5 Reasons Homeownership Trumps Renting
The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
Here are five of them:
- Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.
- Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
- Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
- Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
- Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
Source: The New York Times, Ron Lieber (08/27/2010)
Current Mortgage Interest Rates as of 02/19/2010 – O’Dette Mortgage Group
Compliments of:
Teresa O’Dette & Ephraim Schwartz
Mortgage Consultants – Funding Your Future
(530) 581-5089 Tahoe City Office
(530) 582-3370 Truckee Office
Or Toll Free (800) 404-2129
Please do not hesitate to call Teresa & Ephraim.
They have provided excellent service for many of our clients over the years!
Effective Date: February 19th, 2010
Jumbo/Second Home Rates and Highlights:
Jumbo Rates as low as 5.125%, Interest Only and Fixed Rate products available, 80% loan to value to $1 million loan amount. Please call for the most up-to-date guidelines and programs.
Additional Rates:
- 30 Year Fixed Conforming: 5.000% (One Point) 5.093% APR
- 5 Year Fixed Conf – Int Only: 4.125% (One Point) 4.213% APR
- 15 Year Fixed Conforming: 4.375% (One Point) 4.446% APR
- 3 Yr Fixed Jumbo ARM – 2nd Home: 5.500% (One Point) 5.584% APR *
- 5 Year Fixed Jumbo – Int Only: 5.125% (One Point) 5.203% APR*
Assumptions: 740 credit score, fully documented income, primary residence (unless otherwise noted), 20% Down Payment, *LTV 70%
This information is subject to change without notice.
OMG is a MEMBER CALIFORNIA & NEVADA BROKER’S ASSOCIATIONS
OMG Broker, California Department of Real Estate, #01318558
95% Loan to Value on Conventional Loans Are Back in California!
We just received a mortgage rate update from one of our local home mortgage consultants, Leisa Peterson at Wells Fargo. Leisa is a great resource, please contact her for further information:
Leisa Peterson
Wells Fargo, Home Mortgage Consultant
11262 Donner Pass Road
Truckee, CA
Phone: 530-448-1558
Here’s the information that she just sent us:
95% Loan to Value on Conventional Loans are back in California!!!
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Take advantage of enhanced credit policy changes by Wells Fargo Home Mortgage
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95% financing on single family and condominium properties now allowed!
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Minimum 720 Fico for SFR and 740 Fico for Condominiums required
Buyers – It’s Time to Jump Off the Fence!
Yes, the time has come to jump off the fence and into the Truckee real estate market and the Tahoe real estate market. There are many reasons why “fence-sitters” should consider that now might be a really good time to shop for the mountain home they have been dreaming of. If you have good credit and a good job, do you really want to take the risk that interest rates may raise and that Congress may let the tax credit expire? Let’s look at the facts:
- Currently mortgage rates are amazingly low. This may not last.
- The Federal Reserve has been buying up mortgage agency debt and mortgage-backed securities in order to keep mortgages available and hold down interest rates.
- But, as the economy improves, there are no plans to buy any more past March 30, 2010.
- Thus, the most likely result will be that rates will rise.
- And, rates should naturally rise even just as a result of a recovering economy.
- The home buyer tax credit expires on April 30, 2010. It may not be renewed a second time.
- First-time buyers get up to $8,000. (If you haven’t owned a home in three years, you qualify as a “first-time” buyer.)
- Buyers must sign a purchase contract by April 30, 2010 and close escrow by July 1, 2010 to qualify.
- Move-up buyers get up to $6,500 when purchasing a new primary residence.
- Inventory of homes on the market is lowering in our area (Truckee real estate market and North Lake Tahoe real estate market) and there are indications that prices could be at or near a bottom. And, if inventory continues to lower, we may actually see prices rise a bit.
So, with these facts in mind, do you really want to take the risk that interest rates could raise and home prices could increase? As we know, life can be a gamble sometimes . . .
A Little Humor: Birdhouse Real Estate Agent
Once in a while I visit youtube.com and look around at the various videos. This morning I happened to stumble upon this one and it gave me a chuckle. Enjoy! (- posted by Linda)
