Eric Mitchell Real Estate

  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...

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...

Steps to Take After Identity Theft Reacting quickly is essential after you’ve been the victim of identity theft. It can lessen the damage by thieves and lower the stress of having your credit card lost or stolen. You may notice when you get home that your credit card is missing. Or you may get an email from your credit card company that there is some suspicious activity on your account. Whatever alerts you to identity theft, here are some steps to take immediately after realizing it: Get on the phone Depending on the circumstances, you may want to first call the police to report a crime. If someone just grabbed your purse and ran away, the police are obviously the first agency to contact. Next, call your credit card company and ask that it cancel your credit card and send you a new one immediately. If any charges were made by the thieves, the credit card company should remove them. With anyone you contact about this theft, be sure to take notes of the names, dates, ...

The Importance of Home Equity If you’ve owned a home for several years and made responsible financial decisions, you may have built a significant amount of equity. Home equity is the difference between the current market value of your house and the amount you still owe on the mortgage. If the value is greater than the debt, you have positive equity that can be used to finance other goals. How Does Equity Change Over Time? There are two ways to increase the amount of equity in your home. First, you can pay down the principal on the mortgage and make improvements that will increase the value of the house. As the ratio of the amount of the house you own outright to the amount of debt increases, equity grows. It takes years to build equity. One reason for this is that mortgages tend to charge more interest at the beginning of the repayment period, which means a relatively small amount of each payment is applied to the principal. Later in the repayment period, a higher percenta...