Simple ways to get your home paid off quicker

Having the opportunity to purchase a home is a true experience, there are a ton of emotions that you will go through during the process, and when you get the keys to your new home it is like you’ve reached the finish line. Congratulations you have become a new homeowner, but now let’s move on to the next part; getting your home paid off as quick as possible.

More than likely a mortgage is going to be one of the biggest financial decisions that you make throughout your life and in most cases tends to be the most expensive. There are ways that you can help eliminate the amount of interest that you pay over the life of your loan, so let’s cover a few.

It is highly recommended that you try and make at least 1 extra principal and interest payment every year. The amount of interest paid on the mortgage goes based off of the principal balance, so naturally when you make 1 extra payment towards your principal balance every year it will reduce the amount interest you will pay over the mortgage.

Another tip that is recommended is rounding up on your mortgage payment. So for example, if your mortgage is $1217, if you can afford to do so try and pay $1300. The extra $83 dollars a month equals an extra $996 towards your principal every year, and reduces the amount of interest that you pay.

Set up bi-weekly mortgage payments, by doing so you make 1/2 of what your payment is 26 times a year which equals 13 full mortgage payments, and adds up to the 1 extra payment a year, similar to what was mentioned above.

Ultimately the choice is yours on if you can swing the extra payments, but remember by doing so you can cut the amount of interest you pay and own your home years sooner than your loan term.

Feel free to leave me feedback and if you have any questions, leave them below and I will be glad to answer them for you. Enjoy your weekend and thanks for viewing my blog!

Mortgage rates are on the rise

So if you haven’t noticed on the news, in the newspaper, or on the internet, mortgage rates are on an upward trend. Rates over the past few weeks have gone up from the historic lows that we have been accustomed to, 3 out of the past 4 weeks they’ve gone up to be exact. Don’t get me wrong, these rates are still low, but they may not be as low as they were a few months ago or late last year.

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The higher rates in all reality are going to impact the refinance business more than anything, because people who were on the fence about refinancing may be turned off from the rates going up and opt to stay with their current mortgage. Home buyers will still be in the market looking to grab their dream house, vacation house, and/or investment properties because in all reality these rates are still impressive and home affordability is the best it has ever been in years because of  interest rates.

USA Today spoke with the Freddie Mac’s Chief Economist, Frank Nothaft, and he believes the lowest rates are now behind us.

Bottom line: If you have been considering purchasing a home, talk to a lender, get pre-approved and start the home search. Prolonging this crucial step could essentially cost you and your family more money in the long run. If you are a current homeowner thinking of refinancing, call a lender and discuss some of the goals that you are looking to achieve and have them put some options together for you, the longer you wait on this step, the higher rates can potentially get and could crush any benefit that you could have taken advantage of by refinancing.

I’ve included a link below that shows the connection between rates and the 10-year tresury bond.

The Truth About Mortgage Rates

Thanks for viewing, please leave your comments below and as always contact me with any other questions or feedback, it’s greatly appreciated!

-Ed Stojancevich

Housing is Contributing to Economic Growth

Eye on Housing

Over the last two years, home building has experienced significant growth, albeit off of low levels. And this expansion has added to overall growth of Gross Domestic Product (GDP). In fact, since the last quarter of 2011, advances in home building have been responsible for 20% of total economic expansion.

RFI Growth

While the economy as a whole has slowed somewhat over the last year, the expansion of home building has picked up steam. The home building component of the GDP accounts, as measured by the Bureau of Economic Analysis, is Residential Fixed Investment (RFI). RFI includes spending on residential structures and some equipment. The category of residential structures includes new construction of single-family and multifamily housing units, improvements and remodeling that expand or extend the life of housing units, expenditures for manufactured homes, brokers’ commissions on the sales of residential property and net purchases from government agencies. The bulk of this spending is associated…

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Multiple offers on a single property is back in style!

Buyers are out there, so if you see a property you want makes ure to make a strong initial offer. You may not get a second chance.
Buyers are out there, so if you see a property you want makes ure to make a strong initial offer. You may not get a second chance.

After talking to many local real estate agents, reading news stories, and experiencing it first hand, I wanted to talk about multiple offers and what this means for you as a buyer. A multiple offer is when a listed property gets numerous offers from different potential buyers, this means that when you decide to make that first offer make sure it is an aggressive offer because you may not have a second chance to get a counter offer from the seller. More and more homes are receiving multiple offers and one of the main reasons that this is happening is because there is a low inventory of homes on the market. What does this mean for you as a seller? You will have the opportunity to entertain different offers and therefore you can choose which one is going to be the most beneficial for you and your family. This also means that the market is shifting towards a sellers’ market because of the amount of buyers that are searching compared to the number of homes that are listed. As always, each market and each geographical area may be a bit different, but I am speaking about the Northwest Indiana area and Chicagoland region as a whole, and these are the types of situations that the buyers and sellers are experiencing.  According to an article by CNN Money, this is happening in quite a few markets across the U.S. If you are looking to buy and or sell, you might want to look into it sooner rather than later. Rates are still at historic lows which makes housing more affordable, and if you are looking to sell, there are buyers out there wanting to purchase a home, maybe it’ll be yours!

A good offer can really  be a win/win situation for you and the seller.
A good offer can really be a win/win situation for you and the seller.

Thanks for visiting my blog, don’t forget to subscribe, and I’ll be back later this week! Please visit the Contact Me section of my blog with any questions, concerns, or feedback, it will be appreciated! Ed Stojancevich

Great Article! Rates should not prevent the upward trend of the housing market. Housing is still affordable and rates are still low compared to the past 5 years. If anything this should spark potential buyers to look into purchasing now instead of waiting to see if rates go down or up.

If you’ve considered listing your home, now is the time to do so.

The first thing I looked at when I opened up my web browser this morning was an article by The Wall Street Journal writer Ruth Simon and The headline was “Is It Safe To Sell Your House Now?”  Now I have talked to numerous area realtors and I have had transactions on homes that had numerous offers on them, many of them full asking price, but the same issue is still coming up “we need more listings” is a common phrase among the areas realtors. The trend right now is that there are more buyers in the market than homes for sale, which in turn make it a seller’s market. some of the realtors that I have talked to said they are selling their listings faster than they can get more, which believe me is not a bad thing, but at the same point in time is making it a market for buyers to be more aggressive with their offers.

If at any point within the past couple of years you have been considering on selling your home, now may be the time to do so. Now may be the time to list your property so you can move, upgrade, or get into a different home that better fits your needs. This could be a great opportunity to increase the odds of you getting full asking price when listing your home. Here are a couple of tips I recommend doing if you plan on listing your home.

  • Contact a local realtor, or contact me if you need a great recommendation
  • Get a CMA (Certified Market Analysis) or BPO (Broker’s Price Opinion) done on your home, this will give you an idea of what to list the house at.
  • Do some early “Spring Cleaning” take away all the clutter, change the light bulbs, and take down any family pictures you have. You want for potential buyers to envision themselves living in your home, the family pictures could be a distraction from that.
  • Fresh coats of paint, clean the floors, and shampoo the carpets. You want your house looking as lean and clutter free as possible.

For more tips on what you should do to help sell your home fast please go to my contact page and leave me your information and I will send you a complimentary copy of “33 Ways to Sell Your Home Fast”

Thank you for viewing my blog, please write me with any questions, feedback, or if I can help you in any way. Don’t forget to subscribe!

Foreclosure filings, lowest since April 2007

Welcome to my blog everyone!

I want to share some helpful real estate news with everyone, so based on an article by CNN Money it looks like foreclosure filings have been at its lowest level since April of 2007. What does this mean for you? This means that it is a good indication that the housing market is starting to make a turnaround from where it has been the past 7 years, and that homes values may start gaining momentum instead of losing like they have been the past few years. The pending home sale report index rose in January by 4.5% and is at its highest level since April of 2010  according to the National Association of Realtors.

Source: RealtyTrac
Source: RealtyTrac

2012 was a very busy year in the industry, with rates being low and home prices affordable, many people are starting to take advantage of purchasing homes. In many cases it is much cheaper to purchase a home than it is to rent.

If you have any further questions about this blog or would like to find out more about the real state in your area, please feel free to contact me. Thanks for taking the time to read my blog, don’t forget to subscribe.

Ed Stojancevich