interest rates: Is a friend your best choice for your agent?
- 08/11/24 04:34 PM
In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation.
Concerns about how professional relationships may impact their personal connection occasionally weighs on a person's mind, leading them to consider alternative options. It may stem from the fear that any hiccups or disagreements during the transaction may strain or even jeopardize the friendship.
It may actually be the opposite. There are many advantages to working with a professional to find your home who also happens to be your friend.
Trust: Having a … (3 comments)
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interest rates: Agent Representation - A Buyer's Perspective
- 08/01/24 02:16 PM
Real estate professionals offer expertise in the local market, guiding buyers toward suitable properties and negotiating favorable terms. They provide comprehensive support throughout the home buying process, managing logistics and serving as trusted advisors.
Additionally, agents have access to a network of allied professionals, streamlining the transaction and ensuring smooth coordination. They also advocate for buyers' interests, negotiating on their behalf and addressing challenges that may arise, providing peace of mind and confidence in decision-making.
The following is a list of services typically provided to a home buyer by a real estate agent but can vary depending on negotiations between … (3 comments)
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interest rates: The dilemma is clear: wait for conditions to improve, or act now?
- 07/22/24 05:06 PM
Are you one of the many would-be homebuyers holding off on purchasing a home, hoping for a favorable shift in the market? With insurance, property taxes, and maintenance costs on the rise, it's understandable why some are hesitant to take the plunge. However, the reality is that these factors affecting affordability are compounded by the continuing increase in home values. The dilemma is clear: should you wait for conditions to improve, or should you act now?
The Affordability Challenge - Escalating insurance premiums, property taxes, and maintenance expenses are making homeownership less attainable for many prospective buyers. As these costs continue to … (6 comments)
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interest rates: How Home Value Growth Beats Renting
- 02/04/24 10:26 AM
Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the Federal Reserve Economic Data. During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor of homeownership.
When we analyze these figures, it becomes evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners with a substantial asset that builds equity over time. This discrepancy in growth rates means that, in the long run, homeowners … (5 comments)
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interest rates: Why It's a Smart Move to Buy a Home in the Current Market
- 12/10/23 01:20 PM
If you're in a financially stable position, now might be the perfect time to embark on your homeownership journey. Buying a home today offers several advantages, including the opportunity to build equity and stabilize your housing costs in the face of rising expenses. Explore the reasons why purchasing a home now can be a wise decision in the current market.
By purchasing a home today, you can start building equity, which is an investment in your future. Additionally, opting for a fixed-rate mortgage allows you to stabilize your monthly housing costs for the long term, even as other expenses continue … (3 comments)
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interest rates: When do You Lock Your Mortgage Rate?
- 02/20/23 08:38 PM
2/ Locking your interest rate protects you from increases due to market conditions. Locking early safeguards your budgeted payment. By locking the rate, if the market goes up, you get the lower rate; if it goes down after the lock, you may be able to pay a fee and lower the rate.
Knowing when to take the lock is determined by which direction you think the market is going. If you think rates are going up, lock in early. If you think rates are going down, ride the rate to within a few days of closing.
Some lenders may allow a borrower to lock a … (3 comments)
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interest rates: Downsizing Options
- 12/11/22 11:41 AM
Opportunities exist for a subset of homeowners, possibly in their 60's to 70's, who want to downsize to smaller homes for convenience, less maintenance, change of lifestyle, or to save money. These homeowners are more likely to have large equities and will not feel the same constraints that are keeping younger owners in their homes due to the substantial increase in mortgage rates in the past year.
In some cases, there may be enough equity in their relinquished home to pay cash for the replacement. In other situations, the loan-to-value may be so low that even with higher mortgage rates, it won't … (0 comments)
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interest rates: Building Your Home Buying Team
- 11/20/22 10:52 AM
There are a lot of professionals involved in the homebuying process. And when these people can function as a team, the buyer is much more likely to end up where they want to be...in their new home.
The lender is an integral part of the team unless you are going to be paying cash. Trust is very important when selecting this person because they are going to qualify you for the mortgage you need. The interest rate and fees should be fair based on your credit, income, and the market.
You'll want someone who can close at the rate and terms that were quoted. In a … (3 comments)
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interest rates: Waiting for the Mortgage Rates to Come Down?
- 11/05/22 04:25 PM
Waiting for the mortgage rates to come down before you buy a home may not be a good decision.
If you are correct, and the rates do come down by two percent, the savings you benefit from a lower rate will most likely be devoured by the appreciated price increase.
As of 10/27/22, the 30-year fixed-rate was at 7.08% which is the highest level since April 2002. If the rate drops to 5% in three years but the price increases by 5% a year, a $400,000 home today, will cost $463,050 three years from now.
An increasingly popular option that more … (2 comments)
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interest rates: Do you feel lucky? Well, do ya?"
- 10/17/22 07:40 PM
You may remember the famous line in the Dirty Harry movie when Clint Eastwood has just had a shootout with bank robbers and is standing in front of the lone surviving thief who is considering going for his gun. Harry with his gun pointed at the bad guy says to him ""Did he fire six shots or only five? Well, to tell you the truth, in all this excitement, I kinda lost track myself. But being this is a 44 Magnum, the most powerful handgun in the world and would blow your head clean off, you've gotta ask yourself one question: Do I feel … (1 comments)
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interest rates: Five Factors that Affect the Sale of Any Home
- 09/28/22 10:22 AM
Owners directly control four of the five factors that affect the sale of any home: price, location, condition, terms, and the agent you select. The one thing you can't control is the location of the home, but you can adjust the other factors to compensate for failings.
The seller controls the price of the home which determines its positioning in the marketplace. If is priced too high, it will take longer to sell and, in some cases, for less than what it should have sold for because when it doesn't sell immediately, it is assumed that there must be an issue with it. If … (1 comments)
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interest rates: Gift Amount Increased for 2022
- 09/28/22 10:04 AM
The limit for tax free gifts for 2022 is $16,000 and no tax is due to the donor or the donee. There are provisions that would allow gifts higher than this amount providing the total lifetime gifts above the annual exclusion of $12.06 million for 2022 has not been met.
The donor and donee can be separate persons so that the aggregate tax-free gift for one-year amounts to more money. For instance, a father and mother can gift $16,000 each to their married son in 2022 and an additional $16,000 each to the daughter-in-law for a total $64,000.
If the son and … (3 comments)
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interest rates: Showing How Earnest You Are
- 07/25/22 07:56 PM
The expression "putting your money where your mouth is" demonstrates a monetary sincerity to what could be empty words. In today's competitive market where multiple offers are common, sellers want as much assurance as possible that the buyer is sincere and will close on the sale.
The seller who accepts a contract expects the buyer to follow through but, in most cases, doesn't know the buyer either personally or by reputation. The earnest money submitted by the buyer with the contract shows their commitment to the terms of the offer.
If the amount is relatively small, the seller could be concerned that … (3 comments)
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interest rates: Difficult to Buy What Is Not For Sale
- 07/14/22 01:35 PM
Buyers are becoming discouraged there are not enough homes on the market, especially, in certain price ranges. When they do find something they want, there may be multiple offers and they end up losing to another buyer.
Some buyers after experiencing several of these instances have decided to wait until the market changes. It is understandable but it may be a very long wait as well as being a very costly decision.
Inflation is affecting all sectors of the economy; prices on food, cars, and electronics are going up as well as housing and mortgage rates. Home prices rose 20.2% year over year … (4 comments)
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interest rates: I Wish I Knew Then...
- 01/25/22 07:34 PM
We have all heard this expression that implies that had a person known earlier in life what they know now, they would have done things differently. The subject possibilities are endless While no one has a crystal ball to see into the future, it may be possible to learn from people who have experienced similar situations.
In the late sixties, mortgage rates hit 8.5% but before the decade had finished, the rates had come down to 7% where they stayed for some time. Homeowners who purchased at the higher rate, could buy a larger, more expensive home for the same payment if they could … (4 comments)
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interest rates: Larger Payment, Shorter Term, Bigger Savings
- 12/01/21 11:10 AM
Some people consider a house payment as basic as monthly utilities but with a plan and some discipline, you can be mortgage free.
Consider a person borrowed $300,000 at 3% for 30 years, the principal and interest payment would be $1,264.81 and at the end of 12 years, the unpaid balance on the mortgage would be $210,900.
If that same person had financed the home on a 15-year term at 2.5%, the payments would have been $2,000 but the unpaid balance at the end of 12 years would be $69,310. The homeowner will have a larger equity … (1 comments)
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interest rates: Homeowner Equity and Wealth Accumulation
- 03/30/21 03:22 PM
National homeowner equity grew in the fourth quarter of 2020 by $1.5 Trillion or 16.2% year-over-year based on a CoreLogic analysis. The study was done on the six out of ten homeowners who have mortgages on their home.
The fourth quarter of 2020 also saw the number of mortgaged residential homes with negative equity decrease by 8% from the third quarter. Compared to the same quarter in 2019, negative equity decreased by 21%.
Equity is defined as the value of the home less the mortgage owed. Negative equity means that the homeowner's debt is more than the value of the … (0 comments)
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interest rates: More Time at Home
- 12/01/20 01:51 PM
We are all spending more time at home and will probably need to continue to do so for a while longer. Depending on the makeup of your family, your home is now a home office, a gym, a virtual classroom and considerably more meals have been prepared in your kitchens in the past six months than normal.
Some businesses have undergone a metamorphosis that has shown them that maybe they do not need the big commercial spaces for their employees. They realize that they can be just as productive with their work force offsite which will cut expenses.
If this scenario sounds … (3 comments)
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interest rates: Good Decision for a Second Opinion
- 07/06/20 11:18 AM
You've done your homework, contacted a mortgage company and believe you are pre-approved. That part of the process is finished and you can concentrate of finding a home and moving...or can you?
Pre-qualified and pre-approved are two different things but some people, including some in the business, use the terms interchangeably. Pre-qualified is an opinion of likelihood that a borrower will be approved based on preliminary information about their income and credit. Whereas, in a pre-approval, the borrower's credit report is updated and pulled, income and assets verified and involves pre-underwriting.
Even when you have a highly qualified loan officer, the real decision … (0 comments)
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interest rates: Gifts of Equity
- 11/27/18 05:58 PM
There is a little-known mortgage program that could provide the vehicle for the right person to get into a home. If a person sells their home to another for less than the fair market value, the difference in the appraised value and the sales price is considered a gift of equity for the buyer.
FHA requires that borrowers receive gifts of equity only from family members transferring title to the borrower.
An appraisal is required to determine the value of the home. The sales price is subtracted from the appraised value to determine the equity to be gifted. If a home appraises for $300,000 … (4 comments)
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In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation.
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