Where is the Housing Market Headed in 2019?

Information Courtesy of Keeping Current Matters/The KCM Blog

 Some Highlights:

• ­Interest rates are projected to increase steadily throughout 2019, but buyers will still be able to lock in a rate lower than their parents or grandparents did when they bought their homes!

• Home prices will rise at a rate of 4.8% over the course of 2019 according to CoreLogic.

• All four major reporting agencies believe that home sales will outpace 2018!

NAR Helps Secure FEMA Reversal On New Flood Policies During Shutdown

Courtesy of The National Association of REALTORS®

In a critical win for home sales while the partial shutdown of the federal government is ongoing, the Federal Emergency Management Agency will issue and renew flood insurance policies, reversing an unexpected and controversial ruling the agency released earlier this week.

"FEMA and the Administration deserve credit for hearing our concerns and acting swiftly to address them," says NAR President John Smaby. "This new decision means thousands of home sale transactions in communities across the country can go forward without interruption, as Congress intended when it renewed the flood insurance program earlier this week. Our research has shown that 40,000 home sales are lost every month that flood insurance is not available."

Congress on Dec. 21 passed legislation that extends the National Flood Insurance Program until May 31, 2019. In an unexpected policy decision, though, FEMA on Dec. 26 said it couldn't allow insurers to issue and renew federal policies while the partial government shutdown was ongoing. That ruling was unexpected because in past government shutdowns, FEMA continued to operate the program as authorized. NAR, along with other organizations, including the Property Casualty Insurers Association of America and the Independent Insurance Agents & Brokers of America, urged policy makers to reevaluate the decision. Congress expressed concern as well.

"We thank the Administration and Congress for stepping up so quickly to ensure the smooth continuation of flood insurance at a time when market disruption would be extremely hard-felt," says Shannon McGahn, NAR senior vice president of government affairs.

How to Save Thousands of Dollars in Interest on Your Mortgage

Article courtesy of Keeping Current Matters/The KCM Blog

One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your loan.

Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well.

When you make ‘extra’ payments toward your loan, the key is to let your lender/bank know that you want the extra funds to go toward your principal balance as they will not automatically do this for you.

You don’t have to double your mortgage payment to make a big difference either!

If you have a 30-year mortgage on a median-priced home ($250,000) with a 5% interest rate, you’ll be responsible for a $1,342.05 monthly principal and interest payment. Over the course of the loan, if you pay your exact monthly payment, you will have paid $233,133.89 in interest alone!

Paying a Little Extra Can Pay Off Big

1. Pay an additional 1/12^th of your mortgage payment every month

Benefit: In the example above, adding $111.84 to your monthly mortgage payment might not seem like a lot, but each year you will have paid one extra month’s worth of payments which will shorten the term of your loan by 4 years and 8 months, all while saving you $42,000 in interest!

2. Pay an additional $50 per month towards your mortgage

Benefit: Fifty dollars might not seem like enough to make a difference on the term of your loan, but that small amount will save you over $21,000 in interest and will take over 2 years off the end of your loan. Twenty-eight years from now, you’ll be happy to pay off your loan that much sooner!

3. Make one-time lump sum payments when you can

Benefit: If you find yourself with a little extra money after a yearly bonus, a tax return, or from investment dividends, paying that money towards the principal can cut your costs. This option, however, is less predictable than the extra monthly payments.
If you have higher interest debts, like credit cards, consider using any extra funds you have to pay those debts down before applying that money towards your mortgage. Also, if you do not plan on staying in your home for more than 10 years, paying extra toward your mortgage might not make sense.

Bottom Line

If you’re wondering what strategies would work best for you to shorten the term of your loan, consult a local real estate professional who can answer your questions or connect you with someone who can.

Happy Holidays!

 

Ronald McDonald House

We all have causes that are dear to us and one that I have been proud to support in various ways over the years is Ronald McDonald House.  In keeping with a tradition I brought with me from Arizona, periodically I like to get a group of friends together to prepare and serve a meal at Ronald McDonald House.  Together, we chip in and purchase the food and then we go to the house and prepare the meal and serve it to the families who are staying in the house. 

Carmen Fitzpatrick, Kathy McPherson, Carol Stillerman, Pook Bellini

This year, several friends and I also volunteered to help in the Holiday Shop at the Charlotte house.  In order to spread the word about Ronald McDonald House, I wrote an article about volunteering there which appeared this month's Living@SCCL Magazine. 

During this holiday season, and throughout the year, I encourage everyone to support causes that are important to them.  There are so many wonderful organizations out there that need not only financial support, but hands-on support.  Whatever you can do to help will make a difference.  

Click on article below to enlarge.  Contact me for a pdf version.