Hope Leitner, Realtor®, CRS

Affordability, stability and flexibility are the three reasons homebuyers overwhelmingly choose a 30-year term.   The payments are lower, easier to qualify for the mortgage and they can always make additional principal contributions. However, for those who can afford a higher payment and commit to the 15-year term, there are three additional reasons: lower mortgage interest rate, build equity faster and retire the debt sooner. The 30-year, fixed-rate mortgage is the loan of choice for first-time buyers who are more likely to use a minimum down payment and are concerned with affordable payments.   For a more experienced buyer who doesn't mind and can qualify making larger payments, there are some advantages. Consider a $200,000 mortgage at 30 year and 15-year terms with recent mortgage rates at 4.2% and 3.31% respectively.   The payment is $433.15 less on the 30-year term but the interest being charged is higher.   The total interest paid by the borrower if each...

Fear of the unknown is common among all ages.   Kids, at night, imagine monsters in their closets or under their beds and adults are unsure of what the future might bring. It may be natural for first-time buyers to be unsure of the process because they haven't been through it before but even repeat buyers need to know changes that have taken place since the financial housing crisis. The steps in the home buying process are very predictable and generally follow the same pattern every time.   It certainly makes the move stay on schedule when you know all the different things that must be done to get to the closing. In the initial interview with your real estate professional, you share the things you want and need in a home, discuss available financing and learn how your agent can represent you in the transaction. The pre-approval step is essential for anyone using a mortgage to purchase a home to assure that they're looking at the right price of homes and so t...

Most parents don't put a lot of credence in the statements "Everyone is doing it" and "No one does that anymore."   They'll dig a little deeper and get the facts of the situation.   Interestingly, when it comes to buying a home, similar common myths continue to prevail surrounding what it takes to buy a home. One of the most common myths is that it takes 20% down payment to get into a home.   Certainly, an 80% mortgage might have the most favorable interest rate. It won't require mortgage insurance and qualifying requirements might be a little less but there are alternatives. "88% of all buyers financed their homes last year and consistent with previous years, younger buyers were more likely to finance their home purchase.   In 2018, the median down payment was 13% for all buyers, 7% for first-time buyers and 16% for repeat buyers." Stated by the 2018 NAR Profile of Buyers and Sellers. Qualified Veterans are eligible for zero down p...

One of the biggest challenges sellers face when listing their house is decluttering. Cleaning out some of the more personal decorating choices allows buyers to imagine themselves living in the house. Those planning to sell soon are in luck! Marie Kondo, the inventor of the KonMari Method of Tidying Up, has gained popularity with her new Netflix series. She gives some great tips for sorting through years of accumulated possessions that we all collect in our homes. “The KonMari Method encourages tidying by category – not by location – beginning with clothes, then moving on to books, papers, komono (miscellaneous items), and, finally, sentimental items. Keep only those things that speak to the heart, and discard items that no longer spark joy. Thank them for their service – then let them go.” When you subjectively look at all of your belongings, you can sort through the ones that mean the most to you. Not only will you increase space for more joy-bringing items in your new home, bu...

Being a better homeowner is a full-time job.   It takes good information to make good decisions not only when you buy and sell but all the years you own a home. Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things.   Imagine how nice it would be to have a real estate information line you could call whenever you have a question. Our objective is to move from a one-time sale to customers for life; a select group of friends and past customers who consider us their lifelong real estate professional.   We believe that if we help you and your friends with all your real estate needs, we can earn the privilege to be your real estate professional. Throughout the year, we'll send reminders and suggestions by email and social media that enhance your homeowner experience.   When we find good articles to help you be a better homeowner, we'll pass them along.   You'll dis...

Here's the scenario: you have a project and need to borrow some money, but you want to do it in the most economic manner.   You've got a low rate on your existing first mortgage and don't want to do a cash-out refinance and pay a higher rate.   Is a home equity loan an option? Prior to 2018, homeowners could have up to $100,000 of home equity debt and deduct the interest on their personal tax return.   The Tax Cuts and Jobs Act of 2017 eliminated the home equity deduction unless the money is used for capital improvements. Regardless of the deductibility, lenders will still loan money to owners who have equity in their home and good credit.   The most common reasons people borrow against their home equity are: Consolidate debt with higher interest rates Make improvements on their home Refinance an existing home equity line of credit Down payment for another home or rental investment Creating reserves or available access for potenti...

For centuries, people in this country have seen homeownership as part of the American Dream. Whether they were born here or immigrated from another country, they wanted to own a piece of America. With so many prominent societal changes over the last few decades, it is fair to ask if people in America still feel the same way about owning a home. The answer was made abundantly clear in two separate reports released earlier this month. In their market trends report, As Housing Trends Shift, So Does Renter, Buyer and Seller Sentiment, Trulia revealed that: “After two years of no change, the share of Americans who say that homeownership is part of their personal “American Dream” ticked up from 72 percent to 73 percent of Americans.” At the same time, the National Association of Realtors released their Aspiring Home Buyers Profile. As the report explained: “For both homeowners and non-homeowners alike, homeownership is strongly considered a part of the American Dream. For non-owners, ...