It’s Worth Digging a Little Deeper

There are hundreds of thousands of people who believe, for one reason or another, they cannot afford to buy a home currently.  Some people  may not for any number of reasons but it would be very surprising to know how many who can buy but have gotten some bad information along the way.  It’s worth digging a little deeper to find out the facts.

John and Karen have been renting a home for the last five years at $2,000 a month.  During that time, the value of the home they were renting went up by $30,000 in value while the unpaid balance decreased by $18, 400.  Even though they were fortunate enough the rent remained constant over the five years, they missed out on close to $50,000 of equity that the owner realized instead of them.

Another thing to consider with today’s low interest rates, it is quite common for a mortgage payment to be lower than a tenant is paying rent for a similar property.  So, in this example, John & Karen paid more to rent than a house payment would have been and missed out on the equity build-up that occurred due to appreciation and amortization.

The simple fact is when tenants like John and Karen pay their rent, the landlord is the beneficiary of the rent received as well as the equity earned.  Over time, the rent paid by John and Karen and other tenants will pay for the landlord’s rental.  It a great concept and a good investment.

True, not everyone can afford a home.  A buyer needs money for a down payment and closing costs.   They also need to have income and good credit to qualify for the mortgage.  Some of these may seem insurmountable but instead of imagining that buying a home is not in the cards at the current time, talking to a real estate professional is a better route to take.

There are lots of low-down payment mortgages available including 100% financing for qualified veterans and USDA eligible buyers.  It is sometimes more difficult to find sellers willing to pay all or part of a buyers closing costs when inventory is low, but lenders do allow it.  It is a matter of finding the willing seller.

The source of the down payment could be a gift from a family member as long as there is no repayment expected.  It’s amazing how many parents or grandparents might be willing to help a relative get into a home.  Funds for a down payment may be available as loans or withdrawals from qualified retirement programs like IRAs or 401k plans.  It’s worth investigating based on what retirement programs you have.

Good credit is necessary to qualify for a loan but buyers should not assume that theirs is not adequate.  A trusted mortgage professional can assess a situation and may be able to suggest some things that will not only raise the score enough to be approved but possibly, even raise the score enough to qualify for a better interest rate.

There are a lot of misunderstandings about whether a person can or cannot qualify for a home at this time.  Instead of relying on second hand information or something that might be floating around on the Internet, spend some time with a real estate professional who can give you the facts, assess your situation and if necessary, point you in the right direction to get help from a trusted mortgage professional.  Call (719) 547-8135 to schedule an appointment where we’ll help you dig deeper to determine whether you can buy a home now.

Download our Buyers Guide to give you more information.

Is a Home Equity Loan an Option?

Here’s the scenario: you have a project and need to borrow some money, but you want to do it in the most economic manner. You’ve got a low rate on your existing first mortgage and don’t want to do a cash-out refinance and pay a higher rate. Is a home equity loan an option?

Prior to 2018, homeowners could have up to $100,000 of home equity debt and deduct the interest on their personal tax return. The Tax Cuts and Jobs Act of 2017 eliminated the homeequity deduction unless the money is used for capital improvements.

Regardless of the deductibility, lenders will still loan money to owners who have equity in their home and good credit. The most common reasons people borrow against their home equity are:
•Consolidate debt with higher interest rates
•Make improvements on their home
•Refinance an existing home equity line of credit
•Down payment for another home or rental investment
•Creating reserves or available access for potential needs

One available loan is a fixed-rate home equity loan, commonly referred to as a second mortgage. It is usually funded at one time, with amortized payments for terms that could range from five to fifteen years.

Another option is a home equity line of credit or HELOC, where a homeowner is approved for up to a certain amount at a floating-rate over a ten-year period. The borrower can draw against the amount as needed and would pay interest every month and eventually, pay down the principal.

The amount of money that can be borrowed is determined by the equity. Lenders generally will not exceed 80% of the value of the home. If a home was worth $400,000, the 80% ceiling would be $320,000. If the homeowner had an unpaid balance on their first loan of $240,000, an amount up to $80,000 would be possible.

The next variable is the borrowers’ credit score which will determine the rate of interest that will be charged. The higher the score, the lower the rate the borrower will pay. And the converse is true, the lower the score, the higher the rate.

Another common variable considered is the borrowers’ total debt to income ratio. Ideally, the combination of regular monthly debt payments should not exceed 43% of their monthly gross income.

If you have good credit and an adequate amount of equity, your home could be the source of the funds you need. There is a lot of competition among lenders and shopping around can make a difference.

Call us at (719) 547-8135 for a recommendation of a trusted mortgage professional. If you have questions about whether the interest on the loan will be deductible, talk to your tax professional.

#FoodieFriday: Butternut Squash Noodles with Ground Turkey

Ready to try it!

Ava Shae

Happy Friday All!

I recently tried this meal, and it is my absolute favorite at the moment! Not only does it require minimal ingredients, but it takes 30 minutes maximum to make! Check it out below.

IMG_2506.jpgWhat you need:

2 containers of Green Giant Veggie Spirals Butternut Squash

16 ounces of 93% Lean Ground Turkey

2 Cups of Spinach

Onion Salt

Garlic Powder

Pepper

Italian Seasoning

IMG_2502.jpgWhat You Do:

First, throw your veggie spirals in the microwave for roughly 5 minutes. That way, they are fully defrosted and cooked before you add them to your dish!

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Next, turn stove on medium-high heat. Add your turkey and all of the seasonings listed above to a skillet.  For the seasonings, I added between 1-2 tablespoons of everything! Now, let your turkey brown.

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After your meat is cooked, added both packages of veggie spirals into your pan. Mix  with the meat before adding…

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#MotivationMonday: October Challenge

Perfect way to keep the stress and weight down during the colder months!

Ava Shae

Happy October 1st All!

I thought for this #motivationmonday, I would shake things up and introduce an October Healthy Habits Challenge! My favorite thing about fall is its great movie watching, hot chocolate sippin’ weather! Though, with colder weather, I find it harder to drink water, midterms disrupt my sleep schedule, and I forget to focus on my overall health.

I wanted to use this challenge as a way for me to develop and stick to some healthy habits regarding food, sleep, and a little bit of self-care. I am hoping this will help with my stress levels and combat the flu (in addition to my flu shot!)! I am planning on tracking my progress each day by writing down objectives I have met in a notebook!

Let’s get started, shall we?

Screen Shot 2018-09-30 at 10.52.32 PM.pngBedtime Abs: x3 Rounds

20 Sit-ups

15 V-ups

20 Russian Twists

10 Leg Lifts

15 Heel Touches

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#FoodieFriday: Pumpkin Spice Granola

Great fall granola recipe!

Ava Shae

Happy Fall All!

I am so excited that fall is here! To celebrate, I thought I would kick off the season with a Pumpkin Spice Granola Recipe. It makes 10 servings total and is delicious with yogurt. See below!

IMG_2537 2.JPGWhat You Need:

3 Cups Old-Fashioned Oats

1 Cup Pecans

1 Cup Pumpkin Seeds

2 tsp of Pumpkin Spice Seasoning

1/4 Cup Coconut Oil

1/3 Cup Pumpkin Puree

1/3 Cup Sugar Free Maple Syrup

Sea Salt

What you do:

Mix all of your dry ingredients into a bowl.IMG_2538.JPG

Now, add in the wet ingredients.

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Mix together!

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Place in a single layer on two greased cookie sheets. Cook in the oven on 350 degrees for 20-25 minutes.

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Take out and let cool to ensure the granola gets crunchy!

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Add some yogurt and enjoy!

IMG_2553.JPG249 Calories, 20 Carbs, 18 Fat, 8 Protein 

W/ yogurt: 369 Calories, 34 Carbs, 18 Fat, 23 Protein 

What…

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Real Estate Trends

Real Estate Trends

Pueblo West Inventory is low! Low inventory equals a Seller’s Market.
If you are looking to sell your home, the tips below will help you get your home ready to market. Sprucing up also helps achieve a higher sales price than homes not prepared for the market.

Thinking of Selling? Get Your Home Ready To Sell! A list of items to do to prep your home for the market!

1.Edge, mow and fertilize the lawn. Reseed sparse areas.
2. Trim hedges, weed lawns and flowerbeds, and prune trees. Cut back overgrown shrubbery.
3. Reseal cracks in foundation, steps, walkways, walls and patios. Power-wash the exterior.
4. Clean and align gutters and downspouts; clean the chimney.
5. Remove oil stains from driveway and garage. Keep walks and driveway swept or free of ice.
6. Wash the windows inside and out.
7. Hire a cleaning service to thoroughly clean the interior.
8. Paint the walls and ceilings off white or beige.
9. Repair cracks, holes and damage to plaster, wallboard, wallpaper, paint, and tiles.
10. Replace damaged windowpanes, moldings and woodwork.
11. Repair drippy faucets and showerheads. Unclog slow drains.
12. Shampoo carpets, scrub and wax linoleum or wood floors.
13. Clean out the fireplace and lay some logs in it.
14. Mend torn screens. Clean out all window tracks.
15. Replace burned-out light bulbs. Use brighter light bulbs.
16. Renail creaking boards or stairs; lubricate squeaking doors.
17. Clean all appliances (especially refrigerator and oven).
18. Replace old toilet seats and shower curtains.
19. Clear all cobwebs from corners and doorways.
20. Wash all light switches, handrails and doorknobs.

Once completed, call Marlene Berrier, your agent that says:
Ready to Move? Start Packing!