Mortgage Applications Rates Drop
Posted on | July 4, 2011 | No Comments
News in the mortgage industry continues to be hit and miss. Unfortunately the economy is still in a recovery state, and that is causing many Americans to tighten their belts and refuse to take on more debt. Also as a result is a serious decline in the amount of mortgage applications.
A recent study showed that mortgage rates have dropped by as much as 5.6 percent. FHA loans have increased as well, and during the month of April this may have led to the decline in home mortgage applications. Luckily, the 30-year fixed mortgage rate declined in the same month, but this may not be enough to pull the housing market out of its slump. Americans are still experiencing high volumes of unemployment, and low interest rates may not be enough to encourage Americans to purchase a home. Without buyer’s confidence, homes may continue to stay on the market for many months. Hopefully the economy will continue to recover and the housing market will be positively affected by renewed buyer confidence. Time will tell during this unpredictable period for our nation.
Negotiating a Home Purchase
Posted on | June 27, 2011 | No Comments
Buying a home can be a tricky process, and when you are trying to negotiate the price of the home, that can become even more challenging. Buyer’s remorse occurs when you realize you could have paid less for your home than you did. Avoid buyer’s remorse by properly negotiating a home purchase.
If you’re prepared to negotiate the price of a home, you should also be prepared to walk away from that home if the price is not lowered to what you wanted. This is hard for many homebuyers that cannot let go of the home of their dreams. Once you’ve determined a price that’s reasonable for the home (based on the research you’ve done) stick to that price. If it’s not met, you may need to walk away from the home in search of a better fit. Once you have put in an offer on the home, based on the price you have determined, set a deadline. Ask that the homeowners respond within 48 hours, because setting a tight deadline can help negotiate the price of the house in your favor. As always, being pre-approved for a home loan can help move the ball into your court, as homeowners will understand you already have the power to buy the house if you choose.
Refinancing Rip-Offs
Posted on | June 20, 2011 | No Comments
Refinancing your home mortgage is a great way to save money on monthly bills, but it’s not right for everyone. There is a right and wrong time to refinance, and it’s important to discuss your options with a professional before refinancing to avoid getting ripped off.
Knowing the current value of your home, as well as current interest rates will help determine if refinancing is right for you at this moment. Review your credit report, and if there are any errors or discrepancies get those taken care of before you refinance based on your current credit score. Compare the rates of several different mortgage lenders in order to get the best rate. If your goal is to pay lower monthly payments, you will have to lengthen the term of your mortgage. Compare this with the amount of years you have left on your mortgage to determine if this really will save you money. Shorter refinancing terms may save you money in the longer term. Discuss your refinancing goals with your lender and decide the immediate needs of your financial goals and whether or not refinancing fits in with those goals.
Energy Home Improvements to Increase Property Value
Posted on | June 13, 2011 | No Comments
If you’re a homeowner, you can easily appreciate the value in many home improvements that can boost the energy efficiency of your home. There are many home improvements you can make that can improve your energy usage, as well as the overall value of your home.
One of the most straightforward improvements is to update the windows in your home. Updating your windows to more energy efficient windows can help lower the amount of energy used in your home, which will increase its value. Other homeowners recommend installing Energy Film in your home, which can keep the sun out of your home during the summer, and prevent energy loss during long winters. Make sure all the caulked areas in your home are up to date to also prevent air from escaping or entering your home. You can also invest in Energy Star products and appliances throughout your home. Not only will these improvements save you money on your energy bills, but potential homebuyers will also see the value in these improvements, which can increase the overall value of your home.
Selling your Home Without a Realtor
Posted on | June 6, 2011 | No Comments
Yes, it’s possible to sell your home without a realtor. While you may not have all the expertise to sell your home quickly, or for the best price, you can have a successful home sale without use a licensed realtor.
The first step to selling your home is doing your research. You must understand the legalities of your real estate transaction, in order to complete the necessary steps to legally sell your home. Being within the legal confines of selling your home is the most important step. Next, you should research the real estate market in your neighborhood, so you understand who you are potentially selling your home too. This will make marketing your home more successful. Next, properly prepare your house for open houses and showings. Update any outdated parts of your home, and tidy up the paint inside and outside of your house. Keep things neutral, simple, and uncluttered. Carefully price your home by comparing it with home sales in your area from the last six months. This will help you avoid pricing your home too high, or too cheaply. Market your house according to the demographic you are selling to using newspapers, websites, and fliers. Selling your home without a realtor can be successful, but it’s up to you to take the necessary steps to guarantee success.
Understanding the Home Offer
Posted on | May 30, 2011 | No Comments
Many homebuyers admit that making an offer on the home of their dreams was one of the most stressful experiences of their life. This is especially true if another family makes an offer on the home you are interested in. Understanding the home offer, or sales contract, is the first step in expanding your knowledge about the home buying process.
A well-constructed home buying contract will include the sale price of the home, as well as the financial terms according to the seller. The contract will also include the seller’s binding promise to provide the title of the home. Remember, sales contracts are to protect the buyer and the seller. Information about the deed, target closing date, and clarification about who will pay to insure the title, survey the property and the closing costs are also included in a thorough home offer. The home offer section outlining buyers and sellers is often considered the most important part of the contract, so if you have any concerns or doubts about this section, be sure to go over it with your mortgage lender. Ask any questions and alleviate any worries before signing the home offer to be sure you are getting into a situation you feel comfortable with.
Refinancing That Makes Sense
Posted on | May 23, 2011 | No Comments
If you’re looking to refinance your existing home mortgage, there are several basics that should be looked at before you sign on the dotted line. Speak with your mortgage lender to find out the best options for you.
If you’ve been in your home for 5 years, you may want to consider refinancing. Think of your refinanced mortgage in terms of 15 or 30-year increments because most banks refinance in these time allotments. If you are looking to lower your monthly payments, this can better prepare you for a financial emergency, as it will allow wiggle room for you to build up a savings each month. Keep in mind this will mean you will be paying off your mortgage longer. On the other hand, if you’re anxious to pay off your mortgage and can handle an increase in monthly payments, consider a 15-year refinanced mortgage that will allow you to pay off your loan more quickly. Examine your finances and think of what you can realistically afford when deciding on how to refinance your home mortgage.
Don’t Become House Poor
Posted on | May 16, 2011 | No Comments
We’ve all heard the term house poor before, but what exactly does it mean? Being house poor means that all your income and earnings go to your mortgage, home taxes, and home repairs. Being house poor is a situation that no one wants to be in, and that everyone can avoid.
Speak with your mortgage lender and discuss your finances openly. Now is not the time to stretch or exaggerate your earnings. Instead, work with your lender to get approved for a mortgage you can actually afford. If you are not honest about your finances, and you are approved for a mortgage that you cannot necessarily afford there is not feasible way you can pay your mortgage bill, utilities, and other necessary home costs. This will inevitably create a situation where you become house poor, and your finances will be drained into your house, leaving you without much else. Avoid this, and the potential of foreclosure by doing your research, organizing your finances and approving yourself for a mortgage that you and your family can reasonably afford.
Rent versus Own: Cheaper in Big Cities
Posted on | May 9, 2011 | No Comments
If you’re debating whether to rent or own your next home, the decision may have gotten a little bit easier for you. In a recent study it has been revealed that buying a home in a larger city may actually be cheaper than currently renting. This may be good news for first time homebuyers.
Statistics show that in 80 percent of America’s largest cities it is cheaper to own a home than buy. The study was conducted by comparing the monthly cost of renting a home versus owning. Cities most affected by this trend include Phoenix, Las Vegas, and Fresno, California. If you live in these areas, or close to these areas check out the housing market in your area. You may be paying a fortune to rent a home when you could reasonably buy your first home. Keep in mind, this trend could be because of lowered property values, so you want to be sure you’re getting the best deal for your money. Check out the housing market in your area and decide if buying a home is right for you.
Homeownership not as popular
Posted on | May 1, 2011 | No Comments
According to recent statistics, homeownership is not as popular as it was 15 years ago. In fact, homeownership is down to rates that were once seen in 1998. So far in 2011, homeownership has dropped by almost 67 percent.
The housing boom occurred in the mid-200s, and that is when we saw a peak in homeownership, when people felt good about buying and owning a home. Programs like the homebuyer tax credit have helped lift the rate of ownership slightly, but not enough to pull us out of the housing slump. Since then, the biggest peak was in 2005, when the homeownership rate was at 69.1 percent. Rental rates have also declined too, in a frightening statistic that reveals that US economy is still on its long road to recovery. It’s important for Americans to feel good about buying their own homes, and to have a sense of ownership that comes with that decision. However, with the shaky economy keeping Americans cautious about taking on more debt, the housing market continues to loom in a state of uncertainty.