Posted by Rebecca Loesch on Thursday, December 27, 2018 at 12:35 PMBy Rebecca Loesch / December 27, 2018Comment
One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your loan.
Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well.
When you make ‘extra’ payments toward your loan, the key is to let your lender/bank know that you want the extra funds to go toward your principal balance as they will not automatically do this for you.
You don’t have to double your mortgage payment to make a big difference either!
If you have a 30-year mortgage on a median-priced home ($250,000) with a 5% interest rate, you’ll be responsible for a $1,342.05 monthly principal and interest payment. Over the course of the loan, if you pay your exact monthly payment, you will have paid $233,133.89 in interest alone!
Paying a Little Extra Can Pay Off Big
1. Pay an additional 1/12th of your mortgage payment every month
Posted by Rebecca Loesch on Monday, December 17, 2018 at 10:47 AMBy Rebecca Loesch / December 17, 2018Comment
How to choose a home warranty in Denver
Home warranties cover repair costs for your home systems, like heating and cooling, and your large appliances, like refrigerators and dishwashers. Home warranties are particularly useful for those buying or selling a home. For buyers, a home warranty protects against unexpected issues after purchasing. For sellers, having a home warranty could attract high-paying buyers.
Beyond buying or selling your home, you may have other reasons to purchase a home warranty in Denver, such as if you:
Own an older home
Own older appliances
Own rental properties
Would have trouble paying for unexpected repairs
The cost of a home warranty depends on your location, type and size of home and desired level of protection. Some companies offer a monthly premium while others charge one annual fee. A home warranty in Denver can cost between $200 to $1,400 per year, depending on the plan. Some companies offer coverage for appliances while others don’t. Understand your coverage needs before choosing a package.
A home warranty could cover:
Garage door openers
Some kitchen appliances
In most cases, you can customize your plan so that you only pay for the coverage you need. Some companies offer add-ons, including:
Posted by Rebecca Loesch on Wednesday, December 12, 2018 at 1:17 PMBy Rebecca Loesch / December 12, 2018Comment
National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
Posted by Rebecca Loesch on Monday, December 10, 2018 at 2:31 PMBy Rebecca Loesch / December 10, 2018Comment
An emerging trend for some time now has been the difference between available inventory and demand in the premium and luxury markets and that in the starter and trade-up markets and what those differences are doing to prices!
Inventory continues to rise in the luxury and premium home markets which is causing prices to cool.
Demand continues to rise with lower-than-normal inventory levels in the starter and trade-up home markets, causing prices to rise on a year-over-year basis for 80 consecutive months.
Posted by Rebecca Loesch on Thursday, December 6, 2018 at 10:11 AMBy Rebecca Loesch / December 6, 2018Comment
Over the last six years, we have experienced strong price appreciation which has increased home equity levels dramatically. As the number of “cash-out” refinances begins to approach numbers last seen during the crash, some are afraid that we may be repeating last decade’s mistake.
However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.
What happened then…
When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.
This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.
Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.
What’s happening now…
Again, Americans are seeing their home equity grow. Today, over 48% of all single-family homes in the country have over 50% equity, and yes, some families are tapping into that equity. However, this time around, homeowners are not making irresponsible decisions. According to the ...