Hope Leitner, Realtor®, CRS

Checklists work because they contain the important things that need to be done.  They provide a reminder about things we know and realize but may have slipped our minds as well as inform us about things we didn't consider.  Periodic attention to these areas can protect the investment in your home. Change HVAC filters regularly.   Consider purchasing a supply of the correct sizes needed online and they'll even remind you when it's time to order them again. Change batteries in smoke and carbon monoxide detectors annually. Create and regularly update a Home Inventory  to keep track of personal belongings in case of burglary or casualty loss. Keep track of capital improvements, with a Homeowners Tax Guide , made to your home throughout the year that increases your basis and lowers gain. Order free credit reports from all three bureaus once a year at www.AnnualCreditReport.com . Challenge your property tax assessment when you receiv...

Single family homes offer the investor an opportunity to borrow large loan-to-value loans at fixed interest rates for long terms.   Lenders will loan 75-80% of the purchase price at 5.5% to 6.5% interest rate for thirty years.   Compare that with other popular investment alternatives like precious metals, commodities, stocks, and mutual funds and it will be hard to find financing available at all.   There may be some short term, one-year, loans at a floating rate tied to prime plus with no guarantee that it will be renewed.   Some of those loans require you to have a 50% margin of equity and if the value goes down, you'll have to put up additional cash or be forced to sell. The advantage of having long-term mortgages is that an investor could find the optimal time to sell the property instead of needing to sell it because the term is due, and no other financing is available.    Supply and demand cause the real estate market to be higher and lower and a ...

Congratulations! You’ve found a home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan. Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not! 1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well. 2. Don’t deposit cash into your bank accounts . Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer. 3. Don...

In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home. According to the Cambridge English Dictionary, bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home. In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale. With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell...

Lenders typically quote mortgages at a market rate but can offer a lower interest rate loan if the borrower is willing to pay points up-front which is considered pre-paid interest.   These points are generally tax deductible for the year paid when the borrower pays them in connection with buying, building or improving their principal residence. A point is one-percent of the mortgage amount.   A lender will quote a lower-rate mortgage with a certain number of points.   There is not a standard amount; it is an individual company policy. A simple comparison of the two alternatives based on the borrower's ability to pay the points and whether the borrower will stay in the home long enough to recapture the costs will help to determine which loan will provide the cheapest cost of housing. In the example below, two choices are compared; a 4.25% loan with no points vs. a 4.00% loan with one point.   If the buyer stays in the home at least 69 months, they will recover t...

For a short time after the housing crisis a decade ago, some homeowners thought the value of home is a place to live rather than an investment.   A home certainly has an appeal as a place to call your own, raise your family, share with your friends and feel safe and secure.   It can be more than an address; it can also be one of the largest investments homeowners have. Most mortgages apply a portion of the payment toward the principal amount owed in order to pay off the loan by the end of the term.   This acts like a forced savings for the homeowner because as the loan is reduced, the equity grows which increases their net worth. The other contributor to equity is appreciation.   Most homeowners don't realize the increase in value until they sell the home or do a cash-out refinance, but the increase is real and part of their equity.   If the expected appreciation is averaged over the anticipated time for the home to be owned, the value of the equity increase...

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...