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Cities With Highest Spikes in Homeownership

NAR Daily News Magazine - November 27, 2017 - 12:00am

Metros in the Rust Belt, as well as smaller cities near bigger and more expensive urban areas, are seeing their homeownership rates expand rapidly...

Categories: Real Estate

What’s on the Line as Senate Eyes Tax Reform

NAR Daily News Magazine - November 27, 2017 - 12:00am

Senate lawmakers could soon put their version of tax reform to a vote, as REALTORS® continue to mobilize against the bill.

Categories: Real Estate

CRS Name Change Creates Stronger Link to Industry

NAR Daily News Magazine - November 27, 2017 - 12:00am

The Council of Residential Specialists has been rebranded as the Residential Real Estate Council in an effort to distinguish itself from the...

Categories: Real Estate

Shoppers Flock to Mom-and-Pop Retail Stores

NAR Daily News Magazine - November 27, 2017 - 12:00am

For the past two years, consumers have been spending more money at mom-and-pop retail stores than big-box chains, according to credit card company...

Categories: Real Estate

New Homes Are Getting Smaller

NAR Daily News Magazine - November 27, 2017 - 12:00am

As builders refocus on the entry-level market, a downward trend in new-home sizes is expected, according to the National Association of Home...

Categories: Real Estate

4 Ways to Pay Off Your Mortgage Early

RisMedia - November 26, 2017 - 12:02pm

(TNS)—If you can afford it, it might be simple to pay off your mortgage earlier. But should you? That’s a complicated question.

Homeowners with low mortgage rates may be better off putting extra money in a Roth IRA or 401(k), both of which might offer a higher return than paying off the mortgage.

Then there’s the college aid factor. If you’re applying for need-based aid for your kids, that home equity could count against you with some colleges because some institutions view equity as money in the bank.

If, after those caveats, you want to pay off your mortgage early, here are four ways to make it happen.

  1. Refinance with a shorter-term mortgage.
    You can pay off the mortgage in another 15 years by refinancing into a 15-year mortgage.

Let’s say you got a 30-year fixed-rate mortgage for $200,000 at 4.5 percent. Then, five years later, you can refinance into a 15-year loan at 4 percent. Doing so pays off the mortgage 10 years earlier and saves more than $60,000 (if you exclude closing costs on the refi).

Those shorter-term mortgages often carry interest rates a quarter of a percentage point to three-quarters of a percentage point lower than their 30-year counterparts.

Refinancing isn’t quick or free. It requires filling out the application, providing documentation and having an appraiser visit. There are closing costs.

And even with a lower interest rate, that quicker payoff means higher monthly payments. And this method is a lot less flexible. If you decide that you don’t have the extra money one month to put toward the mortgage, you’re locked in anyway.

Unless the new interest rate is lower than the old rate, there’s no point in refinancing. Without a lower rate, you’ll get all the same benefits (and none of the extra costs) by just increasing your payment a sufficient amount.

  1. Pay a little more each month.
    Divide your monthly principal and interest by 12 and add that amount to your monthly payment for a year. Result: You make the equivalent of 13 payments in 12 months.

Let’s say you got a $200,000 mortgage at 4.5 percent. After five years of making the minimum payments, you add an extra 1/12 of a month’s principal and interest to each monthly payment. Doing so pays off the mortgage three years and three months earlier and saves more than $18,000 interest.

Before you make anything beyond the regular payment, call your mortgage servicer and find out exactly what you need to do so that your extra payments will be correctly applied to your loan.

Let them know you want to pay “more aggressively” and ask the best ways to do that.

Some servicers may require a note with the extra money or directions on the notation line of the check.

In any event, if you’re putting extra money toward your loan, always check the next statement to make sure it’s been properly applied.

  1. Make an extra mortgage payment every year.
    Instead of paying a little more each month, make one extra monthly payment each year. One way to do this is to save 1/12 of a payment every month, and then make an extra payment after every 12 months. This gives you the flexibility to use the extra savings for something else if a more pressing expense arises.

Let’s say you do this starting the first month after getting a 30-year mortgage for $200,000 at 4.5 percent. That would save more than $27,000 interest, and you would pay off the mortgage four years and three months earlier.

  1. Throw ‘found’ money at the mortgage.
    Get a bonus? A tax refund? An unexpected windfall? However it ends up in your hands, you can funnel some or all of your newfound money toward your mortgage.

Let’s say you got a 30-year, fixed-rate mortgage for $200,000 at 4.5 percent. Then, five years later, you can make an extra $10,000 lump-sum payment. Doing so pays off the mortgage two years and four months earlier, and saves more than $19,000 in interest.

The upside: You’re paying extra only when you’re flush. And those additional payments toward the principal will cut the total interest on your loan.

The downside: It’s irregular, so it’s hard to predict the mortgage payoff date. If you throw too much at the mortgage, you won’t have money for other needs.

©2017 Bankrate.com

Distributed by Tribune Content Agency, LLC

This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.

For the latest real estate news and trends, bookmark RISMedia.com.

The post 4 Ways to Pay Off Your Mortgage Early appeared first on RISMedia.

Categories: Real Estate

Holiday Splurges to Warn Your Clients Against

NAR Daily News Magazine - November 22, 2017 - 12:00am

The holidays can bring plenty of cheer but some traditions can make your job as a real estate pro tougher. Here are a few tips for your home...

Categories: Real Estate

Plenty to Be Thankful for in Real Estate

NAR Daily News Magazine - November 22, 2017 - 12:00am

The housing market is facing headwinds in the coming months, but don’t overlook these key indicators that bode well for your business....

Categories: Real Estate

‘Underwater’ Homes Are Drying Up

NAR Daily News Magazine - November 22, 2017 - 12:00am

The number of homeowners who owe more on their houses than the properties are worth has plunged by more than 1.4 million in the past...

Categories: Real Estate

Townhouse Market Attracting More Buyers

NAR Daily News Magazine - November 22, 2017 - 12:00am

Builders are ramping up construction on townhouses as home shoppers show renewed interest in attached single-family housing. 

Categories: Real Estate

Buyers Rush to Lock in Before the Holidays

NAR Daily News Magazine - November 22, 2017 - 12:00am

Home shoppers were taking out mortgages in higher numbers last week.

Categories: Real Estate

6 Tricks to Curb Holiday Snacking

NAR Daily News Magazine - November 22, 2017 - 12:00am

It’s that time of year when everyone feels the need to share delicious treats, especially at work. These techniques can help you stay...

Categories: Real Estate

Best and Worst Places for Millennial Home-Buying

RisMedia Consumer News - November 21, 2017 - 3:19pm

Members of the millennial generation, especially first-time buyers, are already struggling to purchase a home due to student loan debt, trouble saving for a down payment and tight inventory—factors cited in the National Association of REALTORS® (NAR) 2017 Profile of Home Buyers and Sellers. According to GOBankingRates, slow wage growth and low unemployment rates across the country are also impacting the homeownership rate.

There are, however, specific locations that may be easier to purchase in because of low median list prices and low monthly mortgage payments. GOBankingRates rated the most and least expensive states across the U.S. to help millennial buyers find affordable housing. The report uses a median income of $60,932 to represent ages 25-34, and the following rankings are based on a 20 percent down payment and a 30-year, fixed rate mortgage.

Top 5 Most Affordable States

  1. West Virginia
    Median Lis price: $154,900
    Estimated time to save for a down payment: 2.5 years
    Monthly mortgage payment: $693
  1. Ohio
    Median list price: $150,000
    Estimated time to save for a down payment: 2.5 years
    Monthly mortgage payment: $704
  1. Arkansas
    Median list price: $150,000
    Estimated time to save for a down payment: 2.5 years
    Monthly mortgage payment: $757
  1. Indiana
    Median list price: $167,000
    Estimated time to save for a down payment: 2.7 years
    Monthly mortgage payment: $757
  1. Iowa
    Median list price: $169,000
    Estimated time to save for a down payment: 2.8 years
    Monthly mortgage payment: $766

Top 5 Most Expensive States

  1. Hawaii
    Median list price: $599,000
    Estimated time to save for a down payment: 9.8 years
    Monthly mortgage payment: $2,584
  1. California
    Median list price: $499,950
    Estimated time to save for a down payment: 8.2 years
    Monthly mortgage payment: $2,168
  1. Massachusetts
    Median list price: $419,900
    Estimated time to save for a down payment: 6.9 years
    Monthly mortgage payment: $1,833
  1. Colorado
    Median list price: $408,068
    Estimated time to save for a down payment: 6.7 years
    Monthly mortgage payment: $1,780
  1. Oregon
    Median list price: $352,000
    Estimated time to save for a down payment: 5.8 years
    Monthly mortgage payment: $1,551

For more details, read the entire GOBankingRates report.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Best and Worst Places for Millennial Home-Buying appeared first on RISMedia.

Categories: Real Estate

How FCC Plan to End Net Neutrality Hurts You

NAR Daily News Magazine - November 21, 2017 - 12:00am

NAR says that without a “neutral online playing field,” real estate companies, multiple listing services, and...

Categories: Real Estate

Where Owners Forget to Lock Their Doors

NAR Daily News Magazine - November 21, 2017 - 12:00am

These regions are more prone to burglaries, considering the amount of homeowners who forget to lock their doors.

Categories: Real Estate

Home Sales Are Rising Despite Supply Woes

NAR Daily News Magazine - November 21, 2017 - 12:00am

Existing-home sales in October rose to the strongest pace since earlier this summer.

Categories: Real Estate

How to Handle Internet Trolls

NAR Daily News Magazine - November 21, 2017 - 12:00am

Respond to rude comments online or angry customer complaints with these four tips that will help salvage a sale, relationship, or your name...

Categories: Real Estate

Know Your Home’s Earthquake Risk

NAR Daily News Magazine - November 21, 2017 - 12:00am

Half of the world’s population lives near active earthquake faults, and some may not even know it.

Categories: Real Estate

Equity-Rich Properties Surge Nationwide

NAR Daily News Magazine - November 21, 2017 - 12:00am

Continued home price appreciation is helping to grow the number of equity-rich homeowners across the country.

Categories: Real Estate

6 Outdated Features in Your Clients’ Homes

NAR Daily News Magazine - November 20, 2017 - 12:00am

Home buyers say they want the latest design trends in their next property—but 70 percent admit to having items in their current house that...

Categories: Real Estate