Happy Halloween

Selling or Buying is where details really do matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 
Curious how much your home is worth? 

CALL 801-809-9866 today         

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready!   

#LeasePurchase #UtahRealEstate #Homeownership

Home Prices are Showing Signs of Cooling

Housing Markets That Have Shattered Previous Price Peaks, but in a handful

of markets, some homeowners likely won’t notice much. That’s because homeowners who have owned their home since before the recession have seen their home prices jump by 50 percent—even up to 80 percent.

 Median home prices are above pre-recession levels in 69 percent—or 103--of the 150 metro areas tracked, according to a new report from ATTOM Data Solutions.

Average homeownership tenure increases to new all-time high of 8.23 years

U.S. homeowners who sold in Q3 2018 had owned their homes an average of 8.23 years, up from an average homeownership tenure of 7.97 years in Q2 2018 and up from 7.98 years in Q3 2017 to a new record high going back as far as homeownership tenure data is available, Q1 2000.

Among 108 metropolitan statistical areas analyzed for homeownership tenure, those with the shortest average homeownership tenure were Oklahoma City, Oklahoma (6.31 years), Denver, Colorado (7.17 years); Colorado Springs, Colorado (7.18 years); Austin, Texas (7.24 years); and Provo-Orem, Utah (7.24 years).

Median home prices nationwide in the third quarter were 11 percent higher than the pre-recession peak of $230,000 in the third quarter of 2005, and 77 percent higher than the post recession median of $145,000 in the first quarter of 2012.

In the third quarter of 2018, the median home price was $256,000.

Home prices in Dallas-Fort Worth, Texas, have surged the most in the country from their pre-recession peaks, climbing 86 percent higher.

Houston, Texas, and Kennewick-Richland, Wash., also have seen median home prices surge 80 percent higher than their pre-recession peaks.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate #Homeownership

If you’re Self–Employed and your Lender works with Freddie Mac!

You’ve decided you’re ready to purchase a home, now it’s time to 

apply for a mortgage. Starting the loan application process can be overwhelming, but even more so for borrowers who are self–employed.

Thanks to smart phones, digital apps and companies like Uber and Airbnb, an increasing number of Americans, particularly millennials, earn their living in the sharing or gig economy by providing on–demand services.

These people mostly work for themselves and are expanding the nation's already sizable self–employed workforce. And like salaried employees, on–demand workers want to buy homes.
Unfortunately, many self–employed individuals hear from family and friends that it’s challenging to get a mortgage because it’s hard for lenders to calculate your income.

However, there’s good news. If you’re self–employed and your lender works with Freddie Mac, they now have the ability to submit your loan through Loan Product Advisor®, our automated underwriting system which is now integrated with LoanBeam.

This integration gives you and your lender several advantages, including an automated review of the accuracy of qualifying income, eliminating the need to chase down unnecessary documents that support residual/excess income.

Whether you’re self–employed or not, lenders will evaluate the “four Cs” when deciding to make a loan:

• Capacity to pay back the loan. Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the means to take on a mortgage comfortably.
• Capital. Lenders consider your readily available money and savings plus investments, properties, and other assets that you could sell fairly quickly for cash. Having these reserves proves that you can manage your money and have funds, in addition to your income, to pay the mortgage.
• Collateral. Lenders take into account the value of the property and other possessions that you're pledging as security against the loan.
• Credit. Lenders check your credit score and history to assess your record of paying bills and other debts on time. (Even if you don't plan to buy a home now, it's always a good idea to build and maintain strong credit. Landlords often check it to make sure that you can pay the rent. It's also important if you want to apply for a mortgage or other credit line in the future, such as a student loan, car loan, or credit card.)

Our collaboration with LoanBeam is just one example of a broader effort underway at Freddie Mac to build a better housing finance system and help lenders meet the unique needs of all borrowers.

Buying or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home.  

If you prefer a more personal touch, CALL 801-809-9866 today.  
Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready!


#SelfEmployed #LeasePurchase #UtahRealEstate 

Contract Signings Points to Future Housing Gains

Pending home sales increased slightly in September, with significant 

gains in the West and Midwest offsetting more modest growth in other regions, the National Association of REALTORS® reports.

NAR’s Pending Home Sales Index, a forward-looking measure based on contract signings, shows signings inched up 0.5 percent nationwide to a reading of 104.6 in September.

But on a year-over-year basis,contract signings have ped 1 percent—marking the ninth consecutive month of annual decreases. 

NAR Chief Economist Lawrence Yun says the housing market is stabilizing. 

“This shows that buyers are out there on the sidelines, waiting to jump in once more inventory becomes available and the price is right,” he says.

Lower affordability and a lack of moderately priced homes on the market are the two main factors putting a strain on sales, Yun says. Still, affordability is much more favorable when compared to the past few decades.

“When compared to the year 2000—when the housing market was considered very healthy and home sales figures were roughly equivalent—the affordability conditions were much lower compared to now,” Yun says.

“So even though affordability has been falling recently, the demand for housing should remain steady.”

Yun also believes the housing market will soon reflect the overall health of the economy. “The general condition of the economy is excellent, but it simply has not lifted home sales this year,” Yun says. “Home prices are still rising, so people who are purchasing are still seeing wealth gains.”

Many markets are seeing an increase in inventories, which is opening up choices for those who are looking to buy. Markets such as Denver-Aurora-Lakewood, Colo.; Columbus, Ohio; Seattle-Tacoma-Bellevue, Wash.; San Diego-Carlsbad, Calif.; and San Francisco-Oakland-Hayward, Calif., all saw some of the largest increase in active listings in September compared to a year ago, according to data from realtor.com®. 

Buying Or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. If you prefer a more personal touch, CALL 801-809-9866 today. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready!

#LeasePurchase #UtahRealEstate 

Source: National Association of REALTORS®

Homeowners Say They Have ‘Good Neighbors’

The best neighbors are trustworthy, quiet, friendly, and respectful, 

according to realtor.com®’s 2018 Good Neighbors Report (which is not affiliated with the National Association of REALTORS®’ Good Neighbor Awards program).

But there’s no need to maintain a close friendship to be considered a “good neighbor,” according to the survey of 1,000 consumers across the country.

“While it’s true that some people focus on what annoys them about their neighbor, it’s a welcome surprise to see that people generally think positively of their neighbors,” says Nate Johnson, chief marketing officer at realtor.com®.

“Trust and dependability plays an integral part in helping a neighborhood feel like ‘home.’ Building it can be as easy as stopping by to say hello.” 

Millennials and Gen Z respondents (ages 18 to 34) and older adults (ages 55 and up) tended to care the most about having friendly neighbors, according to the survey. Researchers found the least appreciated quality for all groups, however, was having a close friendship with a neighbor. Only 9 percent of women see a close friendship with a neighbor as a must-have for a good neighbor; men rated it higher at 20 percent. 

Some of the most off-putting neighborly traits: Disrespectful of property, loud, untrustworthiness, and being nosy, messy, or unfriendly, the survey found.

Welcoming new neighbors can create a “good neighborly” vibe, the survey found. The most common welcoming method preferred by 65 percent of respondents was just a simple introduction.

However, the reality is that many new neighbors don’t get welcomed. Only 46 percent of respondents reported that their neighbors stopped by for a quick greeting, and 39 percent say they were never welcomed to the neighborhood.

Buying Or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. If you prefer a more personal touch, CALL 801-809-9866 today. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready!

#LeasePurchase #UtahRealEstate 

Source: 

Realtor.com®

Nearly 4M to Get a Credit Boost:

Good for Mortgages? Many consumers may see their credit scores 

move higher, following an announcement on Monday from FICO, a leading credit scoring company. FICO, Experian, and Finicity announced a new pilot program that will consider how prospective borrowers manage their cash that could move credit scores higher.

Credit scores are a critical component when qualifying for a mortgage and getting the lowest rates. 

The program, called UltraFICO score, aims to help people who have dings on their credit histories to also have their banking activity factored into their score. For example, this could include how long accounts have been open and any evidence of savings on the consumer’s part.

Consumers who have credit scores in the lower numbers—such as the upper 500s to lower 600s—or who have limited history or previous financial problems will likely benefit the most.

Some of their scores could go higher under the new system, David Shellenberger, the senior director of scores and predictive analytics at FICO, told CNBC. Nearly 4 million consumers could potentially see an increase of 20 points or more in their FICO score, he says.


“We’ve found a new way to use consumer-permissioned data that allows lenders to make better decisions and helps consumers gain access to credit,” says Alex Lintner, the president of consumer information services at Experian.

But not all in the financing industry think that finding ways to boost credit scores are a smart move in opening the door to more credit card or mortgage approvals.

“While this generally sounds like a good thing for consumers, the concerning part—the solution in search of a problem, if you will—is the focus on boosting approvals,” Ted Rossman, CreditCards.com’s industry analyst. “Going in with the idea of increasing approval rates is a slippery slope.”

The UltraFICO score is slated to be available to lenders by mid-2019.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy a home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate #Creditscore

Real Estate 'Deal Breakers'

That May Actually Be Deals in Disguise, Most home buyers have in 

their minds a list of 'deal breakers'—specific real estate features that they absolutely won't put up with in any property they purchase.

But guess what? Your deal breakers might actually be deal makers in disguise.

Waiting for that mythical perfect home to emerge can be a losing battle. Meanwhile, bargains are out there—they just need a buyer who's savvy enough to see past certain seemingly glaring flaws and realize that they're fixable problems. Here are some examples:

An outdated kitchen

“Since a bad kitchen is probably priced into the house, I consider it a benefit to the buyer, because you'll be paying less, and then you can pick out the exact kitchen you want,” she says. And this theory holds for almost any cosmetic horror—whether it’s wood paneling, tattered shag carpet, or foil wallpaper—provided the house has good bones and is otherwise a winner.

But before you walk away, figure out if it’s salvageable; for example, maybe it’s a great layout that just needs some cosmetic work.

The Colors That Will Help and Hurt Your Home Sale (click on picture)

Asbestos

Wow, the very idea of asbestos definitely makes you want to run away, doesn’t it? And yes, removal can be costly. But there is one exception: If that asbestos is in the floor, the situation can typically be taken care of by encapsulation rather than costly removal.

Unpaid HOA or condo fees

If the last sellers didn't pay all their HOA or condo fees, they get passed on to a new buyer. Only who would want to take on someone else’s debts? Someone who wants a total steal, that’s who.

So if you hear of a house or condo with lingering dues from past owners, don't be scared off until you've asked one simple question: How much?

Water damage in a basement

We’ve all heard about the dreaded issue of a wet basement. The mold! The mildew! But if you are just seeing water stains in one area, it may be pretty easily fixable, Sisson says. “The culprit is usually downspouts that drain directly at the edge of the foundation,' she says. 'Adding downspout extensions will often solve this problem.” All for about $30 each and a quick trip to the hardware store.

Cracked walls

Those ominous cracks in walls don’t necessarily mean the house is going to fall over on itself. “Many buyers think about foundation issues when they see wall cracks, but that's not necessarily the case,” he says. While drywall is now a common building material, prior to the late 1950s, interior walls were typically built with lath and plaster. Because of gravity and the normal house settling that occurs over the years, plaster can often crack, which can look very scary—but is often not a major problem.

An old roof

An old roof can be a deal breaker, since they're so pricey to replace (check out how much a new roof costs).  “Most home inspectors I’ve worked with will mark a barrel-tile roof as past its life expectancy after 25 years, but these roofs can last beyond 40 years in the right circumstance,” he says. Just make sure there are no leaks or visible damage, and of course, double-check that your insurer will cover it.

High radon levels

Yes, radon is a dangerous radioactive chemical. Yep, that sounds incredibly frightening. But the good news is that it is almost entirely fixable with an abatement system. The system can run you $1,500 to $3,000, Sisson estimates, but when installed properly, it'll reduce the levels to about 0.5pCi/L, which is considered 'background level” and perfectly safe.

Termites

Hearing that a property has termites makes a would-be buyer picture the home being eaten alive by insects, ready to blow over in a stiff breeze, says Dominguez. But in some climates, like the humid environs of Florida, they are pretty typical, since prevailing conditions provide a great breeding ground for them.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy a home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate 

Moving Away from a Seller's Market.

Why Are Home Sales Falling? 'It's significant,' realtor.com's senior 

economist, Joseph Kirchner, says of the in sales. 'The number of homes on the market are beginning to rise nationally,' Kirchner says. 'Prices are growing less rapidly.'

It's part of a larger cool down of the housing market as it moves away from a seller's market. Home sales should be surging. The economy is booming and more people are earning good-sized paychecks again.

Millennials are starting to settle down and have children, so they need more space.And the crazy price gains of the last few years are beginning to slow down, with more homes making their way onto the market. So why is the number of home sales across the country falling?

In September, sales of existing (previously lived in) homes ped 4.1% compared with the previous year, according to the seasonally adjusted numbers in the most recent National Association of Realtors® report. The 5.15 million sales were also down 3.4% from August. That's the fewest number of existing homes sold since November 2015.

September 2018 brought 5.15 million in sales, a median sales price of $258,100, and 4.4 months of inventory. The median sales price is up 4.2% year over year, and inventory is up 0.2% from September 2017.

(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

Now, sales usually off a bit in September after the frenzied summer months, when families want to buy a home and settle in before the kids start school. But this off is comparing September 2018 with September 2017.

Part of the reason for the decline is prices.
While the rate of price increases is beginning to slow, prices aren't coming down in most parts of country, at least not yet. The median price of an existing home rose to $258,100 in September—the 79th straight month of annual increases.

That's up 4.2% from September 2017. And the cost of becoming a homeowner or trading up is simply too high for many would-be buyers.

At the same time, mortgage interest rates have also been on the rise, which makes purchasing a home even more expensive. They climbed to 4.72% at the end of September—up from 3.83% a year earlier. And Hurricane Florence also delayed sales in the South.

As a result of these changes, 'sellers will find it takes longer to sell their homes and buyers will have more choices in the market,' Kirchner says.
Sales of the in-demand, single-family homes fell 3.4% from August and another 4% from September 2017. Co-op and condo sales saw a similar , falling 3.4% from the previous month and 5% from a year earlier.

“A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases,' NAR's Chief Economist Lawrence Yun said in a statement.

'All the while, affordable home listings remain low, continuing to spur under performing sales activity across the country.”

Let's get your home on the Market! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy a home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  


#LeasePurchase #UtahRealEstate #HomeSales

Utah Best States for the Middle Class in 2018

 

Rising home prices have been hitting the middle class particularly 

hard, but some states have an easier path forthese shoppers to break into homeownership.

Many of those opportunities are out West, according to a new analysis from SmartAsset, a personal finance website. 

1. Utah
The Beehive State takes the top spot as the best states for the middle class. Utah possesses the largest proportion of middle class households in our study, with just over 49% of households earning between $35,000 and $100,000.

This state has also seen impressive growth in middle-class jobs.
This makes it a great state to be in the middle class and also means the state can support a larger middle class. Utah also has a homeownership rate of 70%, which is a top-10 rate.

The American Dream of homeownership and financial independence is a hallmark of middle-class life. 

Indeed, working hard defines this cohort’s pull-yourself-up-by-your-bootstraps sensibility. But earning and saving up enough money to afford a down payment comfortably and reduce financial stress is getting increasingly difficult.

With inequality on the rise in America, the middle class is getting squeezed on both sides. That has made many Americans in this demographic wonder how much money they can really save and whether they will be prepared come retirement.

Some states, however, are better for the middle class than others. Below we look at metrics related to income, homeownership and taxes to find the best states for the middle class.

SmartAsset researchers found that the best states for the middle class are clustered in the Western part of the U.S., including Utah, Wyoming, and Idaho. Many Midwest states also scored high in the rankings. But the middle class may find the toughest time with affordability in the Northeast.

Key Findings

Go West – The best states for the middle class are clustered in the Western part of the U.S. For example, three of the top five states for the middle class are Utah, Wyoming and Idaho.

Midwest scores well – Other than Western states, it is states in the Midwest that score best. All but one state in our top 10 lies in either the Midwest or the Western portion of the country.

Tough for the middle class in the Northeast – With high tax burdens, low homeownership rates and unaffordable housing, it is not too surprising that states in the Northeast tumble down the ranks. Five of the worst-ranked states are New Jersey, Massachusetts, Rhode Island, New York and Connecticut. (Only Washington, D.C. ranks lower, at dead last.)

SmartAsset ranked the best states for the middle class by examining several factors,including the percent of households in the middle class, percent of households below the middle class, number of new middle-class jobs, percent growth in middle-class jobs, effective property tax rate, the effective income tax rate, median home value, and homeownership value.

Borrowers Finally See Some Relief With Mortgage Rates

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy a home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate #BestStateforMiddleClass

Anticipated Growth in Inventory a Good Sign for Buyers

New Home Listings Positive Indicator for Inventory Woes, U.S. 

Housing Inventory may be about to Stop Tightening with prospects of an increase in the not-so-distant future, according to Javier Vivas, Director of Economic Research with Realtor.com.

Although total inventory remains virtually flat year-over-year, new home listings increased 8 percent in September 2018 in comparison to the same month last year.

At the same time, price gains continue to increase but at a slower rate, with the average home listed at a price up 4.4 percent over the same period.

Compared to August, September saw inventory grew 0.4 percent, an increase that belies the usual in supply as the autumn season begins.

This brought inventory down by only 0.2 percent overall year-over-year—a fact Vivas stresses as an indicator that a recovery in inventory is underway.

National Inventory Stops Declining As New Listings Spike
This increase in housing inventory has been most marked among homes listed above $350,000—a segment which shows an increase of 10 percent since last year—as well as in larger metropolitan areas, which have seen an increase in new listings up 13 percent.

The cities witnessing the biggest jumps in inventory are all located in California save Seattle and Nashville, but other major cities also saw an increase in listings, including Chicago, Miami, Dallas, Boston, and New York.    

Although growth has been mostly seen in pricier homes and large cities, Vivas stressed that the best news for buyers is that prices nationwide have dropped 8 percent for all new listings, making homes listed on the market for the first time $25,000 cheaper on average than they were a year ago.

This fact is balanced out, however, by the fact that new and existing listings averaged out have increased. The median list price is flat at $295,000, with the average listing price having reached $483,000. The slowdown in price increases has been seen most strongly in the same metropolitan areas that also saw an increase in listings.

While Vivas considers the , he notes that the market continues to favor sellers in both moderately priced home sells and the secondary markets.

Homes continue to sell at a more rapid pace than they did a year ago, and while inventory appears slated to return to more balanced levels.

Where Does Inventory Go from Here?

When it comes to choosing a home of their own, millennials are looking for opportunity and they’re finding it in affordable suburbs. These hot housing markets are attracting the attention of hard-working, high-earning 25-to-34-year-olds who are drawn by their relative affordability, strong local economies, and outdoor and cultural amenities.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy a home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate 


To read the full report click here.

Western States Show Strong Gains in Equity

Homeownership remains a big part of the American Dream, 

providing families with a place that's their own and the opportunity to create financial stability over time.

According to a September report by CoreLogic, today's average homeowner gained over $16,000 in equity between the second quarter of 2017 and the second quarter of 2018.

Home equity increased in virtually all states, with the West reaping the largest gains
The Western states have shown strong gains in equity this past year. What can you expect?

• National share of homes with negative equity for Q2 2018 was 4.3 percent.
• 570,000 borrowers moved into positive equity from Q2 2017 to Q2 2018.
• Nevada saw the largest improvement in the negative equity share over the past year, falling 4.9 percentage points.

The amount of equity in mortgaged real estate increased by about $1 trillion in Q2 2018 from Q2 2017, an annual increase of 12.3 percent, according to the latest CoreLogic Equity Report. Homeowner equity has nearly doubled in five years, increasing by $3.9 trillion from Q2 2013 to Q2 2018.

The nationwide negative equity share for Q2 2018 was 4.3 percent of all homes with a mortgage, more than 20 percentage points lower than the peak negative equity share – 26 percent – recorded in Q4 2009.Over the past 12 months, 570,000 borrowers moved into positive equity.

Let's Talk: Just how is this financial stability realized and what can be expected?

As a homeowner, you'll have the opportunity create financial stability by building up equity over the years – a critical part of homeownership. You'll do this by paying down your mortgage (through your monthly mortgage payment) and your home's appreciation over the years. 

In total, the nation saw an aggregate gain in equity of nearly $1 billion. This gain has nearly doubled over the past five years.

These year-over-year numbers are strong, but it's important to note that some markets appreciate faster than others – such as California and Washington – and there are no guarantees with home price gains.  It's also possible for home values to depreciate due to local area economic conditions that cause a decline in your home's value and/or an increase in mortgage debt. Today, 4.3% of today's homeowners have negative equity, a 21% decrease over this past year.

Buying or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#Mortgage #LeasePurchase #UtahRealEstate 

Ways to Save for a Down Payment

Do you dream of buying your own home, but stop short 

when faced with getting together the down payment? It's time to shift your mindset: You can do this.

First, it's important to know that 20% down is not required.

In fact, the average down payment for first–time homebuyers in 2017 was 5%, and 10% for repeat buyers, according to the National Association of REALTORS^®. 

Second, look to build your nest egg and reach your homebuying goal with these tips.


Explore Programs:

• Reach out to a housing counselor or  lender to ask them about state and local down payment assistance programs.
• Visit the U.S. Department of Housing and Urban Development's directory of state, county, local, and municipal programs to find out what kind of help is available in your area.
• Find out if you may be eligible for down payment assistance programs through the Down Payment Resource^® tool

Save in Key Areas:

• Consider downsizing to a less expensive apartment or renegotiating your current rental lease for a two– to three–year term at a fixed rate so you aren't seeing annual increases while you save. You are an asset to your landlord if you pay your bills on time and maintain the property. It's worth it to him or her to keep you in place.
•  Pay your loans on time and in full. Zero interest and zero late fees mean more savings for you nest egg. Try to renegotiate any credit card, car loan, school loan balances to a lower interest rates that could help you pay off balances faster. Both will help improve your credit score.
• Shop around to reduce major monthly expenses. Can you lower your cell phone package? Can you take public transit instead of buying that new car?
• Identify key areas where you tend to shop big and shop medium instead. This isn't about becoming a monk, it's about controlling spending. Instead of paying for a gym membership, ride your bike, run or swim at the YMCA. Learn to love drip coffee instead of buying espresso.
• When you receive infusions of money like your tax refund or cash gifts — sock it away in a CD or money market account to earn a bit more. Every little bit helps!

Keep Your Eyes on the Prize:

• Review all accounts and finances regularly and squirrel away whatever you can to reach your goal. Also, track your savings progress — whether it's a hand–drawn temperature gauge on the refrigerator, or an app on your cell phone.

Buying doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate 

Learn more about buying a home at My Home by Freddie Mac^®.

Zero-Down Loan Program

Aims to Expand Mortgage Access: A new effort is 

underway to raise the low rate of homeownership among under served groups of home buyers.

The Neighborhood Assistance Corp. of America is hosting several events across the country, helping borrowers with low credit scores to apply for 15- or 30-year mortgages with cheaper interest rates.

One such recent event in Miami drew thousands looking for a chance to get a no down payment, low-interest-rate mortgage. NACA officials say more than 10,000 potential borrowers have attended various NACA events in cities such as Charlotte, N.C., and Atlanta.

“The low rate of homeownership and number of mortgages for low- and moderate-income people, and for minority home buyers, is a national disgrace.”  “There have been zero foreclosures among the loans that we’ve originated in the past six years.” Bank of America is backing the NACA program with $10 billion in mortgage commitments.

Borrowers are required to go through an education session about the program, as well as counseling for budget planning to make sure they can afford a mortgage payment. They also must still submit all necessary documents, such as income statements amd phone bills.

• Borrowers can have low credit scores, but have to go through an education session about the program and submit all necessary documents, from income statements to phone bills.
• They must go through counseling to understand their monthly budget and ensure they can afford the mortgage payment.
• The loans are 15- or 30-year fixed with interest rates below market, about 4.5 percent.

The program serves only those who are buying a primary residence, not an investment property. The loans for 15- or 30-year fixed-rate mortgages are below market, at around 4.5 percent. “That’s what’s going to help people who’ve been locked out of homeownership really become homeowners and build wealth.” 

Why 5 percent mortgage rates could benefit first-time home buyers, expert says 

However, critics of the program are concerned that loans with no down payment requirement could carry too much risk. Program officials say buyers have “skin in the game in a real way,” meaning it’s their home and an investment for their family. “We have seen significant wins in this partnership,” A.J. Barkley, senior vice president of consumer lending at Bank of America.

 “Just to be clear, when we get those loans with all the heavy lifting here, we’re over a 90 percent approval, meaning we actually underwrite the loans for 90 percent of the people who go through this program.”

Buying or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#MortgageRates #LeasePurchase #UtahRealEstate 

Source: “Thousands Line Up for Zero-Down Payment, Subprime Mortgages,

What Is an In-Law Suite?

A Smart Feature—Even If Mom Isn't Moving In, What is an in-law suite?

It's the most common name for a small dwelling on the same property as (and perhaps attached to) a single-family home, where an aging family member (or others) can live with some modicum of privacy and independence.

In-law suites are also referred to as accessory dwelling units,multigenerational units, secondary suites, or granny flats. In the Southwest, they're frequently called casitas.

No matter the name, they're a desirable feature in a home that come in handy in many ways well beyond providing a place for mom alone. Here's everything you need to know.

In-law suites as a sales feature

Due to their usefulness, in-law suites are attractive features to look for when buying a home—or play up in your home if you're selling.

'A mother-in-law suite or even the potential of one can make your home more desirable to buyers.'  'With multigenerational living on the rise, buyers are frustrated that they can’t find a home that meets their needs. There are limited choices, so they start looking at homes that can be easily modified into a residence with a mother-in-law suite. If I have a listing with a first-floor bedroom and full bath, I’ve been advertising it as a 'potential in-law suite.' It generates a lot more buyer traffic.'

The best advice for those who are considering building an in-law suite onto their existing home out of necessity is to make it an open floor plan.

'An open floor plan has versatile uses after the fact. It's easier for buyers to envision the suite as something else if they don't need to use it for its original intention,' he says.

The traditional in-law suite can be either connected to the main dwelling of the home, or an external structure like a small cottage on the property or a converted garage. Minimally, an in-law suite has a bedroom and full bath. It can also have additional rooms such as a sitting room or a small kitchen.

Alternate uses for in-law suites

When not in use by an aging parent, an in-law suite has many uses, making it a wise investment. Here are some uses to consider:

• Home office: 'More and more buyers are looking for a place to work from home.' 'So an in-law suite could be the perfect spot for your small business.'
• Guest quarters: When out-of-town guests come to visit, an in-law suite is the perfect place for them to have a little privacy with their own bedroom and bathroom.
• Older child residence: Adult children who may need to live at home while establishing themselves financially can use the space as an apartment, perhaps even paying a little rent.
• Short- or long-term rental apartment: Since many in-law suites are fully equipped apartments, they make ideal rental apartments that can bring in added income from long-term renters or short-term rentals on Airbnb.

What's the cost of an in-law suite?

The cost to add an in-law suite will vary greatly depending on the size, amenities, and whether it will be an addition to an existing home or a stand-alone structure. When adding an in-law suite to the existing home, look to spend an average of $32,700 to $63,000. If you're building a new structure, it can cost as much as $125,000.

In-law suites as a sales feature

Due to their usefulness, in-law suites are attractive features to look for when buying a home—or play up in your home if you're selling.

'A mother-in-law suite or even the potential of one can make your home more desirable to buyers.'  'With multigenerational living on the rise, buyers are frustrated that they can’t find a home that meets their needs.

There are limited choices, so they start looking at homes that can be easily modified into a residence with a mother-in-law suite. If I have a listing with a first-floor bedroom and full bath, I’ve been advertising it as a 'potential in-law suite.' It generates a lot more buyer traffic.'

The best advice for those who are considering building an in-law suite onto their existing home out of necessity is to make it an open floor plan.
'An open floor plan has versatile uses after the fact. It's easier for buyers to envision the suite as something else if they don't need to use it for its original intention,' he says.

Are in-law suites legal?

Local ordinances vary when it comes to the amenities in an in-law suite and its use. To find the laws specific to your property, go to the zoning office with your lot and block number to find out if having such a suite on your property is permitted.

If zoning laws do not allow an in-law suite, it may be possible to get a variance.

'You may have to send out certified letters to the neighbors and get their signatures.'  'The cost of a variance could run up to $500.'
You will also need to obtain building permits—and even then, there may still be limitations on what the suite can include or how it may be used. 

Some zoning laws do not allow full kitchens because of the risk of stove fires. Some laws do not allow the suites to be rented out once it's no longer being used for an older relative.

Bottom line: Before investing in a home with an in-law suite with the intention of it being a money maker, know the local laws.

Despite a few negatives, homeowners find the pros outweigh the cons and that in-law suites are a smart investment while they are living in the home and when they go to sell.

When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. If you prefer a more personal touch, CALL 801-809-9866 today.  
Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready!

#Motherinlawsuite #LeasePurchase #UtahRealEstate 

Mortgage Rates Fast Approaching 5%

Mortgage rates hit their highest level in more than seven years this 

week at nearly 5%, a level that could deter many home buyers and represents another setback for the slumping housing market.

The average rate for a 30-year fixed-rate mortgage rose to 4.9%—the largest weekly jump in about two years—according to data released Thursday by mortgage-finance giant Freddie Mac. 

Lenders and real-estate agents say that, even now, all but the most qualified buyers making large down payments face borrowing rates of 5%.

Rates have been edging higher in recent months, but during “the last week we’ve seen an explosion higher in mortgage rates.” 

A 5% mortgage rate isn’t that high by historic standards. During much of the decade before the financial crisis, these rates hovered between 5% and 7%. But a return to more normal lending rates won’t feel normal to many buyers who have become accustomed to getting a mortgage loan at 4% or lower, and they could experience sticker shock at what they would have to pay now for a home loan.

“There’s almost a generation that has been used to seeing 3% or 4% rates that’s now seeing 5% rates.” 

For a house with a $250,000 mortgage, rates of 5% add about $150 to the monthly payments compared with the rate of 4% that borrowers could have had less than a year ago. That excludes taxes and insurance.

With rates hitting recent highs at a time when housing prices have been going up, too, some economists suggest sellers may need to lower prices if borrowers can’t afford high prices in a higher rate environment.

Higher mortgage rates have also slowed the housing market more than many expected. That’s a potentially troubling sign for the broader economy, since housing is often a bellwether for how rising interest rates could affect growth overall.

Many buyers who are struggling to find a home they can afford because of high prices are more sensitive to rising rates than they have been in the past.

Existing home sales fell in August from a year earlier, the sixth straight month of declines. Many would-be buyers sat out the buying season because of high housing prices, a historic shortage of homes to buy, and a tax bill that reduced some incentives for homeownership. Higher mortgage rates will likely compound their hesitation.

“With the escalation of prices, it could be that borrowers are running out of breath,” said Sam Khater, chief economist at Freddie Mac.Once-hot markets are showing signs of cooling down. 

Brad and Virginia closed on a new home in Dallas two weeks ago, and opted for an adjustable-rate mortgage so they could get a 4% rate. With a fixed-rate 30-year loan, they would have had to pay 4.5% to 5%.

He added that the prospect of rates going even higher motivated them to move quickly on buying the new home. And if they had opted for a fixed-rate mortgage, he estimates, their monthly payment would have been higher by a couple hundred dollars. “When you run the numbers, it makes a big difference,” he said.

Adjustable-rate mortgages, which reset to market rates after a certain number of years, typically offer lower rates than fixed-rate mortgages at the beginning of their term. Some lenders say they have seen a surge of customer inquiries into the product as rates rise. They remain a relatively small part of the mortgage market, though: They made up about 12% of mortgage originations in the second quarter, according to industry research group Inside Mortgage Finance.

The rise in rates could have far-reaching effects for the mortgage industry. Some lenders—particularly nonbanks that don’t have other lines of business —could take on riskier customers to keep up their level of loan volume, or be forced to sell themselves. Many U.S. mortgage lenders, including some of the biggest players, didn’t exist a decade ago and only know a low-rate environment.

Long-term mortgage rates now have climbed nearly a full percentage point from 3.95% at the beginning of this year. House hunters who started searching months ago are acutely aware of the rise in rates.

A spate of recent positive economic news helped drive the 10-year Treasury note, to which mortgage rates are closely tied, to a seven-year high last week. The Federal Reserve, which has raised its key policy rate three times this year, is expected to do so again in December.

Higher rates will be hardest on first-time buyers, who tend to make smaller down payments than older buyers who have built up equity in their previous homes, and middle-income buyers, who can least afford the extra cost. Mr. Khater said that about 45% of the loans that Freddie Mac is backing are to first-time buyers, up from about 30% normally, which also means that rising rates could have an even bigger impact on the market than usual.

“Affordability has already been an issue for consumers across the country,”  “Now it becomes an even bigger issue.”

Buying or Selling doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today. 


#MortgageRates #LeasePurchase #UtahRealEstate