Market Basics: How are Mortgage Rates Set?

When you’re looking to buy a home, you’ll want to try and get the lowest mortgage rate possible. That means paying attention to fluctuations in these rates, which can be confusing. If you know the basics of mortgage rates, you’ll gain a better understanding of why they change so often.

How are mortgage rates set? This is the most basic piece of information you’ll need to know. These rates aren't set by banks and other home loan lenders. Instead, they’re determined by a secondary market made up of investors. These investors can either keep the mortgages they buy or sell them to other investors in bundles. The price that secondary market investors pay for these mortgage backed securities (MBS) are ultimately what determines mortgage rates. In order to understand why these rates fluctuate, you need to take the stock market into consideration. Investors generally consider stocks to be riskier, while MBS are considered safer, which has a direct effect on mortgage rates. You can expect these rates to increase when the economy is in good shape or recovering, since investors tend to put more faith in stocks and buy fewer MBS. Mortgage rates generally decrease when the economy isn't doing well, since investors tend to shy away from stocks and put more money into MBS investments.

Keeping track of these rates and the fluctuations they go through, even throughout the course of one day, can be very challenging. ERA Real Estate agents fully understand how are mortgage rates set and can help you find a competitive rate for your home loan.

Need more information on home loans? Contact Donna Hatch, dhatch@erashields.com or 719-684-4121

Another sign Colorado Springs-area housing market is on the mend

Another sign Colorado Springs-area housing market is on the mend

CoreLogic Reports 946,000 Residential Properties Regained $1 Trillion in Total Equity in Q2 2014

CoreLogic Reports 946,000 Residential Properties Regained $1 Trillion in Total Equity in Q2 2014

Understanding Contingent Offers as a Homebuyer

When you’re trying to buy a new home and sell your current one at the same time, things can get complicated as far as timing. If you find a home to buy but haven’t found a buyer for your current home yet, you’ll need to make a contingent offer.

What are contingent offers for homebuyers? These refer to offers that hinge on the buyer being able to sell their home. In other words, you’re telling the seller that you’ll only be able to buy their home if you can sell yours. When you make a contingent offer, the seller can accept, but they might also give you notice of a first right-of-refusal if they get another offer on the home while waiting for you to sell yours. The first right-of-refusal provides you with a certain amount of time, ranging from 24 hours to several days, to remove the sale contingency on your offer. If you decide not to remove it, the seller can refuse your offer in favor of the other one they’ve received.

If you really don’t want to lose the home to the other interested buyer, you have some options for coming up with the money you need. These include:

• Tapping into a home equity line of credit. If you have one of these set up already, you can transfer funds from it or write out a check.
• Asking family for funds. You can ask family members for enough money to cover the cost of the downpayment.
• Get a higher mortgage amount. Make a lower downpayment, but keep in mind that this results in a higher loan amount and higher interest rates.

Need more information on contingent offers for homebuyers?

5 Fall-Infused Staging Tips for Selling Your Home Quickly

Fall selling season is in full swing. There’s no better time than the present to use autumnal inspiration to stage a home that could help draw more buyers in a short amount of time, boosting your chances of selling your home quickly.

Here are five fall-infused tips to get you started:

·        Improve your home’s curb appeal. In addition to mowing your lawn, weeding and power washing; place pumpkins on your porch, colorful mums in outdoor planters and a seasonal wreath on the door. For a DIY wreath, check ERA Real Estate’s Autumn Inspiration board on Pinterest. 

·        Make your house look immaculate. Sure, you need to sweep and wash the floors, wipe down the counters, scrub grout, etc. But a clean house also means clearing the clutter. To do this, consider using pretty baskets (preferably with lids), then wrap an orange ribbon around it or use floral wire to adorn with fabric orange and yellow leaves. Then, strategically place it so it looks like purposeful décor rather than storage.

·        Create an inviting look. Brighten up your home with inexpensive pumpkins, gourds, and flowers throughout your home. Seasonal fresh produce such as apples and squash can also improve your home’s aesthetic appeal.

·        Show off your closets. Potential buyers will want to see how big your closets are. You don’t have to empty them, but try to leave around 30 percent of each one open. And again, use season-inspired boxes and baskets to cleverly hide clutter.

·        Make rooms look bigger or smaller, as needed. Rearrange furniture to make smaller rooms look more spacious and to give bigger rooms a cozier feel. Speaking of cozy, place an autumnal throw or decorative pillow on a chair, preferably in a solid, muted color such as light orange or brown.

For 12 more staging tips, click here. To learn how to further play up the pumpkins for fall décor and for organization inspiration, visit Pinterest.                    

 

http://www.pinterest.com/erarealestate/autumn-inspiration/

Fido & Fluffy: Selling a Home With Pets

Your pets are undoubtedly an important part of your life, but just because you love them doesn’t mean buyers will. When you’re putting your home on the market, it’s best to hide evidence that you have pets. Otherwise, you could risk turning off potential buyers.

When selling a home with pets, follow these tips:

• Find them a temporary home. When buyers will be walking through your home, try not to have your pets around. Even if they’re well-behaved, there’s no guarantee that the buyers will be pet-friendly people. Have your pets stay with a family member or friend during this time, or find a reliable kennel to board them at if possible.
• Get rid of stains and odors. If your pets will be at home while your house is on the market, take extra care to make sure any stains or odors are dealt with. Keep litter boxes in an out of the way place, and clean them every day. Remove carpet and floor stains, and replace the flooring if the stains won’t come out. Use enzyme cleaners to get rid of unpleasant pet odors, such as cat urine.
• Crate your pets. Put your pets in a crate or carrier during showings in order to keep them out of the way.

Need help selling a home with pets? 

Bottom Line: Long-Term Value of Homeownership & Investment

Owning a home provides a number of perks, many of which come in the form of long-term financial benefits. There’s a reason why buying a house is considered one of the best investments you can make.

These are some of the long-term real estate investment advantages you’ll enjoy as a homeowner:

• Building equity. You’ll build equity while you’re sending in mortgage payments every month. This equity will come in handy when you decide to sell your home and buy another one, or you can use it for other purposes, such as investing in a second real estate property.
• No worries about inflation. Unlike rent, your mortgage payments won’t increase thanks to inflation. You’ll be paying the same amount each month if you have a fixed mortgage.
• Boosting value. You can improve your home’s value and get more money for it when you sell it by fixing it up. While you’ll have to spend the money upfront to do home improvement projects, you’ll get at least part of that money back if you do projects that have a high return on investment.
• Increasing value from appreciation. This is one of the most significant long-term real estate investment advantages. Real estate is typically a solid investment because it tends to appreciate rather than depreciate. Just keep in mind that this also depends on the area you’re in.
• Tax breaks. You’ll be able to deduct the cost of your mortgage interest each year, as well as your property taxes. You might also qualify for other tax deductions if you make certain improvements on your home. This could lead to a bigger tax refund each year.