Real Estate Information

MarketWatch.com has released a new survey showing paying upfront discount points to reduce their interest rate doesn't save borrowers money. One discount point is equal to one percent of the loan balance. Upfront discount points can be paid at the time of closing to reduce the interest rate on the loan.

Borrowers need to balance the cost of the upfront money compared to the savings over time of the lower interest rate. The new survey indicates that most people over-estimate the length of time they will hold onto the loan or actually own the house and are not able to recoup the benefits of the lower interest rate.

Will you be buying Ringwood NJ real estate in 2007? If so, contact me and I will be glad to assist you with your calculations in determining if paying discount points is a good decision for you.

Business WeeK Online reports that the cost of home improvements increased in 2006 while the resale value of improvements decreased. The most profitable improvements returned less than 90 percent of the cost.

So what are homeowners to do when thinking about a remodel? Kitchen, bath and exterior improvements bring the most return on the dollar. But, also consider what amenities other homes in your neighborhood offer and don't over improve for the neighborhood. Also, talk with me about what buyers are looking for in today's market . I can evaluate your house and guide you in what improvements will bring you the greatest return.

Former Federal Reserve Chairman Alan Greenspan is predicting the worst of the housing adjustment is over and "sales figures have stabilized", inventory levels will come down at a "reasonably rapid pace” and housing price declines will have an impact on consumer expenditures.

Now that the holiday shopping season is in full swing, many of us are experiencing an increased level of anxiety over the bills that are pilling up. Don't panic! There is a way to curb this anxiety and actually save money every time you pull out your credit card.

Charge cards have come a long way from the original frequent flyer programs and many offer cash back rewards. This holiday shopping season, take those cash back rewards and apply them to your mortgage principal, saving you long term interest costs, or put the cash reward in a savings account towards the down payment on a new home. Either way you save while you spend. Happy shopping!

Freddie Mac's weekly Primary Mortgage Rate Survey found interest rates last week to be at a 10 month low. Rates averaged 6.18 percent, down from the previous week's rate of 6.24 percent. Full story...

With rates this low, it is a great time to buy a home! If you are thinking of buying a home, give me a call or visit RingwoodHomeSearch.com for a free, automated email home search.

According to a report published in the Los Angeles Times Marsh 13 2012, renters are paying more because the foreclosure crisis is adding to their ranks, which increases demand for rentals. Zillow covered this aspect of rental market dynamics in the latest activity report. The report found that median rents rose 3% from January 2011 to January 2012. Home values continued to fall during the same period.

Investors find the income generated by rental properties attractive. As investors move in and buy the activity takes low priced inventory off the market and put a bottom under the value of all homes in the local market. Once the rent market becomes unattractive cost wise, renters will again turn to buying their homes.

HOUSING RENT RISE IMPACTS U.S. INFLATION:

According to Bloomberg shelter represents about 40 percent of the consumer price index and is accounted for almost one quarter of the 1.3 percentage point rise in April. That share has grown as falling home prices shake consumer confidence in housing as an investment.

·         Federal Reserve Chairman Ben S. Bemanke and his colleagues say they will hold interest rates at record lows for an extended period based on an assessment that slack in the economy from 9 percent unemployment will help subdue core inflation and any threat of accelerating prices likely will be transitory. Not everyone agrees with that judgement.

·         “They should have looked at rents”, said Maury Harris, chief U.S. economist in New York at UBS Securities LLC, whose team at UBS was the most accurate inflation forecaster over 2009 and 2010. According to Bloomberg calculations: “They are putting too much ‘weight on the slack is all that matters’ theory. It matters but, for heaven’s sake, it is not all that matters”.

·         Bruce McCain, chief investment strategist at the private banking unit Key Corp in Cleveland, agreed and said: “Housing has become a contributor to inflation and it continues to rise”.  He commented that the worse it gets for rentals, the more you are going to see that number adding to the overall inflation rate.

Consumer confidence is increasing and home prices are still at historic lows. There has never been a better time to invest into a home than now.

Finding the right home in the area of your choice is exciting. Buying the right home should not be an emotional decision. Do a little extra work:

• Drive by the home of your choice during day time and night time. You might learn that the quite street you visited day time transformed into a noisy place at night time.
• Talk to people living in the neighborhood. They will give you more information about the safety of the area.
• Do not go with how you “feel” about the house. Visit the house at least two or three times. Make sure to ask questions about the plumbing, electricity and roof. Keep your eyes open for marks on the ceiling which can indicate roof leakage. Windows and doors that are “sticky” can be because of the building’s foundation.

Once you arrived at your new home and you are ready to move in, there are a few more things you have to do:

• Remember to replace the locks of the entry and exit doors. You do not know who has spare keys to the doors;
• Make sure your utility services are connected;
• Ensure the smoke detector  and security system are in working order;
• Confirm with your previous Post Office that your mail will be forwarded to the new address;
• All electrical appliances should be inspected for possible damage in order to make an insurance claim.
• All electronic devices should be inspected as soon as possible for damages in order to make the necessary insurance claim.

Your Real Estate Agent will assist you in finding the best suitable home where you can live your happiest moments.