First-Time Homebuyer's Guide | AOL Real Estate

 

Mike Valdez fits the profile of a savvy first-time homebuyer perfectly. A 34-year-old financial analyst from New Rochelle, N.Y., he and his family had grown sick of living the renter's life. So two years ago he decided to test the market and find a townhouse for his growing family. But despite his financial aptitude, he quickly ran into a setback.
"We found a place we liked and ran the numbers," he says, but the young couple soon discovered that they had underestimated the burden of their college debt. They were forced to back out.

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Fannie Mae National Housing Survey 2012

Each quarter, Fannie Mae releases their National Housing Survey. They survey the American public on a multitude of questions concerning today’s housing market. We like to pull out some of the findings we deem most interesting each time it is released. Here they are for the most recent report:
84% of the general population believes that owning a home makes more sense than renting.

The Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

1. It means having a good place to raise children and provide them with a good education
2. You have a physical structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:

• 63% of the general population believes that homeownership is a ‘safe’ investment.
• 53% believe that homeownership has more potential as an investment than any other traditional asset class.

Rent vs. Buy

We are always interested in the difference people see in renting vs. owning.

• 64% of renters have aspirations to someday own their own home
• 70% of renters think that owning is superior to renting

Bottom Line

Our belief in the value of homeownership grows each time this survey is released.

Feel free to contact me if you would like more info about homeownership!.

Neal Paskvan, Baird Warner    neal.paskvan@bairdwarner.com

Video- First Time Buyer, How Much Can You Afford?

First Time Buyers Have Lot's of Questions  the Main one is...What can you comfortably afford?
Learn how the relationship between your income and total debt could affect your home buying budget.

Know your debt-to-income ratio, which is the percentage of your monthly income that is spent on debt.

• Talk to a lender before you go house hunting so you focus your search on homes you can comfortably afford.

Find a Trust Worthy Realtor who you feel comfortable with and can walk you trough all the steps of the process.

Feel free to contact me with any questions... All my best, Neal  neal.paskvan@bairdwarner.com

First Time Buyer Video provider by AOL

How Low Can They GO- Mortgage Rates That Is

The average interest rate on a 30-year, fixed-rate mortgage reached 4.01% for the week ending Sept. 29, the lowest ever recorded on the Freddie Mac survey.

The 15-year FRM also averaged a record low 3.28% for the week. The new lows come after the Federal Reserve announced it would buy $400 billion of long-term Treasury bonds and reinvest in agency mortgage-backed securities in order to keep borrowing costs down.

Read On Provided by Housing Wire

Real Estate 2011: House Prices in Chicago and the Suburbs - Chicago magazine - October 2011

 

THE NEW NEW RULES OF REAL ESTATE: Eleven years ago, Chicago offered a guide to making the most of the sizzling-hot housing market. What a difference a decade makes. Now, confronting the realities of today’s pinched economy, local real-estate pros weigh in with the best strategies for buying or selling a home. PLUS: Our annual survey of housing prices in nearly 300 neighborhoods and towns

By Dennis Rodkin

RULE NO. 1   Yesterday is gone

RULE NO. 2 Don’t play the “let’s just see what happens” game.

 

Get the rest of the story from Chicago Magazine by Dennis Rodkin here

…And the Changes Keep Coming

 

With an election year right around the corner, it seems obvious that the world is full of flip-floppers, so why should housing and mortgage policy-makers be any different?

• Remember when the Federal Government was trying to ease its way out of being the dominant provider of mortgage financing (and trying to move people more into the private sector and Private Mortgage Insurance)?
• Remember the days when government insured financing (through FHA loans) was capped at 85% of their conventional counterparts (from Fannie Mae and Freddie Mac)?
• Then, the government recently decided to LOWER the conforming loan limits in high cost areas from $729,750 back to $625,500. The logic was sound. Home values have declined, therefore, so should conforming loan limits.

Read the rest of the story here

Will the 30 Year Mortgage Disappear?

Not really sure at this point.. However, the powers that be are talking about it!

The federal government is reconsidering their involvement in the home mortgage process. They plan to still ‘guarantee’ certain mortgages. However, they appear to be redefining what they consider a ‘qualified purchaser’. They are discussing stricter lending guidelines in four different areas:

Click here for the rest of the story

Your Home May be Under Valued ..Are You a Victim of Fuzzy Math on the Net?

Gonsalves worked hard to turn his 6,500-square-foot stucco-and-stone home in the suburbs of Sacramento into the ultimate grown-up party pad, complete with game room, custom wine cellar and an infinity-edge pool overlooking Folsom Lake. When interest rates fell recently, Mr. Gonsalves, who runs a lobbying firm, looked into refinancing his $750,000 mortgage. That's when he got startling news—the home had dropped more than $200,000 in value while he was renovating.Or at least, that's what one real-estate website told him. Another valued the house at only $640,500. And these online estimates left him all the more confused

Click here to watch the WSJ video about this

Homes for SALE DOWNERS GROVE-Neal Paskvan

How to Figure the Fuzzy Math of Internet Home Values

How to Read Zillow, Trulia and Other Online Home Price Websites - WSJ.com

Jason Gonsalves worked hard to turn his 6,500-square-foot stucco-and-stone home in the suburbs of Sacramento into the ultimate grown-up party pad, complete with game room, custom wine cellar and an infinity-edge pool overlooking Folsom Lake. When interest rates fell recently, Mr. Gonsalves, who runs a lobbying firm, looked into refinancing his $750,000 mortgage. That's when he got startling news—the home had dropped more than $200,000 in value while he was renovating. Or at least, that's what one real-estate website told him. Another valued the house at only…

Read the Full Story Here

Obama’s Plan Offers Hope, But More Must Be Done for Home Owners

  

 

Obama’s proposal to help home owners with mortgages underwater gives hope. But more needs to be done to turn housing  and the economy  around. 

Details of the new plan are to be announced November 15.

Read more at : House Logic

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Energy-Saving Projects to Strengthen Family Ties, Reduce Stress

Include the family in these energy-saving, kid-friendly home maintenance tasks, and you’ll reduce stress while strengthening family ties.

Special Thanks To Lisa Kaplan Gordon at HouseLogic
 Read more:

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