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Found 94 entries published by Cindy Allen.

Information For Home Buyers About PMI

 

First Home or Fifth, You Can't Have TMI about PMI

What is PMI? It's basically an insurance policy that covers the lender should you stop making house payments.  You pay for that insurance policy in the form of an additional monthly fee added to your mortgage payment.  It's required for all conforming conventional loans with a downpayment under 20%.  

What's The Cost of PMI and Do I Have To Pay It Until I Pay Off The Mortgage?

The cost of PMI is determined by the loan-to-value ratio at the time you take out the loan as well as your credit score.  The higher your down payment and credit score, the lower your PMI cost.  You can figure the monthly cost will be about  1/2 to 1 percent of your loan amount divided by 12.  So if you borrow

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Why You Shouldn’t Take Your House Off the Market During the Holidays | Simplifying The Market

Why You Shouldn’t Take Your House Off the Market During the Holidays

 

If you are one of the many homeowners who is debating taking your home off the market for the next few weeks, don’t! You will miss the great opportunity you have right now!

The latest Existing Home Sales Report from The National Association of Realtors (NAR), revealed that the inventory of homes for sale has dropped to a 4.3-month supply.

Historically, a 6-month supply is necessary for a ‘normal’ market, explained below:

Why You Shouldn’t Take Your House Off the Market During the Holidays | Simplifying The Market

There are more buyers that are ready, willing, and able to buy now than there have been in years! The supply of homes for sale is not keeping up with the demand of these buyers.

Bottom Line

Home prices are appreciating in this

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The #1 Reason to Sell Now… Not Next Spring | Simplifying The Market

The #1 Reason to Sell Now… Not Next Spring

 

The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2016:

The #1 Reason to Sell Now… Not Next Spring | Simplifying The Market

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Bottom Line

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently

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Building Your Family’s Wealth Over the Next 5 Years | Simplifying The Market

Building Your Family’s Wealth Over the Next 5 Years

 

Over the next five years, home prices are expected to appreciate 3.24% per year on average and to grow by 21.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

Building Your Family’s Wealth Over the Next 5 Years | Simplifying The Market

Since the experts predict that home prices will increase by 4.0% this year alone, the young homeowners will have gained over $10,000 in equity in just one year.

Over a five-year period, their equity

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Home Prices: Where Will They Be in 5 Years? | Simplifying The Market

Home Prices: Where Will They Be in 5 Years?

 

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 4.0% over the course of 2017, 3.2% in 2018 and 3.0% the next three years (as shown below). That means the average annual appreciation will be 3.24% over the next 5 years.

Home Prices: Where Will They Be in 5 Years? | Simplifying The Market

The

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Will Increasing Mortgage Rates Impact Home Prices? | Simplifying The Market

Will Increasing Mortgage Rates Impact Home Prices?

 

There are some who are calling for a decrease in home prices should mortgage interest rates begin to rise rapidly. Intuitively, this makes sense as the cost of a home is determined by the price of the home, plus the cost of financing that home. If mortgage interest rates increase, fewer people will be able to buy, and logic says prices will fall if demand decreases.

However, history shows us that this has not been the case the last four times mortgage interest rates dramatically increased.

Here is a graph showing what actually happened:

Will Increasing Mortgage Rates Impact Home Prices? | Simplifying The Market

Last week, in an article titled “Higher Rates Don’t Mean Lower House Prices After All,” the Wall Street Journal revealed that a recent

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Selling Home in Winter Hits the Mark

Selling in the Winter Attracts Serious Buyers

A recent study looked at the last four years of home sales to determine if the season a property was listed in could predict the chances it would sell for more than asking price in the shortest amount of time.  Now you'd probably guess that spring listings sold quickest and for the highest return, and you'd be right.  But would you have wagered that winter home sellers saw an almost identical result?

More than 7 million home sales over the last four years were examined in the study.  That's certainly a large enough sample over a long enough time frame to make one question the "old" wisdom that homes sellers in Keller, Trophy Club, Fort Worth and North Richland Hills should wait until spring to sell

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When Is a Good Time to Rent? Not Now! | Simplifying The Market

When Is a Good Time to Rent? Not Now!

 

People often ask if now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

When Is a Good Time to Rent? Not Now! | Simplifying The Market

As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with the decision of whether you should renew your lease or not, you might be pleasantly surprised at your ability to buy a home of your own instead.

Bottom Line

One way to protect yourself from rising rents is to lock in your housing expense by

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