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Sunday, October 15, 2017

Homeowners 44X

Net Worth of Homeowners 44X Greater than Renters

According to a recent Federal Reserve study, the 2016 median net worth of homeowners was $231,400 - a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). The net worth of a homeowner is over 44 times greater than that of a renter. What better reason to go for homeownership!

You can look at your home as an investment – that you can live in. Can’t live in a bank; can’t live in a stock portfolio – a boat maybe or even a mobile home – but if you are looking for appreciation on your hard earned dollars… buy a home of your own! Live on your way to improved wealth


You Do Not Need 20% Down to Buy NOW!

Some folks think 20% down is necessary to cross the threshold of homeownership. NOT SO! Of course the more down the better as far as reducing your monthly payment, but you can get in a home for a much lower down payment and sometimes zero down!

Another “fact” that is NOT is that you need a perfect or very high credit score. Take a look at today’s report and the chart that shows over 50% of mortgages recently approved fall in the 600 to 749 range. And, there are loans out there for scores below that! The way to get one – is start


Millionaire to Millennials: Buy a Home Now!

Millionaire David Bach explained that “the single biggest mistake millennials are making” is not purchasing a home because buying real estate is “an escalator to wealth.” He takes it further by suggesting that NOT buying a home means the chances of having any wealth in this country are little to none.

Think about this - $1500 a month rent (that is today and we know the amount is NOT going to stay there – think UP) – so, $1500 a month or $18,000 a year for 30 years – comparable to a mortgage – for a total of $540,000. Yeap – that is out of pocket, with no rent increases for 30 years and no savings on income tax by having deductible interest and taxes. It sure makes a lot of sense to rent! Just kidding! Buy, buy, buy


Builder Offering to Pay Off Student Loans for Buyers

WOW! $1.3 trillion in outstanding student loans spread out among 42 million borrowers in America. So what is a student to do? Give up on education to not have debt and buy a house? Probably NOT. Looking at the education system, the cost of education and the programs out there is a subject for another blog and another day. The point is – we are today! And, we need programs to get young folks starting out into a home of their own – the American Dream!

Lennar Home Builders and Eagle Home Mortgage have packaged a mortgage program to do just that. I have not sold a home under this program yet, but would certainly welcome a client who wants to explore it. Are you that future client


Should I Buy a Home Now? Or Wait Until Next Year?

A couple paragraphs up, we suggested “Buy, buy, buy” and while there are so many reasons for that, this chart does a good job explaining the financial impact. Prices go up – interest rates potentially go higher – and the monthly payment gets higher for the same house. So you either buy less house, put more money down or live with less spendable or savable money each month.

It is a great time to buy


The Mortgage Process

More than once I have heard “OMG – I do not know how to get a mortgage”. That part is really easy. There a professionals to help you along the way. Don’t know anyone? No problem there either – your professional REALTOR does.

Call if you need help