Nov 10, 2022 | Home Buyer Tips
Buying a home for the first time? One of the key considerations you’ll need to make is just how much ‘house’ you want to buy. While going minimal might seem like a good idea to save on costs, having a smaller living space can end up cramping your lifestyle in many ways. Let’s take a look at three great reasons why your first home should be roomy, spacious and luxurious.
You Might End Up With More Family Than You Think
Have you considered whether or not you want to have a family? Whether you’re a single young professional or part of a newlywed couple, there’s always a chance you’ll end up with more kids than you think. If you’re buying a home for the long haul, you’ll want to ensure that you have enough bedrooms to contain a growing family. It’s much easier to make other use of a spare room than to invent an extra bedroom if you end up with one or two more children than you had planned. Even if you don’t have kids, you may end up welcoming other family members into your home for extended periods.
Small Spaces Limit You In Just About Every Way
As you might imagine, small living spaces will limit your options. Whether you want to build out a new media room or just want more luxurious furniture, much of the time living small means living without. Buying a larger home from the start will give you all of the space needed to build your dream home. And over time, you’re far more likely to enjoy living in a home that you can tweak and customize to suit your changing tastes.
You Can Always Monetize The Extra Space
Don’t forget that extra space can always be put to good use. If you have a finished basement, you can possibly rent the suite out to a tenant. Or, you can host guests in your extra bedrooms using apps like Airbnb. If you’re more of an entrepreneurial type, you can start a small business out of one of the spare rooms.
These are just a few of the many reasons why buying a larger home is an excellent idea. For more information about purchasing a luxurious home, contact your trusted real estate and mortgage professionals today.
Nov 9, 2022 | Investment Properties
If you are looking for a way to diversify your investment portfolio, there are different options available. One option is to invest in real estate. With so many different choices, how can you select the right one for your needs? There are a few key points to keep in mind.
A Single-Family Home
One of the first options you might be considering is a single-family home. This is a versatile option that you can use to host long-term renters or vacation visitors. Single-family homes come in many shapes and sizes, but the variation can also make it a bit of a challenge. You need to think about landscape maintenance, potential repairs, and real estate taxes. Single-family homes can also be expensive, so they might require more upfront cash to purchase.
A Duplex
Another option you might want to consider is a duplex. A duplex is a house that is essentially divided into two parts. This option provides a number of advantages. You could potentially live in one side of the house and rent out the other, possible covering your mortgage, if you are comfortable living near your renters. Furthermore, living close to the renters could make it easier for you to manage the property. Because you could live in one side of the house, this option could be more affordable.
A Condo
In addition, you might be thinking about purchasing a condo as a rental property. A condo could be a nice option because you don’t have to worry about exterior maintenance. There is usually an HOA that is responsible for managing the landscape. The downside is that a condo typically comes with expensive HOA fees that could eat into your profits. Condos come in all shapes and sizes, so you should think carefully about whether this option is right for you.
Find The Right Investment Property For Your Needs
If you are thinking about purchasing a rental property, these are a few of the top options available. Each choice has its benefits and drawbacks, and you need to think carefully about which one is right for your style. If you have questions about investment properties, you should reach out to an expert who can help you.
Nov 8, 2022 | Real Estate
If you own a home, you will see a lot of information about your payment schedule. It specifies exactly what payments you have to make, when you have to make them, and how much of each payment will go toward your principal and interest. This is called an amortization schedule, and it is typically designed in such a way that your last payment pays off your loan down to the penny. How does this impact the life of your loan?
Most Of Your First Few Payments Go Toward The Interest
During the first few years, the majority of each payment is going to be directed toward the interest that you owe. Then, as you pay off more of the loan, the balance will generally shift to the principal. By the end of your amortization schedule, almost all of your payments are going to go toward principal, with very little of each payment going toward interest. If you make additional payments ahead of schedule, those payments should go toward the principal on your loan.
How Lenders Calculate How Much You Owe
Your mortgage lender is going to collect a lot of information about your financial history. This might include your proof of employment, your credit score, and your bank statements. Then, they will calculate the interest rate on the loan. They will use this information to draw up an amortization table, figuring out how much interest you will pay every month based on your interest rate. Finally, your lender will figure out how much of each payment will be applied to your interest and principal.
Why An Amortization Schedule Matters For Your Mortgage
There are several reasons why your amortization schedule is so important. First, it dictates how quickly you build up equity in your home. The faster you build up equity, the more financial freedom you have. You might want to draw on your home equity for certain purchases down the road, and you want to maximize the amount of money you get back when you sell your house. Furthermore, your amortization schedule gives you peace of mind, knowing that your monthly payments are going to be the same over the life of the mortgage.
Nov 8, 2022 | Real Estate
If you own a home, you will see a lot of information about your payment schedule. It specifies exactly what payments you have to make, when you have to make them, and how much of each payment will go toward your principal and interest. This is called an amortization schedule, and it is typically designed in such a way that your last payment pays off your loan down to the penny. How does this impact the life of your loan?
Most Of Your First Few Payments Go Toward The Interest
During the first few years, the majority of each payment is going to be directed toward the interest that you owe. Then, as you pay off more of the loan, the balance will generally shift to the principal. By the end of your amortization schedule, almost all of your payments are going to go toward principal, with very little of each payment going toward interest. If you make additional payments ahead of schedule, those payments should go toward the principal on your loan.
How Lenders Calculate How Much You Owe
Your mortgage lender is going to collect a lot of information about your financial history. This might include your proof of employment, your credit score, and your bank statements. Then, they will calculate the interest rate on the loan. They will use this information to draw up an amortization table, figuring out how much interest you will pay every month based on your interest rate. Finally, your lender will figure out how much of each payment will be applied to your interest and principal.
Why An Amortization Schedule Matters For Your Mortgage
There are several reasons why your amortization schedule is so important. First, it dictates how quickly you build up equity in your home. The faster you build up equity, the more financial freedom you have. You might want to draw on your home equity for certain purchases down the road, and you want to maximize the amount of money you get back when you sell your house. Furthermore, your amortization schedule gives you peace of mind, knowing that your monthly payments are going to be the same over the life of the mortgage.
Nov 7, 2022 | Financial Reports
Last week’s economic reporting included the Federal Reserve’s statement on its target interest rate range and Fed Chair Jerome Powell’s regularly-scheduled press conference. Data on construction spending and public and private-sector jobs was published along with weekly reports on mortgage rates and jobless claims.
Fed Hikes Key Interest Rate Range, but Signals a Future Slowdown
The Federal Reserve increased its key interest rate range last week from 3.50-3.75 percent to 3.75-4.00 percent. While this was the highest interest rate range in 15 years, the Fed said it plans to continue raising the target interest rate range until it reduces the inflation rate to 2 percent “over time.” Analysts viewed the Fed’s latest comments as less aggressive than its stance earlier this year.
Fed chair Jerome Powell said during his scheduled press conference that at some time “it will be appropriate to slow the pace of increases.” Mr. Powell also cautioned that the target interest rate range will likely rise past the current expected rate range of 4.50 to 4.75 percent.
Mortgage Rates Fall, Jobless Claims Mixed
Average mortgage rates fell last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 6.95 percent. Rates for 15-year fixed-rate mortgages averaged 6.29 percent and 7 basis points lower than in the previous week. Rates for 5/1 adjustable rate mortgages averaged one basis point lower at 5.95 percent; Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 1.20 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.20 percent.
Initial jobless claims fell by 217,000 claims as compared to the previous week’s reading of 218,000 new claims filed. Continuing jobless claims increased to 1.49 million claims filed from the previous week’s reading of 1.44 million ongoing claims filed.
Job Growth Data Mixed, Unemployment Rate Rises
ADP reported 239,000 private-sector jobs added in October as compared to expectations of 195,000 jobs added and September’s reading of 192,000 private-sector jobs added. The Commerce Department’s Non-Farm Payrolls reported 261,000 public and private-sector jobs added in October as compared to expectations of 205,000 jobs added and 315,000 jobs added in September. The national unemployment rate rose to 3.7 percent in October from September’s rate of 3.5 percent.
In other news, construction spending rose 0.2 percent in September; analysts expected spending to drop -0.6 percent based on August’s construction spending pace of -0.7 percent
What’s Ahead
This week’s scheduled economic reporting includes readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be published.
Last week’s economic reporting included the Federal Reserve’s statement on its target interest rate range and Fed Chair Jerome Powell’s regularly-scheduled press conference. Data on construction spending and public and private-sector jobs was published along with weekly reports on mortgage rates and jobless claims.
Fed Hikes Key Interest Rate Range, but Signals a Future Slowdown
The Federal Reserve increased its key interest rate range last week from 3.50-3.75 percent to 3.75-4.00 percent. While this was the highest interest rate range in 15 years, the Fed said it plans to continue raising the target interest rate range until it reduces the inflation rate to 2 percent “over time.” Analysts viewed the Fed’s latest comments as less aggressive than its stance earlier this year.
Fed chair Jerome Powell said during his scheduled press conference that at some time “it will be appropriate to slow the pace of increases.” Mr. Powell also cautioned that the target interest rate range will likely rise past the current expected rate range of 4.50 to 4.75 percent.
Mortgage Rates Fall, Jobless Claims Mixed
Average mortgage rates fell last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 6.95 percent. Rates for 15-year fixed-rate mortgages averaged 6.29 percent and 7 basis points lower than in the previous week. Rates for 5/1 adjustable rate mortgages averaged one basis point lower at 5.95 percent; Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 1.20 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.20 percent.
Initial jobless claims fell by 217,000 claims as compared to the previous week’s reading of 218,000 new claims filed. Continuing jobless claims increased to 1.49 million claims filed from the previous week’s reading of 1.44 million ongoing claims filed.
Job Growth Data Mixed, Unemployment Rate Rises
ADP reported 239,000 private-sector jobs added in October as compared to expectations of 195,000 jobs added and September’s reading of 192,000 private-sector jobs added. The Commerce Department’s Non-Farm Payrolls reported 261,000 public and private-sector jobs added in October as compared to expectations of 205,000 jobs added and 315,000 jobs added in September. The national unemployment rate rose to 3.7 percent in October from September’s rate of 3.5 percent.
In other news, construction spending rose 0.2 percent in September; analysts expected spending to drop -0.6 percent based on August’s construction spending pace of -0.7 percent
What’s Ahead
This week’s scheduled economic reporting includes readings on inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be published.
