Where Were You When You Purchased Your First Home?

A quick tour of the Mortgage Market from the 1970" to Present!  What was your first experience?

It’s not “if” the rate goes up but “when” the rate goes up; it could make a big difference for some buyers. Freddie Mac predicts that mortgage rates will be at 4.5% a year from now.

If buyers can afford a home with higher interest rates, it means higher payments. Higher payments might mean they won’t have the money to spend on other things like furniture or improvements to the home or an unrelated purchase like a new car.

When the rate moves 0.50% on a $250,000 mortgage, the payment goes up by $70.66 a month. If it moves 1.00%, the payment goes up by $143.74 per month, each and every month for the entire term of the mortgage which means paying over $50,000 more for the house.

The question facing every borrower in this situation is “How will you feel about having to pay more to live in the same house because you were not ready to commit?”

Then, there’s the borrower who is absolutely maxed out as to what they can qualify for or sometimes, it is a borrower who just refuses to pay a higher payment. When that’s the case, the buyer has to make a larger down payment. In the same example, a 0.50% increase in rate would require $14,873 more in down payment. That could make the purchase impossible or require the buyer to buy a lesser price home that will not have the same amenities.

Mortgage rates have been low for so long that some people think that is what they should be. There are some economists who believe that the economy will not be strong again until mortgage rates are in the 7% range.

To see how this type of scenario might affect you, go to the If the Rate Goes Up calculator.

When To Visit A House Of Interest.

What is the best time to visit a house that you are interested in?  This chart may be of interest to you in making a decision.

How is the Housing Market in your Area?

Here is an insight into the Housing Market in Your Area.  If you are looking to Purchase or Build.

http://eyeonhousing.org/2016/09/sale-and-contract-prices-per-square-foot-in-2015/

Getting ready to be inside for the Winter..

With the doors open during the Spring, Summer and Fall, I have noticed a collection of dust around the house, I am sure that I am not alone.

Having a dust-free home isn’t difficult, but it takes a serious commitment and a housekeeping strategy that addresses the dust and its causes. Whether your motive is cleanliness or to eliminate the cause of some allergies and asthma symptoms, it will be worth it.

• Try to dust your home at least twice a week. Dust the tallest items and work your way down. Dust picture frames, blinds, baseboards and anything that stands out from the wall.
• Feather dusters can spread more dust than they collect compared to microfiber cloths that attracts dust because they have an electrostatic charge.
• Filters on heating and air-conditioning systems should be changed often not only to remove dust from the air but to increase the efficiency of the units themselves. Special HEPA filters can improve the overall indoor air quality.
• Frequently changing the bag or emptying the container in your vacuum is helpful in eliminating dust.
• Vacuum the floors at least once a week. Vacuum under furniture and periodically, move appliances to clean behind and underneath. Use the proper attachments to vacuum upholstered furniture and under cushions.
• Eliminate dust magnets like carpet, heavy drapes and upholstered furniture. Consider hard surface flooring like wood or tile instead of carpet.
• Keep windows closed to keep dust out.
• Clean your pillows and drapes.
• Damp mopping and dusting with plain water helps hold the dust and is environmentally friendly.
• A humidifier can eliminate static electricity which holds dust.
• Air purifiers circulate are and capture dust and other pollutants.

To Invest or Not To Invest.

Rental Property, is this for me?

Rental properties have five primary factors that contribute to the return on investment.  Based on market conditions and investor strategies, the individual motivating factor can change from property to property. There was a time when the benefit of tax savings to offset income from other sources was considered important to some investors.  However, in today's environment, they are more likely valued as incidental benefits. Some investors expect appreciation to deliver the satisfactory results which can be reasonable over time if a reliable appreciation rate is used.  Savvy investors today are using conservative estimates for long-term holding periods. Leverage occurs when borrowed funds are used to control a larger asset.  Positive leverage can actually increase the yield on an investment.  Equity build-up happens due to the amortization of the loan which requires that a portion of the monthly payment reduces the principal owed. The last component that contributes to a property's yield is the cash flow.  When the rents are greater than the expenses of operating the property and servicing the debt, there is a positive cash flow.  A property with a good cash flow doesn't have to go up in value to justify the investment. The combination of lower prices, low mortgage rates and rising rents are attracting investors to rental properties that include single-family homes in predominantly owner-occupied neighborhoods. Even if you were to ignore the benefits of tax savings, potential appreciation and leverage, the attractive cash flows make rental property a very smart investment alternative.  Contact me for more information