Hope Leitner, Realtor®, CRS

Borrowing from a 401k, 403b or the cash value of life insurance policy is a common financial strategy.   While taxpayers are not allowed borrow from either a traditional or Roth IRA, they can withdraw funds before age 59 ½ for specific purposes like a first home purchase, qualified higher education expenses or permanent disability without incurring a 10% penalty. First-time home buyers can make a penalty-free withdrawal of up to $10,000 if they haven't owned a home in the previous two years.   This would allow a married couple who each have an IRA to withdraw a lifetime maximum of $10,000 each, penalty-free for a home purchase. In many cases, the money would be used for a down payment or closing costs.   However, some buyers might consider this source to increase their down payment so they could qualify for a loan without mortgage insurance. There is another condition where a taxpayer can withdraw money from their IRA without triggering the tax or penalty if ...

2020 Forecast Shows Continued Home Price Appreciation Questions continue to rise around where home prices will head in 2020. The latest forecast from CoreLogic shows continued appreciation at 5.4% over the next year: Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index , which estimates the probability of home prices being lower in two years. Based on the most recent results, 32 of the 50 U.S. states (plus D.C.) had a minimal probability of lowering by 2021. Bottom Line Experts forecast home price appreciation to continue at a moderate rate as we move through 2020 and beyond. With appreciation growing, let’s get together and plan for your next move.

The largest expenditure a buyer has when purchasing a home is the down payment which can range from zero for veterans or 3.5%, 5%, 10% and 20%.   With mortgages come closing costs which can be another 2-4% and must be paid at settlement in cash. Most mortgages require an escrow account to pay the property taxes and insurance when they are due.   Generally, the lender will require one to three months of taxes and one month of insurance so they can be paid before the actual due date. First-time buyers should be aware that they'll need this amount of funds available to purchase a home.   U nlike tenants who are not responsible for repairs, homeowners are, and it is necessary to be able to pay for them when they're needed. Newer homes will need less repairs and older homes probably, more.   At some point, components like the furnace, air-conditioner and appliances will need to be replaced which could crush a homeowner's budget if they are not expecting them. Home...

December 2019: The Buyer Stakes Are High Because Inventory Is Low The reality of what we’re seeing this month is that homes are selling fast. In today’s strong seller’s market, bidding wars are common and expected with starter or entry-level homes. In most areas of the country, first-time buyers have been met with fierce competition throughout their homebuying experience. Some have been out-bid multiple times before finally going into contract on a home to call their own. Right now, inventory is the big challenge. Here’s what we know today: According to the latest  Existing Home Sales Report  from the  National Association of Realtors  (NAR), there is currently a 3.9-month supply of homes for sale, which can drive this kind of hefty buyer competition. Remember, anything less than 6 months of inventory is a seller’s market . Even though the month’s supply of inventory is not increasing, ironically, the number of homes for sale is. This...

Even if Benjamin Franklin never actually used the expression "a penny saved is a penny earned", the reality is that it has been a sentiment for frugality for centuries.   He did say: "Beware of little expenses; a small leak will sink a great ship."   At the end of the day, it is not about how much you make as much as it is about how much you keep. The first step in a personal finance review is to discover where you are spending your money. It can be very eye-opening to have a detailed accounting of all the money you spend.   Coffee breaks, lunches, entertainment, happy hour, groceries and the myriad of subscription services you have contribute to your spending. This revelation can lead you to obvious areas where savings can be accomplished.   The next step is to dig a little deeper to see if there are possible savings on essential services. Get comparative quotes on car, home, other insurance. Review and compare utility providers. Review plan...

Holiday Gifts Are Not the Only Hot Things Right Now Black Friday is behind us and holiday gifts are flying off the shelves in stores and online. Unlike last year, however, there’s another type of buyer that is very active this winter – the homebuyer. Each month, ShowingTime releases their Showing Index , which tracks the average number of appointments received on active U.S. house listings. The latest index revealed: “Traffic was more active once again compared to 2018, as the nation saw its third straight month of higher year-over-year showing activity…The 5.5% increase in showings nationwide was the largest jump in activity during the now three-month streak of year-over-year increases vs. 2018.” The same report indicates showings increased in every region of the country: The South increased by 10.8% The West increased by 8.6% The Northeast increased by 3.8% The Midwest increased by 1.5% Why is the traffic more active? One of the main reasons buye...