Navy Fellas Realty Group

Real Estate, Residential sales and purchase

3 Quick Painting Tips That Will Help Take Your Walls from Tacky to Tasteful

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3 Quick Painting Tips That Will Help Take Your Walls from Tacky to TastefulWhether you happen to be a painting pro or you’ve never dared to pick up a roller, there are a few tricks of the trade that professionals use to make a paint job look its best. If you want to take an old, outdated paint job and turn it into something you can be proud of, here are a few tips from those who know best.

Start With A Perfectly Smooth Surface

If you’re trying to rush through it, sanding might seem like an unnecessary step in re-covering your walls, but it’s very important in order to level out the spackle paste and ensure that no ridges will appear in the paint around the nails. According to one professional painter, you should start by sanding from the baseboard to the ceiling with a fine grit sandpaper, and then move on to a horizontal sand that will make for a smooth wall finish.

Forget About The Plastic

The proper floor coverage while painting is just as important as the paint when it comes to getting the job done properly, so opt for a large canvas cloth instead of linens or plastic. Paint on linen can sink through to your floor and stain it, while paint on plastic takes a long time to dry and may end up smearing all over other things. A canvas cloth will keep any paint splotches away from your floor and ensure they aren’t tracked throughout the home after they fall.

Stick To One Wall

It can be tempting to get done the rudimentary step of completing the corners and trim before you move on to painting, but this can actually make for a less smooth finish. Instead of finishing one task at a time, complete the corners and trim on one wall and immediately reach for the roller. This is something professional painters do to ensure that the brushed and rolled paint will blend together more seamlessly.

There are a few simple steps you can follow when painting a room that will make it look like a professional did the job. By using a canvas cloth to cover your surfaces and sticking with one wall until the job is done, you should have a smooth new surface you can be proud of. If you’re currently painting your home and preparing to sell, you may want to contact one of our local real estate agents for information about your options on the market.

Buying a New Home? Learn How the ‘Conforming Loan Limit’ Might Affect Your Purchase

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Buying a New Home? Learn How the 'Conforming Loan Limit' Might Affect Your PurchaseFrom mortgage to equity to debt-to-income ratio, there are many terms associated with home ownership that can be quite confusing if you’ve never been on the market for a home before. ‘Conforming loan limit’ may be a less familiar real estate term than the rest, but here are some things you’ll need to know about it and what it could mean for your biggest investment.

What Is The ‘Conforming Loan Limit’?

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are legally required to provide loans for balances below a specific amount, and this amount is what is known as the ‘conforming loan limit’. While the loan amount is determined by credit history and income amount, these conforming loans that are less than the specific amount are considered lower risk. If a loan amount is above the conforming loan limit, it is known as a jumbo loan and usually comes with higher rates.

How The ‘Conforming Loan Limit’ Is Determined

The Federal Home Financing Agency determines any adjustments made to conforming loan limits and the decided-upon amount is based on the home prices from October to October for the previous year. This amount is released annually in November and is enforced the following January. While this limit was continued at $417,000 through 2016, the amount for regions like Alaska, Guam, Hawaii and the United States Virgin Islands is significantly higher than the standard amount due to the cost of housing.

Going Above The ‘Limit’ And Combination Loans

While jumbo loans carry more risk, there are ways to avoid going above the conforming loan limit. There is the option of acquiring a conforming loan for $417,000, the amount established for 2016, and then utilizing a second mortgage for the remaining amount that will ensure you do not have to take out a jumbo loan; however, the rates for a second loan will likely be higher. In the event that you would like to avoid jumbo loans or a combination loan, you may want to consider putting more money down on your initial down payment.

The conforming loan limit changes each year, but it may have a significant impact on your home purchase if it falls below a certain amount. If you are curious about real estate terms because you’re considering a home purchase in the near future, you may want to contact one of our local real estate professionals for more information.

New Home Construction Seen As A Possible Solution To Pent Up Demand For Homes

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New Home Construction Seen As A Possible Solution To Pent Up Demand For HomesBuilder confidence in markets for new homes fell three points in February to a reading of 58. January’s reading was revised upward to 61. Builders have repeatedly expressed concerns shortages of labor and lots for development, but continue to express confidence in future sales conditions.

David Crowe, National Association of Home Builder’s (NAHB) chief economist, said that builders are watching slowing economic trends, but also cited low mortgage rates, improving labor markets and pent-up demand for homes as factors for strong U.S. housing markets. The NAHB notes that any reading over 50 indicates that more builders were confident than those who were not.

HMI Components Readings

The three readings used to calculate the NAHB Housing Market Index (HMI) were also lower. The reading for current sales conditions fell by three points to 65; the reading for sales conditions over the next six months fell by one point to 65. Home builders were less confident in buyer traffic in new home developments; the February reading dropped by five points to 39. Although the buyer traffic gauge was its lowest in nine months, it hasn’t topped the benchmark of 50 since the peak of the housing bubble ten years ago.

Three month rolling averages for the four regions charted by NAHB also dropped. The Northeastern region was 2 points lower at 47; the Southern region also lost two points for a reading of 59. The Midwestern region lost one point for a reading of 57 and the Western region dropped three points for a reading of 72.

Building New Homes Seen as Solution to Pent Up Demand for Homes

Analysts responded to February’s HMI with mixed views. Some analysts said that buyer demand for homes would override concerns over building costs. This view makes sense in view of pent-up demand driving up home prices. At some point, affordability and buyers ability to qualify for mortgage loans are likely slow the rate of increasing home prices.

Less pent-up demand could also help first-time and moderate income buyers compete for homes as buyer demand eases. First-time and moderate income buyers are essential in driving home sales, as their purchases of pre-owned homes allow homeowners to buy larger homes or relocate.

Reports on Housing Starts and Building Permits scheduled this week will shed additional light on home builder activity.

What’s Ahead For Mortgage Rates This Week – February 16, 2016

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Last week’s economic events included weekly releases on new jobless claims, mortgage rates and testimony by Fed Chair Janet Yellen concerning the Federal Reserve’s monetary policy. Here are the details:

Mortgage Rates, New Jobless Claims Drop

Freddie Mac reported that average mortgage rates fell across the board last Thursday, with the rate for a 30-year fixed rate mortgage seven basis points lower at 3.65 percent. The average rate for a 15-year fixed rate mortgage was six basis points lower at 2.95 percent, and the average rate for a 5/1 adjustable rate mortgage was two basis points lower at 2.83 percent. Discount points averaged 0.50 percent for 30 and 15 year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Lower mortgage rates may encourage first-time and moderate income home buyers to enter the market, although slim supplies of available homes and rising home prices have caused ongoing concerns about affordability in many markets.

Weekly jobless claims were also lower. 269,000 new claims were filed as compared to estimated claims of 280,000 new claims and the prior week’s reading of 285,000 new jobless claims. This was the lowest reading in two months and suggests healthy labor markets as more workers find jobs. Readings lower than 300,000 new jobless claims indicate healthy jobs markets. The four-week rolling average of new jobless claims was lower by 3500 claims at 281,250 new claims filed. Analysts consider the four-week reading as a more accurate indicator of labor markets as it smooths out anomalies in weekly claims.

Yellen Testimony: Fed Won’t Change Course on Rates

Federal Reserve Chair Janet Yellen said that she doesn’t expect interest rate cuts in view of slowing economic indicators. In testimony before the House Financial Services panel, Chair Yellen indicated that although there are signs of slower economic conditions, there was still room for economic growth. She cited a strong labor market and strong consumer and business spending as indicators of economic expansion. Analysts interpreted Chair Yellen’s testimony to indicate that the Fed would not likely raise its target federal funds rate in March.

Chair Yellen said that monetary policy is not on a “preset course”. Federal Reserve press releases consistently state that policy makers review current and developing domestic and global economic trends as part of any decision to raise rates. In view of this, Chair Yellen’s testimony did not cover what could happen if future economic developments influence Fed policy. Recent concerns over volatile financial markets caused by the weakening in China’s economy were cited as examples of “downside risks” that could impact the Fed’s monetary policy.

Readings for Consumer Sentiment suggest that consumers are also watching economic developments. February’s reading decreased to 90.7 as compared to January’s reading of 92.0.

What’s Ahead

This week’s scheduled economic events include the National Association of Home Builders Housing Market Index, federal reports on housing starts and building permits. FOMC minutes and weekly reports on mortgage rates and new jobless claims will also be released.

Spring is Almost Here: Planning a Massive Spring Cleaning in Just 4 Easy Steps

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Spring is Almost Here: Planning a Massive Spring Cleaning in Just 4 Easy StepsIt may seem like the holiday season has just passed, but it won’t be too long before the flowers begin to bloom and spring peeks out from around the corner. While the tradition of spring cleaning that comes with the season may not be as common as it once was, it can actually be a great way to revive and refresh and prepare for the summer ahead.

Begin With The Bedroom

Start with your bed by washing all of the sheets and linens, and then move on to dusting, making sure that all of the spots missed throughout the year are wiped clean. Since you may find yourself purchasing some extra items in the summer months, take an hour or two to look through your closet and donate or discard any pieces you haven’t worn for two years.

Liven Up The Living Room

As one of the most lived-in rooms, your living room will likely need some extra time with the vacuum or mop, so once you’ve dusted the baseboards and vacuumed the couch, give the floor your undivided attention. Once it’s thoroughly cleaned, dust everything and sort through any books or papers that have been left about so they won’t sit around for another year.

Clear Away The Kitchen Grease

The kitchen can be one of the easiest to spots to sully, so clear out the fridge and wipe down the shelves rigorously, ensuring any food that has expired is composted. Give the floor a good scrub and pull the refrigerator and stove back from the wall so you can get rid of any dust or accumulated grime underneath. Last but not least, wipe the countertops with an all-purpose cleaner for a fresh scent.

Bargain With The Bathroom

If you’ve already cleared away the dirty towels, clean out the drawers and cabinets and ensure any toiletries you no longer use are thrown out. Wipe the mirror clean with a glass cleaner and give the toilet a good scrub. It may also be a good opportunity to get down on your hands and knees and scrub the floor for a clean feel it may not get for a while.

The arrival of spring after the long months of winter is always a welcome occurrence, but it can also be the perfect opportunity to clear away the dust of last year.

3 Reasons You Might Decide to Retire to a Tiny Home – and Why You’ll Love It!

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3 Reasons You Might Decide to Retire to a Tiny Home - and Why You'll Love ItMany people romanticize the idea of paying off their home mortgage early so they can enjoy their home in retirement, but when it comes to the later years of life, a big house can actually be too much to handle. If you’ve started to consider a smaller home and are wondering why it might be a good decision for you and yours, here are a few things you may want to consider.

It’s Much Easier To Maintain

It is often the idea of the palatial estate with a pool that homeowners get excited about, but when it comes to reality, the larger the home, the harder it is going to be to take care of and maintain. If you don’t have a maid or a butler, a smaller home will enable you to spend a lot more of your free time doing things that you love instead of being bound to a house that is full of repairs and maintenance that needs to be completed.

Save On The Big Home Bills

One of the worries associated with getting older is having the ability to maintain your lifestyle in old age, and a smaller home can actually alleviate many of the high costs that go along with having an oversized home. A smaller home will not only minimize your insurance and taxes, it can also positively impact the amount you pay each month for heating and electricity, so you’ll notice the savings right off the bat.

The Freedom Of A Downsized Lifestyle

One of the best things about downsizing to a smaller home is the huge sense of responsibility that can be left in the dust. Instead of being held back by all of the stuff required to fill a big house, a small home means there is less to worry about. This may mean you’ll have the option to go on longer vacations or can even relocate to a hot climate for the summer months, and you’ll only need someone to come by and water the plants every once in a while!

There are plenty of people that decide to downsize later in life since it can actually be a great way to save money and have a lot more freedom. If you’re considering your smaller home options and are curious about what’s available on the market, you may want to contact one of our real estate professionals for more information.

Everything You Need to Know About Fannie Mae’s New Home Ready Mortgage

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Everything You Need to Know About Fannie Mae's New Home Ready MortgageTraditionally, getting a mortgage requires you to have a level of income appropriate to the size of home that you’re buying. But for a lot of low-income and minority borrowers, a simple measure of one person’s income isn’t an accurate measure of whether or not that person can afford a home.

Now, with the Home Ready mortgage from Fannie Mae, multigenerational and extended households can have easy access to mortgage funds. How does the Home Ready mortgage work? Here’s what you need to know.

Flexible Down Payment Requirements Make Home Ownership More Accessible

Traditional mortgages require you to pay 20% of the home price upfront in the form of a down payment, or 5% if you register for Private Mortgage Insurance. And although 5% is a small down payment, it’s still a significant sum of money for a lot of low-income borrowers. But now, with the Home Ready mortgage, qualified borrowers can access financing with as little as 3% down, making it easier to become a homeowner.

Non-Borrower Household Income Is Now Counted As Income

Another big change that the Home Ready mortgage introduces is that lenders may now count all household income when determining affordability criteria (but not qualifying income). There’s no minimum requirement for funds to come directly from the primary borrower, which means that non-borrower members of the household can have their income counted when determining whether a mortgage is affordable. It’s also possible to use non-occupant borrower income – for instance, the income of a borrower’s parent – to be counted as income.

For extended and multigenerational households, this means mortgages are much more affordable as all household income can now be counted as eligible.

Eligibility Requirements: Who Can Qualify For A Home Ready Mortgage?

Home Ready mortgages come with certain eligibility criteria attached that homeowners will need to meet. In order to be eligible, a household must be below a certain percentage level of area median income (AMI) – that is, a household must fall somewhere in the lower half of their area’s income scale.

For properties that are located in “low-income census tracts”, there is no income limit. For properties in high-minority areas and designated disaster areas, borrowers at or below 100% of AMI can access Home Ready financing. And in all other census areas, borrowers can access financing if their annual household income is no greater than 80% of AMI.

Feeling Squeezed by Higher Rents? It Might Be Time to Consider Buying Your First Home

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Feeling Squeezed by Higher Rents? It Might Be Time to Consider Buying Your First HomeWith the cost of rent going up across the board and becoming even less affordable in metropolitan centers, it’s never been a better time to seriously consider home ownership. While the price of a home and all the associated costs can certainly seem like a tight squeeze after years of renting, here are some reasons you may want to consider giving up your rental and springing for a home instead.

It’s An Automatic Savings

It’s a sure bet that the money you spend on rent is going down the drain as soon as the month is over, but investing your money into a home each month means that you’re actually putting it into something tangible that you can profit from later on. While there are no certainties that the price of your home will improve, there’s a good chance you’ll stand to make a bit of money in the end that will easily offset the cost of insurance and property taxes involved in buying a home.

The Insecurity Of Apartment Living

With apartments being bought up all the time and torn down to make way for new developments, it’s always a possibility that the day may come when your home won’t be your home anymore. The good thing about using your purchasing power to invest in a home is that it gives you the freedom of feeling like you really have something that belongs to you, and you probably won’t have to worry as much about your loud next door neighbors or a landlord that never completes the required maintenance on your apartment.

You Can Consider A Roommate

An apartment often means a smaller amount of space, but it’s possible that a home purchase may provide you with a little bit of extra room and a place for a renter who can help with the monthly bills. Whether you decide on a friend, relative or someone you don’t know, this can be a great way to make home purchasing a little bit more economical and still provide you with the equity you’ll need to make it a worthwhile, long term investment.

With rent becoming less affordable in so many cities, the idea of purchasing a home is becoming a more tenable reality for many people. If you’re interested in what is out there and are curious about your own possibilities for home ownership, you may want to contact one of our local real estate professionals for more information.

What’s Ahead For Mortgage Rates This Week – Feburary 8, 2016

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Whats Ahead For Mortgage Rates This Week Feburary 8 2016Last week’s scheduled economic news included reports on construction spending and several labor-related reports along with weekly reports on mortgage rates and new jobless claims. The details:

Construction Spending Higher in December

U.S. construction spending rose by 0.10 percent in December for a seasonally adjusted annual total of $1.12 trillion. The Commerce Department reported that construction firms spent 10.5 percent more than in 2014.Residential construction spending totaled $416.8 billion for 2015, which was 12.60 percent higher than in 2015.

Higher construction spending can be a double-edged sword, as it can indicate that builders are stepping up construction or that they are paying higher prices for labor and supplies. Builders have consistently cited labor shortages and slim supplies of buildable land as concerns. Short supplies of available homes impacted housing markets in 2015. Low inventories of homes drive up home prices and impact affordability for first-time buyers; these conditions eventually slow housing markets with fewer qualified buyers and home sales.

Fed Benchmarks Show Mixed Readings

The Federal Reserve consistently cites its goals of achieving maximum employment and an inflation rate of 2.00 percent as benchmarks for its decision to raise or not raise the target federal funds rate. National unemployment reached a new low of 4.90 percent in January against expectations of 5.00 percent and December’s reading of 5.00 percent. Inflation held steady with no increase in January; this offsets the good news concerning unemployment. Lower oil prices are holding inflation well below the Fed’s desired rate of 2.00 percent.

Mortgage Rates Fall, Jobless Claims Rise

Freddie Mac reported lower average rates across the board. The average rate for a 30-year fixed rate mortgage fell by seven basis points to 3.72 percent; the corresponding rate for 15 year mortgages fell six basis points to 3.01 percent and the average rate for a5/1 adjustable rate mortgage dropped five basis points to2.85 percent. Average discount points were 0.60, 0.50 and 0.40 percent respectively.

Weekly jobless claims rose to 285,000 new claims against expectations of 280,000 new claims and the prior week’s reading of 277,000 new jobless claims. While rising jobless claims could suggest a slowing jobs market, the low unemployment rate suggests otherwise.

Non-Farm Payrolls, ADP Payrolls Fall

According to the Bureau of Labor Statistics, non-farm payrolls added 151,000 jobs in January as compared to expectations of 180,000 jobs added and December’s reading of 262,000 jobs added in December. Analysts said that January’s reading is further evidence that a long-running decline in new jobless claims has ended.

ADP payrolls were also lower in January with 205,000 new jobs posted as compared to December’s reading of 267,000 private sector jobs added. Holiday hiring likely impacted higher readings in December, but time will tell if declining job growth is trending.

What’s Ahead

Next week’s economic reports include data on job openings, consumer sentiment and Fed Chair Janet Yellen’s Congressional testimony.

‘Don’t Sit Around Waiting for a Deal’ and Other Great Advice from Successful Home Sellers

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'Don't Sit Around Waiting for a Deal' and Other Great Advice from Successful Home SellersThe real estate market and all the things involved in selling a home can seem complicated, and it can be very hard to know which tips to trust. While there’s plenty of great advice to go around from many knowledgeable sources, here are some of the best tips from home sellers who have made a successful sale.

Research Your Local Agents

When considering an agent that will meet your home-selling needs, it can be tempting to go with someone familiar or recommended through a friend who seems like a safe bet. However, it’s important to do your research and find an agent who has a number of “Sold” homes under their belt. Create a list of agents you’re impressed by and take note of their sales and agent fees, and keep in mind that you may want to lean towards an agent who has expertise in your neighborhood.

Get A Second Opinion On Price

Before you have an agent appraise the value of your home, it’s worthwhile doing some research on your end to determine the approximate value of your property. Once you’ve arrived at a figure, bring in the agents you’ve selected to appraise the value of your property. If one price is significantly higher than the other, it may be a red flag that an agent is trying to win over your business, regardless of whether the sale price is reasonable. In this case, you will want to choose the agent that provides the most appropriate appraisal.

Be House Ready At All Times

Having potential buyers view your home will certainly make the idea of selling it real, so make sure that it is ready for viewing at any time. If a potential buyer cannot view your property or has to work around your schedule constantly to arrange viewings, there’s a pretty good chance that you may lose out on some good home offers. Instead of missing out, provide a set of keys to your real estate agent so they can show people around your home when you’re not around. This should automatically increase the likelihood of an offer on your home.

Heading into the real estate market can be a matter of trepidation if you’re not sure what to do, but by researching your agents and being prepared you’ll increase your chances of success. If you’re almost ready to put your home on the market, you may want to contact one of our local real estate professionals for more information.