Apr 23, 2019 | Mortgage
For most people, the mortgage payment is the biggest monthly expense. Whether you’re facing retirement or still working, it would be nice to be free of this debt. Although you probably can’t pay it off in one lump sum, it is possible to pay off your mortgage sooner than expected.
Here are four strategies to try.
1. Make Bi-Weekly Payments
You could shave eight years off a 30-year mortgage simply by breaking down your monthly payments into two payments instead of one. You’ll pay the same amount each month while the interest paid over the length of the loan is reduced.
2. Make Principal-Only Payments
If you look at your mortgage payment slip, you’ll notice that the majority of your monthly payment goes toward interest. Slash years off your mortgage by making occasional principal-only payments on top of your regular payments. Consult your lender to see how many of these are allowed per year. If they’re limited, maximize each opportunity by making as large a principal-only payment as you can manage.
3. Refinance When Rates Drop
If your mortgage originated when interest rates were high, refinance it now that rates are still historically lower. You may need to pay closing costs, but you’ll still end up dramatically lowering the amount of interest you are paying on your mortgage. While you’re at the refinancing game, consider getting into a shorter term length. This tactic will probably increase your monthly payment, but if you can afford it, it’s a good strategy for paying down your mortgage quicker.
4. Pay Extra Each Month
If you can afford it, pad your monthly payment with a little extra as often as possible. Just paying $50 or $100 extra will enable you to get rid of your mortgage a little faster. Find the extra money by cutting back on small niceties, such as subscriptions, take-out food and more. You won’t notice the lack of small conveniences, but you will certainly notice a shortened mortgage loan term.
When you work to pay off your mortgage faster, you essentially save thousands of dollars in interest over the life of the loan. Implement one or more of these ideas to become mortgage-free just a little bit sooner.
If you are interested in purchasing a new property or listing your current home, be sure to contact your trusted real estate professional.
Apr 22, 2019 | Financial Reports
Last week’s economic news included readings on home builder confidence in housing market conditions and Commerce Department reports on housing starts and building permits issued. Weekly readings on mortgage ratees and first-time jobless claims were also released.
NAHB Housing Market Index: Builder Confidence Rises One Point in April
Home Builder Confidence readings posted by the National Association of Home Builders held steady for April and rose one point overall. Component readings for the NAHB Housing Market Index were mixed; builder confidence in current housing market conditions rose one point to an index reading of 69, but builder confidence in housing market conditions in the next six months fell one point to 62.
Home builder confidence in potential buyer traffic rose three points to 47. NAHB Housing Market index readings above 50 indicate that most builders view market conditions as positive, but the reading for buyer traffic seldom rises above 50.
Housing Starts and Building Permits Issued Fall Short of Expectations in March
Commerce Department reports on housing starts and building permits issued in March were lower than in February and fell short of analyst expectations. Housing starts were reported at a seasonally adjusted annual pace of 1.139 million starts. Analysts expected housing starts at an annual rate of 1,225 billion starts based on February’s reading of 1.142 million starts.
Builders continued to experience headwinds including higher materials costs, shortages of buildable lots and a lack of skilled labor. Analysts cited disparities between new housing developments, which tend to favor luxury homes and the need for affordable housing.
Exclusionary zoning and neighborhood politics can block construction of affordable housing in desirable areas; legal and zoning constraints prevent builders from producing enough affordable homes to meet demand. Housing starts year-to-date were 9.70 percent lower than for the same period in 2018.
Fewer building permits were issued in March than in February. 1.269 million permits were issued on a seasonally adjusted annual basis as compared to expectations of 1.300 million permits issued and February’s reading of 1.291 million permits issued.
Mortgage Rates Rise as New Jobless Claims Fall
Mortgage rates were higher last week as average rates for fixed rate mortgages rose. 30-year mortgage rates averaged five basis points higher at 4.17 percent. Rates for 15-year fixed rate mortgages averaged two basis points higher at 3.62 percent.
Mortgage rates for 5/1 adjustable rate mortgages averaged two basis points lower at 3.78 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent 5/1 adjustable rate mortgages.
First-time jobless claims fell by 5000 new claims to 192,000 initial claims; this was significantly lower than 204,000 new claims expected.
What‘s Ahead
This week’s scheduled economic news includes reports on sales of new and pre-owned homes and consumer sentiment. Weekly readings on mortgage rates and initial jobless claims will also be released.
Apr 19, 2019 | Real Estate
Perhaps you plan to sell your home in the next few months or years. Keeping your garage organized can save time and ensure that you have storage space when you need it most.
Get Your Purge On!
Clear out the garage and separate items into categories: keep, trash, donate and recycle. If you get rid of 50 percent of your stuff, you’re doing great. The more you can get rid of up front, the less you have to organize! And if you haven’t used it in years, why would you need to keep it around?
Create Zones
Map out space with masking tape, starting with where your vehicles go. Mask out where you can put heavy-duty shelves for tools, sports equipment and other stored items. Also, you can maximize storage by building cabinets or shelving from floor to ceiling.
Buying clear bins in various sizes and interlocking shapes helps you stay organized. When you store like items together, it’s much easier to find them, especially if everything is properly labeled.
Think strategically. If your garage doubles as a workshop, include space for a workbench. If you bike every day, hang your wheels on the wall near the garage door. Additionally, remember to include garbage and recycling bins near the door for easy access.
Organizational Supplies
With the zones mapped, it’s time to get organized. For example, store shovels, rakes and brooms in a large trashcan. Meanwhile, sporting equipment such as bats, balls, skateboards and protective pads can go into larger bins, on shelves or inside lockers. Pegboards provide a versatile way to hang tools you use the most.
A cabinet that locks protects children and pets from hazardous materials like chemicals, paint and cleaning supplies. Meanwhile, constructing long open shelves of wood or metal gives you plenty of support for heavy storage bins, while a rolling cabinet lets you move craft supplies or gardening implements.
Storing Small Stuff
What can you do with screws, nails, hooks, nuts and myriad small items on a limited budget? Repurposed glass containers or mason jars let you see contents clearly while recycling. Use tin cans for screwdrivers and paint brushes.
Once your garage is neat and clean, you may find yourself spending more time there. You might even have enough room for a home office or craft corner. A well-planned organizational strategy helps you keep it that way.
If you are interested in listing your current property or buying a new property, be sure to contact your trusted real estate professional.
Apr 18, 2019 | Market Outlook
Home builder confidence increased in April to an index reading of 63, which was one point higher than for March and the highest reading in six months. Analysts said that April’s reading revealed more about housing market conditions in the past six months than it was an indicator of future market conditions.
November’s builder confidence reading was the lowest since housing markets tanked in 2008, Builder confidence recovered over the past few months despite headwinds including higher materials costs and shortages of labor and buildable lots.
Home Builder Confidence Holds Steady Despite Headwinds
NAHB Housing Market Index readings over 50 indicate that most home builders are confident about housing market conditions. While April’s reading was comfortably above the benchmark, the average reading so far in 2019 is 61 as compared to 2018’s annual average reading of 67.
Component readings of the Housing Market Index were mixed in April. Builder confidence in current housing market conditions rose one point to 69; confidence in housing market conditions over the next six months dropped one point to 71 and the reading for builder confidence in buyer traffic rose three points to an index reading of 47. Readings for builder confidence in buyer traffic seldom exceeds 50.
Market Conditions Expected to Improve, but Obstacles Persist
Improving weather conditions and the peak home-buying season should boost builder confidence and housing market conditions, but rapidly rising home prices and affordability concerns could dampen housing markets and builder enthusiasm. Analysts report that no major changes are expected to mortgage rates in 2019. If this holds true, potential homebuyers are likely to take advantage of lower rates to buy homes. Analysts also said that initial impact of new tax laws has faded; more home buyers are expected to enter the market.
Market conditions depend on buyers and sellers; their motivations, resources and ability to “stay put” impact individual home sales. Buyers who depend on financing their home purchases are competing with increasing numbers of cash buyers; the National Association of Realtors ® traditionally reported about 10 percent of home sales were cash transactions, in recent years cash sales have increased to approximately 20 percent of home sales.
Homeowners are more likely to accept cash offers rather than accepting offers from buyers who must qualify for mortgages under a lengthy and precise approval process. Trends indicate that more homeowners are choosing to stay in their homes; this and exclusionary zoning laws in some areas are reducing the number of homes available.
Apr 17, 2019 | Real Estate
If you’re staging your home to sell, you may find yourself with more stuff than space. Rather than selling possessions that you’d rather not part with, you can put your things into short-term storage until your home sells and you’re able to move.
Here are some options you have when choosing and using a self storage unit.
Climate Controlled Or Not
Climate controlled units are located inside buildings. They could be compared to an apartment building, except instead of housing people, these storage buildings house belongings. Inside, they are powered with electricity and a temperature control that is temperate.
The advantage of a climate controlled storage unit is that your possessions won’t get above average hot or below average cold. If you plan to store certain items that are temperature sensitive, such as photographs, antique wood furniture or heirloom paintings, a climate controlled unit is a must.
Self storage units that are not climate controlled are typically located in garage-like buildings with a garage door opening that is open to the outside. There is usually no electricity or power inside the unit, so if you want to visit at night or on a dark day you’ll need to bring a flashlight.
There is no temperature control, so whatever the temperature is outside, it will be similar inside the unit. Depending on the climate you live in, it could get freezing inside the unity or extremely hot. If you’re planning on storing things that can withstand extreme temperatures, like a small motor vehicle, clothing or kitchen goods, you could opt for a unit like this.
Ground Level Or Above
Climate controlled storage buildings usually have more than one floor. Often, the ground level units are considered to be more convenient, so the rental rate may be higher than those on a higher floor. If you choose a ground level unit, you’ll be able to access your unit without navigating up and down an elevator for every trip back and forth to your car.
Units on higher floors will have access via a freight elevator. The freight elevator will be large enough to hold even your larger furnishings, such as couches, bureaus and desks. You’ll still be able to use a hand truck to cart your belongings, but you’ll have the disadvantage of having to wait for the elevator since other renters will also be using it.
Knowing these things ahead of time will help you make your decision about what kind of self storage unit to rent. No matter which one you choose, you can rest assured that your belongings will be safe and sound until you’re ready to bring them to your new home.
If your house is on the market, be sure to consult with your trusted real estate professional for staging tips that will really appeal to prospective home buyers!
