Retirement August 06 2018

Finance Tips for Snowbirds

To ensure owning a vacation home is as relaxing as you imagined, protect your finances and your assets with advice that’s evergreen.

Rent Before You Buy 

Many people who are scouting a second home are dazzled by a beautiful locale and sign their savings away too quickly. They end up trying to make it back by becoming absentee landlords (which has its own hassles). Take 1-2 years to rent a spot and get to know your neighborhood. When you prioritize your home search, consider:

  • Safety
  • Noise (Is the home near firehouses, hospitals, bars, or schools?)
  • Budget
  • Space (What will your home be used for? Will you need room for friends and family or can you downsize?)
  • Personality (Don’t be an aspirational shopper by assuming you’ll develop a cheaper lifestyle or new hobbies.)

Map your favorite hot spots and decide whether your new home is comfortable personally and financially. This could be where you live out your retirement.

Prepare Your Homes For All Seasons

It’s important to winterize your home while you’re away, but your tropical getaway will also need routine care. The easiest option is to ask a neighbor or buy a condo or home with a homeowner’s association that will provide exterior maintenance. If you want to maintain your second property yourself, a few summer vacancy precautions include:

  • Lawn vegetation
  • Mail discontinuation (to deter thieves)
  • Water stains or mold that indicate leaks
  • Worn roof shingles
  • Clogged gutters and downspouts

You could always rent out your vacation home, but revolving tenants will demand their own costs for carpet replacement and repainting. If you rent out your home for more than 14 days, you also have to report it as rental income. 

CALCULATE THE COST

Research How to Lower Your Taxes

Tax codes vary by state. Some have no income tax and provide tax breaks on retirement income and real estate for seniors. To take advantage of the tax benefits available with your new address, here are a few ways to prove your residency:

  • Apply for a driver’s license
  • Register to vote
  • Open a bank account in the area
  • Get a new phone number using the area code

You may also need to have a permanent home in the state for 11 months out of the year, and spend 184+ days in-state. Maintain a record of your visitation with plane tickets, credit card bills, etc. Remember, the IRS only investigates if you owe money, not if you pay too much. So make sure you’re not setting yourself up for double taxes.

Plan For Health Care

While most health insurance will cover emergency care out of network, research doctors and hospitals in your new neighborhood that you can reliably afford with your private insurance. You should also fax medical records to a nearby pharmacy so you’re able to refill prescriptions. To make sure you don’t forget important files, such as your medical power of attorney, digitize your documents for easy access from a phone or computer.

Know Fees Involved in Owning a Second Home

Understand that maintenance gets more expensive with two homes, not less. There are ways to cut energy costs, but we’ve provided common expenses that occur when spreading your time across two states:

  • Stopping and starting utilities vs. timed, automatic operation (your tropical paradise may need constant air conditioning to avoid mold)
  • The commute between homes (gas, tickets, etc.)
  • Buying new appliances and furniture vs. a furnished condo or home

As you keep track of these payments, use online banking for bills, and alert your bank of out-of-state charges to avoid them freezing your account. This will make sure traveling back and forth is worth it!  

Search Results for query

June 17 2019

Looking for a mortgage with flexibility?

Qualifying for a mortgage is now easier than ever before! If you have less-than-perfect credit or are carrying some higher debt, you may still qualify for a home loan with Eagle Home Mortgage’s new flexible financing option.

Read More

June 11 2019

Mortgage Rates at Historic Lows - Again!

Mortgage rates are constantly changing, but they have remained historically low for quite some time now. If you’re in the market for mortgage financing, it may make sense to go ahead and get pre-qualified now!

Read More

May 31 2019

What is Escrow?

When you’re buying a home, you’ll hear the word escrow multiple times throughout the process! The meaning varies slightly, but all of the variations have to do with funds being set aside for your home.

Read More

April 18 2019

Eagle Home Mortgage's Homebuyer Solutions Group

If you’re ready to buy a home, but are unable to qualify due to credit challenges, our Homebuyer Solutions Group (HBSG) team is here to help you get the education and advice you need to turn “not today” into “You’re a...

Read More

March 27 2019

Interest rates have dropped!

Get Your Home Equity Working for YOU and Refinance Today 

Read More

March 25 2019

5 Steps to Kickstart Your Mortgage Refinance

Ready to refinance your home, but don’t know where to start? Here are some necessary steps to get you started to possibly decrease your monthly payments!

Read More

March 15 2019

Student Loan Debt? How You Can Still Get A Mortgage.

While your student loan debt may look like the biggest obstacle getting in the way of homeownership, a lender may not see it as much of a threat. Here are what lenders are looking at and how your student loan debt affects your approval.

Read More

February 07 2019

A Modern Mortgage with a Personal Touch

In the digital age, we know that you expect a simple online experience that is quick, easy and guides you step-by-step through the mortgage process. With Eagle’s Digital Mortgage, you can apply for a home loan faster and easier than ever before –...

Read More

February 04 2019

How Secure Is Financing Your Home Online?

Technology has changed the way we live our lives – including home financing! Eagle’s Digital Mortgage has been found to save days (even weeks!) in the mortgage process by providing a more complete pre-qualification upfront and an easy way for you to...

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?