Whether or not you’ve ever seen an episode of Modern Family, or know who Phil Dunphy’s character is, the concept of knowing that you have someone in your corner who is looking out for your best interests is something we all want.
Whenever there is talk about an improving housing market, some begin to show concern that we may be headed toward another housing bubble that will be followed by a crash similar to the one we saw last decade.
If you have ever looked at your Central MA home’s mortgage balance and thought, “Yikes!
That’s a lot of money!” you’re not alone. Such a gulp-inducing moment can be triggered by listening to one of the celebrated financial gurus explaining personal finance. Much of the latest financial wisdom is aimed at extolling the virtues of an entirely debt-free existence—which would seem to preclude any six-figure home loans on the family ledger.
For most every Central MA family in the early or middle years, that debtless goal, although it pencils out as a good idea, is pretty much unattainable. If owning makes more financial sense than renting (it almost always does), unless the family can operate from a garden shed, taking on a home loan is unavoidable fiscal reality. Since home ownership is the acknowledged path for making headway when it comes to shelter, is there a good reason to worry about the mortgage that goes with it?
Daniel Bortz, a reporter in the Finance section of realtor.com, came up with “8 Surprising Facts” about mortgages, a few of which should serve to alleviate any free-floating anxiety homeowners might associate with their Central MA mortgages; even hefty ones. Here are three that may or may not be very “surprising,” but in any case, certainly are relevant:
- Mortgage interest rates can get really high…
In October 1981, mortgage interest rates averaged 18.45%! When you take a look at your typical 2016 mortgage statement, and note how low your current monthly interest payment is, “Yikes! That’s a lot of money” should become, “Yikes! What a great deal!”
- Even billionaires like Mark Zuckerberg have a mortgage
This could be the most anxiety-alleviating surprising fact of all. The Facebook founder refinanced his home with an adjustable-rate mortgage (the kind financial gurus tell you is the riskiest way to go). He refinanced a 1.75% adjustable with a new 1.05% adjustable, a
maneuver that saves him $1,981 a month! Why, since he could obviously pay cash for any property, would he take a mortgage at all? It could have something to do with the tax advantage home loans feature.
- People celebrate their last mortgage payment in bizarre ways
This is hardly surprising but does bear indirectly on why your Central MA mortgage should be little cause for financial anxiety: it’s going to eventually disappear! And since the asset (the house) is counted as a positive which balanced the liability (the mortgage), month by month that liability gets smaller as the value you own grows. The Yikes! balance of the loan is negated by the Yippee! value of your property. (BTW, the “bizarre ways to celebrate” include Archie Bunker’s torching the paperwork in an episode of All in the Family).
These positives are the financial ones, but they are also bolstered by this real world big fat plus: owning your Central MA home undeniably imparts a feeling of security and stability, something that most of us find to be nearly priceless.
I hope you’ll feel free to give me a call for feedback or advice whenever any Worcester County real estate questions arise. I’ll be standing by!…..Realty Ace, LLC
So you’ve been searching for that perfect house to call a ‘home’ and you finally found one! The price is right, and in such a competitive market you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!
When you are buying your first Central MA house, understanding the way a home
inspection helps smooth the process will help you to get the most out of the opportunity it represents. It might seem as if the home inspection step is one of those technical legal procedures that only serve to slow down the purchase. Like an automobile inspection the Department of Motor Vehicles demands when all you want to do is get your car legally registered, it can seem like an irritating and time-consuming bureaucratic hurdle. But, like those auto inspections, if it turns up a problem you didn’t suspect, it can be a godsend!
Your Central MA home inspection and the home inspection professional who conducts it are charged with performing a function that is specifically tailored to protect your interests. For first-time area home buyers, making the most of the process doesn’t take any study or preparation. The best Central MA home inspectors (they’re the only ones I recommend) will make it easy to look over their shoulder during the inspection. It’s not required that you be there, but it’s a very good idea to do so. When you follow along see what they are looking at, and find out why you will be taking advantage of this first chance to acquaint yourself with some of the inner workings of your future home.
Most normal-sized home inspections take somewhere between 2 ½ to 4 hours. The ultimate work product will be a written report, which may be computer-generated (those are usually completed quickly, sometimes even onsite) or based on a handwritten checklist. Where specific issues are uncovered, photos may be included for illustration.
The plumbing, heating, A/C, electrical, exterior and roof will be examined, with a professional’s opinion on their condition. The object is to give you an unbiased view of the complex items that lie beneath the surface of your future home. Eventually, every house has systems whose components will need maintenance or repair and even the most candid seller isn’t likely to have a professional quality estimate of what their longevity is likely to be. The home inspection procedure is designed to provide a general idea of what to expect (and how soon to expect it) …although it’s good to remember that the inspector is only able to form an opinion based on what is visible and accessible.
One last important aspect of the inspection process: the written report should be read! Even if you have accompanied the inspector for the entire tour and have discussed the findings, consider the written report “must” reading. It encapsulates all of the findings under one cover; in later years, it can be a valuable reference.
We’re lucky in Central MA to draw from a variety of skilled home inspection resources. When the need arises, I’ll be happy to recommend the best from which to choose!…..Realty Ace, LLC
Owning a home has great financial benefits. Because of this, more and more experts are growing concerned about the ramifications of a falling homeownership rate. Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.
There is no doubt that getting a mortgage is easier today than it was right after the housing crash a decade ago. However, the easing of credit availability has led to some questioning of whether or not we are headed for another housing crisis.
In many markets across the country, the amount of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
The interest rate you pay on your home mortgage has a direct impact on your monthly payment; The higher the rate, the greater your payment will be. That is why it is important to look at where the experts believe rates are headed when deciding to buy now or wait until next year.