Home

Here are some important steps you should take before you put your house on the market:

1. Home Loan Approval for your next Home

You don’t want to be signing a contract to sell your house before knowing if you are qualified to buy another. Your financial circumstances may have changed since your last purchase and you may not qualify for the loan amount you seek. You’ll get a good idea of what you can afford by getting a pre-approval before selling your house. You may then take the decision of whether or not it would be reasonable to sell your house at this point of time or maybe consider renting something after selling the house instead of readily buying another.

2. Determine Fair Market Value of your House

You’d want to get the best price off your property and in the quickest time possible. However, over-pricing your home will only limit your chances of selling fast and under-pricing may speed up the process but you lose out in the bargain. An agent or an appraisal service (free home appraisal here) should be able to assist in determining the fair market value of your home. Another way is judging by how much other houses in your neighborhood sold for. Irrespective of the method, one must be used to determine the true and best value of your home to ensure it’s sold in quickest time possible.

3. Estimate Cost of Selling

o Advertising costs, if you plan to sell home yourself.

o Real estate commissions.

o Attorney, closing agent and other professional fees.

o Excise tax for the sale.

o Property taxes and home owner association fees, if applicable

4. Make Necessary Repairs

You don’t want to put off a buyer because of minor repairs which you haven’t attended to so far. If you’ve decided to sell your house, it’s time to finish with any pending repairs you may have felt minor and unnecessary to fix up till this point of time.

5. Get the House Ready to Show

Apart from repair work, you’ll also want to see that your house is sparkling clean and everything is organized and in it’s place when a buyer comes to see your place. A clutter-free environment is essential if you want the house to appeal to the buyer.

How to Choose Your Real Estate Lender

Because you need quick action when applying for a real estate purchase loan, find a lender you can access easily. A lender’s quick response signifies good service to follow.

Once you know your middle credit score, look for a lender appropriate to your specific needs. When ready to make offers to purchase, apply for credit with lenders. Choose at least three lenders to apply with and do it at the same time. Call all your prospective lenders during the same week. This counts as only one inquiry on your credit report. Credit bureaus expect borrowers to shop for a loan.

The best way to find a good lender is to ask a real estate investor for a referral. Also, escrow officers and real estate agents know lenders who close loans efficiently in a timely manner. Avoid advice from agents or others who receive a kick-back commission for referring you, because you may pay for this referral with added charges to your loan.

Lender’s Checklist

Ask potential lenders about the following requirements and costs according to a price range you think matches your needs. This also helps determine what you need to look for in a property.

1. Qualifications:

Middle credit score


2. Loan costs:


Processing fees

Additional “garbage” fees (underwriting fees, loan documentation preparation fee, filing fees, credit report)

Hidden costs

Prepayment penalty

Interest Rate

PMI (mortgage insurance)

Are loan costs added to loan or prepaid?

Is the seller allowed to pay a percentage of nonrecurring closing costs for the borrower?

What is the maximum allowable seller contribution?

3. Requirements:

Percentage of purchase price required down? Or loan to value ratio?

What about the condition of the property? Do they finance “fixers”?

A Better Way to Find Your Lender

After you work through all the details of the lender’s checklist, you understand better the available possibilities. Now, from a different point of view, work backwards. Instead of asking the lenders what they offer you, tell them what you want and find the lender who best matches your terms. Create your own wish list of your personalized loan needs.

Personalized Borrowers Lender Checklist

Is this purchase an owner-occupied or an investment property?

What percentage do you want to put down?

If you want to sell right away, can you avoid prepayment penalties?

Do you need the loan to finance a fixer? How much of a fixer do you want to tackle?

How flexible are the lender’s appraisers? Do you need a cooperative appraiser?

Do you care about “garbage fees” and need costs to be added to the loan?

Do you want to pay PMI, or a first and a second, or neither?

Do you want the seller to contribute to your closing costs?

How much do you want the seller to contribute?

How many points do you agree to pay up front or add to the loan?

Are super low payments available?

Make your own checklist according to your abilities and find the lender who comes closest to your needs. Remember, a good mortgage broker wants your business and works hard to find the right loan out of thousands to best suit your requirements. However, asking a lender for impossible demands wastes your time and theirs.

Notice the difference in real estate loan requirements, loan costs, and lender’s attitudes. Figure out your qualifications, your loan needs, and find a matching lender with first-class service.

18 Easy Steps to Buy a Bargain House

What is a “distressed” property? What is “bargain” real estate?

A distressed property is one with a distressed seller. Job loss or transfer, divorce, death, pending foreclosure, and lack of money cause sellers to sell fast for less. Discovering the seller’s problem and finding a solution is the key to buying a bargain property. A distressed property may also be a “doghouse,” a dump, or a fixer. Owners of “doghouses” are not always distressed sellers.

18 Easy Steps to Buy a Bargain House

1. Get good advice from successful investors. Ask friends and real estate agents for referrals to investors.

2. Create your personal “Investment Journal,” like Doghouse to Dollars Workbook: Turn Yucks into Bucks Investor’s Guide.

3. Define investment goals: Do you want to buy a home to live in, to fix and sell, or to hold for your future?

4. Get credit reports & scores. Create a file for each credit reporting agency. Take care of any credit issues.

5. Read Real Estate investing books and articles. Attend workshops and seminars. Avoid out of date infomercials on TV.

6. Get good advice from lenders. Choose a lender with great service, good closing record, and fair costs. Arrange financing.

7. Define your target locations: Is your desired property near home or job, vacation or second home?

8. Learn your target market. Study real estate newspaper sections. Pick up homes for sale flyers. Watch sales and note prices, amenities, and conditions. Follow HUD sales in your area.

9. Interview Real Estate agents and learn from them. Do not sign any agreements with agents limiting your search for bargain property. (These contracts make you pay the agent a commission even if you purchase by owner.)

10. Use agents who know local market customs and guarantee to make many offers for you.

11. Find a good escrow officer for buying “for sale by owners.”

12. Study home remodeling, design magazines and books. Learn the costs of materials, supplies, and trades. Visit home improvement warehouses. Note costs of building materials.

13. Be ready to know a bargain property when you see it.

14. Make many offers. Bid on HUD repos.

15. Buy only bargain property. Get great terms or concessions from seller.

16. Plan house transformation during escrow. This speeds your work time — saving you money in holding expenses.

17. Monitor real estate escrow closing. Do not jeopardize your financing by charging up credit cards or making unnecessary purchases.

18. Celebrate buying your “doghouse” with an open house!

What Are The Benefits of Assuming a Mortgage?

An assumable mortgage is a loan that can be transferred to another party that would take over the responsibility for making the mortgage payments. The servicing lender would transfer the existing mortgage from the current liable party to a new party. Simply put, a buyer takes over the mortgage payment obligation and liability from the existing seller. After the mortgage has been transferred to the new buyer, the mortgage servicer should mail a letter stating the original mortgagee of the property has been released of any liability, and that he/she is no longer responsible for the mortgage on said property. The mortgage’s current rate, term, and balance are then the responsibility of the buyer of the property. If the property is sold for more than the current mortgaged amount, the buyer would have to obtain alternative financing or pay cash for the difference in the sales price. The buyer will also have to meet certain qualifications, standards, and will likely have to pay bank and title fees.

There are two types of mortgage assumptions. A simple assumption is the transfer of the liability between the seller and the buyer without the lender’s approval. Using this option, the seller still has liability until the mortgage is paid in full. If the buyer fails to make timely payments and the property goes into foreclosure, the seller may be held responsible. An assumption by novation is where the buyer of the property receives approval from the servicing lender. This typically involves an application and acceptable documentation from the borrower. The seller is then typically released from all future liability and responsibility of the mortgage.

There are only certain mortgages that can be assumed. Typically, conventional mortgages are not eligible; mortgages secured by the Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA) usually are. Both FHA and VA mortgages, have standard requirements that a buyer must meet to determine if they are eligible to take over the mortgage. There are many benefits to assuming a mortgage. Interest rates and lower costs may be more attractive to certain buyers. Fees are typically much lower than the cost of obtaining a new mortgage, and appraisals are not required. This may also eliminate any repair requirements.

Why would somebody want to take over a mortgage? The main reason a buyer would want to keep the current mortgage lien on a property, rather than obtain a new mortgage would be the interest rate. If the interest rate on the current loan is much lower than the buyer could obtain, assuming the current mortgage may be a better financial decision. However, the downside may be that the new borrower would have to pay the difference between the current mortgaged amount and the price they are paying for the property.

Who Is Best Suited for a Lifetime Mortgage?

When you are looking to fund your retirement or access funds in a time of need, without sacrificing your quality of life, there are financial options. One of the most popular choices these days is equity release. There are a number of options and plans can often be adjusted to accommodate the needs of the homeowner. Lifetime mortgages are one popular option and, just like any other plan, it’s important to do your fair share of research before making any decisions.

Different financial options are suitable for different people depending on their needs and overall financial situation. The general minimum age for anyone interested in applying for a lifetime mortgage is between 55 and 60. Not only will your age determine your eligibility but it will also be taken into consideration when calculating how much you may borrow. At the age of 65, you can normally release approximately 20 to 25% of the value of your home. The older you get, the higher this percentage becomes and it can reach as high as 50%.

Another important point to keep in mind is that companies usually implement a minimum loan amount. The minimum usually ranges from £10,000 to £20,000 depending on the lender’s policies and how the homeowner measures up to various criteria. Lenders also usually require that the applicant’s home has a certain minimum value. Again, this minimum varies based on several factors and can be anything from £70,000 to £100,000.

Homeowners who meet the minimum age requirement, as well as the additional criteria, can enjoy the benefits of a lifetime mortgage. One of the main advantages is that homeowners will not need to move out of their existing home. They can continue living in the very house they love without worrying about making any payments. Just like most financial agreements, it’s important to ask your adviser about their cancellation policy. Should you decide to pay off your lifetime mortgage ahead of time, you might be liable for certain fees, and it’s important to consider this regardless of your plans for the future.