Posts

What To Do When Mortgage Rates Are High

Image
  What To Do When Mortgage Rates Are High Compared to the interest rates over the last decade, especially the low rates that kicked off the housing boom of 2020, current interest rates may seem exorbitantly high. But the truth is that mortgage interest rates are simply nearing long-term  historical averages  of 8%, and are well below rate increases reached during other inflationary periods. As you wonder whether or not to buy a home with mortgage interest rates that have doubled over the past year, you may appreciate some perspective in accepting that your projected house payment will be hundreds of dollars higher than it would have been had you purchased the same home one to three years ago before home prices hit record highs. Higher mortgage interest rates have done little to temper demand for homes. Here’s how consumer interest rates really work. Interest rates rise or fall depending on how the government reacts to economic circumstances. In an inflationary environment, the Federal
Post a Comment
Read more

How to Spot Foundation Problems

Image
  How to Spot Foundation Problems The foundation provides support for your entire house, so keeping it level and in good condition is critical to the protection of the entire structure and the safety of your family. A foundation can become damaged by a variety of problems and natural occurrences. If you notice any of these warning signs, you should have your foundation inspected as soon as possible. Cracks The most glaring sign of a foundation problem is cracking in the foundation, walls or floors. This can be a result of movement in the soil that causes the house to sink. Even if a crack appears small, it can indicate that there is a serious problem. This should be addressed as soon as possible. Settling or Heaving You may notice that the house is settling or sinking on one side. This indicates a significant foundation problem that can result in safety issues. Ignoring even a small change will only allow the problem to get worse. Sometimes the opposite happens and the foundation moves
Post a Comment
Read more

Buyers Waive Contingencies, Bring More Money to Close

Image
  © Martin Barraud - OJO Images/Getty Images Buyers Waive Contingencies, Bring More Money to Close Share Facebook   Twitter   LinkedIn   Print   June 25, 2021 To win a bidding war, more buyers are waiving appraisal and inspection contingencies, according to the latest  REALTORS® Confidence Index  survey. Home buyers most commonly are waiving the appraisal contingency (28%) and the inspection contingency (25%), shows the survey of more than 3,300 REALTORS®. The buyers waiving contract contingencies are those who are either paying cash or using conventional financing. Buyers using FHA or VA loans can’t waive the appraisal or inspection contingencies due to financing guidelines, Gay Cororaton, research economist for the National Association of REALTORS®, writes on NAR’s Economists’ Outlook blog. Therefore, those buyers may be at a competitive disadvantage compared to other buyers who don't have to follow certain financing rules. For example, FHA inspection standards require that compo
Post a Comment
Read more

5 Financial Tips for First-Time Parents

Image
5 Financial Tips for First-Time Parents So a babe is on the way? Congrats! Along with the chaos of, well, everything that is to come, your finances are about to experience an upheaval, as well. According to the U.S. Department of Agriculture, it will cost upwards of $245,000 to raise a child born in 2013 to the age of 18—and this does not include college. Feeling that bank account burn already? Below are five tips for rocking your budget as a new mom or dad. 1. Tweak the budget.  Your new little one is going to cost a pretty penny. From hospital costs to diapers and child care, budgetary stress is an added strain on you as a new mom or dad. Look for any unnecessaries you can slash to make room for more baby dollars. The more prepared you are, the better. 2. Track your spending.  Don’t just make that budget and set it aside. Set a monthly meeting with your spouse to look over your spending, make sure you’re on track, and identify any problem areas or potential saving pockets. 3. Learn y
Post a Comment
Read more
Image
  Ending Small Talk: Tips for More Meaningful Conversations Having more meaningful relationships with friends both new and old is a great goal, and it can start with your conversations. Below are five tips for those of us frustrated with small talk. Skip the weather.  As tempting as it may be to springboard off the weather, this can lead you down the empty-conversation rabbit hole and into a twenty-minute dialogue about rain. Asking about almost anything else should yield more interesting results. Think of base questions.  So, what should you talk about, if not the weather? Come up with a short list of base questions you can turn to in a flash. If you’re talking to a stranger or new acquaintance, try “have you done any traveling lately?” or “are you reading any good books?” These more personal questions show genuine interest and will actually reveal something about your conversation partner. Make eye contact.  Regardless of what you’re discussing, work to maintain or at least occasiona
Post a Comment
Read more

Fast and Easy Ways to Improve Your Credit Within Months

Image
Fast and Easy Ways to Improve Your Credit Within Months Improving your credit score can take a few months. So if you’re looking to get an auto or home loan, or want to apply for a new credit card, an early start can give you time to raise your credit score and then get a loan or new credit card at a better interest rate. Here are some ways to improve your credit within a few months: Pay your bills on time Payment history is the most important factor in FICO scores, accounting for up to 35 percent of a credit score. Paying your bills on time — from credit cards to utility bills — can help a lot. Late payments stay on a credit report for seven years. The longer ago they happened, the less they affect credit scores. If a bill goes unpaid long enough the debt can be sold to a collection agency, which will be reported to credit bureaus. Set up online alerts when a bill is due, look at your balances online and set automatic payments for a credit card. Low credit utilization
Post a Comment
Read more

How COVID-19 is Affecting Mortgage Lenders' Requirements

Image
How the Coronavirus is Affecting Mortgage Lenders' Requirements The COVID-19 pandemic has led to business shutdowns, furloughs and layoffs across the United States. Many homeowners are unable to afford their mortgages and have requested forbearance to reduce or delay their payments. The new reality has made lenders cautious when deciding whether to grant new mortgages to homebuyers. Lenders are also being careful when it comes to applications from homeowners who want to refinance their existing loans. More Stringent Requirements for Homebuyers Due to COVID-19 The economic uncertainty has mortgage lenders worried that if they grant new home loans, borrowers who are struggling financially due to the coronavirus might make payments late or miss them altogether. Lenders are therefore taking steps to reduce their risk. Many have raised their minimum credit score requirements, some dramatically, to make sure they give loans to people who will be likely to repay them. Lenders
Post a Comment
Read more