27
Apr
By support
Home Values

Case-Shiller: February Home Prices Grow at Fastest Pace in 3 Years

According to the Case-Shiller National Home Price Index, February home prices grew at their fastest pace in three years. While home prices have steadily grown in recent months, growth rates slowed in many areas month-to-month; the escalation of home prices from January to February indicates stronger housing markets. National home prices increased by 0.20 percent in February to a seasonally-adjusted annual rate of 5.80 percent appreciation.

Case-Shiller’s 20-City Home Price Index posted a month-to-month gain of 0.20 percent for a year-over-year gain of 5.90 percent. Seattle, Washington again topped the 20-City index with year-over-year home price growth of 12.20 percent. Portland Oregon followed with an annual price gain of 9.70 percent. Denver, Colorado was replaced by Dallas, Texas with a year-over-year home price growth rate of 8.80 percent. Fifteen cities posted higher year-over-year gains in home prices in February as compared to January readings.

Month–to Month Home Prices

Case-Shiller National, 20-City and 10-City Home Price Indices reported moth-to-month 0.20 percent home price growth before seasonal adjustment. After prices were seasonally adjusted, national home prices increased by 0.40 percent month-to-month; the 20-city index showed an increase of 0.70 percent and home prices in the 10-City Index rose by 0.60 percent after seasonal adjustment.  

Home Prices Rising on High Demand, Low Inventory of Homes Available

David M. Blitzer, Managing Director and Chair of the S&P Dow Jones Indices Committee, said that ongoing shortages of homes for sale continue to boost home prices as demand exceeds supply. First-time and moderate income home buyers continue to face affordability concerns as rising home prices can negatively impact buyers’ ability to qualify for mortgage loans.

Analysts said that while rising home prices are a sign of economic strength, housing market indicators such as housing starts have not had corresponding growth rates. New construction is viewed as the only way to ease demand for homes as rising home prices have so far not cooled demand.

26
Apr
By support
Home Mortgage Tips

What Fees or Costs Are Involved With a Reverse Mortgage? Let’s Take a Look

What Fees or Costs Are Involved With a Reverse Mortgage? Let's Take a LookAs a means of avoiding monthly mortgage payments, a reverse mortgage is a way for homeowners to tap into their equity in order to defer the payments on their home. While this can be a beneficial option for those who are older than 65, it’s important to be aware that – like any mortgage product – there are a number of associated fees. If a reverse mortgage is something you’re considering in the future, here are some of the costs you’ll be looking at.

Mortgage Insurance Premiums

In order to secure your reverse mortgage, you will be required to pay mortgage insurance premiums (MIP) at the time that you sign off on your reverse mortgage. The cost will be charged upon closing, and will continue to be charged throughout the entire period of the loan. While this amount will vary based on a variety of factors, it will be calculated using the lesser-appraised value of your home.

Origination Fee

Since a reverse mortgage is a different mortgage product, you may be required to pay an Origination Fee for all of the costs associated with processing the mortgage. This amount will differ depending on which lender you are using and it will equate to a small percentage of the total value of your home.

Servicing Fee

In addition to the fees required for switching your mortgage product, there will also be a monthly servicing fee to cover administration for the period of the loan. In addition to billing and statements, this amount will ensure that you are covered when it comes to your home purchase. While service fees are becoming a thing of the past, they are generally a relatively small amount of money.

Additional Third Party Fees

There are many fees associated with home ownership and a reverse mortgage is no different. As a result, there may be a number of third-party fees for items including appraisal costs, surveying, title fees and credit checks that will be required in order to close the process. Fortunately, most of these costs will be charged prior to or upon closing and will not persist throughout the mortgage period.

Many people would like to defer their monthly payment and utilize a reverse mortgage, but before deciding on this product it’s worth knowing what the associated costs are. If you’re currently considering your mortgage options and are wondering what is available, contact your trusted mortgage professionals for more information.

25
Apr
By support
Home Buyer Tips

How Young Is ‘Too Young’ to Buy Your First Home? Getting Started Early Has Its Ups and Downs

How Young Is 'Too Young' to Buy Your First Home? Getting Started Early Has Its Ups and DownsMany millennials are expected to enter the housing market in the next year with the interest rates still low. However, while it may be a good time, it does not necessarily mean that it’s the right time for you to make the investment. If you’re currently weighing your options when it comes to home ownership, here are some things to consider before you decide put the money down.

Are You Struggling With Student Debt

It’s possible to invest in a home when you’re still paying down student debt, but if you’re also struggling with a low-paying job and a high debt load, it may not be the right time to buy. Instead of trying to make ends meet to pay a monthly mortgage payment, it might be a better decision to pay off some of your debt, lower your interest costs and consider investing later on. This will also enable you to afford more home when you decide the time is right to buy.

Do You Have A Down Payment?

It can be a good testament to your financial ability if you want to purchase a home at a young age, but having a down payment is one of the most important things to have on hand when it comes to investing. If you’ve come up with 20% of the purchase price, this will allow you to avoid mortgage loan insurance. If you don’t have this amount, however, or much of anything saved up, you may want to create a budget in order to save up for your down payment.

Are Your Ready To Commit?

Many people romanticize the idea of buying a home since it’s something that really belongs to them, but it’s important to be prepared for the monthly mortgage payments, home maintenance and all the other fees and responsibilities associated with home ownership. It’s great if you want to invest, but if you want to travel or explore different job opportunities or even continue your education, an investment commitment may not be the best choice.

It can be a great financial benefit for your future to invest in a home at a young age, but it’s important to ensure you’re ready for the commitment by having your debt paid down and having money saved.