Blog — Page 750 of 848 — First Rate Financial Group

24

Jul

Around The Home

Have a Weekend to Spare? Consider These Quick Renovations to Add Value to Your Home

Have a Weekend to Spare? Consider These Quick Renovations to Add Value to Your Home Homeowners who are thinking about listing their home for sale in the coming weeks or months may be focused on improving their home to help it sell more quickly, but there also may be a focus on adding value to the home in the process. While each home is unique, there are a few projects that most homeowners would benefit from. In fact, these are a few simple and easy projects that can typicaly be completed over the course of a weekend; that can add value and desirability to the home.

Replace The Front Door

The front door has an impact on curb appeal, and it also is one of the primary features that buyers will see when they approach your home to take a tour. Replacing an older door that lacks style or that is plagued with signs of wear and tear can improve property value and curb appeal alike. Many homeowners who have basic tools and some do-it-yourself experience with other projects will be able to replace the front door without additional help from a contractor.

Update The Kitchen Back Splash

A kitchen is a key selling point in a home, and the back splash is among the most visible features in this space. Replacing the back splash with stylish tile can improve the look and can instantly make the home more desirable. This can be a relatively simple type of home renovation project, if you have experience with tile work, that may be completed within just a few hours.

Repaint The Walls And Baseboards

Few things can improve the look of a home more easily than a fresh coat of paint. If the walls are showing signs of wear or the colors do not have modern or universal appeal, applying a fresh coat of paint to walls and baseboards is a simple enough project to tackle. For the best results, focus on the rooms with the most undesirable paint colors, in the most visible rooms of the home or in areas where the paint is in generally poor condition.

Each of these projects can have a dramatic impact on the homes appeal and can influence the value of the home itself. Each of these prjects under most circomstances can be completed with minimal time and cost to the homeowner. Those who are ready to improve their home in a short period of time can consider which of these projects will yield the most significant results in their home.

23

Jul

By support

Market Outlook

Good News! Existing Home Sales, FHFA Home Prices Increase

Good News Existing Home Sales FHFA Home Prices Increase Housing markets show continued signs of strengthening according to reports released on Wednesday. The National Association of Realtors® reported that sales of pre-owned homes rose to 5.49 million in June as compared to May’s revised reading of 5.32 million pre-owned homes sold and expected sales estimated at 5.42 million sales. Expectations were based on May’s original reading of 5.35 million sales. June’s reading was the highest since February of 2007. Readings for existing home sales are calculated on a seasonally adjusted annual basis.

Buyers Gain Confidence in Labor Markets, Rush to Beat Rate Hikes

Lawrence Yun, chief economist for the National Association of Realtors® said that buyers may be influenced by rising mortgage rates and encouraged by improving job markets. Analysts expect the Federal Reserve to raise its target federal funds rate this fall, which means that mortgage rates along with consumer lending rates will rise.

The national median home price rose by 6.50 percent annually to $236,400, also a record reading.

While this news paints a rosy picture for housing markets, challenges remain. Strict mortgage standards are an obstacle for first time and moderate income buyers as well as for buyers with less than stellar credit scores. While construction of new homes is increasing, the majority of projects are apartment complexes. 41 percent of housing starts in June were multi-family projects with five or more units. This data falls in line with stricter mortgage standards and a trend for millennials, an expected group of first-time homebuyers, preferring to rent in large cities rather than moving to suburban areas.

FHFA House Prices Rise in May

The Federal Housing Finance Agency (FHFA) reported that home prices associated with mortgage loans owned or backed by Fannie Mae and Freddie Mac was unchanged from April’s revised reading of 0.40 percent month-to-month home price growth. April’s month-to-month reading was originally reported at 0.30 percent. FHFA home prices were up 5.70 percent year-over-year in May.

FHFA reported that year-over-year home price growth was positive in all nine census divisions, with the lowest growth rate of 0.90 percent in the Mid Atlantic division and the highest growth rate of 8.40 percent in the Pacific division.

22

Jul

By support

Mortagage Tips

Assessing Your ‘Debt-to-Income Ratio’ and Why This Number Matters When Getting a Mortgage

Assessing Your Debt-to-Income Ratio and Why This Number Matters When Getting a Mortgage If you are looking to buy a home, you may want to consider shopping for a loan first. Having your financing squared away ahead of time can make it easier to be taken seriously by buyers and help move along the closing process. For those who are looking to get a mortgage soon, keep in mind that the Debt-to-Income ratio of the borrower plays a huge role in the approval of your mortgage application.

What is a Debt-to-Income Ratio?

A debt-to-income ratio is the percentage of monthly debt payments compared to the amount of gross income that a person earns each month. Your gross monthly income is typically the amount of money you earn before taxes and other deductions are taken out. If a person’s monthly gross income is $2,000 a month and they have a monthly debt payments of $1000 each month, that person would have a DTI of 50 percent. The lower the DTI the better. 43 percent is in most cases the highest DTI that potential borrowers can have and still get approved for a mortgage.

What Debt Do Lenders Look At?

The good news for borrowers is that lenders will disregard some debt when calculating a borrower’s DTI. For example, utilities, cable, phone and health insurance premium would not be considered as part of your DTI. What lenders will look at are any installment loan obligations such as auto loans or student loans as well as any revolving debt payments such as credit cards or a home equity line of credit. In some cases, a lender will disregard an installment loan debt if the loan is projected to be paid off in the next 10-12 months.

What Is Considered Income?

Almost any source of income that can be verified will be counted as income on a mortgage application. Wage income is considered as part of a borrower’s monthly qualifying income. Self-employed individuals can use their net profit as income when applying for a mortgage, however, many lenders will average income in the current year with income from previous years. In addition, those who receive alimony, investment income or money from a pension or social security should make sure and include those figures in their monthly income as well when applying for a loan.

How Much Debt Is Too Much Debt?

Many lenders prefer to only offer loans to those who have a debt-to-income ratio of 43 percent or lower. Talking to a lender prior to starting the mortgage application process may help a borrower determine if his or her chosen lender offers such leeway.

A borrower’s DTI ratio can be the biggest factor when a lender decides whether to approve a mortgage application. Those who wish to increase their odds of loan approval may decide to lower their DTI by either increasing their income or lowering their debt. This may make it easier for the lender and the underwriter to justify making a loan to the borrower.