DIY Home Improvement Projects to Boost Your Home’s Value and How This Could Affect Your Mortgage

Improving your home can have a significant impact on its market value, which in turn can affect your mortgage terms and options. Whether you’re planning to sell your home, refinance your mortgage, or simply increase your home’s equity, strategic DIY home improvement projects can play a crucial role. Here’s how you can enhance your home’s value and strengthen your financial standing with these manageable DIY projects.

Understanding the Impact of Home Improvements on Mortgages

Home improvements can directly influence your mortgage in several ways:

Increased Home Value: A higher home value can lead to better refinancing options and possibly lower interest rates. Higher Equity: By boosting your home’s value, you increase your equity, which can be tapped into for home equity loans or lines of credit. Easier Selling: If you’re planning to sell, a well-maintained and updated home can attract buyers and potentially lead to a higher sale price.

Top DIY Home Improvement Projects

Here are some DIY projects that not only improve your home’s aesthetics and functionality but also positively impact your mortgage and financial standing.

1. Fresh Paint

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The Top Mistakes to Avoid When Applying for a Mortgage in Ireland

Applying for a mortgage is a significant financial step that requires careful planning and consideration. Unfortunately, many applicants make mistakes that can delay approval or result in unfavorable terms. To help you navigate the process smoothly, here are the top mistakes to avoid when applying for a mortgage in Ireland and how to avoid them.

1. Miscalculating Affordability

One of the most common mistakes is miscalculating how much you can afford. Many applicants focus solely on the mortgage repayments without considering other financial obligations and lifestyle expenses. It’s crucial to create a detailed budget that includes all monthly expenses, such as utilities, groceries, transportation, and entertainment, in addition to your mortgage repayments.

How to Avoid: Use mortgage calculators provided by banks and financial institutions to get an accurate estimate of your monthly payments. Ensure your total monthly housing costs, including insurance and taxes, do not exceed 30-35% of your gross monthly income.

2. Not Considering Additional Costs

When buying a home, many people overlook additional costs such as property taxes, home insurance, maintenance, and potential repairs. These expenses can add …

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Urban vs. Rural: How Location Affects Your Mortgage Options

When considering buying a home in Ireland, the location you choose—urban or rural—can significantly impact your mortgage options and overall experience. Each setting offers distinct advantages and challenges that can influence your decision. Here’s a comparison of mortgage options and considerations for buying in urban versus rural areas in Ireland.

Mortgage Options in Urban Areas

Urban areas, like Dublin, Cork, and Galway, offer a variety of housing options, from apartments to townhouses. Because these areas are densely populated and in high demand, they often have a higher cost of living and property prices.

Advantages:

Accessibility: Urban areas generally have more lenders and financial institutions. This competition can lead to better mortgage rates and terms for buyers. Employment Opportunities: With a concentration of businesses and industries, urban areas provide more job opportunities, which can positively impact your mortgage application by demonstrating steady income. Amenities and Infrastructure: Proximity to amenities such as schools, hospitals, public transportation, and entertainment facilities can enhance property values and make urban properties more attractive.

Considerations:

Higher Property Prices: Due to the high demand, property prices in urban …

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Unlocking Financial Freedom: Paying Off Equity Shares

In the realm of homeownership, equity shares have emerged as an innovative solution for individuals aspiring to step onto the property ladder. While equity shares provide a valuable opportunity to own a portion of a property, questions often arise regarding the flexibility of payments and the ability to pay off equity in lump sums. In this article, we will explore the intriguing possibility of making lump sum payments towards equity shares in Ireland and shed light on the specific guidelines governing this process.

Understanding Equity Shares 

Before delving into the intricacies of lump sum payments, let’s first grasp the concept of equity shares in Ireland. Equity shares, also known as shared ownership or shared equity, allow individuals to purchase a percentage of a property while the remaining portion is owned by a housing association or the government’s affordable housing scheme. This arrangement enables prospective homeowners to access the property market with a more affordable initial investment.

The Power of Lump Sum Payments

Now, let’s address the pressing question: Can a customer pay lump sums off their equity share in Ireland? …

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Pros and cons of a variable rate mortgage

A variable rate mortgage is a mortgage in which the interest rate on the outstanding balance changes periodically. Typically, these loans will have fixed, or “teaser” interest rates for a specified amount of time, after which the interest rate will change based on a variety of factors. In most cases, the initial interest rate on a variable rate loan will be lower than a fixed rate, which can be appealing for homebuyers. But it is important to be aware of the pros and cons before jumping into a variable rate loan.

Pros

Flexibility

The number one advantage of a variable rate mortgage is flexibility. With a variable rate mortgage, you don’t need to worry about penalties for things like increasing your monthly payment, or paying off your mortgage early. You also have the ability to make lump-sum payments on your mortgage throughout the year, which can be very helpful for home buyers with a fluctuating income affected by bonuses or commissions. If your life is likely to change relatively soon, and you plan on eventually moving or selling the house, …

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How do mortgages work?

If you’re looking to buy a home, you’ve probably already realized that this is not like most transactions. The average house price in Dublin is €396,000, and unless you’re very wealthy, you probably don’t have anywhere that much in savings. Because you likely can’t afford an expense of this magnitude out of your own pocket, you will need to finance the purchase through a mortgage, and if you’re new to the home-buying process, you may be a little confused as to how exactly these loans work.

A mortgage is a huge loan secured against the value of your house. A “secured” loan means that the borrower promises collateral to the lender in the event that they are unable to make payments, and in this case, the collateral is your home. In other words, the bank will kick you out and take possession of your house if you can’t make payments. In order to prevent this from happening, the lender will typically conduct a detailed review of the borrower’s finances in order to determine how much they can reasonably afford to …

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Buying a home vs. Renting: Which is better?

Buying your home is one of the biggest financial decisions of your life. However, it is a big commitment and there are a lot of hidden costs and factors that can make it unaffordable for some. Because of the costliness of buying a home outright, many buyers turn to renting instead, especially in expensive housing markets like London, New York, and Hong Kong. Determining which option is best for you depends on a variety of factors, and not everyone’s situation is alike. To help with this important decision, let’s take a look at some of the key differences between buying and renting.

Buying

When buying a house, it’s likely you’ll need to apply for a mortgage. To get a mortgage, you need a deposit (usually at least 10% of the home’s value) and a steady income in order to make repayments. The greater your deposit and income, the more your bank or lender will be able to offer you. However, if you live in an expensive area, or have a low salary and little savings, buying may not be for …

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New Green mortgage offering one of Ireland’s lowest rates

AIB’s mortgage subsidiary Haven has launched a new, four-year, fixed rate green mortgage with one of the lowest rates currently available on the market.

Haven is a wholly-owned subsidiary of AIB which focuses solely on mortgage distribution through brokers. They offer a broad selection of fixed and variable rate mortgages to customers including first time buyers, movers, switchers, and investors.

The mortgage has a rate of 2.15 percent, and applies to both new and existing customers with a Building Energy Rating (BER) of between A1 and B3. The BER cert must also be less than 10 years old in order to be eligible. All new builds are expected to qualify for the low rate, and existing customers who remodel their home to meet the BER requirements will also qualify.

According to AIB, this low rate could result in substantial savings for the average customer. The lender reports that the new rate allows customers of a 25 year, €300,000 mortgage to save €155 monthly. This equates to a savings of €1,800 per year over the lifetime of the loan, when compared …

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How you can be approved for a mortgage in Ireland despite Central Bank’s rules

It’s no secret that house prices are continuing to rise in Ireland. Because of this, it is more important now than ever to maximize the amount that you are allowed to borrow. The Central Bank’s rules often do not make this process any easier, as many have criticized the Central Bank on its restrictive rules in terms of how much people are allowed to borrow. To be approved for a mortgage in Ireland, you first have to fall within the Central Bank’s income rules. Second, your lender will evaluate your repayment capacity.

First, the Central Bank restricts lenders to loans of 3.5 times the borrowers’ income (joint and single), unless they are granted an exemption. This means that someone making €40,000 can borrow up to €140,000, and a couple making €100,000 combined can borrow up to €350,000, respectively.  However, to be approved for a mortgage, they must also pass a stress test, per Central Bank rules. This tests the ability of the borrower to repay the loan each month should interest rates rise by 2 percent above what the lender …

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What does it mean if your mortgage is in arrears?

The mortgage on your house or apartment is one of the biggest and most important financial commitments that most people have. If you fall behind on these payments, it could put you in a very difficult  place financially. When you miss mortgage payments, you may fall into what’s known as mortgage arrears. If you fall into arrears, your lender may eventually repossess your home. This is why it’s important to contact your lenders Arrears Support Unit as soon as you fall into arrears, or even pre-arrears. However, repossession is a last resort for your lender, as they generally want you to make all your payments on time. This is why, before they repossess your home, your lender is required to offer a Mortgage Arrears Resolution Process (MARP), per central bank guidelines. Under the MARP, your lender will offer a variety of solutions to help you pay back what you owe, in addition to paying back the amount in arrears in full.

If you enter the MARP, your lender will first conduct an assessment of your financial situation and your ability …

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