Category Archives: Financing

How To Create Real Family Wealth [Infographic]

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The financial crisis affected so many who had no choice but to sell or relinquish their homes and take a credit hit.  Those who did are starting to see their credit improve and are wondering if it’s time to re-visit the world of homeownership.

Many of you are understandably more cautious, yet homeownership is still the best way to wealth building. The key is using the lessons of the past to avoid another misfortune.

If your credit is in good shape, you are more ready to get back into homeownership. Homeowners have up to 45 times the wealth of renters. It really comes down to whose wealth do you want to build? Your landlord’s or your own?

How to Create Real Family Wealth

Some Highlights:

  • Buying a home is often the biggest financial decision that any family will make.
  • The average net worth of a homeowner is 45x greater than that of a renter.
  • Homeownership puts your housing costs to work for you.
  • Infographic was created in cooperation with Jensen & Co.

Rita Boswell is who to notify when you are moving, a recognized leader in her field. Rita can be reached via email at rboswell@kw.com or by phone at 614-270-4499. Rita has helped people move in and out of many Central Ohio communities.

Search for Central Ohio homes at www.SeeBeautifulHomes.com

“Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!”

I service Real Estate sales in the following Central Ohio towns: Dublin, Powell, Delaware, Lewis Center, Galena, Sunbury, Westerville, Worthington, Columbus, Hilliard, New Albany, Blacklick, and Gahanna.

See all my Rave Reviews. People Say The Nicest Things!

Mortgage Rates Again at Historic Lows

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Low Interest Rates

Just two weeks ago, we posted an article discussing where mortgage interest rates may be heading over the next twelve months. We quoted projections from Fannie Mae, Freddie Mac, the Mortgage Bankers’ Association and the National Association of Realtors. Each predicted that rates would begin to rise slowly and steadily throughout 2016.

However, shaky economic news and a volatile stock market have actually caused rates to drop six out of the last seven weeks, and have remained at 3.65% for the past two weeks.

30 year fixed mortgage

Rates have again fallen to historic lows yet many experts still expect them to increase in 2016. The only thing we know for sure is that, according to Freddie Mac, current rates are the best they have been since last April.

Bottom Line

If you are thinking of buying your first home or moving up to your ultimate dream home, now is a great time to get a sensational rate on your mortgage.

Rita Boswell is who to notify when you are moving, a recognized leader in her field. Rita can be reached via email at rboswell@kw.com or by phone at 614-270-4499. Rita has helped people move in and out of many Central Ohio communities.

Search for Central Ohio homes at www.SeeBeautifulHomes.com

“Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!”

I service Real Estate sales in the following Central Ohio towns: Dublin, Powell, Delaware, Lewis Center, Galena, Sunbury, Westerville, Worthington, Columbus, Hilliard, New Albany, Blacklick, and Gahanna.

See all my Rave Reviews. People Say The Nicest Things!

 

Will Appraisals Continue to be a Challenge in 2016?

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Appraisal-Challenge-2016

First American Title issues a quarterly report, the Real Estate Sentiment Index (RESI), which “measures title agent sentiment on a variety of key market metrics and industry issues”. Their 2015 4th Quarter Edition revealed some interesting information regarding possible challenges with appraisal values as we head into 2016.

“The fourth quarter RESI found that title agents continue to believe that property valuation issues will be the most likely cause of title order cancellation over the coming year.” 

This shouldn’t come as a surprise. In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.

Another monthly report by Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation. Here is a chart showing that difference for each month through 2015.

Will Appraisals Continue to be a Challenge in 2016? | Keeping Current Matters

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. That is why we suggest that you use an experienced real estate professional to help set your listing price.

 

The above Real Estate information on who to notify when you are moving was provided by Rita Boswell, a recognized leader in her field. Rita can be reached via email at rboswell@kw.com or by phone at 614-270-4499. Rita has helped people move in and out of many Central Ohio communities.

Search for Central Ohio homes at www.SeeBeautifulHomes.com

“Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!”

I service Real Estate sales in the following Central Ohio towns: Dublin, Powell, Delaware, Lewis Center, Galena, Sunbury, Westerville, Worthington, Columbus, Hilliard, New Albany, Blacklick, and Gahanna.

How to Calculate Mortgage Payments

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3.17_FRitaBoswell (1)

How to Calculate Mortgage Payments

It is important to calculate your mortgage payments to understand exactly what you owe and how your loan is being paid down. The easiest and least time consuming is to use a Mortgage Calculator. Ask your Realtor if they have one available or check out the option below.

You can use the mortgage calculator to help determine how much you can afford and to even see the the effects of adding extra payments and how it will effect the payoff date! This is a convenient tool to help you pay off your loans.

Just click on the link here and enter in your mortgage amount, the term or length of your loan, the interest rate, and the date your mortgage starts.

The calculator then shows you what your monthly payments would be.

To determine what it would look like to add extra payments a month, a year, or even as a one time extra payment you can add them in the next section.

By calculating the one time payments on top of your regular calculated monthly payment you will be able to see how your pay-off date can change.

Check out the mortgage calculator to find out what you can afford and to help you determine if making extra payments can change your payoff date!

6 Tips To Budget For Your First Home

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6 Tips To Budget For Your First Home – There is a lot to consider when buying your first home. Don’t just save for the down payment, consider other hidden costs. Don’t forget about the home inspection, repairs, closing costs and even moving expenses. Follow these next few tips when buying your next home.

1. Home Inspections – Home inspections are highly encouraged in order to make sure that there are not any major issues with the home you are buying.You never want to buy a home without an inspection. Inspections can cost $300 and upward depending on the type of inspection you get. Remember, the more thorough the better.

2. Closing Costs – According to bank rates annual survey, the average closing cost for a $200,000 home is about $3,754. Talk with a lender to get a general idea of what those costs will be. Closing costs usually cover lender fees, title fees, appraisal, and more.

3. Try Auto-Saving – Did you know that most banks can set up automatic transfers to your savings account from your checking account each month? You can also request that a certain percentage of each paycheck be deposited into your savings account. These are both effective strategies when saving for a big purchase and will add up before you know it!

4. Down Payment – Talk to your lender to get a general idea of what your down payment for your next home will be, as well as your loan options. The percentage of a down payment can vary greatly from buyer to buyer, but it is generally more cost effective to put down a higher rate. A larger down payment can save you on interest in the end depending on the home you choose, the loan you choose, and the money you have saved up. Talk to your lender about your options so you can plan.

5. Moving Expenses – Moving expenses are usually overlooked and end up costing more than anticipated. Planning ahead can help you avoid extra costs. Ask friends and family for help or do research on the most cost effective options in your area.

6. Decorating Expenses – Buying a new home is a very exciting process, especially once you are moved in and ready to decorate. Plan a budget for decorating costs as they can add up quickly as excitement increases.  Furniture and large items can be purchased on credit to avoid up-front costs, as long as you plan on making regular payments. Always plan ahead and do your research but don’t forget to have fun!

Keep these tips in mind as you think about your next home purchase. It is essential to have a set budget and to plan ahead. Let us know in the comment section how these tips have helped you or if you have any tips of your own!

 

Tips To Strengthen Your Credit Score

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Tips To Strengthen Your Credit Score - Rita Boswell1

Tips To Strengthen Your Credit Score – This is always a tricky subject. Just for the simple fact that everyone’s situation is different. To help you out, here are a few tips from Bankrate that will help you move in the right direction…

Watch Your Credit Limit – A way to help strengthen your credit score is to keep the balances on your credit cards low. How much revolving credit you have vs. how much you’re actually using. According to Bankrate, the optimum is 10% or lower.

Reduce The Number Of Cards – This isn’t what you think! This means stop using all of your credit cards. Instead have one or two cards you use for everything. It may hurt your credit score to have a $50 balance on one card and a $30 balance on another. Instead, pay those off and keep to just a few main cards.

Good Debt vs. Bad Debt – Good debt is where you have a long history of repayment records, such as a car loan. Some try to get this removed from their credit report once they pay it off thinking it could be harmful to their score when in fact it can be great for their credit score.

Pulling Credit – When shopping for your next big purchase such as a home, car, etc, these lenders will need to pull your credit score to see what loan options you have. Try sticking to a short time frame when shopping around and pulling your credit score with different companies.

Pay Bills On Time – This might seem obvious but it’s even more important when you are trying to make a big purchase. If you are saving up for a home, don’t pass on paying that electric bill because you need that money for your down payment. Mistakes like this can change your credit score which can effect the purchase of your home.

Don’t Hint Risk – Missing payments or paying less on your credit card than you usually do can hint risk to your card issuer. Taking out cash advances or paying for a divorce attorney can do this as well. Although it doesn’t necessarily effect your credit score, it is still something you should avoid.

Stay Informed – Whether you are looking to make a big purchase or not, it’s still important to know where you stand on your credit report. However, don’t obsess over until the moment comes where you are ready to make that big purchase. Pay your bills on time, keep a low balance on your card and create some consistency. Feel free to monitor your score every four months or so to know where you stand.

With these tips in mind, strengthening your credit score will be an easier process! Do you have any tips to share? Comment to share with us!