Blog – Page 395 of 892 – Mike Pfefferman

06

Oct

Mortgage

Taking A Closer Look At Home Improvement In 2020

Taking A Closer Look At Home Improvement In 2020 When it comes to home improvement in 2020, many people are spending more time in their homes than they ever have in the past. With kids attending school from home and people working from home, many homeowners are looking at ways to potentially improve the qualities of their homes through home improvement projects.

With fall right around the corner, it is a great idea to take a closer look at some projects that can help homeowners stay safe while also saving money this winter.

Do Not Neglect The HVAC System

One of the most important points that all homeowners need to keep in mind involves the HVAC system. The HVAC system is one of the most important systems in the home, particularly during the winter when it will supply heat. If the heater hasn’t been turned on in a while, then it needs to be inspected. Routine maintenance will not only extend the longevity of the HVAC unit but will also help it run more efficiently. This could help homeowners save a lot of money on their utility bills.

Think About The Insulation In The Home

Homeowners who are looking for ways to reduce their utility bills should also think about the insulation in their homes. There are a few common locations in which heat might leave the home, driving up utility bills. This commonly includes the windows and doors. Therefore, homeowners should think about re-sealing their windows or doors in an effort to keep heat from leaving through these portals. This can reduce the stress on the HVAC system and save people money.

The Roof Is A Common Problem

Finally, homeowners should also think about their roofs as well. During the fall, it is common for leaves to land on the roof and start to clog the gutters. This can cause liquid to back up into the gutters and damage the roof. With this in mind, homeowners need to think carefully about the roof and make sure that this is included in a home improvement project. Roof leaks can lead to major repair bills quickly and addressing this problem early can save money.

These are a few of the top home improvement projects that all homeowners should consider in 2020.

05

Oct

By First Rate Financial Group

Financial Reports

What’s Ahead For Mortgage Rates This Week – October 5, 2020

What's Ahead For Mortgage Rates This Week - October 5, 2020 Last week’s economic news included readings from Case-Shiller Home Price Indices, along with Commerce Department readings on public and private-sector job growth and the University of Michigan’s Consumer Sentiment Index. Weekly reports on jobless claims and mortgage rates were also released.

Case-Shiller: Home Price Growth Ramps Up as Demand for Homes Increases

July home prices rose at a year-over-year rate of 4.80 percent in July as compared to June’s reading of 4.40 percent. Shortages of available homes were driven by demand. Homebuyers were looking for larger homes to accommodate working from home and also wanted to leave congested urban areas.

Home prices in Case-Shiller’s 20-City Index rose by 3.90 percent year-over-year in July; Home prices in participating cities grew by 3.50 percent in June. Home prices grew fastest in Phoenix, Arizona with a year-over-year growth rate of 9.20 percent. Seattle, Washington home prices grew by 7.00 percent, and home prices in Charlotte, North Carolina rose by 6.00 percent.

Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, said,

“Prices were particularly strong in the Southwest and West were comparatively weak in the Midwest and Northeast.” 16 of 19 cities in the 20-City Home Price Index reported a faster growth rate for July’s home prices. Detroit, Michigan did not report data for July’s 20-City Home Price Index.

Construction spending in August jumped from July’s reading of 0.70 percent growth to 1.40 percent. This could be positive news if it indicates a faster pace of home construction, but it could also reflect higher prices for building materials. Rising costs of building materials are typically added to home prices, which further challenges first-time and moderate-income home buyers.

Mortgage Rates and Jobless Claims Fall

Freddie Mac reported lower fixed mortgage rates last week; The average rate for a 30-year fixed-rate mortgage dropped two basis points to 2.88 percent; rates for 15-year fixed-rate mortgages averaged four basis points lower at 2.36 percent. The average rate for 5/1 adjustable rate mortgages was unchanged at 2.90 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages 0.20 percent.

New jobless claims fell to 837,000 claims filed from the prior week’s reading of 873,000 initial claims filed. Ongoing claims were also lower last week with 11.77 million filings as compared to 12.75 million ongoing claims filed in the previous week.

The national unemployment rate dipped below 8.00 percent for the first time since March with a reading of 7.90 percent. Analysts said that the number of people in the workforce dropped from 164.5 million in February to 160.1 million workers in September; this indicates that 4.4 million workers have left the workforce.

Consumer sentiment rose to its highest level since March according to the University of Michigan’s Consumer Sentiment Index reading for September was 80.40 as compared to August’s index reading of 74.10.

What’s Ahead

This week’s scheduled economic news includes readings on job openings and the minutes from the Fed’s Federal Open Market Committee meeting. Readings on public and private-sector jobs will also be reported.

02

Oct

By First Rate Financial Group

Mortgage Application

Should Homeowners Refinance?

Should Homeowners Refinance? Most people have heard the saying that it might be a good idea to refinance if mortgage rates drop. For those who might not know, refinancing is essentially taking out a new loan to replace the old one because the new loan has a lower interest rate.

This could shorten the time span of a long time and reduce monthly payments, or save money on the total cost of the home. At the same time, refinancing is not right for everyone. How can homeowners determine if refinancing is right for them?

Do They Qualify?

Just because there are lower interest rates available does not mean that homeowners are going to qualify. It is important for homeowners to make sure they qualify for lower interest rates on their home loans. Be sure to conduct a quick credit check to clean up inaccuracies on the credit report. Then shop around and get quotes from different lenders.

What Are The Potential Savings?

If homeowners qualify for a better rate on the mortgage, it is time to crunch the numbers. Everyone needs to figure out exactly how much money they are going to save depending on which refinancing option they choose. Some of the factors to consider when looking at refinancing plans include the terms of the loan, the interest rate, and the overall monthly payment.

What Are The Closing Costs?

Finally, there are going to be the closing costs that go along with every refinancing plan. The good news is that these closing costs on negotiable. Sometimes, the closing costs will determine whether or not refinancing is worth it. Therefore, homeowners need to consider the closing costs as well. If the closing costs appear high, make sure to speak with different lenders and see if they are willing to provide a break on the costs.

Are The Homeowners Planning On Staying In The Home?

Finally, refinancing is only going to be worth it if the homeowners are planning on staying in the home. There is no point in paying for a new home loan if the homeowners are planning on moving next year. Therefore, be sure to consider this along with all of the other questions listed above to determine whether or not refinancing is worth it.