Articles
It’s time to take a leap with Homeownership… one of life’s greatest joys! Reasons that homeownership is so sweet!
You Build Equity with homeownership. When you pay rent, the money is gone and you never see it again. Buying a home does come with some initial costs like a downpayment, closing costs, and inspections. With time you will make that money back and build equity in your home. Historically, homes appreciate by about 4 to 6 percent a year. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.
Owning a home builds relationships. Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners have yards, walking trails, sidewalks where they can get to know each other. Neighbors stay put much longer (at least three to five years giving everyone time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.
Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $650 today, then it will still be $650 a month in 15 years. It’s much easier to budget and make financial plans.
Homeownership means you “own” your own home. You can do what ever your little heart desires…renovate, update and paint. You can landscape, plant trees, put in a pool, add a patio or deck. Wow the neighborhood with your holiday decorating. The bottom line is, this is your home and you can personalize it to your own taste. Most renters are stuck with the same white walls and yucky carpets that have been standard in apartments for years.
Great interest rates! Interest rates are at historic lows 3.5- 4% instead of 6.5% or higher. Huge savings for buyers. Since the recession the Home prices have lowered, making homes more affordable than ever. The market has become a “buyers market” …If you have steady income and some cash for a downpayment, (actually there are even programs with little to no money down)
Give me a call so we can talk about what homes in our area would be a good fit for you. Let’s get you into a home that is right for you!
Call Cindy at 585-393-9919 or email cindy.lakebreeze@gmail.com
You Build Equity with homeownership. When you pay rent, the money is gone and you never see it again. Buying a home does come with some initial costs like a downpayment, closing costs, and inspections. With time you will make that money back and build equity in your home. Historically, homes appreciate by about 4 to 6 percent a year. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.
Owning a home builds relationships. Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners have yards, walking trails, sidewalks where they can get to know each other. Neighbors stay put much longer (at least three to five years giving everyone time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.
Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $650 today, then it will still be $650 a month in 15 years. It’s much easier to budget and make financial plans.
Homeownership means you “own” your own home. You can do what ever your little heart desires…renovate, update and paint. You can landscape, plant trees, put in a pool, add a patio or deck. Wow the neighborhood with your holiday decorating. The bottom line is, this is your home and you can personalize it to your own taste. Most renters are stuck with the same white walls and yucky carpets that have been standard in apartments for years.
Great interest rates! Interest rates are at historic lows 3.5- 4% instead of 6.5% or higher. Huge savings for buyers. Since the recession the Home prices have lowered, making homes more affordable than ever. The market has become a “buyers market” …If you have steady income and some cash for a downpayment, (actually there are even programs with little to no money down)
Give me a call so we can talk about what homes in our area would be a good fit for you. Let’s get you into a home that is right for you!
Call Cindy at 585-393-9919 or email cindy.lakebreeze@gmail.com
Trend Alert: Homeowners Opt for 15-year Fixed-Rate Loans
Consumer News and Advice,Finance and Economy,Financing a Home,Real Estate News,Real Estate Trends,Today’s Top Story
[1]Consumer money resource Bills.com recently released its 2011 Third Quarter Mortgage Report. Driven by an increased demand for refinance loans, consumer traffic to the company’s mortgage tools and calculators more than doubled from the second quarter.
The majority of homeowners preferred 15-year fixed-rate loans as a way to combine lower interest rates with the stability of a fixed-rate product. Consumers in this quarter were also more accurate in estimating both their credit score and the value of their homes.
“Homeowners are actively seeking out the sweet spot between long-term stability and the lowest possible interest rate,” says Ethan Ewing, president of Bills.com. “Fortunately, current market conditions make it possible to lock-in that stability and secure very low rates and payments.”
The Bills.com Quarterly Mortgage Report aggregates user data and choices from its mortgage recommendation engine and various mortgage calculators and tools. Requests for refinance information made up nearly 90% of the traffic to the Bills.com Mortgage Help Center tools in the third quarter of 2011.
Findings include:
• 39% of borrowers in Q3 said the lowest possible interest rate was the most important factor in choosing a loan, versus 41% in Q2
• 23% of borrowers in Q3 said the lowest possible monthly payment was the most important factor in choosing a loan, versus 21% in Q2
• 76% of consumers in Q3 preferred a higher, fixed rate to a lower, variable one
• 72% of borrowers in Q3 plan to remain in their homes for more than 7 years
Most requested loan products for Q3, in order:
• 34% preferred 15-year fixed loans, down from 38% in Q2
• 32% preferred 30-year fixed loans, up from 26% in Q2
• The percentage of borrowers who preferred 5/1 adjustable rate mortgages remained consistent at roughly 14% between Q2 and Q3
The report also gauged the accuracy of homeowners or new borrowers in rating their own credit score and assessing the value of their own home.
• In Q3, homeowners underestimated the value of their home by an average of $11,145, compared to an average difference of $19,645 in the previous quarter
• While the large majority of visitors in Q3 had an excellent credit score (740+), roughly 32% of them incorrectly stated their score as only “very good.” Quarter Results: Refinancing Homeowners Maintain or Reduce Debt Consumer News and Advice,Finance and Economy,Financing a Home,Homeowner’s Toolkit,Real Estate News,Real Estate Trends /nov 2011
Mac (OTC: FMCC) released the results of its third quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house by maintaining or reducing their mortgage debt.
In the third quarter of 2011, 82 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table. Of these borrowers, 44 percent maintained about the same loan amount, and 37 percent of refinancing homeowners reduced their principal balance.
“Cash-out” borrowers, those that increased their loan balance by at least five percent, represented 18 percent of all refinance loans; the average cash-out share during the 1985 to 2010 period was 46 percent.
The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.2 percentage points, or a decline of about 22 percent in interest rate. Over the first year of the refinance loan life, these borrowers will save about $2,500 in interest payments on a $200,000 loan.
The net dollars of home equity converted to cash as part of a refinance, adjusted for inflation, was at the lowest level in 16 years (third quarter of 1995). In the third quarter, an estimated $5.3 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, down from $6.3 billion in the second quarter and substantially less than during the peak cash-out refinance volume of $83.7 billion during the second quarter of 2006.
Among the refinanced loans in Freddie Mac’s analysis, the median value change of the collateral property was a negative 7 percent over the median prior loan life of almost five years. In comparison, the Freddie Mac House Price Index shows about a 25 percent decline in its U.S. series between September 2006 and September 2011. Thus, borrowers who refinanced in the third quarter owned homes that had held their value better than the average home, or may reflect value-enhancing improvements that owners had made to their homes during the intervening years.
“The typical borrower who refinanced reduced their interest rate by about 1.2 percentage points. On a $200,000 loan, that translates into saving $2,500 in interest during the next 12 months,” says Frank Nothaft, Freddie Mac vice president and chief economist.
“Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings,” Nothaft continues. “Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 4.11 percent and 15-year averaging 3.32 percent that month, according to our Primary Mortgage Market Survey.”
Third Quarter Results: Refinancing Homeowners Maintain or Reduce Debt
In Consumer News and Advice,Finance and Economy,Financing a Home,Homeowner’s Toolkit,Real Estate News,Real Estate Trends,Today’s Top Story / nov 2011
[1]Freddie Mac (OTC: FMCC) released the results of its third quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house by maintaining or reducing their mortgage debt.
In the third quarter of 2011, 82 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table. Of these borrowers, 44 percent maintained about the same loan amount, and 37 percent of refinancing homeowners reduced their principal balance.
“Cash-out” borrowers, those that increased their loan balance by at least five percent, represented 18 percent of all refinance loans; the average cash-out share during the 1985 to 2010 period was 46 percent.
The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.2 percentage points, or a decline of about 22 percent in interest rate. Over the first year of the refinance loan life, these borrowers will save about $2,500 in interest payments on a $200,000 loan.
The net dollars of home equity converted to cash as part of a refinance, adjusted for inflation, was at the lowest level in 16 years (third quarter of 1995). In the third quarter, an estimated $5.3 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, down from $6.3 billion in the second quarter and substantially less than during the peak cash-out refinance volume of $83.7 billion during the second quarter of 2006.
Among the refinanced loans in Freddie Mac’s analysis, the median value change of the collateral property was a negative 7 percent over the median prior loan life of almost five years. In comparison, the Freddie Mac House Price Index shows about a 25 percent decline in its U.S. series between September 2006 and September 2011. Thus, borrowers who refinanced in the third quarter owned homes that had held their value better than the average home, or may reflect value-enhancing improvements that owners had made to their homes during the intervening years.
“The typical borrower who refinanced reduced their interest rate by about 1.2 percentage points. On a $200,000 loan, that translates into saving $2,500 in interest during the next 12 months,” says Frank Nothaft, Freddie Mac vice president and chief economist.
“Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings,” Nothaft continues. “Fixed-rate mortgage rates hit new lows during September, with 30-year product averaging 4.11 percent and 15-year averaging 3.32 percent that month, according to our Primary Mortgage Market Survey.”
I am a long time resident of the Canandaigua and Rochester Area. I am a full time Broker/Realtor® serving my clients since since 1996. Member of the Greater Rochester Association of Realtors® and the National Association of Realtors®. 
