New Jersey Homeowners Make Home Repairs without Adding Debt

Vincent E. and his wife

How Vincent is Making Home Repairs and Updates without Adding Debt

New Jersey homeowners Vincent and his wife had initially planned on living in their home for only 10 years or so. But as their two children got comfortable in school and familiar with their neighborhood, 10 years turned into 15, then 19.

Now, with one child headed off to high school and another in college, Vincent and his wife are turning their focus back to their home. The competitive market homebuyers were facing in early 2021 was enough to convince Vincent and his wife that it still wasn’t time to sell.

“I wanted to start making investments in my home without adding more bills,” said Vincent. “We wanted to make some improvements, pay off some bills, and just be comfortable.”

Vincent was no stranger to startup companies with new, innovative ideas, so when he stumbled upon Hometap in his search for ways to access his equity, he was intrigued.

“I’m not the kind of person to not try something just because it’s new,” said Vincent. “The old-fashioned way of pay-as-you-go just felt old. There has to be a better way of doing things — to have the ability to pay at the end or when we’re ready to sell.”

He looked to his mortgage provider first as he considered applying for a line of credit to fund some home renovations and pay off some debt. And while the rates were low enough to pique his interest, he found himself repeating the same drawn-out application process.

An internet search turned up Hometap. After lots of due diligence — reading through the website, customer reviews, comparison articles, etc. — Vincent requested an Estimate from Hometap.

“I was kind of shocked at how simple it was, in a good way,” said Vincent. “I thought there would be more to it, but it was very easy. [My Investment Manager] was great. He walked me through everything; he was very descriptive; he made me feel comfortable. And then they came and did the [signing] — it was perfect.”

With eight years left on their mortgage and only a few years before both children were out of the house, it was finally time to cross some renovations and repairs off their list to make the house more usable for their needs now.

After replacing their aluminum siding with vinyl to fit the feel of the neighborhood, they plan to tackle some interior repairs before redoing the kitchen and floors.

As to how they’ll settle their Investment, Vincent and his wife are keeping their options open.

“I don’t know what our options will look like in 10 years,” said Vincent. “I know we’ll have the house paid off in eight. I look [at the Investment] like a lease. I’ll pay a lump sum, without paying anything upfront. We may refinance, we may get another loan. If both kids choose to attend college out-of-state, that’s another factor to consider.”

Find out if a home equity investment from Hometap could help you make some needed home repairs and renovations, today!

5 Ways to Pay Off Your Home Mortgage Early and Save

large home with gazebo

Paying off your mortgage early can be beneficial in a number of ways. Most importantly, it allows you to save money in interest, and also lets you shift your focus to saving for retirement, building an emergency fund, or simply just enjoying life a little more.

However, it’s important to note that you shouldn’t stretch your budget if you have more pressing financial needs. For example, if the money you plan on using to pay off your mortgage would be better used to invest, build a retirement fund, or save for emergencies, that might be a better decision. In addition, by paying off your mortgage early, you’ll lose the benefits of claiming mortgage interest as a tax deduction.

That being said, if you already have some cash set aside for emergencies, a retirement fund that’s aligned with your goals, and don’t have much outstanding debt, paying off your mortgage early can still be a smart priority. And if your mortgage was taken out after January 10, 2014, you likely don’t need to worry about any prepayment penalties.

If you’re curious about how long it will take you to pay off your mortgage at your current rate, you can use this early mortgage payoff calculator. Simply select “other” when prompted for the type of debt and input your current interest rate and the amount you’re paying each month to receive an estimated total cost and timeline for being mortgage-free.

Then, get started by exploring some of the best methods for paying off your mortgage faster.

1. Get rid of PMI

One of the biggest obstacles to paying off a mortgage quickly is private mortgage insurance, or PMI. PMI is usually tacked onto mortgages when the borrower is unable to afford the minimum down payment on a home — usually 20% — as a step to protect the lender in case the borrower stops paying the loan.

If you have PMI, you could end up paying hundreds of dollars a month in addition to your regular payment — so getting rid of it as fast as possible is often key to reducing your payoff timeline. There are more than a few ways to do this, including getting a new home appraisal, increasing your home’s value, and requesting early cancellation.

2. Pay more each month toward your principal

If you’re able, pay extra toward your principal, which in turn reduces the total interest you’ll pay.

The chart below shows the total mortgage cost when making the minimum payment versus 10%, 20%, or 30% extra per month on the average balance of $208,185 over a 30-year period.

Mortgage Costs

3. Make one more payment each year

Some homeowners opt to make just one extra monthly payment per year to shorten their timeline. If you choose to do this, you don’t necessarily need to make the payment all at once; in fact, it’s more common to use this approach by making bi-weekly payments of half your monthly amount on an ongoing basis. This way, by the end of the year, you’ll have added another installment without having to locate a lump sum of cash to pay in full. If you go this route, you’ll want to make sure you check with your mortgage provider first, as it may require some advance planning.

4. Refinance your home

While a cash-out refinance might be the first solution that comes to mind when thinking about refinancing your home, a home equity line of credit (HELOC) is often a better choice since it might offer a lower interest rate than your current mortgage without dealing with the closing costs you’d be saddled with if you went with a traditional refinance. One downside that you need to be aware of is that while you can initially make interest-only payments on a HELOC, at the end of your “draw” period, you’ll have to pay back the interest and principal together each month — which might be more than your previous monthly payment.

5. Consider a home equity investment

A home equity investment gives you access to cash in exchange for a share of your home’s future value, but unlike a HELOC, doesn’t accrue interest or require monthly payments. While this option isn’t common as a primary reason to receive an investment, some homeowners find it to be an advantageous secondary use of funds. For example, if you decide to use an investment to pay off debt or renovate your home and have cash left over, you can put it toward paying off PMI or your principal. Take it from California homeowner Elizabeth, who used a Hometap Investment to handle the debt she incurred from a Home Energy Renovation Opportunity (HERO) loan and used the rest toward her mortgage balance.

Take our five-minute quiz to find out if a Hometap Investment can help you pay some or all of your mortgage balance off early.

YOU SHOULD KNOW…

We do our best to make sure that the information in this post is as accurate as possible as of the date it is published, but things change quickly sometimes. Hometap does not endorse or monitor any linked websites. Individual situations differ, so consult your own finance, tax or legal professional to determine what makes sense for you.

Pros and Cons of Using Home Equity to Fund Your Business

laptop in home office

When you’re starting or growing your business, there’s a lot of costs to consider, from leasing property and purchasing equipment to hiring and training staff. If you’re a homeowner, you may not have considered using your home equity for business funding, but it can be a viable alternative to a conventional small business loan. Take a look at the pros and cons of each of your options below.

SBA (Small Business Administration) Loan

Maximum funding: $5,000,000

A conventional small business loan, or SBA loan, is often the first avenue for many business owners seeking funding. Backed by the Small Business Administration, these loans are provided by banks, microlenders, and commercial lenders and often feature lower interest rates and more flexibility than traditional bank loans.

However, one major challenge of traditional small business loans is the red tape and paperwork they require; many ask for a personal asset guarantee to secure the loan. It’s also important to note that if your business is especially small — say, if you’re the sole proprietor or only one of two or three employees — it might be especially difficult to secure a loan. It’s estimated that only about 15% of sole proprietorships have business loans. 

Did your SBA loan application get rejected? Learn why and the next steps you can take >> 

Home Equity Loan for Business

Maximum funding: Typically up to 80-85% of your home’s value

A home equity loan lets you borrow against the equity you’ve built in your home, using the home to guarantee the loan. On the plus side, these loans offer predictable interest rates, so your monthly payment remains the same every month, which can be especially appealing if you’re looking to use a home equity loan for business purposes.

And unlike most business lines of credit, you aren’t required to pay the balance down to zero each year. In fact, a home equity loan can be appealing for its generally flexible repayment periods, which typically range from 5 to 15 years. In addition, it’s possible that the interest on your home equity loan will be tax deductible.

small business financing options

However, a home equity loan is a second mortgage on your home, so you’ll need to be prepared to make an additional payment on top of your existing mortgage. The application and approval process can also be a bit challenging due to lenders’ specific requirements.

Home Equity Line of Credit (HELOC) for Business

Maximum funding: Typically up to 80-90% of your home’s value

If you’re looking for flexibility, a HELOC for your small business can be a good option, as it gives you the opportunity to access funds any time and you can take out more as needed without any penalties. The application and approval process also tends to be easier than other options. As with a home equity loan, there’s the possibility that the interest will be tax deductible, and the repayment period typically spans from 15 to 20 years.

Yet unlike a home equity loan which usually has a fixed rate, the variable interest rate of a HELOC means that payments will be unpredictable every month. In addition, if your credit score or home value decreases, the lender can freeze your HELOC at any time.

Home Equity Investment

Maximum funding: Up to $600,000 (or 30% of your home’s value)

A home equity investment gives you cash in exchange for a share in the future value of your home, but unlike a loan or HELOC, you don’t have the hassle of monthly payments or interest. You can use the cash for anything you’d like, whether it’s purchasing equipment, making office renovations, or expanding operations. The timeline is also relatively quick, and once you’re approved, you can receive funds in as little as three weeks. At or before the end of the 10-year effective period, you’ll need to settle the investment — through a refinance, buyout with savings, or sale of your home. 

With all home equity products, a homeowner is putting their home on the line in hopes of fostering their business’ success. But what makes a home equity investment a bit different from the other options is the downside protection it offers. If the home value depreciates over time, the amount that’s owed to home equity investment providers like Hometap also goes down, and there’s no guaranteed return on its investment. And conversely, if a home sees rapid appreciation, Hometap’s upside is capped at 20 percent of the Investment per year.  

Take our five-minute quiz to see if a home equity investment might be a good option for funding your small business. 

YOU SHOULD KNOW…

We do our best to make sure that the information in this post is as accurate as possible as of the date it is published, but things change quickly sometimes. Hometap does not endorse or monitor any linked websites. Individual situations differ, so consult your own finance, tax or legal professional to determine what makes sense for you.

25 Small and Midsize Companies with the Best Leadership Teams

Comparably just published its annual list of the companies with the best leadership teams.

The ranking is based on anonymous employee ratings over a 12-month period.
Here’s the top 25 small and midsize companies with the best leadership teams.

7. Hometap 

Location: Boston, Massachusetts

Industry: FinTech

Employee quote about the leadership team: “They seem genuinely interested in placing us in situations to work on projects that are not only beneficial for the company, but also fulfill us on a personal level.”

This article originally appeared on BusinessInsider.com. Read the full article. 

14 Questions with Hometap’s Head of Marketing

desk with plant and keyboard

Rachel heads up Hometap’s marketing team, managing all programs and initiatives to increase awareness and spread the word about our product among homeowners.

Head of marketing Rachel Keohan

Q1: You have experience working for global corporations and joined Hometap at the very early-startup stage. What attracted you to Hometap? 

I’ve actually worked for smaller, early stage companies the majority of my career, and have had a passion for startups ever since attending Babson’s MBA program, which is centered primarily around entrepreneurship. 

Prior to joining Hometap, I was working at Ingenico Group, which is a global, multi-billion dollar payments company based in Paris, France. I ended up there because I was working for a mobile point of sale (mPOS) startup company in Boston called ROAM, which ended up getting acquired by Ingenico a couple of years after I joined. I was then given the opportunity to build a new marketing team from the ground up for the Ingenico North America Region, while helping to reposition the company from a hardware-only payment terminal manufacturer to an omni-channel payment solution provider. So although I was working for a large, global company, in many ways, a lot of the work I was tasked with was very similar to that of working at a startup. 

Eventually, I wanted to get back to working at a true startup, while staying in the fintech industry. I stumbled upon Hometap, and was inspired by the company’s mission, and thought its home equity investment product was incredibly innovative and like nothing I had ever heard of before. As a homeowner myself, Hometap’s value proposition also really resonated with me. But what really sealed the deal was the company’s unbelievably impressive leadership team. I love being surrounded by really smart people who I can bounce ideas off of and continue to learn from, and I knew if I came to Hometap, I’d have the opportunity to grow. 

Q2: You’ve previously worked in various parts of the technology world, both in the payment solutions and mobile apps space. Are there any lessons or skills you’ve learned at previous companies that you find yourself applying at Hometap?

Every company I’ve worked at has offered unique products or services that are very different from the next. A lot of my career has been in the fintech industry, and although the companies have each been very different, they’ve all taught me the importance of really understanding the customer, what their pain points are, and how your product/services can help them overcome these challenges or achieve their goals. And whether that’s marketing a mobile point of sale solution to a retailer or marketing a home equity investment product to a consumer — it’s all about understanding your audience, where and how to reach them, and what messages will resonate with them. It’s also important to not be afraid to think outside the box and get creative in order to differentiate from the competition. Although the marketing channels I’ve used to reach my customers have not always been exactly the same — especially when going from B2B to B2C — I’ve found that the same general principles hold true. 

Q3: What’s the biggest challenge you face as Head of Marketing?

I think the biggest challenge is finding the right balance between driving the current programs and initiatives that are needed to ensure we’re hitting our quarterly goals and KPIs, while also pulling my head up to think about long-term strategy: i.e. what’s going to help us build and evolve our brand? How can we continue to differentiate ourselves in an increasingly competitive market and secure our spot as the category leader? What are some of the new channels or higher funnel campaigns we should be thinking about that may not lead to immediate conversions but are more of a “long game”? 

We have aggressive growth goals at Hometap, so it’s incredibly important that we continue to hit our weekly/monthly/quarterly targets, but if I’m not thinking further out, we’ll end up falling behind. Luckily, I have an incredibly talented team who I can trust to execute on all of our current initiatives, which has allowed me to spend more time thinking about what comes next. 

Q4: What’s the most rewarding part of the role? 

I’d say it’s a toss up between seeing how far my team has come/how much each individual has grown since joining Hometap and seeing how Hometap is truly making a positive impact on so many homeowners’ lives. 

The manager/leader in me loves mentoring each of the members of my team, pushing them to think about something in a different way or to take ownership of a project that may be outside their comfort zone all the way from conception through completion. Not every idea is a homerun, and there will of course always be times when a campaign or program fails, but it’s really rewarding to see each member of my team learn and grow from these experiences…and even more rewarding when something they’ve worked on meets or exceeds expected results. 

At the same time, the growth we’ve had has allowed us to help so many homeowners achieve their goals and improve their financing situations. Reading the hundreds of Trustpilot reviews talking about the incredible experiences homeowners have had with our company and how receiving a Home Equity Investment from us has changed their lives has made this the most rewarding job I’ve ever had. 

Q5: How do you stay apprised of the most current practices in marketing? What are you reading, listening to, or watching?

I’ve always loved HubSpot’s content and use them as a regular resource for best practices across all functional areas of marketing, and especially content marketing. I subscribe to a number of fintech marketing blogs/newsletters; the Fintech Marketing Hub is one. I really enjoy Backlinko’s newsletter and content on SEO. And I keep a very close eye on many of the fintech companies that I think are doing a great job from a brand/content/social media/demand generation perspective. I’m constantly screenshotting different social posts or digital ads from many of these brands and sending them to my team as inspiration. I’m sure it drives them nuts but I just can’t help myself.  

Q6: What’s the best advice — marketing-specific or not — that you’ve received during your career?

“Producing high quality work, and consistently delivering results is not always enough to be successful in marketing. You need to make sure people understand all of the work that goes into the work you’re doing and what happens behind the scenes.” 

It’s never really come naturally to me to talk about all the great work that my team or I have produced. And early on in my career, I took sort of a “head-down” approach, thinking that if I just consistently delivered high quality work, the results would speak for themselves. This strategy worked fine up to a certain point, but I’ve found that as I’ve taken on more leadership roles, it’s critically important that other departments and leaders throughout the organization understand the importance of marketing and all the work that goes into the millions of campaigns and initiatives we’re juggling that ultimately drive revenue for the business. Not only does this ensure my team gets the credit and recognition they deserve, but it also helps with securing the budgets and resources needed to continue to meet/exceed our goals. 

AT HOMETAP 

Q7: You oversee so many projects happening simultaneously (and for the time being, remotely). How do you stay on top of everything? 

I’m a pretty organized person by nature, but I have a few tactics that seem to work well for me: 

  • I start each week with a list of to-dos, which are my top priorities for the week. I like to write these down in a notebook that I always have in front of me. There’s something so satisfying about crossing things off that list with a pen. 
  • I have my team use Monday.com to manage projects and tasks. This is especially useful for projects that involve multiple people or teams, which the majority of the things we work on do. 
  • I have weekly one-on-ones with each member of my team, where we use running agendas in Google Docs. This allows me to stay in the loop on all of the projects that are in play, and helps ensure things are moving forward and on schedule. 

Q8: What are the top qualities you look for when hiring a new member of the marketing team?

Having the necessary skills/experience for the specific position is obviously important. But I think the one quality I look for, no matter what role I’m hiring for, is natural curiosity. Even if a person has what looks like the “perfect” background or experience on paper, if I talk to them and don’t get the sense that they’re a naturally curious person with a desire to learn and hunger to grow, then I won’t hire them. I’d much rather hire a person with less experience, but who comes to the table with lots of insightful questions or brings up an interesting angle or idea during an interview that I hadn’t yet thought about. These are the people that will take the time to really dig in, roll up their sleeves, quickly get up to speed, and start adding immediate value to the team. 

Q9: Do you have a go-to interview question? What is it? 

Hmmm…nothing super interesting or unique. I always ask people to simply tell me their story and call out any transferable experiences to this role. This helps me understand how well they can “market” themselves, and also helps me identify how much research they’ve actually done about the company and position before talking to me. I also make sure I leave plenty of time for them to ask questions — one of the ways I test their level of ‘natural curiosity’. 

Q10: If you could trade jobs with anyone else at Hometap for a week, what position would it be? 

I think it would be Gregg Damiano, Director of Channel Sales. I’ve helped build partner programs at previous companies, and have been pretty involved in helping to lay the foundation for Hometap’s existing partner strategy (since ownership of this program used to sit within Marketing), and I just find the partner channel really interesting. I think it’s a huge opportunity for Hometap and there are so many directions in which we can take this, so I think it would be fun to dedicate an entire week to talking with partners, gaining new insights, and coming up with new creative ideas to help drive our partner program forward. 

Q11: What’s one quality someone needs to be successful at Hometap? 

Communication. There are so many cross-functional initiatives happening at all times, so it’s really important to be able to effectively communicate with other people/teams in order to drive projects forward and ensure things don’t get lost in translation. 

OFFICE CULTURE

Q12: What qualities do you look for in a company’s office culture? 

Transparency, trust, flexibility, fun (but not forced fun…I HATE this!) 

Q13: You’ve been with Hometap for almost three years now. What’s one word you would use to describe the culture here?

Collaborative.

Q14: What are the best and worst parts of working from home? 

Best: Having a more flexible schedule. I still have all of my meetings during normal work hours, but if I need to run an errand during the day or take care of my kids if they’re home sick from school, I can more easily do that. And if doing these things impacts the amount of work I can get done on that day, I can finish up later that night. 

Worst: Rarely leaving my home. Once I get in the zone, it’s often really hard for me to remember to take a break or go for a walk and get some fresh air. I often go the entire day without ever stepping outside. I’m definitely more productive at home, but it’s not always great for my mental or physical health. 

How to Invest in Single-family Rental Homes

Rental property investors have long touted the low risk and stability of investing in affordable housing. They point out, “Everyone needs a place to live.”

The COVID-19 pandemic proved to be a real-life test of this mantra. In March 2020, landlords found that even when shelter-in-place directives keep people from working, they still pay their rent. Are single-family rental homes make a good investment during COVID-19? Let’s dive in.

Surveys Show: Renters Pay Their Rent
Rental property owners across the country steeled themselves for what was predicted by experts to be at least a few months of unpaid rent. But it turns out there was not much to worry about.

This article originally appeared on InvestorJunkie.com.  Read the full article.