Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with smaller price tags. During the boom era in the mid-2000's, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn't "helped."
So, this question is posed. How much space does your family really need? This isn't a simple cut and dry question. Every family has different needs and dynamics.
Let's put things into perspective, though. Having a large, show-stopper home doesn't equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.
There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.
Smaller homes mean reduced costs across the board. Let's examine these for a moment.
Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!
The same goes for home insurance and, let's not forget, the actual purchase price of the home. Reduced size means reduced costs.
Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means fewer lights to be left on!
Today's standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.
These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.
These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn't sound like a one room shack! It's simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.
Just 60 years ago, when many people's grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.
If you're thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that smaller houses can be just as charming, functional, and full of love!
Written by Carla Hill
October 20, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or Visit our website: www.livinglaketahoe.com
Friday, October 28, 2011
Wednesday, October 26, 2011
The Joys of Homeownership
Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons.
Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer.
What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones.
It makes sense. Many people enter the realm of homeownership as young couples looking to build a nest. They plan on starting their own family and need room to expand and grow. These family homes will see many firsts and will be the container of countless memories. Additionally, homeownership gives families more room to entertain and this means extended family will also share in building memories.
It's not just young families, though, that seek homeownership. Families with teenagers seek larger homes to room their growing brood. Retiring adults may wish to start a new phase and new memories, seeking out warmer climates or smaller, more manageable homes.
These little moments are what life is all about. Memories from Christmas mornings and summer vacations will fill minds for years to come.
On the other hand you literally can put down roots by planting trees and shrubs! Renters are rarely afforded the luxury of gardening. In fact, digging up the landlord's yard is frowned upon. As a homeowner you are able to create your own green oasis, including trees that will mature alongside your children and gardens that will feed your hungry pack.
There is a certain pride that comes with homeownership. This little piece of property and land is yours. There's no one that can evict you or take it away. This security allows people to form deep attachments to both the land and home.
This pride of ownership spurs many owners to make improvements and additions, both to keep the home in working order and to make it more comfortable and usable, which in turns improves neighborhood values and overall curb appeal.
Why do people buy? They may be initially motivated by changes in circumstance, such as a new job or a new family, but they buy based on emotional responses. People want a house that can become their home, where they'll fill it with good times and memories. Be sure to remember this sentimental side of homeownership the next time you read about stocks, bonds, and housing woes.
Written By: Carla Hill
October 11, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or Visit our Website: http://www.livinglaketahoe.com/
Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer.
What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones.
It makes sense. Many people enter the realm of homeownership as young couples looking to build a nest. They plan on starting their own family and need room to expand and grow. These family homes will see many firsts and will be the container of countless memories. Additionally, homeownership gives families more room to entertain and this means extended family will also share in building memories.
It's not just young families, though, that seek homeownership. Families with teenagers seek larger homes to room their growing brood. Retiring adults may wish to start a new phase and new memories, seeking out warmer climates or smaller, more manageable homes.
These little moments are what life is all about. Memories from Christmas mornings and summer vacations will fill minds for years to come.
On the other hand you literally can put down roots by planting trees and shrubs! Renters are rarely afforded the luxury of gardening. In fact, digging up the landlord's yard is frowned upon. As a homeowner you are able to create your own green oasis, including trees that will mature alongside your children and gardens that will feed your hungry pack.
There is a certain pride that comes with homeownership. This little piece of property and land is yours. There's no one that can evict you or take it away. This security allows people to form deep attachments to both the land and home.
This pride of ownership spurs many owners to make improvements and additions, both to keep the home in working order and to make it more comfortable and usable, which in turns improves neighborhood values and overall curb appeal.
Why do people buy? They may be initially motivated by changes in circumstance, such as a new job or a new family, but they buy based on emotional responses. People want a house that can become their home, where they'll fill it with good times and memories. Be sure to remember this sentimental side of homeownership the next time you read about stocks, bonds, and housing woes.
Written By: Carla Hill
October 11, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or Visit our Website: http://www.livinglaketahoe.com/
Monday, October 24, 2011
Time to Move Up?
The market if fraught with scary headlines and ominous news reports. Could the economy slip once more into a recession? Will home prices fall even further? It's enough to make even the bravest buyer a little squeamish.
The truth of the matter is that now is a fantastic time to buy. Interest rates are wonderfully low and affordabilty rates are at record highs. Not only that, but there is an oversupply of homes on the market. Now is a great time to move up if you play host to the right set of circumstances.
In order to evaluate if now is the time for you to buy, consider these five issues.
1. Interest Rates: Low rates translate into smaller monthly payments and less money over the long-term. The Federal Reserve has promised to keep interest rates low for the foreseeable future, but in the next few years we could see rates climb back upward. If you have excellent credit, you'll likely qualify for an exceptional rate. Better yet consider doing an all-cash purchase (like the nearly 30 percent of the market) and avoid interest rates altogether!
2. Why are you buying?: This is an important question to spend some time pondering. Don't move on a whim. What is the real need to move? Many move-ups need more space, want to claim a more prestigious address, or are ready to settle down for good and want to be exactly where they've always dreamed. Perhaps your current home is unable to be remodeled to accommodate your wants and needs. Regardless of the reason, be sure to spend ample time thinking about what move is best for your family.
3. Equity: Home values have fallen across much of the country and this could mean that equity you had built over the past few years is gone. Talk to a local real estate agent about the current market value of your home before deciding if now is a time to buy. Most sellers aren't willing to take a loss on their home. The good news? If you've owned your home for many years (at least five) then chances are you do indeed still have equity.
4. Financial Stability: There's a 9.0 percent unemployment rate that doesn't appear to be going anywhere fast. Moving up can mean bigger payments or heftier bills (energy costs, property taxes, etc). Are you ready to take on this new responsibility? Be sure that you have steady employment, adequate retirement savings, an 8+ month emergency fund, as well as savings for downpayment and other closing costs.
5. Family Concerns: There are many different stages to life and at each of these stages one must consider how actions will affect family members. A family with young children will need to consider school districts, sports teams, and friends. A couple nearing retirement may want to consider the needs of children or grandchildren that live nearby. Buying a home is about much more than making a sound financial decision, it's about creating the sort of life you desire.
Moving-up can be part of the fulfillment of a life long dream. Many couples simply can't wait for the day they step inside their perfect home. Now is a great time to make those dreams a reality, just be sure to toss in a little sensibility with your dreaming.
Written by: Carla Hill
October 6, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or Visit our website: http://www.livinglaketahoe.com/
The truth of the matter is that now is a fantastic time to buy. Interest rates are wonderfully low and affordabilty rates are at record highs. Not only that, but there is an oversupply of homes on the market. Now is a great time to move up if you play host to the right set of circumstances.
In order to evaluate if now is the time for you to buy, consider these five issues.
1. Interest Rates: Low rates translate into smaller monthly payments and less money over the long-term. The Federal Reserve has promised to keep interest rates low for the foreseeable future, but in the next few years we could see rates climb back upward. If you have excellent credit, you'll likely qualify for an exceptional rate. Better yet consider doing an all-cash purchase (like the nearly 30 percent of the market) and avoid interest rates altogether!
2. Why are you buying?: This is an important question to spend some time pondering. Don't move on a whim. What is the real need to move? Many move-ups need more space, want to claim a more prestigious address, or are ready to settle down for good and want to be exactly where they've always dreamed. Perhaps your current home is unable to be remodeled to accommodate your wants and needs. Regardless of the reason, be sure to spend ample time thinking about what move is best for your family.
3. Equity: Home values have fallen across much of the country and this could mean that equity you had built over the past few years is gone. Talk to a local real estate agent about the current market value of your home before deciding if now is a time to buy. Most sellers aren't willing to take a loss on their home. The good news? If you've owned your home for many years (at least five) then chances are you do indeed still have equity.
4. Financial Stability: There's a 9.0 percent unemployment rate that doesn't appear to be going anywhere fast. Moving up can mean bigger payments or heftier bills (energy costs, property taxes, etc). Are you ready to take on this new responsibility? Be sure that you have steady employment, adequate retirement savings, an 8+ month emergency fund, as well as savings for downpayment and other closing costs.
5. Family Concerns: There are many different stages to life and at each of these stages one must consider how actions will affect family members. A family with young children will need to consider school districts, sports teams, and friends. A couple nearing retirement may want to consider the needs of children or grandchildren that live nearby. Buying a home is about much more than making a sound financial decision, it's about creating the sort of life you desire.
Moving-up can be part of the fulfillment of a life long dream. Many couples simply can't wait for the day they step inside their perfect home. Now is a great time to make those dreams a reality, just be sure to toss in a little sensibility with your dreaming.
Written by: Carla Hill
October 6, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or Visit our website: http://www.livinglaketahoe.com/
Wednesday, October 19, 2011
Mortgage Rates Fall, Housing Opportunities Getting Better
For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.
Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further.
These historically low mortgage rates aren't necessarily rapidly selling homes. Across the country contract signings have been down. According to USAToday.com, “July's index fell 5.8% in the Northeast, 3.7% in the Midwest and 2.4% in the West. It rose 2.6% in the South.”
The index of sales agreements, tracked by the National Association of Realtors, showed a 1.2% drop down to 88.6 (100 is considered healthy).
Still the opportunities for homeownership keep getting better. Some markets are more affordable than ever; prices have been cut in half in some metro areas.
Of course, getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% downpayment coupled with a high credit score are required by some lenders.
Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower's outstanding debts. The company's website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you've never seen them before.”
Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.
According to the company, “The supplemental information the CoreScore credit report provides will expand your view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”
Among the information that the CoreScore report will deliver to lenders are the following:
- Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies
- Property legal filings, such as notices of default
- Property tax amounts and payment status
- Estimated market values on all U.S. properties owned
- Rental applications and evictions
- Inquiries and charge-offs from pay-day and online lenders
- Consumer-specific bankruptcies, liens, judgments and child support obligations
With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers' debts and credit behavior, it's vital for borrowers to understand the most important qualifying factors that influence lenders.
The chief concern is the ability to repay the loan followed closely by the willingness to repay.
Borrowers can place themselves in better standing with lenders by doing two key things: paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio. Secondly, lenders examine borrowers' track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.
Written by Phoebe Chongchua
October 7, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, October 17, 2011
Choosing a Condo
Not all home buyers have dreams of spacious lawns, rambling rooms, and secluded properties. Many buyers, rather, are on the search for a home that will be easy to care for and will give them plenty of chances to be active and social.
From first-time buyers to down-sizing retirees, condos offer a wealth of opportunity. Many come equipped with clubhouses, gamerooms, gyms, and common outdoor meeting areas. Others go above and beyond with organized mixers, dances, movie nights, and more!
Condos can be a great choice for single homeowners looking to socialize. They can be a wonderful choice for older adults who are fully capable of caring for themselves, but wish to cut back on home maintenance.
Typically, owning a condo means you no longer have to worry about mowing your yard, maintaining landscaping, cleaning or scooping sidewalks, or making large-scale repairs. You pay a small fee each month that pays for your portion of this upkeep. Your condo association should also have a reserve fund that is held for large repairs, such as roof replacement, when the time comes.
The operative word is "should." Not all condo associations are the same. Before you buy, be sure to check into how diligent the association is. Are they up-to-date on reserve studies? How often in the last 10 years have they raised fees? Do they have an lawsuits pending?
Additionally, not all condo communities are equal when it comes to amenities. When you set up a showing, be sure to visit all that will be available.
This next upside has a catch. Condos generally come with an extensive set of rules. This means the condo government says what you can do to your home and what you can't. They can prohibit improvements, pets, home-based businesses, and subletting. The positive side of these rules is that your condo community should stay uniform, updated, and in good order. If you have an issue with a neighbor, you can easily lodge a complaint, for they are liable to the condo rules.
As every up has it downs, there are some drawbacks to owning a condo. One primary negative is the overall lack of storage. Generally, you have no garage, attic, basement, or backyard storage shed to house those Christmas decorations and other treasures.
Another hefty downside is the monthly HOA fees. For the entire time you own the condo, you will be expected to pay fees. While these go towards upkeep and amenities, it is an added financial burden that one must consider on top of purchase prices. Additionally, you are still responsible to pay your monthly fees even if your condo is entirely paid off.
Finally, while owning a condo means you have many comparable homes on hand for pricing comparison, it also means you have lots of competition on hand for units that are just like yours.
Condos can make ideal and happy homes. Be sure to do your due diligence when researching what community is right for you!
Written by Carla Hill
October 12, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, October 12, 2011
Mixed News Keeps Low Mortgage Rates Stable
For the past week, mixed economic news that continues to lead the headlines has helped to keep
Although seesawing market movements can be stressful for watchers, Freerateupdate.com's daily survey of wholesale and direct lenders show that the back and forth actions of investors is actually keeping mortgage rates at the same level. Current 30 year fixed mortgage rates are at 3.875%, 15 year fixed mortgage rates are at 3.250% and 5/1 adjustable mortgage rates are at 2.625%. If you have been watching mortgage rates and their fluctuations, then you are aware that mortgage rates have reached historic lows.
Not knowing what direction they will head is probably the best incentive for borrowers to get their mortgage application in motion. With good credit, borrowers can obtain these low mortgage rates with 0.7 to 1% origination fee. Of course, income will need to be verified and other documentation will need to be checked to receive lender approval. Whether you are buying a home or refinancing an existing mortgage, there has never been a better opportunity to receive the
FHA has been keeping busy especially with first time home buyers. First time home buyers turn to FHA because no other mortgage loans offer a down payment of 3.5%. Even with credit as low as 500, FHA will accept a down payment of 10%. Then there are the
After almost two weeks into the decreased conforming loan limit, low jumbo mortgage rates are doing just fine and have been somewhat stable, along with other mortgage rates. Jumbo 30 year fixed mortgage rates continue to fluctuate and are currently at 4.750%. Jumbo 15 year fixed mortgage rates are at 4.375% and jumbo 5/1 adjustable mortgage rates are at 3.250%. With more properties now falling back into the jumbo mortgage market, it is important that borrowers have these low jumbo mortgage rates still available. Borrowers will need to have excellent credit to obtain these
Recent volatility has been keeping markets extremely busy for the past week. MBS prices (mortgage backed securities), which move mortgage rates in the opposite direction, have been on another roller coaster. With daily increases and decreases, no major changes have occurred with mortgage rates which have ended up just sitting still. This week, Fed Chief Ben Bernanke told lawmakers that the Feds are prepared to put in additional help to aid the economic recovery. Investors saw some light at the end of the tunnel after the Institute of Supply Management reported an increase in the service sector work force. Jobless claims rose to 401,000 for the week ending October 1st which was right around what was expected while the Labor Department reported that 103,000 jobs were added in September. This was all positive news for investors who have also been watching the Euro zone crisis closely. Friday's downgrade of Spain and Italy only added more concern about Europe's financial problems. Despite what has been going on, stocks have seen some needed increases while, at the same time, mortgage rates have remained low. Coming up this week, third quarter earning reports will begin to trickle in and, again, may cause a lot of volatility.
Published by Realty Times
October 12, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, October 10, 2011
Mortgage Rates Fall, Housing Opportunities Getting Better
For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.
Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further.
These historically low mortgage rates aren't necessarily rapidly selling homes. Across the country contract signings have been down. According to USAToday.com, “July's index fell 5.8% in the Northeast, 3.7% in the Midwest and 2.4% in the West. It rose 2.6% in the South.”
The index of sales agreements, tracked by the National Association of Realtors, showed a 1.2% drop down to 88.6 (100 is considered healthy).
Still the opportunities for homeownership keep getting better. Some markets are more affordable than ever; prices have been cut in half in some metro areas.
Of course, getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% downpayment coupled with a high credit score are required by some lenders.
Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower's outstanding debts. The company's website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you've never seen them before.”
Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.
According to the company, “The supplemental information the CoreScore credit report provides will expand your view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”
Among the information that the CoreScore report will deliver to lenders are the following:
- Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies
- Property legal filings, such as notices of default
- Property tax amounts and payment status
- Estimated market values on all U.S. properties owned
- Rental applications and evictions
- Inquiries and charge-offs from pay-day and online lenders
- Consumer-specific bankruptcies, liens, judgments and child support obligations
With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers' debts and credit behavior, it's vital for borrowers to understand the most important qualifying factors that influence lenders.
The chief concern is the ability to repay the loan followed closely by the willingness to repay.
Borrowers can place themselves in better standing with lenders by doing two key things: paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio. Secondly, lenders examine borrowers' track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.
Published by Realty Times
Written by Phoebe Chongchua
October 7, 2011
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Subscribe to:
Posts (Atom)
