The rate on a mortgage loan is often the most significant factor in how much an owner will ultimately pay for their home. Monetary policy, market inflation, and the overall economy all play a part in determining when it rises and falls, according to Nerd Wallet. Currently, the United States is experiencing remarkably low rates by historical standards, below five percent in most cases, that contrast harshly with those in the high teens during the early 1980’s.
In this country, the Federal Reserve is the foundation of most of the traditional lending system due to their setting of the federal funds rate – the interest rate that banks must charge each other for short-term loans. This base rate then influences longer-term rates between banks, businesses, and personal borrowers like those looking for a 30-year mortgage. During times of expected inflation, the Federal Reserve is likely to raise these rates to protect the value of the dollar by keeping prices in check at the expense of increasing the cost of borrowing money for everyone.
These rates can have a compounding ripple effect throughout the economy as well, as businesses will be less likely to want to borrow money for investment when their interest payments become larger than the potential payoff. Slowing business can mean layoffs, suspended raises, and make potential home purchasers less sure about their financial future and ability to afford payments. Often, the housing market and overall economy will move through cycles of low-to-high interest rates that can be impacted by political changes, global events, and natural scarcity of resources.
Anyone in the market for a new home should be paying attention to the current mortgage rates as even a fraction of a percentage point can have a dramatic impact on how much they will pay over the life of the loan. Using a 30-year, $300,000 loan as an example, someone with a four percent interest rate will pay a total of $515,609 while someone with a five percent loan will pay $579,767.
5 signs it’s time to replace your siding
Siding is one of the most important parts of your home’s exterior. Not only does it protect the structure from the elements, it also showcases your house’s style. While you may wish your siding would last forever, it will eventually need to be replaced. Here are a few signs you need new siding.
1. Visible damage. Numerous things can damage siding including dirt, the weather and moisture. If only a few panels are affected, you might be able to replace them. But if the damage is widespread, you’ll need to replace the whole thing.
2. Peeling paint indoors. If you have water damage on your interior walls, it might mean that your siding is no longer effectively keeping moisture out of your home.
3. Your bills have increased. Siding plays a big part in insulating your home. If you notice a drastic change in your bills, your siding may have an air leak. In this scenario, your heating and cooling system works extra hard to regulate your home’s temperature, which ultimately results in costlier utility bills.
4. Mold or mildew. Fungus or mold in or near the seams of your siding may indicate water infiltration.
5. It looks faded and old. Replacing your siding can drastically increase your home’s curb appeal. Among home renovations, new siding has one of the highest returns on investment.
When it’s time to replace your siding, be sure to take action sooner rather than later. The longer you wait, the more likely it becomes that other parts of your home will get damaged as a result of having deteriorated siding.
By replacing your siding when necessary, you’re protecting your home and increasing its value at the same time.
Pre-approved versus pre-qualified: what’s the difference?
While the terms pre-qualified and pre-approved are sometimes used interchangeably, they in fact refer to two different things. Here’s an overview of the differences between a mortgage pre-qualification and a mortgage pre-approval.
To get pre-qualified for a mortgage, a lender needs to evaluate your financial situation — including your income, assets and debts — to determine how much you can afford to borrow. It can usually be done for no cost, often over the phone or the internet.
The pre-qualification stage allows you to discuss different mortgage options with your lender and get a sense of your price range. However, the pre-qualified amount is just a rough estimate of how much you might be approved for.
Getting pre-approved for a mortgage is a more involved process. You’ll need to fill out an official mortgage application and supply the lender with the necessary information to thoroughly evaluate your financial history and credit score. This process allows the lender to tell you the mortgage amount for which you’ll be approved. You may also be able to lock in an interest rate.
When you get pre-approved, your lender will provide you with a letter explaining the loan you’re eligible for. Being pre-approved for a mortgage shows sellers you’re a serious contender when making offers.
Keep in mind that even after you’ve been pre-approved, you’re still not guaranteed to receive a loan. Once you’ve found the house you wish to buy, your lender will need to evaluate you and the property in question before committing to a loan amount and interest rate.
The truth about pets abandoned on moving day
It’s a sad truth that every year countless dogs and cats are abandoned by their human companions. Frequently this happens as the result of a move, and in particular, when a person’s new residence doesn’t allow animals.
Abandoning dogs and cats is illegal in most states. Nevertheless, many domestic pets are cast-off, either by releasing them into the wild or putting them out on the street. Unfortunately, starvation, and ultimately death, is the fate that typically awaits them.
Pets in shelters
According to the Humane Society of the United States, there are six to eight million dogs and cats that enter shelters each year. The organization approximates that about three million of these animals are euthanized, despite the fact that around 80 percent of them are fit for adoption.
But even pets that aren’t euthanized may face difficulties. Both dogs and cats tend to form strong bonds with their owners, and when this bond is severed, they’re likely to experience a great deal of stress and sadness. It isn’t uncommon for animals in shelters to be depressed to the point of refusing to eat.
What you can do
If you’re in the process of looking for a new home, make sure you find a place that accommodates your pet. And if you want to welcome a dog or cat into your new home, consider adopting one from your local animal shelter.
How to safely dispose of burned out light bulbs
When a light bulb burns out, you may wonder whether to toss it in the trash or take it to your local recycling center. However, the best action to take depends entirely on the type of light bulb you’re throwing out.
When a standard light bulb burns out, you can put it in the garbage with the rest of your household waste. The thin glass and metal wires are almost impossible to separate for recycling.
Compact fluorescent lights (CFL)
Light-emitting diode (LED) lights
LED lights don’t technically burn out like other bulbs, but they do dim over time. When this happens, you can safely discard them in the trash as they don’t contain mercury like CFL bulbs do. You can also check with your local recycling center to see if they accept this type of bulb.
Regardless of the type of light bulb, take care to wrap it in paper before you throw it away. This way you’ll avoid the possibility of someone getting injured by the broken glass.
Many hardware store chains have recycling boxes for CFL bulbs as well as batteries, left over paint and other things that can’t safely be thrown out. Check your local hardware store to see if they offer this service.
4 ways to get your outdoor living space ready for summer
Now that the warmer weather has arrived, it’s time to set up your outdoor living space for the season. But before you bring out the patio furniture, you should attend to these four tasks.
1. Wash your windows. Clean the frames and glass, and don’t forget to give the screens a scrub as well. You should also inspect the caulking around your windows and doors. If there are any cracks, apply new caulking
2. Get your deck ready. Clean your patio or deck and check for loose boards or anything else that looks like it needs to be fixed. Make repairs, then sand and seal wood surfaces.
3. Examine exterior surfaces. Inspect your siding for damage and ensure your foundation is free of cracks that might have formed over the winter. If you see any peeling paint on your shutters or window frames, make plans to have them painted.
4. Inspect your barbecue. Look out for signs of damage. Clear off spider webs, clean the grill and make sure animals haven’t nibbled on the gas line.
Once you’re done with the above, it’s time to set up your outdoor furniture. Give chairs, tables and loungers a good cleaning, then sit back, relax and enjoy soaking up the sun.
Warren County Market Report – May 2019
Watch this video for a quick summary of Warren County real estate for May 2019. Charts demonstrate the changes in the market, so be sure to click play!
In general summary:
- Closed sales are UP by 13.8% compared to this time last year
- Average Median Sold $254,750.
- Average Days on Market 66
*If you would like a copy of this report emailed to you, please send request to Jennifer@nexthomerealtyselect.com.
Resource: 2019 Market Stats by ShowingTime
MRIS: Statistics calculated June 2019
Jennifer Avery, Realtor for NextHome Realty Select
“Your Happy Home Expert”
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
email@example.com | 540-683-0790
210 E Main Street, Front Royal VA