Hope Leitner, Realtor®, CRS

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.92%, which is still near record lows in comparison to recent history! The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget. The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mo...

FHA insured mortgages serve a sector of the market that is not necessarily being met by other loan programs. Securing an 80% conventional mortgage that doesn’t require mortgage insurance may be the lowest cost of financing but if the buyer doesn’t have 20% down payment, it isn’t really an option. Securing a 100% VA loan doesn’t require a down payment or mortgage insurance but if the buyer isn’t a veteran with his/her eligibility intact, it isn’t an option either. There are conventional loan programs with as little as 3% down payment but they not only require mortgage insurance, they also require a credit score of 740 or above which may eliminate some buyers. For these reasons, FHA is a viable alternative to about 20% of new and existing home sales. The Federal backing of these mortgages makes it easier for first-time and low-income buyers to qualify because the requirements are not as demanding. They’re even more lenient towards buyers...

There is little doubt that it is easier to get a home mortgage today than it was last year. The Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, shows that mortgage credit has become more available in each of the last several years. In fact, in just the last year: • More buyers are putting less than 20% down to purchase a home • The average credit score on closed mortgages is lower • More low-down-payment programs have been introduced This has some people worrying that we are returning to the lax lending standards which led to the boom and bust that real estate experienced ten years ago. Let’s alleviate some of that concern. The graph below shows the MCAI going back to the boom years of 2004-2005. The higher the graph line, the easier it was to get a mortgage. As you can see, lending standards were much more lenient from 2004 to 2007. Though it has gradually become easier to get a mortgage since 2011, we are nowhere near the len...

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process, and they have asked you what level of access you want to provide to potential buyers. There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home. Here are five levels of access that you can give to buyers, along with a brief description: 1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience. 2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home. 3. Open Access with a Phone Call – the seller allows showings with just a phone call’s notice. 4. By Appointment Only (example: 48-Hour Notice) – Many buye...

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal. If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth, and an appraiser’s evaluation of that same home. Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges anyone looking to buy or sell in today’s market to remember the impact of this challenge: “Based on the HPPI, it appears homeowners in the markets where prices are rising faster than t...

In 2007, Congress passed an energy act that required new energy-efficient standards for basic light bulbs. Standard incandescent bulbs are being phased out and eventually will be unavailable. The alternative bulbs differ considerably in price. LED bulbs are the most efficient but they also cost the most. CFLs are a less expensive alternative.   Interestingly, the more expensive replacements offer lower operating costs and longer economic life. One approach will be to inventory the different types and quantities of light bulbs you need in your home. Then, research either online or a big box store to find out what each type of bulb costs. This information will give you a total budget for converting your lighting. It could be a significant expense to replace all the bulbs in a home at one time, especially when most of the bulbs still work. That’s where a plan might make sense.   Replace the bulbs in the rooms where the lights are used the most such as...

Some Highlights: • Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “Return On Investment” (ROI). • While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.

Here's a quick note to let you know how I can help you-or anyone you feel comfortable introducing to me. Home buyers can afford to be choosy when it comes to spending hundreds of thousands of dollars to get a new home. Many will walk away from a house that is dirty, cluttered, or generally unsightly. They're not being judgmental; they simply can't see past the problem. Conversely, a beautifully staged home works on the subconscious the way a good smell works on the taste buds. It makes the mouth water. One of my goals is to help home sellers prepare their home to get the best offer as quickly as possible. Many times, there are small things that can be done to generate thousands more in sales dollars. I specialize in helping homeowners find those things, so they can put more in their pocket when they sell. Who's the next person you know who wants a savvy real estate consultant working to get the highest price? Call me at 858-382-3763 or email me at hope@cdhorn...

Whenever someone wants to know the best time to sell, I go through an evaluation with them. Typically, warmer temperatures bring the buyers out, so spring and summer are when we see the highest number of competing offers and home sales. But that doesn't necessarily always mean that's the best time for you to sell. Your house may vary. There are some neighborhoods where it's always a good time to sell. Conversely, there are times that have a better chance of selling for more when there's less competition from other homes, so winter might be better. Also, there are better times of the month to consider. You may want to avoid holidays. On the other hand, holidays can be good for homes in particular areas! If you're not sure how your home stacks up to the competition, you should go to open houses in your neighborhood. But most importantly, you should get my input about factors involved in the timing of your sale, and what you can do to your home to sell it f...

Whether you are a renter who is searching for your dream home or a homeowner who feels like your only option is to renovate, you have at least one thing in common: feeling stuck in place. According to data from the National Association of Realtors’ Profile of Home Buyers & Sellers, the average amount of time that a family stays in their home remained at 10 years in 2017. This mark ties the highest marks set in 2014 and 2016. Back in 1985, when data was first collected on this subject, homeowners stayed in their homes for an average of only 5 years. There are many reasons why homeowners have decided to stay and not to sell. A recent Wall Street Journal article had this to say, “Americans aren’t moving in part because inventory levels have fallen near multidecade lows and home prices have risen to records. Many homeowners are choosing to stay and renovate, in turn making it more difficult for renters to enter the market.” Sam Khater, Deputy Chief Economist for CoreLogic, e...

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters. This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 3.5%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades: Bottom Line Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

The last thing you want if you’re traveling these holidays is to worry about someone burglarizing your home. Use this check list to add some peace of mind while you’re out of town. Ask a trusted friend - to pick up mail, newspaper and keep yard picked up to avoid an appearance of being empty. Consider discontinuing your mail ( USPS Hold Mail Service ) Don’t post about your trip on Facebook and other social media until you return – some burglars actually look for this type of announcement to schedule their activities. Do notify police or neighborhood watch – especially if you’re going to be gone for more than just a few days. Let your monitoring service know when you’ll be gone and if someone will be checking on your home for you. Light timers make it look like someone is home – use several sets for different times to better simulate someone being at home. Do unplug certain appliances – TV,...

With residential home prices continuing to appreciate at levels above historic norms, some are questioning if we are heading toward another housing bubble (and subsequent burst) like the one we experienced in 2006-2008. Recently, five housing experts weighed in on the question. Rick Sharga, Executive VP at Ten-X: “We’re definitely not in a bubble.” “We have a handful of markets that are frothy and probably have hit an affordability wall of sorts but…while prices nominally have surpassed the 2006 peak, we’re not talking about 2006 dollars.” Christopher Thornberg, Partner at Beacon Economics: “There is no direct or indirect sign of any kind of bubble.” “Steady as she goes. Prices continue to rise. Sales roughly flat.…Overall this market is in an almost boring place.” Bill McBride, Calculated Risk: “I wouldn't call house prices a bubble.” “So prices may be a little overvalued, but there is little speculation and I don't expect house prices to decline nationa...

The American Dream of homeownership is alive and well. Recent reports show that the US homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities. Today we want to talk about the top 5 financial reasons you should own your own home. 1. Homeownership is a form of forced savings – Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity. 2. Homeownership provides tax savings – One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to you in your area. 3...

The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week. The report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros. Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report: “Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.” What this means to sellers Rising prices are a homeowner’s best friend. As reported by the Washington Post in a recent article post: “The rise in median sales prices has made current homeowners much more willing to sell their home, and...

Multigenerational homes are coming back in a big way! In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. According to an article by Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.” Another report that proves this point is the National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which states that 13% of home buyers purchased multigenerational homes last year. The top 3 reasons for purchasing this type of home were: 1. To take care of aging parents (22%, up from 19% last year) 2. Cost savings (17%) 3. Children over the age of 18 moving back home (16%, up from 14% last year) Valerie Sheets, Spokesperson for Lennar, points out that, “Everyone is looking for the perfect home for any number of family situations, such as...

I've heard too many people say, "My child has a great job and earns a good salary, and there is still no way they can afford to buy a house." Many young people wonder if they should buy a home sooner or later. When it comes to owning real estate, youth can work to their advantage, especially when a smart parent stands with them. Here are some ways to look at buying a property at a young age: 1. Plan to live in a property for a few years, wait for the value to rise, then sell it to fund the next purchase. For instance, buying near a college and renting it out to roommates is a good idea! 2. If the cash flow is there, rent the property out to others. If you're able to keep it, it will be a solid investment for a very long time. 3. If it's fixer, a young person can live in it while fixing it, and then resell at a profit a few years. My job as your real estate agent consultant is not only to help you, it's also to guide, lead and protect your whole family ...

Would someone really refinance their home and not take money out of it? Certainly, if they could get a lower rate, build equity faster and pay off the home sooner. For people with extra cash available, this can be very attractive compared to the low savings rates being paid by banks. In the example below, the current mortgage is 5% for 30 years after 48 payments of $1,342.05. The owner can refinance for 15 years at 3.37%. If they put $36,000 into the refinance, their payments will be slightly more but the mortgage will be paid off in 15 years. At that same point, if they keep the current mortgage, their unpaid balance will be $136,049.03. If you have a goal to get your home paid off and have the available funds, a Cash-In Refinance may be just the strategy for you.

Each year, most homeowners wait until the spring to sell their houses because they believe that they can get a better deal during the normal spring buyer’s market. However, recently released data suggests that a seller’s best deal may be available right now. The concept of ‘supply & demand’ reveals that the best price for an item will be realized when the supply of that item is low and the demand for that item is high. Let’s see how this applies to the current residential real estate market. SUPPLY It is no secret that the supply of homes for sale has been far below the number needed for over a year. A normal market requires six months of housing inventory to meet the demand. The latest report from the National Association of Realtors (NAR) revealed that there is currently only a 4.2-month supply. Supply is currently very low!! DEMAND A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the nu...

A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification. For many, the mortgage process can be scary, but it doesn’t have to be! In order to qualify in today’s market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history. Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you. Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you follow: 1. Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO® Score of all closed loans in September was 724, accor...

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process. Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.' Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month! Here are some tips for improving your credit score: • Make payments, including rent, credit cards, and car loans, on time. • Keep your spending to no more than 30% of your limit on credit cards. • Pay down high-balance credit cards to lower balances, and consider balance transfers to free up cre...