Mauricio Navarro

The old adage of "bigger is better" is completely passé now. If you want to be on the forefront of what's hot in today's world, don't think big; think small! It's all the rage in nearly every industry-mobile phones, music players, fashion (mini skirts and slim jeans!), and cars. And guess what? That trend is also big in real estate. While it used to be empty-nesters and retirees who were most likely to downsize their home, more and more growing families are joining the "smaller is better" revolution when it comes to their choice of home. Why? They want a better quality of life now, while they're young enough to enjoy it.

Though there are many benefits of downsizing a home-decreased utility costs, less expensive home maintenance, and cheaper property taxes, for example-the biggest benefit of downsizing a home is the money saved on mortgage payment. I know what you're thinking: If you buy a smaller home, you'll be cramped. Well, consider this: If you're like most Americans, 45% - 55% of your income is dedicated to your mortgage payment and mortgage-related / homeowner-related expenses. When you consider your other financial responsibilities, that doesn't leave very much disposable income to just enjoy life! Going smaller, however, definitely makes more room in your budget, which means you can spend more time outside of your home exploring the world! Let's look at an example:

The average preferred size home in America today is 2,500 square feet. Now, let's say that the price tag for a home that size is about $240,000. With a 20% mortgage down payment and a mortgage rates of about 5.33%, the mortgage payment would be $1,225.77 / mo. Now, if we compare that to a 1,500 square foot home priced at $175,000 and a 20% mortgage down payment, the mortgage payment would dip to $780.04 / mo. That's a decrease of $445.73 in your mortgage payment. Over the course of one year, that's a mortgage savings of $5,348.76! Plus, you'd save about $40 for every $100 of utilities every month, which is another $480! That's nearly $6,000 annually. How much more living could you do with that kind of savings each year?

Now, for those of you who really want to super-size your mortgage savings by downsizing, you're going to need to hunt for a special kind of home: A Small House. These types of homes, which are designed by specialty builders like Tumbleweed Homes, provide the ultimate in mortgage savings.

Small Houses are cozy cottages that take economizing living space to the extreme; on average, they range from 80 square feet to less than 1,000 square feet! Of course, opting for a small house will take some getting used to for most Americans; there's room for luxuries but not non-necessities. However, if you can make the transition, it will certainly pay off in the long run. The tiniest of Small Houses can be purchased / built for about $25,000 and the larger Small Houses-even those built with top-notch fixtures and building materials-typically have a price tag of less than $70,000! Therefore, a mortgage payment at 5.33% for a 30-year mortgage would be just $390.02 / month! That's an 835.75 monthly savings on your mortgage payment if you downsized from a 2,500 square foot house, which equates to savings of $10,029 per year! Now how's that for a manageable mortgage payment, and an affordable way to live big by thinking small?

"Hogwash!" That's what you should scream out in your mind if you ever come across a mortgage broker who tells you a lender will only offer you a larger mortgage loan is if you make a bigger mortgage loan down payment or improve your credit score. While both tactics will certainly encourage a mortgage lender to reduce your mortgage rate, neither tactic is truly effective in helping you to secure a mortgage loan greater than what you've been offered. However, if your dream home is just slightly out of reach, there is one way that may result in a lender granting you some additional credit: A green mortgage.

While they're not new, green mortgages (aka energy-efficiency mortgages) are gaining popularity today because more Americans are more environmentally conscious. Plus, with rising costs on food, clothing, energy and just about everything else, more homebuyers are looking to cut costs any way they can; that includes agreeing to "green" their soon-to-be new homes. That's exactly what a green mortgage is designed for: To save homeowners money in the long run.

The way green mortgages work is similar to any other mortgage. First, you must apply and qualify for a mortgage loan! That's the biggest hurdle to get over. Once you do, and if your lender offers green mortgages or has a green mortgage product, you follow the firm's specific procedures from there. If you're accepted as a green mortgage candidate, the lender will loan additional monies.

Now, green mortgages are not "name your mortgage amount: type loans; the amount is capped. Typically, lenders will up to 15% of the home price. Though each mortgage lender may state stipulations in various ways, the main stipulation is that the loan amount beyond the home price must be used for energy-efficient improvements or installments on the home. For example, you may decide to use some of the monies to install lighting that uses electricity more efficiently, low-flow water pumps, and a water recycling irrigation system.

Now, I bet you're wondering how taking on a bigger mortgage loan and greening a home saves the homeowner money in the long run. Simple: By installing or improving the home so it's more energy-efficient and environmentally friendly, the homeowner saves money on utility bills-water, electricity, etc. Homeowners can easily save $200 or more each year on utilities. That savings will "reimburse" the homeowner well before the 30-year term of the loan has been reached; the savings on utilities also makes managing the slightly higher mortgage payments manageable. Plus, there's an added benefit for buyers who obtain a green mortgage for a newly constructed home: The homeowner will save on the cost of the building materials used on the home.

If you're interested in a green mortgage, the first step is to do your research into lenders who offer them; the lenders are few and far between so do not be surprised if they are not available in your area. Also, realize that, mortgage lenders are highly selective in those to who they will offer green mortgages. Don't let that stop you from asking though because you never know. Besides, even if you don't get a green mortgage, you'll still have your home...and can green it when you're financially able.

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If a tree falls in the woods, does it make a sound? If a Web site is posted on the Web but no one knows how to find it, is it really there?

I, like many am still undecided about the tree riddle, but when it comes to the Web site riddle, there is no question. If a Web site is posted on the Web but no one knows how to find it, it isn't there! Finding information on the Web is all about someone and something knowing that the Web site is available for accessing. If a search engine doesn't know what your Web address is and the type of content on your Web site, it cannot send Web surfers to your site. Additionally, if Web surfers never have the opportunity to be exposed what your Web site has to offer, they will never know about your wonderful business. That would be bad for business, very bad.

So, what do you do? Simple. You introduce your Web site to search engines and Web surfers via online promoting. Here are some the most common and effective online Web site promotion tactics that you can implement yourself immediately after launching your Web site:

Step 1: Determine who you want to visit your Web site. This should be based on the target audience for your business. Here's what you need to know precisely:

1. Who is your target audience?

2. Are your goods or services directed toward local, national or global audiences?

3. What keywords would they be most likely to search for in order to find the goods / services you sell?

4. What might be some of sites on the Web that your target audience may frequent?

You will not be able to successfully and effectively market your Web site online if you do not know the answers to these questions. You must focus your marketing efforts!

Step 2: Submit your Web site URL to the major search engines and get listed in the major Internet directories. Why? Search engines and search directories call the shots on the World Wide Web. It's a fact. Therefore, it is critical to be in "cahoots" with them. Without submitting your URL to search engines or listing your Web site in the directories, search engines won't know to crawl your Web site and Web surfers will have a hard time finding your Web site without already knowing your Web site address. In North America, the major search engines and directories include the following:

Google Open Directory

Yahoo! Yahoo! Directory

MSN LookSmart

Ask Yellow Pages / Super Pages

Keep in mind that those are just the major search engines and directories. There are literally hundreds on the Web to which you could submit your information, but that's not really necessary. However, one thing you will want to consider is researching business-specific directories on which you can further promote your business. In many cases, submitting your Web site the search engines and directories will be free, but some of the companies do charge a fee. Also, if you plan to do business in outside of the United States, or if your target market is not North America, you will need to research to find out what the major search engines and directories for the nation you're targeting are.

Step 3: Seek out beneficial reciprocal linking opportunities. While having your site listed is critical to having search engines acknowledge and Web surfers to find your site, having a number of links to your site is also important. That's because the more links to your site there are, the better your rankings within the search engines will be. Haven't heard of reciprocal links before? Well, reciprocal links are made possible through a simple agreement between you and another Web site owner; you both agree to display a hyperlink on your Web site to the other's site. That's all there is to it but here's one final thought regarding reciprocal links: When choosing partners to exchange reciprocal links with, choose Web sites that complement or are related to the product or service that you offer; it's the best way to get traffic that encompasses your target audience.

Step 4: Invest in online advertising. Pay-per-click (PPC) and pay-per-impression (PPI) ads are the most common forms of online advertising. PPI ads are ideal if you can pinpoint the people who you want to see your advertisement and attract to your Web site. For example, if you're a local restaurant owner, you may choose to purchase PPI advertising on the Web site for the local newspaper in the movies section. Meanwhile, PPC ads may be a better investment if you're planning on advertising to a wide audience. PPC ads are triggered by the keywords that you choose in efforts to attract people who are searching for what you're selling. If a search engine finds your Web site to be relevant, your ad will appear in the ads section of the surfer's search results. PPI and PPC ads can be in the form of image or text ads so you do have some flexibility on how your ads will appear to potential consumers.

Once you've done all of the above, you will be in good position to attract more Web traffic. And though the advice above is solid, tried and true advice, there's one piece of advice that is essential: Be patient! Building steady Web traffic takes time-months or even years, actually. Therefore, don't expect hundreds or thousands of hits overnight. Once you're able to give up the DIY online promoting, consider hiring a firm that specializes in search engine optimization and promotion to help speed up the online process...and free up your time to handle other aspects of your business.

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Being a homeowner is a huge undertaking. As a homeowner, you're responsible for mortgage payments, property taxes, maintenance on the home, and the exterior upkeep as well. They're all major responsibilities but the one responsibility that's the most important, and that will affect your ability to handle the responsibilities listed above, is selecting an affordable mortgage loan; the key to that is know what your financing options are and how to use those options to your advantage. Three steps is all it takes.

The first step in using your financing options to your advantage is to shop around for up to three mortgage lenders-whether they're brokerage firms or bank-direct lenders-to foster the financing of your mortgage. Find firms / mortgage consultants that are patient, willing to answer your questions directly and that appear to genuinely care about helping you find a good mortgage loan. Do not move forward with the second step until this is done.

The second step is to order your credit reports from Transunion, Equifax, and Experian. The goal here is simple: To find out your credit standing before you have a mortgage consultant make an official inquiry. Once you have your credit reports, look to see which report has the lowest credit score; use that number as the credit score you give to mortgage consultant to help them determine the types of loans for which you may be eligible. That way, you'll know what your mortgage loan options are in a "worst case" scenario.

The third step after you've chosen a your potential mortgage lenders and have your credit reports in-hand is to look at all of the financial aspects of each mortgage loan your chosen mortgage consultants offer you based on that credit score. More specifically, you should pay attention to the (1) mortgage rates, (2) mortgage points, (3) mortgage down payment requirements, (4) mortgage loan fees, and (5) private mortgage insurance requirements. Here's a look at what you need to know and ask in order to make sure you select the best (aka least costly) mortgage loan:

Mortgage Rates

Mortgage rates are the interest rates at which a lender agrees to loan you money for your mortgage. The rates for a proposed loan can be fixed, variable, or a combination.

» Where can I find a list of the current mortgage rates your firm offers?

» Are the listed rates daily, weekly, or monthly rates?

» How will I know whether the rate is fixed or adjustable?

» For the adjustable mortgage rate loans, how often do the rates change?

Mortgage Down Payment

The mortgage down is like any other initial payment; it's simply a way to show the lender that you're willing to financially invest in your home purchase so they're not taking all the risk. Generally, the larger down payment you can make, the better. With that said, here's what you should ask:

» What is the minimum down payment required for each loan?

» By how much will my mortgage payment decrease if I pay a larger down payment than
the minimum required? Note: You can also do this online yourself with a mortgage loan
calculator.

Mortgage Points

Mortgage points can be a fee applied to your loan; they can also be a way to decrease the cost of your loan. Therefore, be sure to ask:

» On which of the loans is purchasing points to decrease my interest rate an option?

» What is the actual dollar cost of each point for X loan?

» By how much will each mortgage point purchase decrease my mortgage loan payment?

Private Mortgage Insurance (PMI)

Private mortgage insurance is an additional cost that some lenders require of homebuyers to protect their investment in case you default on the mortgage loan. Some buyers are required to pay it; others are not. Therefore, anytime you're applying for a mortgage loan, ask:

» Based on the down payment I am able to make and the loan types I'm eligible for, will I
need to pay for private mortgage insurance?

» How and from where can I get PMI?

» By how much will my private mortgage insurance increase my mortgage payments?

» At what point will I be released from being required to have private mortgage insurance?

» What can I do to not have to pay PMI?

Mortgage Loan Fees

Mortgage lenders often have fees they attach to loans, which means more money out of your pocket. Now, there's no way to get around paying some fees but you can minimize the amount of the fees you do pay. So, be sure to ask:

» Are your fees based on the mortgage loan amount, set fees, or a combination?

» Where can I find a list of your mortgage loan fee schedule?

» Where can I find an explanation (disclosure) of each fee?

Once you have the answers to all of the above, sit down and compare each of the loans. Be sure to consider the up-front expenses as well as the monthly costs and overall costs of the home purchase. Putting the numbers side-by-side in black and white will help you to see which loan(s) are the most fiscally smart. Admittedly, this may not be the fastest or most convenient way to shop for a mortgage but it is the smartest. Therefore, take the time and put in the work. If you do, you're sure to end up with a mortgage that will allow you to enjoy your home and live comfortably with cash to spare!