Different types of debt can boost your credit score -- but over borrowing can hurt you

When you're shopping for a mortgage, your credit score is a really big deal; it can make or break your mortgage approval and ultimately determine whether you get that home for sale in New Mexico. But before you analyze your credit score, it's important to look at how your existing debt affects that score.

Debt comes in two types: secured and unsecured. When you borrow money to buy a house, the bank can take back the house to recoup its money if you don't pay the debt. That means the debt is secured -- it's balanced against something you want to keep and gives the bank some measure of security that it can recover the money it lent you. Unsecured debt, on the other hand, means the bank can't reclaim what you're buying with the borrowed money. (Credit card debt and student loans are unsecured.) The following four key consumer loans affect your mortgage worthiness in different ways. Read on to find out what steps you can take to improve your credit if you have these loans (or are considering them), so you can qualify for the best mortgage rates out there.

1. Student loans

Student loans are unsecured debt, but they're not necessarily bad for your credit score if you pay your bills on time. Because they often take decades to pay off, student loans can actually help your score. Likewise, other loans held (and paid consistently) over a long period raise your score. Student loans will figure into your overall debt-to-income ratio, though, so a large student loan or other loan might affect your ability to qualify for (and afford!) a mortgage.

2. Auto loans

Auto loans are secured debt, because the lender can repossess the car if you don't pay up. In some cases, auto loans raise your credit score by diversifying the types of debt you carry. And because auto loans are harder to get than credit cards, some mortgage lenders may look favorably on you because you've already been approved for a loan that wasn't a slam-dunk.

3. Payday loans

Payday loans don't usually show up on your credit report. But if you default on the loan, it could ding your credit. These loans are unsecured -- the lender doesn't have any collateral -- and their interest rates are often exorbitant.

4. Existing mortgage loans

Mortgages are the classic example of a secured debt, because the bank has the ultimate collateral -- a piece of property. Mortgages, when paid on time, are great for your credit score. However, missed payments on previous mortgages will make your new lender nervous.

If you already have a mortgage and are applying for a second one, the new lender will want to be sure you can afford to pay both bills every month, so they will look closely at your debt-to-income ratio. If your second mortgage is for a rental property, you may expect the rental income to count toward the income side of the equation. However, most lenders won't count rental income until you've been a landlord for two years. Until then, you'll have to qualify for any additional mortgages by using documented income from other.

Here at New Mexico Mountain Properties we will help you locate the perfect home you're looking for. You will find beautiful mountain land for sale in Angel Fire, our homes for sale in Angel Fire capture the majestic mountain views. We also have condos for sale in Angel Fire, which gives you convenience of walking to the slopes. Or live off the land in our Earthships located in Taos, New Mexico.

Our knowledgeable brokers will help you with whatever you are looking for, We have the best Taos real estate agents and Angel Fire Real Estate agents to help you in your search. Please call us at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or call Paula directly at 575-770-3306.

Searching for a home and engaging with a real estate agent today is not the same as it was a generation ago. The space (both physical and virtual) between the buyer and the real estate agent was much larger, and coming together was slower and more methodical.

If a buyer saw a For Sale sign or an ad in the paper, they might call the real estate agency's office, get some information, and move on. Or they could walk into an open house solo. They could be rather anonymous.

But today's home buyers live online. They can click, text or email with agents, and seriously engage within hours. But does that mean they are active and serious buyers ready to transact? Not necessarily.

The real estate agent's experience

Meanwhile, real estate agents, who are commission-only independent contractors, will sometimes drive around for hours showing homes. They may take these buyers around for days or weeks, thinking they have a live client they can help. They might make an offer or two on behalf of the customer, even be present at a two- to three-hour-long home inspection ... all before the buyer decides to back out. They may buy a different house from the agent, or they may not.

Well-intentioned, hardworking agents can end up feeling like their time isn't valued -- particularly when they never hear from that buyer again.

Who's responsible?

Is it incumbent on the agent to be better at time management and qualifying their potential buyer clients? Or should the buyer be clear with the agent early on if they aren't serious just yet? I think that the consumer comes first, and it's up to the agent to better qualify -- as best they can. But it's also part of the business, and par for the course. Agents sign up for a sales job, and they can't win every deal. They need to ask lots of questions of their new "client" before offering up their time and cashing a paycheck that doesn't exist.

Some consumers relish the attention they receive from this new "friend" who will drive those places, show them around, and teach them something new about the world of real estate. If the buyer isn't paying for the agent's time, the reasoning often goes, why not take a few rides and see some great houses? But soon-to-be homeowners should be mindful of their intentions, and considerate of the resources the agent is delivering.

So what's a buyer to do?

Should everyone stop looking online or clicking the "Contact Agent" button? No way. Consumers should always feel free to click away, ask questions and gather information.

But they should be mindful of how things work once they start seriously engaging. Most buyers don't realize that there is a process to buying a home, and that it rarely happens overnight. From the time they first click on the photo of the killer master bathroom until they get the keys, it might be one year and three dozen (or more) house tours.

And if things don't feel right with the agent with whom you engage early on, move on. Keep researching independently, or get a referral for a good local agent. Or, better yet, just go with the flow and the right agent will come along organically.

And what about agents?

Real estate professionals need to understand that one text, click or email does not make an active buyer. A good agent has a handle on the sales process, and asks buyers lots of questions to get a read on them. A good agent fills their sales funnel with a mix of folks in all parts of the home buying process.

Early on, an agent needs to be a guiding light, resourceful and ready to answer questions. As some of their buyers get more serious, smart real estate pros know where to direct their attention.

The agents at New Mexico Mountain properties will be your guiding light, they are resourceful and always ready to answer any of your questions. Living in this beautiful valley you may choose to buy another angel fire home, or even convince a relative or friend to move here. If you do, choose NM Mountain Properties for all your real estate needs!! Call 575-377-2626 in Angel Fire, Taos is 575-758-5852 or call an agent directly at 575-770-3306.

Why is May the best time to sell a house? We've asked real estate agents from several metro areas to chime in on why it's such a magical month for home sales.

1. The timing aligns with the new school year

If they intend to move, families really want to close on a new home before the end of summer. Why? Changing school districts after the school year starts is no picnic for anyone. If you take the month of May to search for a home, you can be closed in July or August, which gives you a little time to settle in before school.

2. Buyers are getting serious

When the spring housing season begins, typically right after Presidents Day in mid-February, many buyers feel as if they have plenty of time to find their perfect home and perfectly time their summer move. So they might bid more aggressively and offer less than asking price. If no sellers bite, though, by the time May rolls around, these same buyers may relent to submitting more competitive offers in the hopes of finally sealing the deal. Remember, though, that May is typically a seller's market. When buyers are just starting to look at this point, "They are excited and have not experienced the agony of defeat by being outbid once, twice, or three times -- at which point deal fatigue sets in. After missing several deals, buyers begin to feel as if they are settling and then begin to think that it would be better to just wait. As we move into late June and early July, in addition to being weary of looking, buyers make house hunting less of a focus for this year and more of one for next year.

3. The weather is beautiful

People normally discuss the weather for two reasons: When there's a huge weather event or natural disaster, such as a hurricane or tornado, or when they have nothing else to talk about. But there's actually a third reason: Weather plays an important role for home sellers and their open houses. Here in Angel fire or Taos, NM, we can have tough winters where people just don't want to be going from home to home in the snow. 4. People haven't left yet for summer vacation If you're selling to a clientele that typically "summers" elsewhere (lucky ducks!), you need to catch them while they're still around. But if you wait until July to list your home, you've lost [those buyers] until after Labor Day.

5. Tax refunds are burning a hole in buyers' pockets

Scraping up money for a down payment and closing costs can be quite a formidable undertaking. After filing your taxes, "You have a clearer picture of your financial situation. So when you get that big refund from Uncle Sam (if you're lucky), you might be in a better financial situation to buy. Or if you owe, you at least have that expense out of the way. And sellers take note: You might want to use your tax refund to make repairs and get the home ready to sell.

6. The mood is just right

Just as Goldilocks had to have everything "just right," home selling has its sweet spot too. Most people are home from the spring break vacations they took in April, schools are still in session, taxes have been paid (or extensions filed!), flowers are in bloom, and everything looks fresh and new. Everyone is in the home-buying mood.

If you're looking to purchase or sell a home, come to New Mexico Mountain Properties and our enormous selection of homes for sale in Angel fire as well as our Taos homes for sale. If its land you're looking for, we have the biggest selection in Angel Fire and Taos. We also have scenic condos in Angel Fire. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or call our agent direct at 575-770-3306.

Enjoy Angel Fire and the Moreno Valley like never before. Take in the beautiful views as our chairlift rides take you to the summit of our mountain at 10,677 feet. When you are ready to head back, you have the option of either hiking down or riding the chairlift back to the base area. The views on the way down allow you to see the entire valley and, depending on visibility, shows views of Wheeler Peak and Eagle Nest Lake State Park. While at the Summit you can enjoy:

• Disc Golf • Summit Haus Restaurant • The views and scenic hike to Summit Lake • Our scenic hiking trail

The trailhead of the hiking trail is located to the left as you unload from the chairlift, near the first tee of the disc golf course.

The Angel Fire Resort Zipline Adventure Tour features six ziplines at the top of the mountain, high above the stunning Moreno Valley. Tours typically take two to three hours, and the ziplines vary from 120 to 1,600 feet in length. Trained guides will accompany riders, ensuring the tour is both safe and fun. Between ziplines, you'll walk along a well-maintained path which allows you to fully enjoy the beauty of the Sangre de Cristo Mountains.

While enjoying the Memorial Day celebrations in our enchanted area, you might enjoy the beauty so much you choose to stay forever! If you do, allow New Mexico Mountain Properties to assist you in finding that perfect piece of Angel Fire, Red River, or Taos Real Estate. NM Mountain Properties is located at the log home at the blinking light. You are sure to find something that will fulfill your Angel Fire Real Estate requirements. Give us a call here in Angel Fire at 575-377-2626, Taos is 575-758-5852 or call our agent Paula directly at 575-770-3306.

You don't have to be a pro to know what to look for at an open house.

When you're on the hunt for a new house, weekends spent touring open houses can quickly veer from fun to daunting by house number three. Keeping track of which home had that great kitchen (but terrible master bath) versus the home with a terrible backyard but a great floor plan can be tough. And while no house is likely to be perfect, when it comes to your budget, some updates are harder to swallow than others. Unfortunate paint colors, though hard to see past, shouldn't sway your decision because they're easily changed. But other issues should give you pause because they'll require costly repairs, or they indicate larger, underlying problems that simply can't be fixed.

Read on for a list of things you should pay close attention to during an open house. Here's what to consider and what questions to ask when viewing a house.

1. How old is the roof?

"ou really need to look beyond the new kitchen and bathroom and consider the bones of the homeOne of the biggest "bones" of a house? The roof. The typical life span of a roof is up to about 20 years, but the average cost to replace one runs into the five-figure range, averaging about $12,000 but going up as high as $25,000 or more.

2. Are there issues with the home's foundation?

This is what everything is resting on -- literally. While superficial blemishes might not matter enough to affect a sale, if there are wide cracks in the foundation, it's most likely not worth the time and anguish that can come with fixing it.

3. What is the state of the sewer system?

When it comes to sewer and septic systems, many people are in the dark on a few elements: first off, their level of responsibility. If something goes wrong, it's the homeowner, not the city, who must cover damages (frequently through homeowners' insurance). The condition of the sewer lines is also something that is not part of a regular home inspection, so a few hundred dollars for a dedicated sewer inspection could prove to be a worthy investment.

4. Have insurance claims been made on the house?

Jensen also recommends asking if insurance claims have been filed on the house, and for what -- the answers may offer insight into any past issues that might not be immediately obvious at an open house. If the house is located near a pond, lake, or stream, he says, it's important to ask whether flood insurance is required, because that can affect buyer financing or create difficulties than can delay closing.

5. Is there noticeable water damage?

"While it may not be easy for a buyer to spot a wet basement, there are some signs you can look for at an open house, I fall of the utility systems and basement storage is propped up a few inches or more off the ground, that may be an indication that the basement has had water issues. This is one instance, where you should pay close attention to furnishings. If a basement has a nice, fresh carpet and furniture, and there's no musty smell, that's a likely sign the space has stayed dry.

6. How old is the wiring?

If you're considering an older home, don't ignore the possibility of outdated electrical systems and wiring. Older systems may still be functional but can pose a safety risk, can be difficult to insulate, and are sometimes hard to insure Another telltale sign of a potentially pricey upgrade? Old fuses with circular knobs in the fuse box (newer boxes have many small toggle switches).

7. How old are the windows?

Older, original windows often look great but can be painted shut or not airtight, which can make utility costs skyrocket in certain climates.

If you're looking to purchase or sell a home, come to New Mexico Mountain Properties and our enormous selection of homes for sale in Angel fire as well as our Taos homes for sale. If its land you're looking for, we have the biggest selection in Angel Fire and Taos. We also have scenic condos in Angel Fire. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or call our agent direct at 575-770-3306.

If you want to increase your profit potential, strategic home improvement ideas in these six categories -- some of which won't cost you a thing -- will give you the biggest return on your investment.

1. A budget-friendly kitchen remodel

Real estate agents will tell you time and again: Kitchens and baths are what sell a home. A dated kitchen can be a big turnoff, and there are lots of ways, both big and small, you can make yours as refreshing and inviting as possible, without investing in a total overhaul. When it comes to spiffing up your kitchen for resale, you don't need to majorly splurge to make a better impression on buyers.

Instead, bring the space to the point of what's known as "builder-grade luxury": Replace basic black appliances with stainless steel, for example, and ditch the laminate countertops in favor of granite. Yes, these home improvement ideas might sound pricey, and you could spend a pretty penny on appliances and granite, but builder-grade improvements stop far short of those over-the-top luxuries. So make your decisions with thriftiness in mind: choose one of the more affordable granite countertops (such as Napoli, Baltic Brown, or St. Cecilia), with a crisp and in-style beveled edge. Leave higher-end stone and more ornate beveling for your next home. The cost to upgrade appliances and/or countertops will vary within the four-digit range. But to keep this upgrade within your budget, try to find a deeply discounted appliance at an outlet or local "scratch-and-dent" store -- where almost-perfect pieces come with perfectly approachable price tags.

Want an even cheaper way to give your kitchen a quick face-lift? Simply refinish or repaint your cabinetry and add updated hardware (such as new hinges and drawer pulls), which can dramatically transform the look of the room for less than $100. Your best bet is to choose colors and styles that are likely to appeal to the widest range of homebuyers and make them feel as if they've walked right into their dream kitchen Pinterest board. 2. Upgrade the bathroom

When it comes to bathrooms, most buyers envision themselves relaxing in a modern, sleek space. The most basic upgrade starts with replacing old, pastel, 3-by-3 ceramic tile with modern tile like white subway-style ceramic or 12-by-12 porcelain tiles in a neutral hue. Replacing your plastic tub surround with a tiled shower costs about $1,000 but makes a big difference, and for an extra $100 to $150, you can also add a recessed alcove (a built-in wall niche for your shampoo bottles).

As with a kitchen remodel, consider which changes will have maximum impact. You may not need to replace that old pedestal sink. Instead, you could change out the faucet -- upgrade it from nicked brass to sleek new chrome -- and hang some luxurious towels next to it. The same goes for quirky floor tile; choose a new paint color that will enhance it rather than clash with it. Make sure the colors and styles you choose are as universally appealing as possible so buyers see a space they know they can live with. And again, scrub your bathroom from top to bottom -- there is no bigger turnoff than yellowed grout and leftover toothpaste in the sink.

3. Pick neutral paint colors

Paint still reigns supreme as the easiest and cheapest way to refresh any room, especially if you do the work yourself. Whites and neutrals can help buyers envision themselves in the space, since they provide a blank slate to serve as a backdrop for buyers' stuff. Forgo that bold navy accent wall -- the idea of priming and painting over it will just stress buyers out. Plus, lighter earth tones look good with hardwood floors, and white always brightens a room. If your rooms include mixed wood surfaces (floors, doors, and cabinets), select a neutral color and ask your local paint purveyor to mix in a few drops of gold to add warmth and harmonize discordant wood tones.\

4. Make an impact with flooring

Like paint, quality flooring can drastically change the look and feel of your rooms. Hardwood is always appealing to a wide range of buyers, as are high-quality laminate options and (affordable!) ecofriendly choices like bamboo and cork. If your home is hiding hardwood floors under that carpeting, let them shine if they're in good condition. If you already have hardwood floors but they're looking a little worse for wear, it's time to invest in a good sanding and refinishing. Whether you go the DIY route and rent a sander or pay someone to get it up to snuff, you're looking at a few hundred dollars for like-new floors. Just be realistic about your DIY skills before tackling a refinishing project. Gouged floors can bring your home's appeal way down, so if you're not handy, choose a pro instead.

Kitchens and baths gain value with tile or laminate flooring, which are both visually appealing and easy to clean. Carpeting is still acceptable in bedrooms, especially if it's plush, in great condition, and in a neutral color. But more and more buyers are turning away from carpeting altogether, so if you're in doubt about whether to replace your carpets or install different flooring, hardwood (or its more-affordable cousin, bamboo) is your best bet. Even a basic snap-to hardwood installation can beat out wall-to-wall carpeting when it comes time to sell.

5. Consider home staging

Staging your home helps buyers imagine themselves living in the space, and it's a relatively inexpensive way to dress up features you're trying to highlight. The first step is clearing the entire home of any clutter and removing any overly personal touches like family photos or children's artwork. Furniture should be arranged in a way that flows well and maximizes space -- buyers will feel claustrophobic if they need to navigate around big pieces as they move from room to room. If you can, bring in a professional home stager or interior designer to consult on the ideal room arrangements. Otherwise, use the following tips for a DIY approach. In each room, place furniture so it feels inviting and functional -- just because you can't live without a footstool next to your bed for Fluffy to climb on doesn't mean it should stay there when your home is on the market. In the living room, seating and tables can be configured into social and conversational areas, while placing an armchair in an empty bedroom nook will frame it as a cozy reading spot. Bright lighting will make spaces seem larger, so turn on those lamps, and make sure your decor and artwork enhance their surroundings rather than distract from them. Depending on whether you need to add, subtract, or rearrange, staging shouldn't cost very much at all, especially relative to how much of a boost it could give your home when it comes to bringing in buyers and helping your home sell quickly.

6. Amp up your curb appeal

Don't neglect your home's exterior. If buyers don't like what they see when they first pull up, they may not even get out of the car. To make the outside of your home appealing, ensure all walkways are clear, the landscaping is neat and tidy, and everything is in good repair. This may require more substantial repairs like repainting or replacing siding, fixing loose shutters, and sealing those cracks in the driveway. Or it could be as simple as mowing the lawn, raking the leaves, and planting a few colorful annuals to make sure nothing looks bare. Add one or two "homey" final touches, like a new welcome mat, new or repainted mailbox, updated house numbers, and an outdoor seating area with festive lights. Your home will feel extra inviting from the get-go -- and just may get a quick offer if it's love at first sight.

If you're looking to purchase or sell a home, come to New Mexico Mountain Properties and our enormous selection of homes for sale in Angel fire as well as our Taos homes for sale. If its land you're looking for, we have the biggest selection in Angel Fire and Taos. We also have scenic condos in Angel Fire. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or call our agent direct at 575-770-3306.

An easement gives a person or entity a legal right to use someone else's land. But that doesn't mean your neighbor can just start growing tomatoes in your yard. For example, a utility company might have the right to dig up a section of your lawn to install or maintain phone, power, and cable (maybe even fiber-optic) lines.

What should you know about easements before you buy? Start with the basics: It's important to know whether there are any easements on a property before you close, where they are, and what type of easements they are. Some easements, for example, remain after you buy the house, but others can be canceled. This depends on whether the easement is an appurtenant easement or an easement in gross.

"Appurtenant" means belonging to someone else. So an appurtenant easement is one in which the neighbor sought and now owns the easement, such as in the case of that driveway access. An appurtenant easement stays with the house if you buy it. With an easement in gross, you have more say. If, for example, the property has a path that leads to a fishing pond, the original owner might have granted a neighbor access to the property to get to the fishing spot. That's considered an easement in gross, and it does not remain once the property changes hands. So if you wish to put up a fence (or just don't want your neighbor traipsing across your property), you have the right to end the agreement -- just be prepared for an awkward first introduction with that new neighbor.

What are your property rights and easement rights?

If you buy a house with an easement, you'll need to play ball. Let's say you bought beachfront property (lucky you!) on a public beach. But what if your new property is the only access point the neighbors have to say public beach? You, in this case, would not have the right to block your neighbors from their fun in the sun by putting up a fence. If you did, you would be trespassing upon a right-of-way easement, also called an "easement by necessity," and you could be sued.

What are the limitations on renovations or expansions?

If you plan to build a new home or an addition, it's especially important to know whether there are any easements on a property before you buy. You can find out by looking over your paperwork. Written easements are contained in deeds, individual documents, on plats, and in condominium and homeowner association documents. Let's say your neighbor received an easement for their solar panels. You then cannot renovate, expand, or even plant a tree that would block your neighbor's sunlight access. Can easements be challenged? Easements can be challenged by [property] owners under specific circumstances. You would need to go to court to make that happen. If the easement holder agrees to terminate, it should be easy. In some cases, easements have an expiration date, which also would make ending the easement fairly easy. But other cases are more difficult.

For instance, you might have heard of "squatter's rights." There's a legal term for this: "prescriptive easement." This happens when a person has been openly using their neighbor's property for a certain length of time (which typically varies by state) without the owner's permission. This type of easement isn't on a title report, so buyers would most likely need to do a physical inspection to uncover an easement of this type. If you see your neighbors sunning themselves on a dock they constructed on your future lakefront property or they've put up a fence on your potential land, those would be big clues. Prescriptive easements can be challenged by allegations that [the land] has been abandoned. In this case, it might be a good idea to consult with a real estate attorney for advice.

The bottom line on easements

It's within your control to buy a house with an easement, so do your homework! Buyers need to exercise due diligence to make sure they know the extent of any possible easements.

If you're looking to purchase or sell a home, come to New Mexico Mountain Properties and our enormous selection of homes for sale in Angel fire as well as our Taos homes for sale. If its land you're looking for, we have the biggest selection in Angel Fire and Taos. We also have scenic condos in Angel Fire. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or call our agent direct at 575-770-3306.

Zipline Adventure Tours | Opens May 28 The Zip Line in Agua Fria is high above the stunning Moreno Valley for an exciting zipline ride. We are sold out for some prime time slots already, so now is the time to secure yours to enjoy another zipline tour this summer.

Book the stay and zip package to SAVE When you book your lodging together with your zipline tours - you save. Just choose your favorite accommodations & book today! ] The Lodge Stay right at the base on the Mountain at The Lodge of Angel Fire Resort with easy access to restaurants & activities.

Condo or Home Rent a spacious condo or home managed by Angel Fire Resort to feel right at home. All condos have a two night minimum plus cleaning fees.

RV Resort Stay at the new luxury RV Resort with plenty of accommodations like the club house, bath house, hot tub, Wi-Fi and much more.

Book online or call 800-633-7463 to make your reservations.

While you%u219re enjoying your weekend here in Angel Fire, come by the log cabin at the blinking light and let New Mexico Mountain Properties be your first stop, for all your Taos and Angel Fire Real Estate needs. We offer condos for sale in Angel Fire and the Taos Ski Valley which will put you close to all the activities. The homes for sale in Taos and Angel Fire give you some of the best views around! We can help you find whatever Taos or Angel Fire real estate has to offer. Contact us in Angel Fire at 575-377 2626, Taos 575-758-5852, or call an agent directly at 575-770-3306.

1. Make those small repairs you've been postponing Your house isn't going to morph into a mega-mansion overnight, so some of the considerations for an appraisal (such as the number of rooms, square footage, and location) aren't negotiable. But you can make the most of your home's features. "Make sure that all the major systems have been serviced and that everything in the home appears to be maintained and functional. For appraisers, the condition of a home often matters more than the year it was built.

2. Improve your homes outside appeal

You might not pay much attention to your home's exterior, especially if you typically enter and exit through the garage or a side door. But curb appeal matters to potential buyers, and it matters to appraisers too. If you're wondering what else you can do (besides mowing the lawn) to boost curb appeal: Here's a quick landscaping fix:

• Strategically place container gardens • Mulch flower beds • Wipe down existing foliage and outdoor lights • Stage patios or porches with seating and pillows

3. Create a file of all recent improvements, upgrades, and tax documents. If you spend any money on your home, save all your receipts and keep them in a filing cabinet. (Or digitize the documents and store them on your computer.) It's also a good idea to take before-and-after photographs of any improvements and upgrades. By staying organize, you can easily prove to the appraiser what you did to improve and upgrade your home, and how much you spent. Also be sure to include documentation for any permits that were pulled as part of home improvement projects.

4. Know the comparisons in your area

One of the best ways to determine the value of your home is to compare it with similar homes nearby that have recently sold. If you know the comparisons as well as or better than the appraiser, you can challenge any lowball comparison they might use. ". Instead, here's a better approach: "Go to your local county offices and find out exactly what properties have sold in your area in the last six months and then go see them in person. You might find out that the property with the lowest sale price was a tear down.

5. Don't be forceful

To present the appraiser with all the great information you've gathered, you need to do so diplomatically, or all your efforts could be wasted. Meet the appraiser, and be as nice as possible but not overbearing, State that you have some information to share with them before they get started. You would then go over your Intel (don't forget to mention the brand-new shopping center nearby) and then let them do their job undisturbed. If you hover, the appraiser might wonder what you're trying to hide. One the appraiser is finished, you have one last chance to offer assistance. Ask the appraiser if they have any questions and if they feel there will be any issues with the appraisal.

If you're looking to purchase or sell a home, come to New Mexico Mountain Properties and our enormous selection of homes for sale in Angel fire as well as our Taos homes for sale. If its land you're looking for, we have the biggest selection in Angel Fire and Taos. We also have scenic condos in Angel Fire. Give us a call at 575-377-2626 in Angel

If you bought a home with an adjustable rate mortgage (ARM) thinking you'd sell the home before the ARM adjusted, you're not alone. Many people buy homes with ARMs because they plan to relocate or upgrade to a larger home in the near- to medium-term. But when plans change and you decide to stay, you must know what will happen to your ARM, and what you can do about it. Let's take a look.

ARM vs. fixed rates

ARMs help your budget because rates on ARMs are lower than they are for fixed loans. For example, todays rates for a loan on a $300,000 home purchase with 20 percent down are 2.75 percent for a 5/1 ARM versus 3.5 percent for a 30-year fixed. In this scenario, the monthly 5/1 ARM payment ($980) is $98 cheaper than the 30-year fixed payment ($1,078). This ARM vs. fixed savings is important no matter what your home purchase price is, and if you are in fact only keeping the home (or the loan) short term, it can be worth it. Should you use an ARM? The best way to determine whether you go with an ARM or a fixed loan is to peg your loan term as closely as you can to your expected time horizon in the home or the loan. Here are a few options to consider:

•If you're buying a home with plans to relocate and sell the home within five years, a 5/1 ARM would be a good option. If you're planning to move within 10 years, a 10/1 ARM would be a good option. You can also get 3/1 and 7/1 ARMs.

•If you plan to pay the loan off within five years and keep the home, a 5/1 ARM would also be a good option.

•If you're going to relocate but want to keep the home, a fixed loan would be a good option. How your ARM will adjustIf you get an ARM and plans change so that you need to keep the home (or the loan) longer than you intended, your payment will adjust at the end of the ARM's fixed period.

An ARM is a 30-year loan with a rate that's fixed for the initial period of the ARM. For example, the quoted rate on a 5/1 ARM will be fixed for that initial five-year period. For the remaining 25 years, it will adjust to a base rate (called a margin) plus the current level of a certain index the loan is tied to.

A common margin for a 5/1 ARM on a conforming loan up to $417,000 is 2.25 percent, and a common index for these loans is the one-year LIBOR which is 1.25 percent as of this week. If your 5/1 ARM adjusted today, it would adjust to a rate of 3.5 percent, which is the 2.25-percent margin plus the 1.25-percent LIBOR index level as of now, and it will adjust once per year every year after the initial five-year fixed period. The margin will always be 2.25 percent, but the LIBOR index changes in real time, and will be higher if economic conditions improve, or lower if economic conditions worsen in the future.

And finally, it's not just the rate that adjusts, it's also your payment. In the initial five-year period, the payment is calculated using the initial rate and a 30-year amortization. After the initial period, the payment is calculated using the margin plus index rate and a 25-year amortization. Using our scenario above, this means your payment would adjust from $980 to $1,063.

What to do if you're ARM is almost out of time

You could argue that a payment adjustment like this would be tolerable if you were keeping the home (or the loan), but this example is only the first adjustment, and it will adjust every year after the initial adjustment, so it's a lot of risk to take on.

The alternative is to refinance into a new loan, and the same rule would apply for deciding what loan to refinance into: do your best to peg the new loan term to your expected time horizon in the home (or loan) from this point forward.

Rates have been steadily low for the past five years as the economy has been slowly recovering from the economic crisis. If this recovery and economic growth continues, rates have more risk of rising.

As such, if you chose a new 5/1 ARM today, it would be safest to assume that your rate and payment would adjust up in another five years. If this is too much risk for you, the best choice is to take a slightly higher rate and payment now on a 30-year fixed, which gives you the security of knowing your rate and payment cannot change.

Other important facts about ARMs

Keep in mind that the payments above don't include homeowners insurance and property taxes, which would be the same whether you chose an ARM or a fixed loan. You can run your own scenarios and see if the results will show you homeowners insurance and property taxes.

Another point to remember is that ARMs shouldn't be used to qualify for more home than you can afford. This was a common scenario prior to the economic crisis, when lenders were allowed to qualify borrowers using the lower ARM payment. Now lenders must use the highest-case payment that could occur after the adjustment.

As a final note, if your loan amount is up to $417,000, a 5/1 ARM will get you the best savings relative to a 30-year fixed. If you have a jumbo loan above $417,000, you can also get strong savings using a 7/1 ARM relative to a 30-year fixed, so ask your lender to provide both options.

So when you are ready to relocate or upgrade your home, come see us at New Mexico Mountain Properties. Living in this beautiful valley you may choose to buy another angel fire home or even convince a relative or friend to move here. If you do, choose NM Mountain Properties for all your real estate needs!! Call 575-377-2626 in Angel Fire, Taos is 575-758-5852 or call an agent directly at 575-770-3306.