INTEREST RATES …EXTRA! EXTRA! READ (BETWEEN THE LINES) ALL ABOUT IT!!

INTEREST RATES …EXTRA! EXTRA! READ (BETWEEN THE LINES) ALL ABOUT IT!!

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“To the extent that key labor market indicators continue to show improvement, the likelihood of tapering asset purchases will continue to rise.” 

James Bullard, President of the Federal Reserve Bank of St. Louis

“In my view, we at the Fed should begin tapering back our bond purchases at the earliest opportunity…” 

Richard Fisher, President of the Federal Reserve Bank of Dallas

“I expect discussion about the possibility of reducing the pace of asset purchases.”

Jeffrey Lacker, President of the Federal Reserve Bank of Richmond

Are interest rates going up? No one can (or will) answer that question. However, as we are all aware, change is one of the most constant parts of life and after historical low interest rates for the past several and the recent rises in home prices, all the continued “chatter” regarding the betterment of the economy seems as if change is in the air again. Today with the national Affordability index at a 5 year low, the bigger question may be are you ready for the changes?

It seems as if times will be no better than NOW. Maybe you just need to read a little closer to what is written “between the lines“.

Interest Rates ...Extra! Extra! Read (between the lines) All About It!!

 

John Marcotte
Marcotte Real Estate Group
720-771-9401

john@boulderhomes4u.com

Search for homes on my website @ www.boulderhomes4u.com

When thinking of Real Estate, think of John Marcotte
I’m never too busy for your referrals.

 

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Boulder REAL ESTATE

Is Buying or Renting Right for You?

Is Buying or Renting Right for You?

rent

The decision to buy or rent depends on your current financial situation, your future plans and the lifestyle you want to live. Both options have their own set of benefits, and potential drawbacks, that should be carefully evaluated.

Buying may make sense if you…

  • Have reliable income, good credit and documentation to verify your savings.
  • Can afford at least a five percent down payment and related closing costs.
  • Want a chance to build equity and be eligible for homeowner tax breaks and credits.
  • Are financially able to take on home-maintenance/improvement projects.
  • Have an adequate cash reserve to withstand a loss of job, long-term illness, or other financial setback.
  • Are planning on staying in your home for at least four years.

Renting may make sense if you…

  • Have a career or lifestyle that requires you to move frequently or suddenly.
  • Prefer having a set monthly budget and cannot afford unforeseen home-maintenance expenses.
  • Do not have the time or desire for home maintenance /improvements.
  • Enjoy having amenities such as a pool, gym, concierge and tennis courts.
  • Plan on downsizing your living space or retiring in the near future.
  • Are experiencing a financial setback and/or rebuilding your credit.

The advantages of owning or renting are different for everyone, so be sure to consider these important personal situations and long-term goals before making your decision.

 

 

John Marcotte
Marcotte Real Estate Group
720-771-9401

john@boulderhomes4u.com

Search for homes on my website @ www.boulderhomes4u.com

When thinking of Real Estate, think of John Marcotte
I’m never too busy for your referrals.

 

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8 WAYS MILLENNIALS CAN SAVE FOR A HOUSE

8 WAYS MILLENNIALS CAN SAVE FOR A HOUSE

Millennials face many challenges when it comes to buying a home. Saving up for a down payment is difficult when burdened with monstrous student loans and a tough job market. Millennials have increased credit debt and decreased personal savings compared to their parents and grandparents.

Homeownership may not be the immediate future, but improving your financial situation can begin today. The right advisors,  smart spending, and savvy saving will pave the way to your new home.

Here are 8 ways Millennials can save for a house:

  1. Hire a financial advisor: A few years out of school I was struggling to make ends meet and my debt was only getting bigger. A financial advisor helped me evaluate my finances and devise a plan to reduce debt and start saving. Interview several advisors before deciding who you want to work with.
  2. Research student loan debt options: Student loan debts are a huge burden for millennials. Contact your lender to review your options. Reducing your monthly payment can help set aside funds for a down payment.
  3. Start an automatic savings plan: Place a percentage of your salary earnings directly into a savings account.
  4.  Community Housing Innovations, Inc.
  5. Consider a roommate or two: Reduce your rent and utility bills. Car pool to save on gas when making trips to the grocery store or heading to work.
  6. Evaluate your spending habits: What are your every day spending habits? Track every expense you make over a week. Try using Mint or Level to help track your spending.
  7. Cut back on monthly expenses: Don’t overpay on gym memberships, cell phone plans, and cable TV. Choose less expensive plans and watch your savings grow.
  8. Reuse, Recycle, Repurpose: Before you go out and buy new “stuff” see what you can reuse, recycle, or repurpose.
  9. Earn extra money: Freelance and part-time work can be a great way to earn extra income. Put 100% of this income into your down payment savings.

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For more money saving tips click on the links below: 

USA Today

US News

LifeHacker

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John Marcotte
Marcotte Real Estate Group
720-771-9401

john@boulderhomes4u.com

Search for homes on my website @ www.boulderhomes4u.com

When thinking of Real Estate, think of John Marcotte
I’m never too busy for your referrals.

 

new bh4u logo

 

Boulder homes for sale

More Americans Believe Economy Headed in Right Direction

More Americans Believe Economy Headed in Right Direction

Despite continued uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy. According to results from Fannie Mae’s November 2012 National Housing Survey, such improvement bodes especially well for continued strengthening in the housing sector, which in turn is likely to support overall economic growth.

“Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year highs,” says Doug Duncan, senior vice president and chief economist of Fannie Mae. “On the housing front, attitudes about the current selling environment continue to improve, with a significant increase in those saying it would be a good time to sell. This growing confidence in a housing recovery, in addition to other factors, may reinforce growing consumer optimism regarding the improving direction of the general economy. Those indicating that the economy is on the right track has risen to 44 percent while those saying it’s on the wrong track has fallen to 50 percent, the smallest gap since the survey’s inception.”

The November survey results show significant movement across many of the indicators. The share of respondents who say now is a good time to sell a home jumped 5 percentage points in November to 23 percent – the highest level since the survey began in June 2010 – narrowing the gap with those who say it is a good time to buy. The percentage of respondents who expect mortgage rates to go up increased by 4 percentage points to 41 percent. Those expecting home prices to go down within the next year also rose by 4 percentage points to 14 percent over last month, a rebound from the survey’s record low in the prior month, while the share who believe home prices will go up in the next 12 months edged up to 37 percent, tying the survey high. Of note, 51 percent of respondents now say it would be easy to get a mortgage, marking the highest rate since the survey’s inception (this survey finding is in addition to the 11 National Housing Survey indictors).

When asked about the economy, those who say it is on the wrong track dipped 6 percentage points since October and a total of 25 percentage points in the past year. Respondents expressed some improvement in the status of their current finances; however, due potentially to the looming fiscal cliff, the share who expect their personal financial situation to get worse over the next 12 months rose 5 percentage points to 18 percent – the highest level since December 2011.

Survey Highlights

Homeownership and Renting

• Average home price change expectation held steady at 1.7 percent.
• Fourteen percent of those surveyed say that home prices will go down in the next 12 months, a 4 percentage point increase over last month.
• The percentage who think mortgage rates will go up continued to rise, increasing 4 percentage points in November to 41 percent.
• Twenty-three percent of respondents say it is a good time to sell, a 5 percentage point increase over last month, and the highest level since the survey’s inception.
• The average rental price expectation hit 4 percent in November, a 0.9 percent rise over the past two months.
• Forty-eight percent of those surveyed say home rental prices will go up in the next 12 months, a slight decrease from last month.
• The share of respondents who said they would buy if they were going to move held relatively steady at 67 percent.
• Fifty-one percent of respondents now say it would be easy to get a mortgage, marking the highest rate since the survey’s inception.

The Economy and Household Finances

• Hitting 50 percent for the first time since the survey’s inception, the percentage who think the economy is on the wrong track has declined by 25 percentage points over the past year, and by 6 percentage points from last month.
• The percentage who expect their personal financial situation to get worse over the next 12 months rose 5 percentage points to 18 percent, the highest level since December 2011.
• Meanwhile, 21 percent of respondents say their household income is significantly higher than it was 12 months ago.
• Household expenses remained stable over the past month, with 56 percent responding that their household expenses stayed the same compared to 12 months ago.

For more information, visit www.fanniemae.com

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

No-fee Mortgage Option To Be Introduced


Lenders would have to offer potential home buyers an option to get mortgages with no fees, under a rule proposed by the ConsumerFinancial Protection Bureau.

Generally, homeowners pay fees and points in exchange for lower overall interest rates on mortgage loans.

“Consumers have a hard time comparing loans when they are dealing with a bewildering array of points and fees,” said Richard Cordray, director of the Consumer Financial Protection Bureau, in a statement. “We want to provide consumers with clearer options and enable them to choose the loan that they believe is right for them.”

In the Dodd-Frank Act, Congress wanted to clean up the process of getting a residential mortgage, which was criticized as a contributing factor to the financial crisis. The idea was to ensure consumers understand the mortgage loans they’re offered, as well as all the accompanying fees.
While good news for consumers, the mortgage proposal is actually easier on lenders. Lawmakers banned extra fees and points on mortgage loans in cases when the originator makes a commission — which happens with most mortgages.

Under this proposed rule, the bureau would allow lenders to keep offering consumers options to reduce their mortgage interest through fees and points, as long as those fees and points actually reduce the overall interest rate on the mortgage. Lenders must offer the no-fee mortgages as well.

A senior official with the consumer bureau explained that the rule was a balance between a blanket ban on fees and the current origination process, which has no rules for mortgage fees. Consumer groups and those in the lending industry weighed in, saying it would be better to keep giving consumers the opportunity to lower interest rates by paying more up front.

John Marcotte 720-771-9401

www.boulderhomes4u.com

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Distributed by: CNNMoney.com

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