Emanuel Stewart - Reliant Home Lending

Archives for June 2019

Home Staging Tip – Urban Gardening in Small Spaces

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Home Staging Tip - Urban Gardening in Small SpacesHome staging means getting a home ready for sale with the goal to maximize the sale price and close a sale as fast as possible. Some home staging tasks are very dreary, like having to get the place sparkling clean. That is really not fun work. It may be better, if it is affordable, for the homeowner to hire professionals to do that grunt work.

Another part of home staging is really fun and even can start long before putting a home on the market for sale. Children like to participate in this as well. It is creating an urban garden.

Urban Garden

An urban garden fits in anywhere. The idea is to create space for plants to thrive even if there is no backyard or in-ground growing opportunities. Here are some easy ways to achieve this:

  • Window Planter Boxes: Any window that gets sunlight can have a window box. Install these boxes on the inside or on the outside of the window depending on the climate. These are perfect places to have flowers add color that is attractive. Transplant low-cost flowering plants into window boxes. Using this strategy, window boxes stay full of flowers, which are constantly in bloom.
  • Big Pots: Decorative large pots are a great thing to use to create a garden space. Strawberry pots made of clay are popular things to put on a balcony or a porch. Flower pots that line the walkway to the front door add to a home’s curb appeal.
  • Roof Gardens: For townhouses without a backyard, balcony, or a patio, there may only be an urban garden space available on a roof. If there is a good view as well, this is a real plus. Be sure to have a nice picnic table to sit around and enjoy the area.
  • Herbs: Herb gardens are very easy to start. Herbs of many kinds can grow in simple planters. One added advantage is, if growing aromatic herbs, they put a pleasant smell in the air.

Summary

Besides growing flowers, urban gardens may also provide fresh herbs and vegetables to eat. Many things are really easy to grow, such as the herb basil, and they add a nice flavor to a meal.

Start with a small herb garden. If you have children, get them involved. Soon, it will be so much fun growing plants that your house will fill with color, nice smells, and good things to eat.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss current financing options.

Case-Shiller: Annual Home Price Growth Slows for 13th Consecutive Month

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Case-Shiller Annual Home Price Growth Slows for 13th Consecutive MonthCase-Shiller’s 20-City Home Price Index for April showed further declines in home price growth with 2.50 percent year-over-year home price growth as compared to March home price growth of 2.60 percent. New York City home prices held steady month-to-month and Seattle, Washington’s home prices were unchanged year-over-year after posting 13 percent home price growth in 2018.

The top three cities with the highest rates of year-over-year home price growth were Las Vegas, Nevada with 7.10 percent growth; Phoenix, Arizona followed with 6.0 percent growth and Tampa, Florida reported 5.60 percent home price growth. All three cities were hard-hit during the recession. While U.S. home prices are rising, they aren’t rising as fast as in prior years. The fastest home price growth rates remained in single digits as compared to double digit home price growth rates posted in recent years.

Changing geography played a role in this year’s home price growth as San Francisco, California, Portland, Oregon and Seattle, Washington fell to sun-belt cities east of the west coast. Astronomical home prices and pronounced shortages of homes in many west coast cities caused home buyers to seek affordable homes elsewhere.

The Case-Shiller 10-City Home Price Index posted a year-over-year gain of 2.30 percent in April as compared to its March reading of 2.20 percent. Analysts said that slower gains for home prices indicated more normalized price conditions, but noted that home price growth remains about 1.50 percent ahead of inflation.

Buyers Benefit from Slower Home Price Growth, More Available Homes

First-time and moderate income home buyers were sidelined by competing investors and cash buyers as home prices rose quickly, but may find it easier to compete as market conditions achieve a balance of advantages to home buyers and sellers.

The flip side of easing home price growth may be that prospective buyers who are leery of buying at peak market prices will put off buying homes. Low mortgage rates continued to boost affordability and decreasing shortages of homes provided buyers with more options. Homebuyer sentiment is likely to vary according to economic trends, regional and personal circumstances.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss current financing options.

 

Simple Tips To Pay Off A Home Mortgage Loan Faster

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It is a major life decision to buy a home and yet many do not consider how much they will pay on the interest over the life of the loan. All they usually think about is if they can afford to pay the monthly mortgage payments.

It is helpful to learn how different loan structures impact the amount of money wasted on the interest paid for a home loan. Here is a comparison of different loan lengths and payment options to show some helpful ways to reduce the total interest paid.

Standard 30-Year Fixed Mortgage

For a buyer who has a good credit history, purchasing a median-priced home with a significant down payment usually helps get the best mortgage financing. A standard 30-year mortgage on a home requires 360 monthly payments to pay off the loan.

The total cost of the loan includes paying back the principal amount borrowed and all the interest. Over 30 years, the total interest paid can be as much as one-third or more of the principal amount borrowed, depending on the loan interest rate.

Standard 15-Year Fixed Mortgage

Comparing a standard 30-year fixed mortgage with a standard 15-year mortgage shows a surprising result. The differences are that the length of the loan term is less and the monthly mortgage payments are higher. A standard 15-year mortgage on a home requires 180 monthly payments to pay off the loan.

The shorter loan period may reduce the total interest paid to less than one-half of a 30-year mortgage, depending on the loan interest rate. The savings can be in the tens of thousands of dollars.

Payment Techniques That Save Money

Simple Tips To Pay Off A Home Mortgage Loan FasterA simple way to save money is to pay an extra monthly payment each year and ask the lender to apply the extra payment to reduce the principal amount owed. On a 30-year mortgage, the loan pay-off date is more than two and one-half years sooner, reducing the total interest paid by about 10% percent.

A smaller savings amount is possible without even needing to pay more, just by paying more frequently. Instead of paying a mortgage once per month, make arrangements with the lender to pay half the monthly mortgage payment twice per month. The amount the lender receives monthly, in the two payments, totals the same amount that the lender would receive in one payment.

This technique works because there is a daily calculation of mortgage interest. By making payments more frequently, there are fewer days of use for some of the loaned funds. This tiny change in periodic repayments can be a nice way to save a few thousand extra dollars over the life of a loan.

In addition, since there are 26 two-week periods in one year, you’re getting an extra payment in over the longer months in the year. So you’re paying the equivalent of 13 monthly payments instead of 12. You might not feel it as much since you’re likely making more money in the longer months as well.

If you’d like to do this strategy and the lender won’t accept bi-weekly payments, then just divide the principal and interest portion of your mortgage payment by 12 and add that amount to each regular monthly payment. You’ll save a ton of interest over the life of the loan!

Summary

Think about interest paid as money that could have a better purpose. Choosing a shorter loan period for a home mortgage and increasing the mortgage payment frequency are important things to consider for the savings that they can produce.

Be sure to consult with your trusted home mortgage professional for answers to all of your financing related questions.

Fed Holds Key Rate Steady As It Watches Economic Trends

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Fed Holds Key Rate Steady As It Watches Economic TrendsFederal Reserve policymakers held the federal funds rate at its current range of 2.25 to 2.50 percent. Analysts speculated that the Fed may lower its key rate based on signs of slowing economic growth and the President’s encouragement to lower the Fed rate.

Federal Open Market Committee members cited “uncertainties” in support of their decision not to change the Fed’s key lending rate. A stiff month-to-month drop in jobs growth and worries over trade problems associated with recent tariffs assessed against China contributed to the Committee’s decision to hold rates steady and closely watch domestic and global economic trends.

Signs of slowing economic growth caused the Fed to adjust its forecast for achieving the benchmark inflation rate of 2.00 percent to 2021 and lowered expectations for inflationary growth from 1.80 percent to 1.50 percent.

Fed Chair: Fed “Closely Monitoring“ Economic Developments

After the FOMC statement, Federal Reserve Chairman Jerome Powell gave a press conference in which he further addressed the Fed’s response to slowing economic growth and current developments in global affairs. Chairman Powell said that it is important for policymakers to respond based on emerging economic trends rather than reacting to quickly shifting data.

Chairman Powell identified trade concerns and slowing global economic growth as factors impacting slowing domestic economic growth. Due to recent economic changes, Chairman Powell said that a “somewhat accommodative” policy stance was indicated. Uncertainty over supply chains due to tariffs was an example of factors causing concern over economic growth. Positive indicators centered around labor as job growth continued and employers reported a shortage of workers for available jobs.

Manufacturing declined globally and domestically as service-related-jobs expanded. When asked about Fed oversight over banks’ risk exposure due to lending policies, Chairman Powell said that large institutional holdings presented the greatest risk for banks, but did not say such risk was currently problematic. The chairman re-emphasized that FOMC members constantly assess economic data and global events to determine the Fed’s economic policies.

 

What’s Ahead For Mortgage Rates This Week – June 24th, 2019

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What’s Ahead For Mortgage Rates This Week – June 24th, 2019Last week’s economic reports included monthly readings on housing market conditions, housing starts and building permits issued. Sales of pre-owned homes were released; the Federal Reserve announced its decision not to raise its key interest rate range. Weekly reports on mortgage rates and new jobless claims were also released.

NAHB: Home Builder Confidence Slips in June

The National Association of Home Builders Housing Market Index for June showed builder confidence was two points lower at an index reading of 64. Builders surveyed said ongoing concerns such as lot and labor shortages impacted their outlook, but builders were also concerned over the impact of trade wars and tariffs on the cost of building materials.

Housing starts dipped to 1.27 million starts on a seasonally-adjusted annual basis in May. April’s reading was 1.28 million starts and surpassed the expected reading of 1.23 million starts. Although housing starts were higher, they were 3 percent lower year to date than for the same period in 2018 and were 4.79 percent lower year-over-year.  Building permits issued held steady in May at 1.29 million permits issued; analysts expected a reading of 1.30 million permits issued.

Sales of pre-owned homes were higher in May with 5.34 million sales; 5.28 million sales were expected based on April’s reading of 5.21 million sales. The National Association of Realtors® said that sales of pre-owned homes were 2.50 percent higher than for April, but were 1.10 percent lower year-over-year.

Warmer weather and peak home-buying season contributed to the increase in sales. Lower mortgage rates likely compelled would-be buyers to enter the market. The Federal Reserve did not raise its target interest rate range, which stands at 2.25-2.50 percent. Lenders typically raise rates charged to consumers when the Fed raises its key rate range.

Mortgage Rates Little Changed, New Jobless Claims Fall

Freddie Mac reported little change in mortgage rates last week. 30-year fixed rate mortgages averaged 3.84 percent and rose two basis points week-to-week. Interest rates for 15-year fixed rate mortgages averaged 3.25 percent and fell one basis point on average.

The average rate for 5/1 fixed-rate mortgages was three basis points lower at 3.48 percent. Discount points averaged 0.50 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

First-time jobless claims fell to 216,000 claims from the prior week’s reading of 222,000 new claims filed and expectations of 220,000 initial jobless claims filed.

What‘s Ahead

This week’s scheduled economic reports include readings from Case-Shiller Indices, readings on sales of new homes, pending home sales and the consumer sentiment index. Weekly readings on mortgage rates and first-time jobless claims are also scheduled.

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