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First Time Buyer Education Series

What Opportunities Have You Missed?

Missed Mortgage Opportunities

Buying Stock in Apple Computer for less than $10 per share. Buying up farmland during the Great Depression. Building a website to connect your friends before some kid from Harvard did it first.

“I was seldom able to see an opportunity until it had ceased to be one.” – Mark Twain

The world is full of opportunities missed. Funny thing is, at the time they were readily available or begging for attention, no one seemed to care. Those who actually took action were often dismissed as crazy.

What opportunities have you missed recently? With uncertainty and negative sentiment surrounding the real estate market for several years, some recognized opportunity and secured very good deals. Now, the market has undergone a fundamental shift. Home prices are rising in many areas of Wisconsin, and many sellers are again in the driver’s seat.

There’s still time to act. If you feel safer taking action only once the direction of the market has been established, then that time has come. Buying when values are rising can add great comfort and peace of mind to the process.

There’s still time to choose. We all need a place to live, and we usually have just two choices—to rent or own. Over the long haul, owning has proved to be one of the most fruitful paths to prosperity. Renting has done the same—for the landlord!  In fact, I can show you, with a free, custom and very visual, graphical way, exactly how much you stand to gain by buying over renting; this can be done via our free smartphone app, via the web or in my Brookfield Office.

Still, the choice is yours. If you’re ready to seize the moment and secure your future now, opportunity looms large. A home purchase may not make you tomorrow’s next multi-billionaire. But it can do wonders for your pride, long term prosperity, comfort and stability.

Contact my team today to discuss opportunities the housing market may hold for you and how that relates back to Mortgages!  This post is part of our First Time Home Buyer Education Series; check out all posts in that category here.

Saving for a Home


Saving For A Home Purchase

If you’re saving for a home while prices are rising, why not let the market help you? This is part two of a First Time Home Buyer Education Series.

It’s great to save up for a large down payment of 20% or more. Yet, when prices are on the rise, saving quickly enough to keep pace can be extremely difficult.

In times such as these, why not let the market build equity for you instead? Owning a home in an appreciating market can build equity faster than most people can save. For example, a $200,000 home that appreciates by 6% gains $1,000 per month in equity.

What are the benefits of buying now?

Getting ahead of rising prices and rates. Purchasing with a small down payment often means you’re required to purchase mortgage insurance (MI or PMI for Private MI). Your total monthly payment will be higher; however, the cost of mortgage insurance today can be a lot less expensive than buying a more expensive home at a potentially higher rate tomorrow.

Diverting rent payments to equity. If you’re currently renting, chances are good your monthly expense is already similar to a payment to own. When you consider that part of your payment is a reduction of principal balance, the real net cost can be far less.

Using appreciation to your advantage. While you’re saving to buy, appreciation (or rising home value) works against you. After you’ve purchased your home, rising value works with you to build equity and may even mean you can eliminate the cost of mortgage insurance more quickly.

Earning tax advantages. Many homeowners enjoy income tax savings based on the mortgage interest and real estate taxes they pay each year. Talk to your tax professional to see if tax advantages may reduce the actual cost of owning for you, too.

It pays to view MI as a means to an end. In all likelihood, it will be a temporary cost, which may pay for itself over and over again.

If you have questions about MI, appreciation and interest rates, reach out. We’ll be happy to share our experience with you today.