Dean Graziosi

While rural areas are often beautiful places, and may include attractive housing or even some acreage, there are a number of challenges to both living and selling in a rural area. These challenges are mainly related to the seclusion, distance to the nearest city, and possible issues with taxes or the lack of certain ordinances. For those used to the amenities of city life, a rural home may have a lot of features you didn’t expect and may not necessarily want.

Seclusion can mean a number of things. For many, seclusion denotes the peaceful tranquility of life outside of the mainstream hubbub.  It means wandering down country roads without worrying about excessive traffic or obnoxious passers-by.

For others, seclusion may have a slightly different meaning.  The seclusion of some rural areas means being disconnected from services such as cable TV, city-regulated water, and sewers.  Response time for the fire department or ambulance may be greatly slowed.  In colder climates, many rural routes don’t have snow removal services either, which could be hazardous for anyone unprepared or in bad health.

The distance to the nearest city or town may determine the length of daily commute.  Some people are retired or work from home and don’t have to worry about the location of their jobs, but others must bear in mind how much time and fuel may be spent in the day-to-day travel between work and home. You may also have to drive some distance for such simple things as grocery shopping.

Having some land to plant on, keep animals, or just let grow wild for the local wildlife can be a wonderful perk to living in a rural area. However, the amount of property taxes owed, as well as the cost of water rights or other fees that go with it, must be kept in mind. Additionally, most rural areas have no ordinances regarding noise levels, leash laws or outside appearances.

With all of the perks and positive things about these homes, there are still a number of challenges, but the benefits are unlimited for the right person.

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The interest rate on a mortgage loan can make or break the profitability and affordability of a home. On such large loans, a difference of even half a percentage point can translate to thousands of dollars more paid out in interest by the time that loan matures. There are a number of things you can do to help ensure the best possible interest rate. Namely, do everything you can to keep a high credit score, shop around for the best interest rates for the property you want, and consider the option of purchasing points on your mortgage loan.

Nearly everyone who has ever considered purchasing a home has heard about points, though many still aren’t sure what those are. Simply put, points are purchased to lower your interest rate on a new loan. Not all lenders give the option of purchasing points, but they have the potential to save thousands of dollars for a homeowner throughout the life of a loan.

Most lenders give you the option of purchasing up to three points, each one reducing your interest rate by a set percentage. For example, if you are offered a loan at 8.5% and each point will lower that by .25%, you can reduce that interest rate to as little as 7.75% if you take the option of purchasing all possible points.

The price of each point will vary per lender, as will the value of each in respect to the percentage decrease. In general, points will give up to a .25% discount apiece, though it can be lower. Many lenders use a percentage of the overall value of the loan as the determining factor in the price of points, while others have a set price of $1,000, $2,000 or more per point.

While the cost may seem a bit high, points can be well worth it in the long run. Over the course of a 15-year loan, the purchase of points can save several thousand dollars in interest. If you’re planning on staying in a home indefinitely, preferably ten years or more, points are most likely worth looking into as they can decrease your payment and significantly decrease the overall expense of purchasing a new home.

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