Rent vs. Buy: Either Way You’re Paying A Mortgage

by Chris Druesedow November 30, 2015

Rent vs. Buy: Either Way You’re Paying A Mortgage | Keeping Current Matters There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As The Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. … Continue reading

Millennials: What FICO Score is Needed to Buy a Home?

by Chris Druesedow November 24, 2015

Millennials: What FICO Score is Needed to Buy a Home? | Keeping Current Matters In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some Millennials are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage. The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos : “I do think that there’s a sense out there in the marketplace among borrowers … Continue reading

Equity Matters A LOT… Just Ask Freddie Mac

by Chris Druesedow November 23, 2015

Equity Matters A Lot… Just Ask Freddie Mac | Keeping Current Matters There are many reasons, both financial and non-financial, that homeownership remains an important part of the American Dream. One of the biggest reasons is the fact that it helps build family wealth. Recently, Freddie Mac wrote about the power of home equity. They explained: “In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home’s appreciation. In a nutshell, your money is working for you and contributing toward your financial future.” They went on to show an … Continue reading

Should I Pay a Mortgage Interest Rate over 4%?

by Chris Druesedow November 20, 2015

Should I Pay a Mortgage Interest Rate over 4%? | Keeping Current Matters Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters. This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades. Historic Mortgage Rates By Decade | Keeping … Continue reading

Selling Your Home? The Importance of Using a Real Estate Professional

by Chris Druesedow November 17, 2015

Selling Your Home? The Importance of Using a Real Estate Professional | Keeping Current Matters When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold. In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past three years, 92% of all buyers have used the internet in their home search according to the National Association of Realtors’ most recent Profile of … Continue reading

Why You Should Sell Now… Before Winter Hits

by Chris Druesedow November 16, 2015

Why You Should Sell Now… Before Winter Hits | Keeping Current Matters People across the country are beginning to think about what their life will look like next year. It happens every Fall. We ponder whether we should relocate to a different part of the country to find better year-round weather or perhaps move across the state for better job opportunities. Homeowners in this situation must consider whether they should sell their house now or wait. If you are one of these potential sellers, here are five important reasons to do it now versus the dead of winter. 1. Demand is Strong Foot traffic refers to the number of people out actually physically looking at … Continue reading

The Importance of Home Equity to a Family

by Chris Druesedow November 12, 2015

The Importance of Home Equity to a Family | Keeping Current Matters There has been much written about how dramatically home values have increased over the last several years. With the increase in values, comes an increase in the equity each home owning family now has. The Joint Center of Housing Studies at Harvard University recently reported that, after taking inflation into account, aggregate home equity has increased 60% since 2010. Home equity is the major component of most family’s overall wealth. Why is this so important? Throughout history, families have tapped into their homes for many important reasons. Perhaps it was to get seed capital to start a new business; perhaps to help finance … Continue reading

Homeownership is Still a Huge Part of the “American Dream”

by Chris Druesedow November 11, 2015

Homeownership is Still a Huge Part of the There have been some who have voiced doubt as to whether or not the younger generations still consider buying a home as being part of the “American Dream”. A study by Merrill Lynch puts that doubt to rest. According to their research, every living generation still believes that owning a home is in fact important. Here are the numbers: Homeownership is an important part of the American Dream | Keeping Current Matters This should not surprise us as many studies have revealed the benefits enjoyed by the families who own their own home. One such study was done by the Joint Center of Housing Studies at Harvard … Continue reading

Homeownership Builds Wealth and Offers Stability

by Chris Druesedow November 10, 2015

Homeownership Builds Wealth and Offers Stability | Keeping Current Matters The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are: They want the opportunity to build equity. They want a stable and safe environment. Building Equity In a recent article, John Taylor, CEO of the National Community Reinvestment Coalition, explained that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth: “We traditionally have been huge supporters of homeownership. We see it as a way to provide stability for households but also as an asset-building strategy. If you continue to … Continue reading

Where Are Mortgage Rates Headed? This Winter? Next Year?

by Chris Druesedow November 9, 2015

Where Are Mortgage Rates Headed? This Winter? Next Year? | Keeping Current Matters The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year. Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months. Mortgage Rate Projections | Keeping Current Matters How Will This Impact Your Mortgage Payment? Depending on the … Continue reading

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