parker co: How Rapid Rescoring Can Make a Difference
- 12/18/23 09:36 PM
Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.
When it comes to mortgage loans, time is of the essence. Your offer has been accepted, and you have a limited window to qualify for a new loan. But what if … (1 comments)
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parker co: How to Buy and Sell a Home at the Same Time (Without Losing Your Mind)
- 12/08/23 01:13 PM
How to Buy and Sell a Home at the Same Time (Without Losing Your Mind) Buying or selling a home is a big adventure; some thrill seekers may choose to take on both tasks at the same time. If you're finding yourself in the position of needing to buy and sell at the same time, here are some tips to help you navigate the possibly challenging course ahead of you.
Evaluate Your Local Market
For most buyers and sellers, selling their current home before putting an offer on another property is their best real estate option. But for others, it really … (4 comments)
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parker co: Homeowners Need Resources
- 11/06/22 05:57 PM
Managing an asset worth hundreds of thousands of dollars is a responsibility that requires attention to details such as timely payment of the mortgage, home repairs and maintenance, upkeep, and oversight on financial issues including taxes, insurance, and other things.
Depending on how long you've been a homeowner, you may have faced some of the decisions common to homeownership. Occasionally, there could be something new that you haven't had to deal with in the past. This is where having resource you can rely on becomes valuable.
During the buying or selling process, it is natural to turn to your agent for information and … (1 comments)
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parker co: Buying a Home...Ask for a CLUE Report
- 04/25/22 07:12 PM
People purchasing a used car have most likely heard of CARFAX vehicle history reports to help them avoid buying a car with costly hidden problems. Less likely are buyers to know that there is a way to discover some of the repair history of homes they are interested in.
Lexis Nexis C.L.U.E. (Claims Loss Underwriting Exchange) is a claims history database that enables insurance companies to access consumer claims for the previous seven years when they are underwriting a risk or rating an insurance policy.
An insurance underwriter could identify a previous claim for substantial damage to a property and try … (2 comments)
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parker co: Remodeling as it Relates to Value
- 04/11/22 09:09 PM
While updating and remodeling certainly makes a home more enjoyable and livable, and increases the value, homeowners should not expect to recover 100% of the cost of the remodeling. Certainly, remodeling and updating makes a home sell faster, some of the expenditures will not return their full cost, although, some do return more than others.
Exterior home improvement projects rank 11 out of the top 12 for the highest return on investment for homeowners according to Remodeling magazine's 34th annual report.
The top two places included a garage door replacement and manufactured stone veneer which estimated a 94% and 92% cost recovery. The choice … (5 comments)
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parker co: Assumptions Make Sense Again
- 02/28/22 06:25 PM
Existing FHA and VA mortgages are assumable at the note rate to owner-occupied buyers who qualify. This can be an alternative to paying higher, current rates and benefit buyers with lower closing costs while saving money on the payment.
For the last 20 years, rates have been steadily coming down and there was no reason to qualify for the assumption when a new loan had a lower interest rate.
Assuming an FHA or VA loan with a lower interest rate will obviously mean lower payments but it will also build equity faster because the amortization schedule is advanced from a new … (2 comments)
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parker co: Paying Points to Lower the Rate
- 02/02/22 04:15 PM
Two commonly known ways to lower your mortgage payments are to make a larger down payment especially if it eliminates private mortgage insurance and improve your credit score before applying for a mortgage.
Another way to lower your payment would be to buy down the interest rate for the life of the mortgage with discount points. A discount point is one percent of the mortgage borrowed. Lenders collect this fee up-front to increase the yield on the note in exchange for a lower interest rate.
A permanent buy down on a fixed-rate mortgage is available to borrowers who are willing to pay … (0 comments)
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parker co: Your Home is a Hedge Against Inflation
- 01/17/22 07:57 PM
The concern about inflation is the sustained upward movement in the overall price of goods and services while the purchasing value of money decreases. Tangible assets like your home consistently become more valuable over time. In inflationary periods, your home is a good investment and a hedge against inflation.
Money in the bank loses purchasing power due to inflation and the interest you may be earning is almost always less than inflation.
Home prices are going up but so is rent. With mortgage rates near historic lows, the interest is, generally, less than the appreciation the property is enjoying. Combine this with the leverage … (0 comments)
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parker co: 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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parker co: Buy Before You Sell Options
- 11/01/21 05:22 PM
The decision to buy first or sell first, has always been a little of the "Which came first: the chicken or the egg?" type of question. Is it better to buy another home before you sell your current one or sell the current one before you buy the replacement?
Some buyers don't have a choice because they need the equity out of the current home to purchase the new one and possibly, their income limits their ability to qualify for having both mortgages at the same time. However, some buyers, with sufficient financial resources, may have other options available to facilitate the move.
… (2 comments)
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parker co: Say "NO" to FSBO
- 03/30/21 03:14 PM
To understand the reasoning behind why a homeowner should not sell their home by themselves, we need to identify the motivation. Probably, more times than not, the homeowner wants to "save" the cost of the commission. It certainly represents a significant amount of money.
In 1981, homes sold For Sale by Owner represented 15% of the homes closed while 85% were agent-assisted. The percentage of sellers handling their own homes alone has declined over the decades to only 8% of homes sales in 2020. Interestingly, half of the sellers knew the buyers and the other half did not.
The FSBO sellers who knew the buyers, … (1 comments)
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parker co: How Does It Measure Up?
- 09/28/20 07:23 PM
People are always looking for a "down and dirty" way to determine the value of a home and square footage seems to be one of the most common things used by people whether they are buyers, sellers or real estate agents. While it seems straight forward, there are several variances that can lead to inaccurate determinations.
The market data approach to value uses similar properties in size, location, condition and amenities to compare with the subject to arrive at a price. Differences in any of these things can affect the price per square foot. Appraisers are trained and licensed to make these adjustments but … (3 comments)
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parker co: Alternative Investments
- 09/28/20 07:08 PM
In a recent article, The Wall Street Journal reported that investors have rarely been this flush with cash. The economic uncertainty due to the pandemic and the volatility of the stock market has caused assets in money-market funds to increase to approximately $4.6 trillion, the highest level on record according to Refinitv Lipper.
The question becomes should an investor be "out of the market" until things settle down or should they seek to find alternative investments to produce satisfactory results. Even in the middle of this uncertainty, residential rental property has been a stable performer.
Rents are continuing to increase along with … (0 comments)
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parker co: It's Worth Digging a Little Deeper
- 09/06/20 07:20 PM
There are hundreds of thousands of people who believe, for one reason or another, they cannot afford to buy a home currently. Some people may not for any number of reasons but it would be very surprising to know how many who can buy but have gotten some bad information along the way. It's worth digging a little deeper to find out the facts.
John and Karen have been renting a home for the last five years at $2,000 a month. During that time, the value of the home they were renting went up by $30,000 in value while the unpaid balance decreased … (1 comments)
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parker co: VA Funding Fee Going Up
- 10/13/19 03:33 PM
The cost of a VA home loan is going up beginning January 1, 2020 when the funding fee is being increased from 2.15% to 2.3% for first time use. The amount increases to 3.6% for subsequent zero-down payment loans. Reservists and national guard veterans are subject to a slightly higher fee.
Veterans pay a funding fee when purchasing a home with a VA insured loan. This one-time charge, collected by the Department of Veteran Affairs, is based on the loan amount to value with the fee decreasing as the down payment goes from 0% to 5% or 10% or more. It can be paid … (4 comments)
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parker co: Ready to Downsize?
- 09/04/19 01:26 PM
9/4/2019 It is estimated that over 15% of the population in the U.S. are over 65 years of age. With one of the most common fears of seniors being their money will run out early, it is understandable that downsizing may be strategy to meet their goals.
Once the kids are grown, have careers, relationships and get a place of their own, parents find they may not need their "big" home like they did before. In other situations, their lifestyle might have changed, and the house just doesn't "fit" anymore.
The benefits of a smaller home can include the following:
Easier to maintain … (2 comments)
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parker co: Second Guessing Price
- 05/26/18 07:50 PM
Imagine a homeowner consulting with their agent about the price to place on their home. The agent suggests that the market data indicates that $200,000 to 210,000 would produce a quick sale by pricing it properly. The owner puts a $210,000 price on the home.
The first person who looks at the home offers $205,000. When the seller receives the offer, he comments that he thinks he priced the home too low and counters for full price. The counter-offer is rejected, the home stays on the market and at the end of the first month when based on market conditions, the home … (1 comments)
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parker co: Which Value Do You Want?
- 08/22/17 09:27 PM
Which Value Do You Want? - 8/21/2017
What your home is worth depends on why you ask the question. It could be one value based on a purchase or sale and an entirely different value for insurance purposes.
Fair market value is the price a buyer and seller can agree upon assuming both are knowledgeable, willing and unpressured by extraordinary events. This value is generally indicated by a comparable market analysis done by real estate professionals.
Insured value is determined for insurance coverage. Homeowner policies typically have replacement clauses in them and the cost of demolition, new construction and the added complexities of matching existing construction … (0 comments)
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parker co: Home Energy Aware
- 08/12/17 05:59 PM
After the mortgage payment, the largest homeowner expense is for utilities and the major component is energy. Contributing factors include air leaks, insulation, heating and cooling equipment, water heaters and lighting.
Computers, monitors, TVs, cable and satellite boxes, DVRs and power adapters are spinning your electric meter even when they’re not being used. Even though they only represent a small percentage of a home’s total energy consumption, about 3/4 of the electricity is used when the products are turned off.
Unplugging devices can actually make a difference in the size of your electric bill. Plugging several of these offenders into a power strip … (0 comments)
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parker co: Home Safe Home
- 08/01/17 05:15 PM
Home is a place you should feel safe and secure. Sometimes, we take it for granted and unfortunately, we do need to remain vigilant about things we do that could compromise our safety. Here are a few tips to consider:
Everyone loves an inviting home including burglars. Make sure it looks occupied and is difficult to break in. Always lock outside doors and windows even if you’re only gone for a brief time. Lock gates and fences. Leave lights on when you leave; consider timers to automatically control the lights. Keep your garage door closed even when you’re home; don’t tempt … (0 comments)
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Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.
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