Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Bedroom Upgrades: How to Decide Between Hardwood and Carpet for Your Bedrooms

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Bedroom Upgrades: How to Decide Between Hardwood and Carpet for Your BedroomsThe floor of your bedroom is important it’s the first thing you touch in the morning, and the last before you go to sleep. Not to mention all the other life moments that go on in there. So take time to consider what you want your bedroom floor to be made of and read on for pros and cons of carpeting and hardwood floors.

The Noise Factor

One of the biggest elements to consider is how sound will carry. Carpet is a very quiet medium, perfect for those bedrooms on higher floors, or in houses that want to keep a quiet profile. Hardwood creaks, and all movements can be heard from walking to a child playing, even to the acoustics of a TV or laptop.

Keeping It Clean

Carpets are hard to keep clean. Dirt, pollen, hair, food and other particles get ground into the fabric, especially if it’s a high-traffic area, and it can be expensive to get them out. Hardwood is easy to tidy and even stains can be refinished without too much cost or effort. On the other hand, carpets need only be vacuumed weekly, whereas a hardwood floor should be swept every other day.

The Life Span Of Your Floor

With careful maintenance, carpets can last for many years but barring anything unforeseen, hardwood floors last forever. They also never go out of style, and offer their rooms a sense of prestige. Carpets need replacing and the patterns can’t be changed with the ease that hardwood floors can be refinished or refurbished with area rugs.

The Cost Of It All

In initial costs, carpets are largely cheaper, although they cost more to maintain because they need to be replaced more often. Hardwood floors take a big initial payment, but because they are more durable the costs even out, in the end. Environmentally speaking, hardwood is often more sustainable (as long as it comes from an ecologically-sensitive company), but there are recycled options for carpeting too.

What Goes On In There

Consider what kind of life will be lived in the bedroom in question. Will it be a kid’s room, where the padding of carpet might be safer? Is it meant for guests, where the beauty of hardwood could make a strong first impression? Does the occupant have allergies, so that hardwood (which doesn’t gather allergens like carpet fabric) is a better choice?

Consider everything when making your decision. Remember, in the end, both hardwood and carpet have pros and cons. For a second opinion, or advice on what works in your neighborhood, talk to your local real estate agent.

What’s Ahead For Mortgage Rates This Week – October 3, 2016

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Last week’s economic releases included reports on new and pending home sales, S&P Case-Shiller Home Price Indices and regularly scheduled weekly reporting on mortgage rates and weekly jobless claims. Readings on consumer sentiment and confidence were also released.

New and Pending Home Sales Lower as Peak Sales Season Winds Down

August readings for new and pending home sales were lower than for July; analysts said that slim supplies of available homes and rising home prices contributed to slower home sales. Peak home sales typically occur during spring and summer. Homebuyers with school-aged children prefer to be settled into a new home when school starts in August and September.

According to the Commerce Department, new home sales achieved their second highest reading since the Great Recession. Although lower than July’s reading, August sales of new homes reached 609,000 on a seasonally-adjusted annual basis. Analysts expected a reading of 600,000 new home sales based on July’s reading of 659.000 new homes sold. August’s reading was 20.60 percent higher year-over-year. High demand for homes appears to be kicking home builders into higher gear as they strive to ease slim inventories of available homes.

The impact of short inventories of available homes was reflected in August’s reading for pending home sales. Home sales awaiting closing fell in August from July’s reading of +1.20 percent in July to 2.40 percent in August. The National Association of Realtors® said that home sales are declining due to very limited inventories of available homes. Rapidly rising home prices and strict mortgage qualification requirements also contributed to slipping sales. After home buyers sign a purchase contract, they are at the mercy of changing mortgage rates their ability to qualify for a mortgage. Pending home sales supply an indication of future closings and mortgage loans.

According to the S&P Case-Shiller 20-City Home Price Index for July, home price growth dipped from June’s seasonally adjusted annual rate of 5.10 percent to 5.00 percent. Slim inventories of homes for sale and high demand were again cited as primary reasons for slower home price growth. While demand is high, slim supplies of available homes can cause would-be buyers to postpone their home search until more homes are on the market.

Mortgage Rates Fall, New Jobless Claims Rise

Mortgage rates fell across the board last week according to Freddie Mac’s weekly survey of rates. The average rate for a 30-year fixed rate mortgage fell six basis points to 3.42 percent; the average rate for a 15-year fixed rate mortgage was four basis points lower at 2.72 percent. 5/1 adjustable rate mortgages had an average rate of 1.81 percent, which was one basis point lower than the previous week’s reading Discount points were also lower and averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims rose last week to 254,000 claims, but new claims were lower than the expected reading of 259,000 new claims which was based on the prior week’s reading of 251,000 new jobless claims. New jobless claims have stayed below 270,000 new claims for three months for the first time since 1973.

In prepared testimony before the Financial Services Committee, Federal Reserve Chair Janet Yellen discussed problems facing two major banks and said the Fed’s goal was managing its regulatory stance to support financial stability.

September’s Consumer Confidence Index reading rose to 104.1, which exceeded analysts’ estimated reading of 99.3 and August’s reading of 101.1.

What’s Next

Next week’s scheduled economic reports include readings on construction spending and several labor-related releases including ADP Payrolls, Non-Farm Payrolls and the National Unemployment Rates. Weekly reports on mortgage rates and new jobless claims are set for release as usual.

Home Showing Tips: How to Stress the Positives Without Sounding like a Used Car Salesperson

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Home Showing Tips: How to Stress the Positives Without Sounding like a Used Car SalespersonSelling a home is a difficult enough task as it is, but the longer a home stays on the market the easier it is to fall into the trap of sounding like a used car salesperson and accidentally pushing people away.

There are ways to make sure potential buyers see the positive aspects of the home without coming on too strong and leaving them skeptical.

Proper Staging Will Show Off The Best Parts Of A Home

Many sellers rely on the imagination of the buyer to sell aspects of a home. Why tell somebody to imagine all the things they could do with the back yard when proper staging can show them?

An empty deck will never look as appealing as one with beautiful patio furniture and a bland living room will never seem as inviting as one that has been properly staged. Allowing buyers to see the rooms at their best will give the seller a chance to step back and not have to push the rooms on them.

Avoid Being Too Personal

One rule of thumb when showing a home is to de-personalize as much as possible. The goal is to have potential buyers image themselves and their family living in the space, which can be hard to do when there are reminders of the family currently residing there.

It’s easy to become caught up in the moment when talking about personal lives and telling stories, so when a seller tells stories about their own upbringing in the home or how they raised a family there it can seem pushy and put people off.

Guide The Flow Of Traffic

Placing furniture in a certain way can actually dictate the flow of traffic through the rooms of a home. By clearing out bulky pieces of furniture or decorations that hinder foot traffic from flowing properly, a seller can help guide people through the space.

If there is a particular area that a seller wants people to spend more time in, they can accomplish this by giving that room a more open floor plan when compared to previous rooms. This acts as a traffic stop for people who have been naturally flowing towards that particular selling point.

Have you been having problems when showing your home? Reach out to your local real estate professional today.

Investing in a Vacation Property? Learn What You’ll Need to Have to Get A Mortgage Approved

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Investing in a Vacation Property? Learn What You'll Need to Have to Get A Mortgage ApprovedWith approximately one million people having purchased vacation homes in the last year, this type of residence is gaining popularity for those who are interested in a home in a beach setting or a vacation hot spot. However, while a second home can seem like a great purchase and solid investment opportunity, there are different requirements that go into this type of purchase. If you’re considering a vacation home, you may want to be aware of the following financial factors.

The Down Payment Amount

If you currently have a primary residence, you may be aware that you don’t need to put down 20% or even 10% in order to make a home purchase, but things are different when it comes to a vacation home. Because you will be taking on an additional mortgage, there is greater risk involved, and this means you will likely have to put in at least 10 percent. Because of this, many homebuyers utilize the equity they have in their first home to make up the down payment.

About The Credit Score

Most people that have a credit score of more than 500 have the ability to use a mortgage product and purchase a home, but if you’re buying a second property, you’ll need a higher credit score in order to facilitate the purchase. Because there is more risk involved, lenders will want to make sure you’re a good bet. In addition, if you do have a lower credit score, lenders like Fannie Mae may also expect you to put more down to decrease the risk involved for them.

The Income Required

Since you’ve been through the mortgage process for your first home, you’re probably aware that you debt-to-income (DTI) ratio needs to be a certain amount in order to qualify for a mortgage. While your DTI for a primary residence may be a little bit higher since it’s your only payment, this ratio will be lower for your vacation home since it’s higher risk. This means you’ll require a slightly higher income than for your primary residence in order to get approved.

Deciding to purchase a vacation home can be a very exciting concept for many people, but there are a number of different financial requirements that go along with buying another residence. If you’re in the market for a vacation property and are curious about what’s involved, contact your local real estate professional for more information.

The Pros and Cons of Mortgage Rate Locks

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The Pros and Cons of Mortgage Rate LocksIf you’re just jumping into the game of home purchasing, you are likely considering all of your loan options and may even have heard the term mortgage rate lock. For those who don’t like to gamble, a mortgage rate lock can offer a bit of reassurance, but there are also some downsides to this type of protection. Before signing off on this, here are the details on rate locks so you can make an informed decision.

What Is A Rate Lock?

For many people who are buying a home in such a tumultuous market, the idea of interest rates can make the heart race a little faster, but this is the purpose of rate locks which offer consistency in a market in flux.

Instead of having to deal with day-to-day fluctuations of the rate which increases or decreases what you owe a rate lock is a lender promise that you will be held to a specific rate or your rate will not rise above a certain number.

Easy Balancing Of The Budget

The easy thing about utilizing the rate lock, especially for a buyer who is less familiar with the market, is that it will enable you to instantly determine your monthly payments based on that rate. Instead of having to pay more per month, you’ll be able to estimate exactly what your payment will be and it won’t rise above the limit you’ve set for yourself. While daily fluctuations can be a drag, a mortgage lock takes the guesswork out of the day-to-day.

The Added Cost Of Security

It might seem like a rate lock is an option that everyone would utilize, given the stability, but lenders charge for this type of offer because of the risk factor. While lenders can certainly stand to gain if your rate lock is higher than the interest rates, in the event that they rise beyond this point, they will end up losing money. So, while a 30-day rate lock may not end up costing you, this type of lock stretched over a longer period may actually end up costing you more than fluctuating rates.

If you’re not familiar with the world of investing and interest rates, a mortgage rate lock can sound like a great idea; however, there are downsides to this offer and they’re worth considering before getting locked in. If you are currently on the hunt for a home, contact your local real estate professionals for more information.

Understanding ‘Disposable Income’ and How This Will Impact Your Mortgage Approval

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Understanding 'Disposable Income' and How This Will Impact Your Mortgage ApprovalThere are few things more exciting than finding your ideal home, but with the rising cost of housing, a person’s dream home can often come with a very high purchase price. If you’re wondering how much home you can truly afford and how your cost of living will fare for your mortgage approval, here are some of the details on what you can expect when it comes to finding a home at an affordable price.

What Is Your Debt-to-Income Ratio?

Before deciding if a home is right for you, it’s important to calculate what your debt-to-income (DTI) ratio is to determine how much house you can afford. The debt amount will include any credit cards, existing mortgages and other loan payments that you pay down each month. To determine your maximum monthly payment, multiply your gross income by 0.36 and divide it by 12. This will give you the expenditure of debt, including your housing payment, that you should not exceed each month.

Determining Your Down Payment

There’s a lot of talk around the ideal amount you should put forward for a down payment, but this percentage can directly impact the amount of the house you can afford. If you are able to put down 20% of the purchase price of your home, this means your monthly mortgage payments will be minimized and this will decrease your DTI ratio. While a home may be out of your reach if you can only put 10 or 15% down, 20% down will ensure a higher amount of disposable income on a monthly basis, making your application more feasible.

Determine Your Lifestyle

While a lender may not reject your application outright if your debt-to-income ratio is higher than suggested, it’s important to know what kind of spending choices make sense for you so that you can make your monthly payments. If you have limited expenses above your mortgage and enjoy a Spartan lifestyle, it’s entirely possible that you’ll be able to manage a higher monthly amount. However, if you don’t have stable employment and are struggling each month, it may be a good idea to consider a less expensive property.

The monthly mortgage payment for your dream home may look like it’s manageable on the surface, but if your DTI ratio exceeds what is suggested, there may be issues with acceptance of your application. If you’re currently in the market for a new home, contact your local real estate professionals for more information.