Real Estate Information Archive

Good Monday Morning!

If you are considering the sale of your home, then the following article from Realty Times is a must read.  Selling your home for top dollar and in the shortest period of time is not always easy if you miss the market.  This article will give you some good guidelines for home sale success.

A Comparable Market Analysis (CMA) can tell you what buyers recently paid for homes similar to yours, but that's not all you need to know to choose the right listing price. You need to know the market's appetite for your home, and that can only come from an overview of your community's current market conditions.

Market conditions are like a weather report; it helps you predict what the current crop of buyers will do. Using this knowledge, you can price your home to sell quickly, and for the most money possible.

Why is a quick sale important? The right price generates a bumper crop of buyers. If you price your home too high compared to other similar homes, you'll appear to be testing the market. Buyers will assume that you're going to be too difficult in negotiations.

Here's what you need to know - what kind of a market are you in? Market conditions are formed by buyer attitudes, made sunny or cloudy by jobs, incomes, mortgage interest rates, and overall consumer confidence.

It's possible that your community could have buyer's and seller's markets simultaneously. For example, your neighborhood may be hot, while the subdivision a mile away is stone cold.

A seller's market is characterized by confident buyers, short "days on market" and low inventory levels of less than six months on hand. This usually results in rising prices.

A buyer's market is characterized by longer "days on market," and high inventory levels of seven months' supply or more. To get buyers to come in from out of the storm, sellers must offer incentives such as seller-paid closing costs or lower prices.

The market conditions will tell you the long and short-term trends. If the market is heating up, you can ask a little more for your home. If the market is cooling, you may need to price your home slightly under the market in order to attract more buyers.

One thing you absolutely should never do is ignore market conditions. It's said the market is always right. If you price your home too high, you'll know when you get few to no showings.

That's why it's important to ask your real estate agent for occasional market updates as well as a fresh CMA. You'll get a better idea of what your home will sell for and how long it will take to sell.

If you would like an idea as to what your home would be worth on the market today, go to the web site www.forhomesellers.com.  This web site you give you an in depth look at your homes current market value.  Unlike Zillow, this information will be accurate and based on the Eugene/Springfield home market area.  Once you have signed up, it will also send you a revised analysis monthly.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2279 Blackburn St

Price: $325,000    Beds: 4    Baths: 3    ½ Baths: 1    Sq Ft: 2212

One-of-a-kind! Spacious & airy renovation with Alterna vinyl tile floor, bedroom suite on each level, master bath with dual shower heads, large kitchen opens to dining area, living room with bay window plus family room/den with french doors. On 0.27...
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Good Monday Morning!

As usual the Real Estate market in the Eugene and Springfield area slowed slightly coming into October.  The real news though is that the market here continues to improve over the market we had in 2014.  All signs are that this improving Real Estate market should continue right into next year.  Here are the highlights for October 2015.

October Residential Highlights

October brought a little seasonal cooling to Lane County, but all measures are still ahead compared to October 2014. Pending sales (436) ended 17.8% ahead of the 370 offers accepted in October 2014, although 5.4% lower than the 461 offers accepted last month in September 2015. Closed sales (441) fared similarly, cooling 0.5% from 443 in September 2015 but 9.2% ahead of the 404 closings posted in October 2014. New listings (418) cooled 14.0% from September (486) but were still 6.1% ahead of October 2014 (394).

Total market time remained steady in October at 71 days, and inventory fell to 2.7 months during the same period.

Year to Date Summary

Activity was up during the first ten months of this year compared to the same period last year. Pending sales (4,491) were up 28.2%, closed sales (4,114) were up 26.2%, and new listings (5,829) were up 9.8% this year compared to the first ten months of 2014.

Average and Median Sale Prices

Comparing 2015 to 2014 through October of each year, the average sale price rose 3.1% from $236,000 to $243,200. In the same comparison, the median sale price rose 4.5% from $211,000 to $220,500.

Have an Awesome Week!

THIS WEEKS HOT HOME LISTING!


 

2685 Valley Forge Dr

Price: $524,900     Beds: 3     Baths: 2    Half Baths: 1     Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner's ste w/ tray ceilin...
View this property >>

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Good Monday Morning!

Nationally, home sales were up slightly for October of this year as home prices declined slightly.  Mortgage interest rates for 30 year conventional financing actually dropped slightly and rates remain well below 4%.  I can't stress enough to anyone who is thinking about purchasing their first home, thinking about purchasing a larger home or a smaller home that time is running out to take advantage of this favorable market.  The Feds continue to artificially manipulate rates to help bolster a sluggish economy.  This can't last forever and when rates do start to rise, there may be no end in site for a while.  The mortgage rate that you can obtain today is going to make you very happy down the road.  

If you are contemplating a home purchase and you would like to just explore how this all might look for you, please call me for a no obligstion consultation.  I have helped thousands of Eugene and Springfield residents with their home purchase and I can give you the exact information you need to make the best decision.

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-November-2015

THIS WEEKS HOT HOME LISTING!





 

2231 Sandy Drive

Price: $330,000     Beds: 3     Baths: 3     Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Homes sales dipped in October and first time buyers sales were a big part of this slump.  Competition caused by low inventories of homes in first time buyer price ranges was the primary cause.  Here is information on our current national housing market with statistics from the National Association of Realtors.

A month-over-month dip in home sales last month caused real estate watchers to ponder—gasp—a potential cooling of the market. But on Thursday the National Association of Realtors® reported that sales are up again.

Existing-home sales—completed sales of single-family homes, townhomes, condominiums, and co-ops—rose 4.7% from August to September, reaching 5.55 million. That’s the 12th consecutive month to see year-over-year growth, and the second-highest peak since February 2007, when sales totaled 5.79 million.

The median existing-home price for all housing types was $221,900 in September, 6.1% more than September 2014. This is the 43rd consecutive month that we’ve had year-over-year gains. Single-family home sales increased 5.3%, with a median price of $223,500, while condo and co-op sales remained unchanged, with a median existing-condo price of $209,200.

All-cash sales rose, too: They represented 24% of transactions in September, up from 22% in August. Short sales stayed on the market for an average of 135 days, but short sales and foreclosures are still down from a year ago—7% now and 10% then.

Why the reversal on sales in general? These are seasonally adjusted numbers, so they don’t reflect the typical fall slowdown. August sales, however, were affected by the stock market dips that shook buyers’ confidence.

“Sales are impacted by major stock market declines, since at least one in five buyers funds at least a portion of their purchase with stock or retirement funds,” said realtor.com® chief economist Jonathan Smoke. “But barring stock corrections that reflect real economic downturns—which we are not experiencing—homes sales typically return to the prior trend after stock values stabilize.”

But not all numbers were up: Inventory decreased 2.6% and is 3.1% lower than a year go. There’s a 4.8-month supply of unsold housing—in August, it was 5.1 months.

Maybe it’s counterintuitive—how can there be more sales when there’s less inventory?

It’s all that pent-up demand. Unfortunately for first-time buyers, all that competition has driven house prices up; you’re more likely to buy a home if you already have one.

“First-time buyers fell to 29% of sales in September after climbing to their highest share of the year in August (32%),” according to the NAR. “A year ago, first-time buyers represented 29% of all buyers.”

That’s the biggest surprise, Smoke said, but “despite that decline, we estimate from the monthly sales data this year that first-time buyers have been responsible for 45% of the growth in sales over last year.”

Whether the rise in existing-home sales continues depends on one thing: jobs. The 6% rise in prices is just about double the pace of wages. We need more, and better-paying, employment to keep sales up. That’s complicated by the fact that most future job growth is rooted in the relatively low-paying service sector. Sales may be up, but we’ll need inventory to rise with them.

Regional breakdown

Northeast: September existing-home sales rose 8.6% to an annual rate of 760,000, 11.8% above a year ago. The Northeastern median price was $256,500, 4% above September 2014.

Midwest: September existing-home sales rose 2.3% to an annual rate of 1.31 million, 12% above a year ago. The Midwestern median price was $174,400, 5.4% above September 2014.

South: September existing-home sales rose 3.8% to an annual rate of 2.21 million, 5.7% above a year ago. The Southern median price was $191,500, 6.2% above September 2014.

West: September existing-home sales rose 6.7% to an annual rate of 1.27 million, 9.5% above a year ago. The Western median price was $318,100, 8% above September 2014.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 

52494 McKenzie Hwy

Price: $280,000     Beds: 3     Baths: 2    ∏ Baths: 1     Sq Ft: 1945

Riverfront retreat with many upgrades! Relax on over half an acre and 200ft of river frontage on a large partially covered deck overlooking the McKenzie with no neighbors across. Fenced with yard, garden and 2 driveways with room for RV/toy parking,...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

For many new home buyers, the task of trying to find and purchase a new home can seem very complex.  The truth is that if you have good leadership and advice along the way from a Real Estate professional and mortgage lender, the process can be very easy and you can achieve home ownership very quickly and efficiently.  Here is an article from Realty Times that gives some insight into the process of home buying.

Home-buying is multi-tasking on steroids. Are you up for the challenge?

On the surface, buying a home seems simple: find your dream home and buy it.

In reality, this seemingly-simple task requires buyers to make a continuous stream of under-pressure decisions, often concerning issues and consequences they do not fully understand. Instead of one task, buyers are faced with hundreds of tasks many of which must be decided on simultaneously, on very short deadlines. This makes decision-making a challenge, but it's the knowledge gaps and "I've never thought about this before" perspectives revealed in smart home buying that add the real pressure. At its best, purchasing real estate is an exhilarating race through a labyrinth of snap decisions ending with the purchase of real estate. At its worst, home buying can become a multi-tasking nightmare culminating in the purchase of the wrong property, in spending too much, or in no purchase at all.

To swing the outcome in your favor, one key task is choosing the "best fit" real estate professional to guide you through the home-buying process. This real estate expert will keep you fully informed, so that even snap decisions are solid choices you will thrive on.

Face the complexity of successful home buying head on and it will not overwhelm you.

Purchasing real estate involves making a series of decisions which combine to address the essentials of successful real estate ownership. The "I've never thought about that before" perspectives that challenge decision making, especially for first-time buyers, can be categorized by the specialized knowledge required.

Here are Seven Insights into Successful Multi-Tasking:

#1. Investment: What is the value-appreciation potential of the property?

Does it seem strange to think about resale value when you haven't even purchased yet? This perspective is important since it reveals current value deficits. In addition, after paying off the mortgage (and many thousands in interest), and maintaining and improving the property over the years ahead, you'll want to recover these costs and make a profit to finance the next phase of your life. Even a "forever home" should be purchased with investment in mind since the future is full of surprises. Location is key to resale value. The best strategy is to buy the least property in the best neighborhood you can afford.

#2. Lifestyle: Which lifestyle values should the chosen property reinforce?

Are you determined to spend your time, money, and effort on accumulating "stuff" and teaching your children to do the same? If so, square-footage, lots of storage, and a bedroom each may be essential. If your values go beyond materialism, the size of the building may not be as important as highly-functional interior design, the surrounding community, and local amenities and green spaces. Shop neighborhood before you start looking at individual homes.

#3. Benefits: How do you expect ownership to benefit you and your family?

We addressed investment and its links to your financial future in #1. How else do you expect the home and neighborhood to benefit your family? For instance, locating near select schools has taken priority over locating adjacent to work for many buyers, but make sure the school in question is not so over-populated that its standards are slipping. Compare the cost of alternatives schools to the premium that real estate in "star school" neighborhoods demands. If a private school or home schooling is intended, "star" amenities may take priority over neighborhood schools.

#4. Time Management: How should your real estate support income earning?

Jobs tend to be more plentiful in urban areas. Real estate prices are usually lower and appreciation slower further away from urban centers. The expense of commuting to work goes up the further away you live. Do the math to determine what you'll net in salary after deducting the cost of commuting. Add a calculation of how many extra hours the distance will take from your family, interests, health, and fun. Only you can determine what this time is worth when you evaluate the value of buying a larger home further from city center.

#5. Property Management: How much time and money will maintaining and regularly modernizing your property require?

Gardening can be a great joy, but mowing a large lawn can be a great responsibility—and an expense if you pay someone else to mow. The larger the house, the higher the taxes, the bigger the roof, the more plumbing and wiring involved, more windows to decorate, more furniture to buy, and more space to heat and cool…. The costs attached to maintenance are annual, increasing expenses and should be considered when setting the budget for a purchase.

#6. Borrowing: How much will the cost of borrowing add to the overall cost of home ownership?

Mortgage interest and related costs are not the cost of real estate since not everyone needs a mortgage. These expenses relate to borrowing, but they can be large enough to make you house rich and cash poor. Financially stretching for a dream home, may be your choice knowing your earning power is on the rise.

#7. Backup: How will I find reliable, accurate, unbiased answers to my questions during the buying process?

GoogleTM should not be your "go-to" resource during home buying because it holds no liability if you get the wrong information or if you don't know what you don't know and should know about a topic. Settle on a real estate professional with the knowledge and experience relevant to the locations and type of real estate you are interested in. When you ask this local expert a question, they will know the complete answer or know how to get it. Real estate professionals understand that they carry fiduciary responsibilities to provide the right information at the right time, so their client (that's you) can consistently make confident decisions to achieve their stated goals.

The more you understand the home-buying process before you start, the better prepared you'll be for a multi-tasking decision-making marathon. The many small decisions about style of home, mortgage term, closing date, garbage and mail services, side of the street, distance to medical services and the firehall etc... will be manageable. You'll be ready to confidently make significant decisions about which property, how much to spend, and which responsibilities to commit to in the offer to purchase.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

5151 & 5153 Trevon St

Price: $239,000     Beds: 4     Baths: 2     Sq Ft: 1879

Wonderful updated duplex! Each unit has 2 bedrooms and 1 bath, vinyl windows, garage with roll-up door and large fenced backyard with patio. This 0.23 acre lot located on the corner of a culdesac is within 2 miles of schools, shopping and bus route....
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Sometimes when you are speaking with your Real Estate Agent, the terms that they are using may seem as foreign to you as those terms that your doctor throws out to you. I saw this article in "Realty Times" that talks about Real Estate terms and I decided to share it with you!

We saw an ad today for an acreage community in Texas offering barndominium shells during their Grand Opening special. That's right, barndominium shells.

Don't know what that is? Yeah, neither did we (they're apparently structures built with prefabricated materials like metal shells, which can then be customized to individual specifications.

Because much/most of the structure is prefab, the construction can be quick, and cheap). Great. Good to know.

Anyway, it got us thinking that there may be a lot of real estate terms out there that are confusing or misunderstood. So, behold our first real estate terms rundown. We'll be back with part two soon.

Alley-loaded: This is a type of home that puts the garage in the rear of the home, accessed by a common alley.

Appraised Value: When you are buying or selling a home, an appraiser will tour the home and assign a value according to several factors including similar homes in the neighborhood and condition, size, and location of your home.

As-Is: An as-is home is typically sold without a warranty and without any commitment to making repairs. As-is homes are commonly foreclosures.

Backup Offer: This is an offer that's second (or third or fourth…) to an accepted offer on a home. The idea is that if the home falls out of escrow for some reason, the backup offer can move up in line.

Buying down your interest rate: Your lender may offer you the opportunity to buy down your interest rate. This means coming up with money out of pocket in exchange for a lower interest rate.

Closing: Closing takes place once all the escrow requirements have been met. This is when the buyer signs all the necessary documents and takes ownership of the home.

Comparables: These are homes that compare to the one you are buying or selling. Comparables or "comps" are used to identify a home's sales price by comparing the home to others that are similar in terms of size, age, location, condition, and other factors.

Contingency: A contingency is sometimes attached to an offer, making said offer dependent on other factors, like the sale of a potential buyer's existing home.

Earnest money: This is typically paid when making an offer on a property. If your offer is accepted, you enter into escrow and the earnest money becomes part of your down payment.

FSBO: A home that's being sold "For Sale By Owner" instead of with a Realtor. You may hear this pronounced "Fizbo."

HOA: Newer communities and masterplans usually have a Homeowner's Association, which charges a fee to homeowners for things like landscaping and amenities. In acreage communities, there is instead a Property Owner's Association (POA).

P&I: Refers to principal and interest only. You always want to make sure you keep in mind all the other monthly charges you'll be responsible for, like taxes, insurance, and an HOA fee if there is one.

PITI: Principal, interest, taxes and insurance, otherwise known as the four main elements of a monthly mortgage.

PMI: This stands for private mortgage insurance, and is typically required on homes where the buyer has put less than 20 percent down.

Points: You may be charged points by your lender when processing your loan. One point equals one percent of the loan amount, and so on.

Zero lot line: Zero lot line homes, also known as Z lots, are built differently than traditional single-family or attached homes. "Zero-lot-line house are built very close to the property line in order to create more usable space," said Investopedia. "Rowhouses, garden homes, patio homes and townhomes are all types of properties that may be zero-lot-line homes. They may be attached (as in a townhome) or detached, single story or multistory."

Have an awesome week!

THIS WEEKS HOT HOME LISTING:

593 71st Street

Price: $225,000     Beds: 4     Baths: 2    1/2 Baths: 1     Sq Ft: 1564

Charming home with some updates. Features new roof, laminate wood floors, vinyl windows and heat pump. Lovely living room with wood burning fireplace and built-in storage. Kitchen with eating bar opens to spacious dining room with slider. Bedrooms a...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Real Estate sales in the Eugene and Springfield area were slightly down in September, but remaining at a higher pace than 2014.  The biggest trend remains to be the lack of inventory.  This is especially true in the lower price ranges.  Don't look for any serious changes as long as mortgage interest rates continue to be at their current low levels.  Here are the numbers for September 2015.

Activity in Lane County cooled slightly this September, but all measures are still ahead of last September. Pending sales (461) fared 31.3% better compared to the 351 offers accepted in September 2014, though 9.8% below the 511 offers accepted in August 2015. Closed sales (443) rose 26.9% over the 349 closings posted in September 2014 but fell 1.8% short of the 451 closings from August 2015. New listings (486) showed an increase of 11.5% compared to last September (436) but were 21.0% lower than the 615 new listings offered last month in August 2015.

Inventory fell just slightly in September to 3.0 months.

Year to Date Summary

Activity was up during the first nine months of this year compared to the same period last year. Pending sales (4,094) were up 30.3%, closed sales (3,658) were up 28.8%, and new listings (5,400) were up 10.0% this year compared to the first nine months of 2014.

Average and Median Sale Prices

Comparing 2015 to 2014 through September of each year, the average sale price rose 3.5% from $235,200 to $243,400. In the same comparison, the median sale price rose 4.8% from $210,000 to $220,000.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1062 Adams St

Price: $314,900     Beds: 3     Baths: 2     Sq Ft: 1845

Prime location property! Updated hm can be used as single fam, mother-in-law or duplex. Hardwood, 3 ductless heat pumps, storm wdws, corian counters, hardi shingle siding, 40yr roof, tankless hot water, weatherized, gas fp. Original wainscoting, cas...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

With mortgage interest rates remaining extremely low, first time homebuyers are still making up a huge part of the home purchase market.  If you are currently renting and wanting to own a home or if you are otherwise thinking of that first home purchase, this is the market to do it in.  The affordability of homeownership may never be much better than it is right now. Here is an article from Realty Times that gives great advice if you are thinking about that first home purchase.

Few things in life are more exciting than buying your first home. The feeling of turning the key for the first time (or clicking the garage door opener) is thrilling. You'll likely feel a sense of pride like never before. But getting to that point may be a challenge. And the challenges won't end once you move in.

The more you know about the process, the more prepared you can be for the wrinkles that pop up, and the more you can relax and enjoy homeownership.

1.It may cost more than you expect.

When you're calculating your monthly payment, don't leave anything out. Add in principal, interest, taxes, and insurance, plus any HOA fee. Then estimate landscaping, pool maintenance if needed, and any other fees there may be. Don't forget to include your monthly home warranty cost if you have one.

Experts recommend putting aside a minimum of one percent of your home price for repairs and maintenance per year, so add that in. Think also about utilities. If you're coming from a small apartment, you might have a bump in that monthly cost. Only by taking a real look at the numbers can you get a true feeling for what you'll pay every month as a homeowner.

2. You may only have to put three percent down.

FHA loans aren't your only low down payment option anymore. Ask your lender about 97% LTV loans that require only three percent down for first-time buyers.

3. You can probably afford it more easily than you think.

Rents have been going up way more than home prices in many real estate markets. A recent analysis by RealtyTrac found that, "Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties."

4. But…know how much you can really afford.

Your loan approval will tell you how much the bank thinks you can afford. But they only know so much. If you're planning to have a baby or change careers sometime soon and your income could be affected, you may want to stay lower on the payment scale, which means a higher down payment or a less expensive house (or both).

5. You need a preapproval.

Your REALTOR® will tell you this. Believe him. Even if he takes you out to look at houses without a preapproval (many won't, since it could be seen as an indication that you're not serious about buying), you won't be in a good position to make an offer if you find a place you like. And in a competitive market, that could be disastrous.

6. It may be easier to buy a single-family home than a condo.

Strict FHA restrictions on condos can make for a limited pool of options, and, if you can find one that is approved, it might have a higher interest rate. Be sure to ask your lender to provide a side-by-side analysis of a condo and single-family home in similar price ranges; a home that is priced slightly higher may end up being the answer when you examine the numbers carefully.

7. You might be able to get money to fix up your home.

Fashion yourself a DIYer? Ask your lender about 203(k) and HomeStyle loans. "Fannie Mae and the Federal Housing Administration have home renovation mortgage programs that allow buyers to borrow based on what the house is expected to be worth after the home rehab is completed," said Bankrate.

8. You might be able to get a gift for your down payment.

"Cash gifts are also allowed for low-down payment mortgages including the FHA purchase mortgage, which requires a 3.5% down payment and the Conventional 97 mortgage from Fannie Mae and Freddie Mac which requires just 3% down," said The Mortgage Reports.

They're also allowed on many other conventional loans, and can help a first-time buyer get to a 20 percent down payment that would help them qualify for the lowest rates. Check out The Mortgage Reports for important details about down payment gifts. Do it wrong, and your application can be rejected. There also may be tax implications for improper gifting.

9. Gift funds may also be allowed for your closing costs.

Be sure to ask your lender. Not having to come up with thousands of dollars at closing means money for new furniture!

10. You'll have a love-hate relationship with your HOA.

You'll appreciate them when the car up on blocks for a week in front of the neighbor's house is towed. Not so much if it's your car up on blocks.

11. You'll want to thoroughly check out the neighborhood.

Make sure there are no development plans that may affect your home value in the neighborhood you're looking at. Talk to the neighbors. Check for sexual predators nearby. And spend some time in the area at different times and on different days so you can observe the neighborhood flavor. You also might want to arrange to commute from/to the house one day to see what you have in store.

12. You'll want good schools. Even if you have no kids.

Families inherently seek a neighborhood with quality schools. But studies show that good schools can dramatically affect home value, making these neighborhoods desirable to buyers without kids as well. "Living near a high-scoring school can increase your home's value by over $200,000, according to the  Brookings Institution," said AOL.

13. You can derail your loan approval.

Don't check your credit, get a new store credit card, close an account, or buy a new car while you're in escrow - you might not stay in escrow. Listen to your lender and hold off on anything that could affect your credit or financial situation until you close.

14. The home inspection will reveal some issues. It always does.

Keep a cool head and let your Realtor handle any negotiations. You just might come out better than before.

15. You're gonna get a tax break.

You're probably already looking forward to this, but do you know the details? Your mortgage interest is a write off. So are your Private Mortgage Interest (PMI) fees and any points you pay to buy down the rate on your mortgage. All told, you could be getting a nice little return come tax day. Check out this calculator to estimate your tax break.

16. It will be more work than you imagined.

Stuff leaks, breaks, makes weird noises, shuts down, peels, crumbles, flames out, and falls off. You will learn how to fix it all, or at least how to make a phone call to someone who can.

17. It will all be worth it.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING

 
 
 

2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    ½ Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner’s ste w/ tray ceilin...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

Things have now changed with your new mortgage loan.  New documents are now going to be required on all transactions and these new documents and new rules will most likely increase the amount of time it takes to close on your loan.  Here is a recent article from Realty Times that talks about the new items that went into effect on October 3rd of this year.

The Know Before You Owe disclosure form issued by The Consumer Financial Protection Bureau will go into effect on October 3, 2015. The rule provides for easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer.

But some lenders and real estate agents say the new mortgage rules may delay closings. What will change is that three documents, the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure will be pared down to two new closing forms called a Loan Estimate and a Closing Disclosure.

The Loan Estimate form must be given to consumers no later than three days after they formally apply for a loan. That means providing financial information to the lender and signing a mortgage application.

When the consumer receives the Loan Estimate form, he or she will know what the loan amount and the interest rate will be, how much the monthly payment is, an estimate of taxes and insurance based on local rates, and how much down payment is required.

To prepare for settlement, homebuyers will have a three-day period to review the Closing Disclosure form. Because of the added review period, lenders are recommending that borrowers lock in their mortgage rates for longer periods than they normally would.

CNBC real estate reporter Diane Olick explains that the "new rules will require lenders, title companies, real estate professionals and insurance representatives to all come together sooner in the process to ensure the disclosures do get out in time."

For example, a 30-day rate lock is typical, but borrowers can extend the lock period up to 45 days or 60 days. However, there may be a question as to whether or not more time is really needed to close the loan.

According to Bankrate.com, Borrowers are often told there's no charge for a rate lock. That's true in the sense that the rate lock isn't associated with a fee. But a rate lock isn't free.

Josh: A longer rate lock typically involves a higher interest rate, which is more expensive for the borrower. The interest rate or "pricing" difference between a 15-day rate lock and 60-day rate lock might be as little as one-eighth or as much as half of a percentage point, or roughly $25 to $50 per month for the life of the loan.

Laura: Meanwhile, real estate agents are preparing for the worst. According to a new survey by the National Association of REALTORS® says that about 56 percent of REALTORS® say they plan to add more time to their contracts.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

755 Horn Lane

Price: $274,000     Beds: 4     Baths: 2     Sq Ft: 1868

Tranquil & spacious property! Beautifully landscaped 0.41 acre lot provides seclusion & great entertaining spaces. Remodeled home offers updated kitchen & baths, large living rm w/ gas fp, formal dining, large windows+skylight. Private master ste w/...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

One thing that you can depend on is that the Real Estate Market that you see today is most likely not going to be the same one that you see a month from now and so on.  The environment for first time home buyers has been the exception as of late, but it is most likely due for a change.  The following is an article from Realty Times that explains why first time home buyers need to act now!

With some of life's milestones, there may not be a picture-perfect time to take the plunge. But when it comes to buying your first home, the combination of good market conditions and your own financial situation can dictate timing. If you've got the credit and down payment, you'd be crazy not to buy now. Want to know why?

Rates are still low

The Federal Reserve was expected to raise rates this summer, but so far they have stayed put. There is still talk that rates could go up before the end of 2015. So what does that mean for buyers? Well, if you're a millennial, a rise in interest rates could spell bad news.

"If mortgage rates hit 6%, a third of millennials (people younger than 35 years old) wouldn't be able to afford homes as they're currently listed, according to an analysis by HouseCanary, a housing-data analytics company," said Money magazine. "Mortgages are huge loans, so a seemingly small shift in interest rates can change a borrower's monthly payment by hundreds of dollars (though going from the current 4.08% rate to 6% is in no way a small shift)."

Investopedia's example using a $215,000 home with 20 percent down (leaving a $172,000, 30-year mortgage) figures a monthly payment of $821.15 at an interest rate of four percent and $923.33 at five percent. Is that $100 a month enough to get you moving?

New low down payment loans

First-time buyers have typically gravitated toward FHA loans for their low credit score requirements and down payments of just three and one-half percent. But new loans from Fannie Mae require as little as three percent. Known as the 97% LTV (Loan To Value) loan or Conventional 97, it can be more affordable for first-time buyers because "the Conventional 97 program does not require an upfront mortgage insurance premium, and because its annual mortgage insurance rates are cheaper, too," said The Mortgage Reports.

Rising rents

In many market, home prices are up significantly from their lowest levels several years ago, but are still within range of many buyers. Rents, on the other hand, continue to go up, pushing household spending to new, uncomfortable, heights.

"Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties recently analyzed by RealtyTrac," said Mortgage News Daily. "Across all 285 counties analyzed, the average percentage of median household income needed to rent was 29.96 percent while the average percentage of median household income needed to buy was 29.00 percent."

Tax deductions

When you pay rent, the entirety of your payment goes to the landlord or property owner, and all you get in return is a temporary place to stay. When you own your home, the government essentially pays you money back for your investment.

"Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest," said Bankrate. "And all that interest is deductible, unless your loan is more than $1 million."

Any points you paid on your loan are also deductible the year you paid them, as are your property taxes. "These taxes will be an annual deduction as long as you own your home," said Bankrate. "But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned  the home. Your share of these taxes is fully deductible."

Lower PMI

First-time homebuyers who put less than 20 percent down on an FHA loan will have to pay Private Mortgage Insurance (PMI). It's one of the drags of having limited cash. For the past several years, those payments have cost buyers an annual premium of 1.35% of the loan balance, but a recent change dropped the premium to 0.85%.

"This change is expected to save more than 2 million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years," said Credit.com.

Remember also that your PMI may also be tax deductible, subject to a few restrictions (and remind yourself again what portion of your rent is deductible: none).

Have An Awesome Week!

THIS MONTHS HOT HOME LISTING!

2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    ½ Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner’s ste w/ tray ceilin...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!