Homeownership is a substantial investment. Often, it yields positive returns, such as those gained by building equity or establishing high resale value. Unfortunately, it can also erode your bottom line if you’re not careful about remodels or prepared for costly unexpected repairs and rising interest rates. The good news is, you can maximize your investment return while safeguarding against loss. Review the following questions and rest easy knowing you’re prepared for the worst and set to reap the best benefits.

The Basics

 Am I getting the best mortgage rate?

Consult your mortgage promissory note to familiarize yourself with the details of your loan program, advises Wes Young of First Hawaiian Bank. Depending on your current financial situation, you may be able to refinance your loan to take advantage of lower interest rates or adjust your principal payment to pay off your loan more quickly. You may also be able to refinance in order to lower your monthly payment.

 Is anything in need of repair?

Even in Hawaii, “homeowners should perform annual maintenance inspections of their homes after the winter season, which is the harshest of the seasons,” says Karen Nakamura, president and CEO of the Building Industry Association of Hawaii.  “These inspections should include everything from the yard and exterior of the home to the inside of the home up to the roof.”

Upfront inspection saves homeowners money because early detection can prevent larger problems in the future. In addition, you could reap insurance benefits by keeping a well-maintained home. “Homeowners who have completed updates have more options to choose from when selecting an insurance carrier, and that could result in competitive premiums,” says Paula Powell of Hawaii Insurance Consultants, a division of Farmer’s Insurance Co.

 Have I updated my insurance policy?

Your homeowners insurance may renew automatically as part of your mortgage payment, says Pom Luxton of Bank of Hawaii. If that’s the case, you probably haven’t revisited the terms of your policy in a while. Changes you make, such as remodeling, can affect your policy needs and premium. For example, if you’ve made improvements to your home since you took out your policy, your home may be worth more. Thus, it may cost more to replace or repair if it’s damaged. In that case, you might need more coverage. Another tip: If you’ve added an individual to your title as part-owner of your home, his or her name should be added to your homeowners policy.   



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