How Interest Rates Can Impact Your Monthly Housing Payments

How Interest Rates Can Impact Your Monthly Housing Payments

Spring is right around the corner, so flowers are starting to bloom, and many potential homebuyers are getting ready to step into the market. If you’re thinking of buying this season, here’s how mortgage interest rates are working in your favor.

Freddie Mac explains:

If you’re in the market to buy a home, today’s average mortgage rates are something to celebrate compared to almost any year since 1971…

Mortgage rates change frequently. Over the last 45 years, they have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it’s not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close — all to your advantage.”

To put this in perspective, the following chart from the same article shows how average mortgage rates by decade have impacted the approximate monthly payment of a $200,000 home over time:How Interest Rates Can Impact Your Monthly Housing Payments | Keeping Current MattersClearly, when rates are low – like they are today – qualified buyers can benefit significantly over time.

Keep in mind, if interest rates go up, this can push many potential homebuyers out of the market. The National Association of Home Builders (NAHB) notes:

“Prospective home buyers are also adversely affected when interest rates rise. NAHB’s priced-out estimates show that, depending on the starting rate, a quarter-point increase in the rate of 3.75% on a 30-year fixed rate mortgage can price over 1.3 million U.S. households out of the market for the median-priced new home.”

Bottom Line

You certainly don’t want to be priced out of the market this year, and waiting may mean a significant change in your potential mortgage payment should rates start to rise. If your financial situation allows, now may be a great time to lock in at a low mortgage rate to benefit greatly over the lifetime of your loan.

https://www.keepingcurrentmatters.com/2020/03/03/how-interest-rates-can-impact-your-monthly-housing-payments/


Posted on March 27, 2020 at 7:00 am
Tammy Fisher | Posted in Colorado, Home Buying, Loveland Real Estate, Mortgage Rates | Tagged , , ,

How Much “Housing Wealth” Can You Build in a Decade?

How Much “Housing Wealth” Can You Build in a Decade?

Earlier this month, the National Association of Realtors (NAR) released a special study titled Single-Family Home Price Gains by Years of Tenure. The study estimates median home price appreciation over the last 30 years based on the length of homeownership.

Below are three graphs depicting the most important data revealed in the study.

How much have home prices increased?

One of the first measures of the financial benefits of homeownership is the net worth (in the form of equity) an owner can build over time. The study showed the average increase in home values based on how long homeowners stayed in a home.How Much “Housing Wealth” Can You Build in a Decade? | Keeping Current Matters

What was the percentage of appreciation?

Another way to look at this is by the percentage increase in value over time, called appreciation:How Much “Housing Wealth” Can You Build in a Decade? | Keeping Current Matters

Was this appreciation consistent throughout the country?

Today, when we think of markets that have done well over the last decade, we have a tendency to think about San Francisco, San Diego, Seattle, and other West Coast cities. Though it is true the West Region showed the highest price growth over the last three decades, we can see how every region of the country did quite well in ten-year increments:How Much “Housing Wealth” Can You Build in a Decade? | Keeping Current MattersThis data validates the claim that homeownership is great for building wealth. The importance of this information was highlighted in the study’s first sentence:

“Homeownership is an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.”

Bottom Line

Homeownership has many financial and non-financial benefits. The accumulation of “housing wealth” through increased equity is a major one. If you’re thinking of buying a home for the first time or moving up to your dream home, the sooner you make the move, the sooner your net worth will begin to grow.

 

https://www.keepingcurrentmatters.com/2020/02/27/how-much-housing-wealth-can-you-build-in-a-decade/


Posted on March 20, 2020 at 7:00 am
Tammy Fisher | Posted in Building Equity, Colorado, Home Ownership, investment, Loveland Real Estate | Tagged , , , ,

A History Lesson

With the stock market on a wild ride and the Dow Jones dropping nearly 1,000 points yesterday, it makes some people wonder if the local real estate market might also crash or at least “correct.”

A little history lesson is in order.

Over the last 40 years, the real estate market along the Front Range has averaged 5.5% appreciation per year.

The highest appreciation in one year was 15.9% in 1994.

The lowest ever was -4.0% in 1982.

The last time Wall Street was in turmoil and the stock market was plummeting was 2008.  This was, for many reasons, the worst economy of our lifetime.

That year real estate along the Front Range dropped 2.2%.

Meanwhile that year the Dow Jones fell 33.8%.

Bottom line, our market has no history of crashing or even experiencing a major correction.

Why is that?

The answer is fundamentals.

Our local economy has inherent fundamentals that insulate it from big downturns.

We have an incredibly diverse economy which is not reliant upon a single industry.  We have all the way from health care, to technology, agriculture, oil and gas, major universities, and financial services (just to name a few).

We are a global destination with a major international airport.

Oh, and the quality of life here isn’t too shabby.

Prices of real estate, just like prices of anything, come down to basic economic principles of supply and demand.

Because of our diverse economy and desirable quality of life, there has been strong, consistent demand for housing along the Front Range.

While there may be little bumps along the way, over the long term our market has proven that it performs.


Posted on March 12, 2020 at 7:00 am
Tammy Fisher | Posted in Colorado, Larimer County Real Estate, New Buyers, Northern Colorado Real Estate, Real Estate Market | Tagged , , , ,

Designing Your Home Office

Image Source: Canva

Working from home is an aspiration for many of us, but to do so effectively takes effort. A disorganized space at home can be just as troublesome as a hectic office. The most disciplined telecommuters will tell you that you need a structured routine and organization in order to be successful.

Having a designated workspace is one of the most important elements to your success when you make the switch to telecommuting. Even if you live in a small space, you need to find a balance between home and office. People who work from home often have a difficult time separating their work hours from their non-work hours because it’s so easy to keep at it late into the night. But maintaining a balance and shutting down the computer is important for overall wellbeing. What are some other must-haves for a successful home office? Here are the top five:

 

  1. Natural Light – Study upon study tells us that natural light is needed to boost productivity and mood. Make sure to set your desk up as close to a window as you can. If being near a window isn’t an option, a natural light lamp is the next best thing. It helps balance your body clock and leaves you feeling rested and refreshed.
  2. To-Do List or Planner – Start each day off by making a to-do list outlining what you need to get done before the end of the workday. Make sure to set a realistic time frame in which all of that should be completed, so you can check each one off the list and feel immense accomplishment once you’ve completed them all.
  3. Storage – If you have a big enough space, put in a large bookshelf where you can organize everything (think storage boxes). It reduces clutter and looks stylish. Using your walls and cabinetry is the most efficient use of space.
  4. Calendar – Many people tend to rely on digital calendars these days because of their convenience. When all of your devices sync together and pop up with reminders, you never have to worry about missing an appointment. However, many people find that it helps to keep a paper calendar handy too so you can easily view your whole month at a glance. Choose which options works best for you by playing with both options, or something in between and see which one lets you be more productive with the least amount of stress.
  5. Space for Inspiration – It doesn’t matter what field you work in, having a source of inspiration in your workspace is essential. Whether it’s a photo of your family, your dream car, or that vacation you’ve been dying to take, having that inspiration right in front of you provides a constant reminder of why you do what you do.

Posted on March 6, 2020 at 7:00 am
Tammy Fisher | Posted in Colorado, Loveland Real Estate, Northern Colorado Real Estate, Remodeling, Remodeling Adds Value | Tagged , , , ,

Sweetheart Festival

ABOUT THE FESTIVAL

When: February 14  from 5 – 9 PM and February 15 from 2 – 9 PM

Where: Downtown Loveland at The Foundry 

Spend Valentine’s Day in the nation’s Sweetheart City at the free Loveland Sweetheart Festival Feb. 14-15, 2020. Held in the new Foundry Plaza, the festival is an extension of Loveland’s 74+ year history embracing sweethearts near and far and invites families and lovers across the world to gather in downtown Loveland to celebrate valentine season with free fun for the entire family.

2020 Photo Gallery

EVENT HIGHLIGHTS

  • Lock your love on Loveland’s 2nd edition Love Lock Sculpture, new to downtown Loveland
  • Special Effects Laser Light Show
  • LIVE entertainment including Saturday Headliner Nathan and the Zydeco Cha Chas
  • Palace of Sweets featuring local candy and dessert makers
  • For the Love of Beer Tent featuring Loveland craft beer and the official Loveland Valentine beer
  • Kids Street with rides and activities
  • Tunnel of Love – 12, 8-foot-tall arches decorated with lights
  • Community Art Projects
  • Sweetheart Classic 4-miler
  • Little Miss Valentine and Little Mr. Cupid contest at the Rialto.

SCHEDULE

Kids zone, beer/wine garden, Palace of Sweets, food court/food trucks, LOVE Locks sculpture,  community art installation projects and more will be open when the festival opens both days unless otherwise noted. 

FRIDAY, FEBRUARY 14

5:00 PM: Festival Opens
9:00 PM: Festival Closes

 

SATURDAY, FEBRUARY 15

2:00 PM: Festival opens
2:00 PMLittle Miss Valentine and Mr. Cupid Contest (Participants check in at 1:00pm in the Rialto Theater)
3:30 PM: Sweetheart Classic 4 Miler awards ceremony

9:00 PM: Festival closes

BEER AND WINE GARDEN

On-site vendors in the beer and wine garden:

  • To be announced!

PALACE OF SWEETS

The Palace of Sweets will be inside the state’s largest inflatable igloo and the following vendors will be present:

  • Rocky Mountain Chocolate Factory
  • B Sweet Cupcakes
  • Heaven’s Popcorn
  • Starlight Dessert Bar
  • Colorado Candy Company

FOOD VENDORS

The following food vendors will be on-site for the duration of the festival:

  • To be announced.

INTERACTIVE ART INSTALLATIONS

  • To be announced!

ART GALLERY WALK

Take in Loveland art scene with shows, tours and demos on this winter art gallery walk. At the heart of the festival, the 4th Street gallery will feature the “Love in a Steampunk World” art show coordinated by the Artists Collective. Other participating shows and galleries are:

  • To be announced!

KID’S ZONE

On-site activities in the Children’s Play Area include:

  • Princesses meet and greets/photos (free, photos additional cost)
    • Friday
      • Time to be announced
    • Saturday
      • 2:00 – 5:00 PM: Princess Beauty & Ice Princess

CHILDREN’S CONTEST

Children up to age 4 can participate in the Little Miss Valentine and Little Mr. Cupid contest. There are two age groups: 0-2 and 3-4.  Parents: please ONLY dress up the child. No props allowed. There is no cost to participate, and the winner will receive a grand prize. All participants will receive a small gift.

CLICK HERE TO SIGN UP!

 

SWEETHEART CLASSIC 4-MILER

Sweetheart City Racing’s 4-mile race starts and ends at the Loveland Sweetheart Festival stage. Singles and couple registrations are available. The first 200 registrants get a complimentary love lock. Register online at SweetheartCityRacing.com.

FESTIVAL MAP 

SPONSORS

This event would not be possible without these amazing sponsors.


Posted on January 22, 2020 at 3:43 pm
Tammy Fisher | Posted in Colorado, Loveland, Loveland Real Estate | Tagged , , , , , , ,