Everything listed under: Home Buyer Advice

  • How Much Waiting a Year to Buy Could Cost You

    This week, Zillow's blog featured a post about the impact of a potential 1% increase in interest rates in a year.  Zillow applied next year's forecasted home values and a 1 percent percentage point increase to the median home price in 35 metro areas around the country.  They used that to calculate the difference in mortgage payments between today and a year from now.  

    “More often than not, buyers do not understand the profound effect of rising interest rates on affordability,” said Erin Lantz, vice president of mortgages at Zillow. “Many buyers associate a 1 percentage point interest rate change with a 1 percent change on a piece of clothing or the price of a car, when in fact they are very different.

    As a rule of thumb, Lantz said, a 1 percentage point increase in mortgage rates reduces affordability by 10 percent."

    Their blog post featured how much mortgage payments would increase in some metro areas (Boston: increase by $198/mo for example). 

    However, as Zillow notes and we agree and advise, buying a home is not all about money.  Financial stability and readiness to make a longer term financial commitment are considerations that always should come before jumping on a deal just to get a deal or save money.  Feel free to contact us today for advice on home buying and selling!

     Click here to read the full blog post on Zillow. 

     


  • How much of a down payment do you actually need?

    You'd be surprised by the answer to this question.  According to Freddic Mac, 40% of today's homebuyers using mortgage financing are making down payments that are less than 10%!  

    "A recent survey by Zelman & Associates revealed that 38% of those between the ages of 25-29 years old and 42% of those between the ages of 30-34 years old believe that a minimum of 15% is required as a down payment to purchase a home. A recent questionnaire administered by Freddie Mac showed that over 50% of all respondents thought 20% was required as a down payment."

    Letting more consumers know how down payments are determined could bring more qualified borrowers to the table.  Depending on your credit history and other factors, many borrowers may only have to put 5% - 10% down for the purchase of a home.  Whether you're a first time home buyer or saving up for a vacation home, do your research... you may find it's not out of your reach!

    To read the full article on Keeping Current Matters, click here!

    Contact us today for more information or inquires about the home buying or selling process!  


  • Home Buyers Should Have Easier Time This Spring

    According to Zillow's blog and Zillow's latest Home Price Expectations Survey, home shoppers should have an easier time finding the home of their dreams this spring.  The survey consisted of over 100 economists, real estate experts, and investment and market strategists, who predicted that real estate investors would take a step back from buying up lower priced and foreclosed upon homes this spring.  

    This will create less competition and more opportunities for home buyers.  Real estate investors are an important piece of any real estate market recovery.  However, once the market starts to rebound, their decreased participation may be another sign of the market's recovery.  

    In regards to home appreciation, the survey participants said they expected home value appreciation of 4.5 percent through the end of this year.  This percentage would decrease by 2015 to 3.8 percent, then to 3.3 percent by 2018.  They also predicted home values could exceed their April 2007 peak by the first quarter of 2018.

     To read the full blog post, click here!  And as always please contact us with any questions or to assist you with any real estate transaction!

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