Answers to the key questions first-time buyers need to know about their home warranty
What is a Home Warranty?
A Home Systems and Appliances Service Agreement helps homeowners reduce the overall cost of owning a home by protecting them against unexpected system and appliance breakdowns.
What Items or Systems Does this kind of Home Warranty Cover?
A Home Warranty Service Agreement covers major systems and appliances that malfunction or break from normal wear and tear. These expensive-to-repair items such as air conditioning and heating units, electrical wiring, refrigerator, oven, dishwasher and garage door opener will age over time, making repairs inevitable. A Service Agreement offers protection from these repairs.
How Does a Home Warranty Service Agreement Differ from Home Insurance?
Homeowner’s insurance is often included in a homeowner’s mortgage and covers loss from incidents like fire, storms and vandalism. A Home Warranty Service Agreement covers major systems and appliances within a home from breakdowns caused by normal wear and tear. The two are complementary and do not overlap coverage.
How Does the Service Work for Homeowners?
When a covered item breaks down, homeowners simply log their service request online in a few easy steps, or they can call our toll-free number 24 hours a day. Your request will be dispatched to an approved and insured contractor in your area. They will contact the homeowners to set up an appointment, or they may call them directly to expedite the process. When the contractor comes to their home, the homeowners will pay a low service fee that varies by state. The contractor makes the covered repairs and bills 2-10 HBW for all of the work. Your homeowners are covered, so they owe nothing more.
Are Home Warranty Service Agreements for Systems and Appliances Transferable Between Owners?
Yes, these home warranty products are transferable at the time a home changes hands and the costs can be included in the price of the home. In fact, a home warranty is likely to increase the final sales price of a home. A legal document, such as the HUD statement will be required to ensure the Service Agreement being transferred to the correct individual. After the remaining term of the warranty, the new owners will simply have to renew their home warranty coverage on an annual basis.
Do These Warranties only Cover New Homes?
While systems and appliances warranties are certainly recommended for new homes—along with structural warranties that we sell to builders of new homes—2-10 HBW offers a variety of products to cover owners of both new and used homes.
Remember that a breakdown can occur at any time, even in new homes. Newer systems and appliances are more complex and can cost substantially more to repair. A 2-10 HBW warranty protects you from these unexpected repairs. HBW customers who have been in their homes for three years or less place an average of two claims each year.
How Much do Home Warranties Cost?
The average cost of a basic plan ranges from $400 to $600 a year, with more complex plans adding $100 to $300. Costs for home warranty plans are usually paid up front before the coverage become effective.
Home Warranty Service Agreements protect homeowners from unforeseen repairs and replacements. Visit 2-10.com to find out more!
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Here are four great reasons to consider buying a home today, instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.0% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You Are Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. It's Time to Move on With Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.
If purchasing a home for you and your family is the right thing for you to do this year, buying sooner rather than later could lead to substantial savings.
We previously informed you about a study conducted by TransUnion titled, “The Bubble, the Burst and Now – What Happened to the Consumer?” The study revealed that 1.5 million homeowners who were negatively impacted by the housing crisis could re-enter the housing market between 2016-2019.
Recently , HousingWire analyzed data from the US Bankruptcy Courts and revealed that 6 million Americans will have their bankruptcies disappear off their credit reports over the next five years and that this could “ possibly send a flood of more homebuyers into the housing market. ”
The chart below shows the total number of bankruptcies filed by year in the US over the last 10 years. The light blue bars represent over 3.3 million people who have already waited the 7 years necessary for their reports to no longer include their bankruptcies.
ICEHOUSE AMPHITHEATER: The 246th Army Band will play a free concert at 7 p.m. Monday, July 3, before a fireworks display. 107 W. Main St., Lexington.
SALUDA SHOALS PARK: The Lake Murray Symphony Orchestra’s Star-Spangled Symphonic Salute is 8 p.m. Monday, July 3. 5605 Bush River Road. $5 per car.LEXINGTON COUNTY PEACH FESTIVAL: There’s something oh so American about a day that includes a peach recipe contest, a car show, a peach parade, live music and, obviously, fireworks. The festival starts at 9 a.m. Tuesday, July 4, at the Gilbert Community Park with fireworks at 10 p.m. 110 Rikard Circle, Gilbert.
"Star Spangled Symphonic Salute" Concert | Lake Murray Symphony Orchestra
Saluda Shoals Park!
Patriotic concert at Saluda Shoals Park! Broadway songs, patriotic music and sing-a-longs. Bring picnic blanket or chair. Children's activities. 7pm. More here.
246 Army Band | Icehouse Amphitheater
Monday, July 3, 2017
Uncle Sam Jam | Mount Pleasant Pier
Tuesday, July 4, 2017
To start the year, housing experts all agreed on one thing: 2017 was going to be the year we would see mortgage interest rates begin to rise. After years of historically low rates, and an improving economy, the question wasn’t if they would increase but instead how much they would increase . Some thought we could see rates hit 5-5.5% by the end of the year.
However, the exact opposite has happened. Instead of higher rates as we head into the middle of 2017, we now have the lowest rates of the year (as reported by Freddie Mac ). Here is a graph of mortgage rate movement since the beginning of the year: