Blog – Page 814 of 934 – Fred Gruber - First Rate Financial Group

29

Oct

Home Buyer Tips

Buying in a New Community: How to Meet and Make Friends with Your New Neighbors

Buying in a New Community: How to Meet and Make Friends with Your New Neighbors One of the stresses of moving to a new area is giving up the familiarity that you have with your old neighbors and starting from scratch. Whether you’ve just moved to a different locale or you’re planning to relocate in the near future, there are some easy ways that you can make a home of your new neighborhood right from the start.

Stand Up and Smile

While there are neighborhoods where people are definitely friendlier than others, by making your presence positively known you can make an instant impression on those that live around you. When you’re walking around the neighborhood, make sure you use it as an opportunity to engage with your fellow dwellers by throwing a smile in their direction, saying “Good Morning!” or paying attention to their children or their pet. It may not start a conversation right away, but if you see each other a few more times you might soon have a new fast-friend in the neighborhood.

Become a Community Member

If you happen to have a community center specific to your area, it will be even easier to meet the people who live in your neighborhood and make friends with some of them. Look into the offerings of your local center and find some classes or events that appeal to you. Whether it happens to be a craft festival or a fitness class that interests you, this will not only help you meet new people, but will ensure that their interests are aligned with your own so you’ll have some new pals to pursue old hobbies with.

Knock on the Door!

This is definitely the most assertive of options, and seems a throwback to another era, but instead of leaving meeting people up to chance, bake a cake or a batch of cookies and take them over to your new neighbor as a gesture of friendship and kindness. Your neighbors will probably love the baked goods, but this can also be the first step in forming a relationship with them that will come to be one you can both rely on.

When it comes to a new neighborhood, forming new attachments can seem all-but impossible, but there are things you can do to begin a bond right from the start.

28

Oct

By support

Market Outlook

Case-Shiller: August Home Prices Accelerate

Case-Shiller August Home Prices Accelerate According to the Case-Shiller 20-City Home Price Index, U.S. home prices increased by 0.40 percent in August, which boosted year-over-year home price growth to 5.10 percent. Denver, Colorado continued to lead in home price gains with a monthly increase of 0.90 percent and a year-over-year gain of 10.70 percent. San Francisco, California also posted a year-over-year gain of 10.70 percent, but posted a month-to-month loss of -0.10 percent. Portland, Oregon posted a year-over-year gain of 9.40 percent with a month-to-month gain of 1.10 percent.

Cities with the slowest growing home prices year-over-year included New York City with a reading of 1.80 percent; Chicago, Illinois and Washington D.C. each posted year-over-year gains of 1.90 percent.

Majority of Cities Show Home Price Gains

Before seasonal adjustments, home prices were higher in 18 of 20 cities; after seasonal adjustments, 11 cities had higher home prices, four were unchanged and five cities had lower home prices. After adjustments for inflation, current home price growth approached rates seen in the housing boom of 2005and 2006, but current home price growth is driven by a slim supply of available homes rather than excessive demand seen during the housing boom.

The Federal Housing Finance Agency reported that home prices for sales of homes related to mortgages owned by Fannie Mae and Freddie Mac rose by 5.50 percent year over year.

New Home Sales Slump in September

Sales of new homes dropped by 11.50 percent in September; this was the lowest level since last November. The drop largely attributed to a steeper than usual drop in home sales in the Northeast, which accounted for 62 percent of slumping home prices. Over the past two years, the Northeast region accounted for 32 percent of declining home sales. Low inventories of available homes and rising home prices contributed to the slump in sales; home builders are working to close the gap between available homes and current demand. September’s supply of available homes increased to a 5.80 month supply from August’s reading of a 4.90 percent

Analysts said that September’s inventory of homes for sale reached its highest level in and a half years and also noted that homes under construction had achieved their highest volume in six and a half years. Although millennials are expected to boost home sales as they begin to start families, some analysts pointed out that the slump in sales coincided with indications that third quarter growth may be weaker than economic growth during the second quarter of 2015.

27

Oct

By support

Home Mortgage Tips

Mortgages 101: How to Calculate How Much You Will Need for Your Down Payment

Mortgages 101: How to Calculate How Much You Will Need for Your Down Payment If you’re planning to buy a home in the near future, you’re probably already in the process of saving up for a down payment. But if you haven’t seen a mortgage advisor or started looking at properties yet, you probably don’t have a good idea of what a down payment will cost you. Different mortgages have different down payment requirements, and you’ll need to figure out ahead of time how much of a down payment you need to put forward.

Following are some general guidelines. Be sure to speak with a knowledgeable, local lender to get the best advice for your area

How can you calculate what you’ll need for a down payment? Here’s what you need to know.

Look at What the Lenders Are Asking For

When it comes to down payments, you’ll need to take into account what lenders want to see. A lender wants to know that you can afford the home you’re planning to buy. That’s why a sizable down payment looks great on a mortgage application.

Although you can pay as little as 5 percent down, a 20 percent down payment looks better on paper. It also means you don’t have to get private mortgage insurance, which will save you money in the long run on a conventional mortgage.

Use Your Debt-to-Income Ratio as a Guideline

Your debt-to-income ratio is a measurement that you can use to determine what kind of a mortgage you can afford. Your down payment will be subtracted from your total mortgage, and it’s your monthly mortgage payment that will determine your debt-to-income ratio. As a general rule, your non-mortgage housing expenses (or your back end ratio) should probably account for no more than 28 percent of your before-tax income. With all housing costs included (mortgage or rent, private mortgage insurance, HOA fees, etc.) most lenders are looking for the debt-to-income ratio (the front end ratio) of 36 percent or less.

Lets say for example, you want to get a $300,000 mortgage amortized over 25 years and you expect to make a $25,000 down payment, your monthly mortgage payment will be approximately $916.67. To afford that mortgage payment, you’ll probably need to have a total before-tax household income of around $3273.82 per month. But if you were to increase your down payment to $50,000, your monthly payment decreases to about $833.33 making the debt-to-income ratio lower if you made the same amount of money.

Doing the Math: Down Payment Requirements for Various Specialty Mortgages

Although there are certain laws around how much of a down payment you’ll need, in some cases the rules are different. The Veterans Affairs office provides mortgages through private lenders designed specifically for active military service people, veterans, and their spouses. A VA home loan requires zero down payment for loans that are within the maximum conforming loan limit, with a 25% down payment on the difference if you opt to buy a house worth more than the loan limit.

Your down payment size will influence a variety of other factors, like your mortgage terms and whether lenders are willing to give you a mortgage. A mortgage professional can help you understand the nuances of down payments. Check with your trusted mortgage advisor to learn what will for your particular situation.