February 22, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Some Experts Say Mortgage Rates May Fall Below 6% Later This Year

February 22, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.

And if you’re looking to buy or sell a home, this is a big deal. While they’re going to continue to bounce around a bit based on various economic drivers (like inflation and reactions to the consumer price index, or CPI), don’t let the short-term volatility distract you. The experts agree the overarching downward trend should continue this year.

While we won’t see the record-low rates homebuyers got during the pandemic, some experts think we should see rates dip below 6% later this year. As Dean Baker, Senior Economist, Center for Economic Research, says:

“They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

And Baker isn’t the only one saying this is a possibility. The latest Fannie Mae projections also indicate we may see a rate below 6% by the end of this year (see the green box in the chart below):

The chart shows mortgage rate projections for 2024 from Fannie Mae. It includes the one that came out in December, and compares it to the updated 2024 forecast they released just one month later. And if you look closely, you’ll notice the projections are on the way down.

It’s normal for experts to re-forecast as they watch current market trends and the broader economy, but what this shows is experts are feeling confident rates should continue to decline, if inflation cools.

What This Means for You

But remember, no one can say for sure what will happen (and by when) – and short-term volatility is to be expected. So, don’t let small fluctuations scare you. Focus on the bigger picture.

If you’ve found a home you love in today’s market – especially where finding a home that meets your budget and your needs can be a challenge – it’s probably not a good idea to try to time the market and wait until rates drop below 6%.

With rates already lower than they were last fall, you have an opportunity in front of you right now. That’s because even a small quarter point dip in rates gives your purchasing power a boost.

Bottom Line

If you wanted to move last year but were holding off hoping rates would fall, now may be the time to act. Connect with a real estate agent to get the ball rolling.

Home Exterior Projects That Scream Spring

February 15, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Spring brings new beginnings and a fresh start to everything around us.

It’s the perfect time to give your home exterior some much-needed attention and do some upgrades to enhance its beauty and functionality. Whether you want to increase your curb appeal or make your outdoor living spaces more comfortable and inviting, there are plenty of home exterior projects that can help you achieve your goals. Below are some home maintenance projects highlighting some of the top things you can do to make your home scream spring this year.

Landscaping
One of the easiest and most effective ways to refresh your home exterior for spring is to invest in some landscaping projects around the property. You can start by cleaning up your yard, such as removing any dead branches, leaves, or debris from the ground that may have accumulated over the winter months. Then, consider planting some colorful flowers, shrubs, or trees to add some vibrancy and life to your yard. You may also want to add mulch or rocks to your landscaping beds to create a more polished and finished look that complements your home’s architectural style. You can also look around for more serious fixes for your yard, whether that means you need a tree removed or a path installed.

Exterior Painting
A fresh coat of paint is a surefire way to transform your home’s exterior and make it look brand new. Choose a color that complements your home’s design and surrounding landscape, and go for high-quality paint that will last for many seasons to come. You can also paint your front door, shutters, or trim to add some contrast and enhance your curb appeal. If you’re not confident in your painting skills, consider hiring a professional painter who can do the job for you.

Outdoor Lighting
Outdoor lighting can make a huge difference in how your home looks and functions at night. Install some subtle yet effective lighting fixtures around your pathways, driveway, porch, or patio to increase safety and add some ambiance to your outdoor spaces. You can also accentuate your landscaping features, such as trees or water features, with strategically placed lights that highlight their beauty and create a dramatic effect.

Deck or Patio Remodeling
If you love spending time outdoors, investing in a deck or patio remodel can greatly increase your home’s value and enjoyment. Consider adding some comfortable seating, an outdoor dining area, a built-in grill or fire pit, and some plants or flowers to create a cozy and inviting atmosphere that everyone will love. Make sure to choose durable and weather-resistant materials that can withstand the elements and stay looking great for years to come.

Roof Repair or Replacement
Last but not least, don’t forget to take care of your home’s roofing system this spring. Winter weather, especially snow and ice, can take a toll on your roof’s integrity and lead to leaks, cracks, or other damage that can compromise your home’s safety and comfort. Hire a professional roofing contractor to inspect your roof and recommend any necessary repairs or replacements. You can also consider upgrading to a more energy-efficient and durable roofing material that can save you money on utility bills and increase your home’s resale value.

Transforming your home exterior for spring is a fun and rewarding project that can greatly enhance your home’s aesthetics, functionality, and value. Whether you choose to invest in landscaping, painting, lighting, outdoor living spaces, or roofing, make sure to choose high-quality materials and work with trusted professionals who can help you bring your vision to life. With the right upgrades and maintenance, your home can look and feel amazing all year round.

New Student Loan Repayment Plan Could Make It Easier For Borrowers to Become Homeowners

February 15, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

A new, more affordable repayment plan for federal student loan borrowers may come with another advantage: It could make it easier to become a homeowner.

The Saving on a Valuable Education, or SAVE plan, can cut borrowers’ monthly payments in half, and leave many people with a $0 bill. The Biden administration officially rolled out “the most affordable repayment plan yet” over the summer.

“Switching to a repayment plan that has a lower monthly payment can help a borrower qualify for a mortgage,” said higher education expert Mark Kantrowitz.

Half of student loan borrowers — including 60% of millennial borrowers — who haven’t yet purchased a home say their education debt is delaying them from doing so, according to a 2021 report by the National Association of Realtors.

Here’s how the SAVE plan could soon change that, experts say.

Smaller payments can help prospective homebuyers

Your debt-to-income ratio, which is usually calculated by dividing all your monthly debts by your monthly income, is a key factor in mortgage underwriting, said Christelle Bamona, a senior researcher at the Center for Responsible Lending.

“Those eligible for SAVE will experience reduced payments, which will in turn lower their debt-to-income ratio,” Bamona said. Most borrowers should qualify for the SAVE plan as long as their loan is in good standing.

Borrowers making payments on their student debt who enroll in SAVE could see their ratio fall somewhere between 1.5% to 3.6%, according to a new report by the Center for Responsible Lending.

Here’s how that happens.

For one, the SAVE plan increases the income exempted from your payment calculation to 225% of the poverty line, from 150%. As a result, the first roughly $33,000 of your income won’t be factored into your monthly obligation, up from around $23,000 on the other income-driven repayment plans. These numbers represent single individuals. More income is protected as family size increases.

Starting in July, an even bigger perk of the plan will be available.

Instead of paying 10% of your discretionary income a month toward your undergraduate student debt under the previous Revised Pay As You Earn Repayment Plan, or REPAYE, borrowers will be required to pay just 5% of their discretionary income. The SAVE plan has replaced REPAYE.

Kantrowitz provided some examples of how much borrowers could see their bills drop.

Previously, someone who made $40,000 a year would have a monthly student loan payment of around $151. Under the SAVE plan, their payment would fall to $30.

Similarly, someone who earned $90,000 a year could see their monthly payments shrink to $238 from $568, Kantrowitz said.

In the past, most mortgage lenders assumed that a borrower’s monthly student loan payment was a certain percentage of their loan balance, even if the actual payment was lower, Kantrowitz said.

Fortunately, he said, “They now base it on the actual loan payment.”

There’s one catch: Many mortgage lenders won’t use a $0 monthly student loan payment in their underwriting process, which the SAVE plan could leave many borrowers with. In such cases, lenders may still calculate your monthly obligation as a share of your total debt.

The Center for Responsible Lending wants to see this change.

“By not counting their monthly payments as $0 in the underwriting process, lenders are artificially inflating consumers’ monthly debt obligation,” Bamona said. This could potentially prevent millions of low-income Americans from getting a mortgage, she added.

Saving for a down payment may be easier under SAVE

The SAVE plan may also help more people get in financial shape to buy a house, experts say. That’s because a smaller monthly payment could enable them to direct more cash to their savings, and reach their down payment goal faster.

Student loan borrowers who are first-time homebuyers may also be eligible for financial assistance, Bamona said, and should research their options.

“Grants or down-payment assistance programs may be accessible to first-time homebuyers, provided by agencies and organizations within their state or municipality,” she added.

Weekend Home Updates!

February 15, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Every homeowner has that list of home repairs that’s been lingering on their to-do list.

Now is the perfect season to roll up your sleeves and start checking off those tasks. Need some inspiration? We’ve got a few simple ideas to guide you through your home projects. For detailed instructions and more information on these projects, check out our latest blog post!

Update Bathroom Hardware:

Bathrooms are a smaller room in your home, making it an excellent place to start when it comes to weekend home renovations. For starters, you could re-grout any dingy tile and re-seal the tub surround to give it a nice clean look.

However, one easy weekend project for a bathroom is to replace outdated hardware, such as the showerhead, faucets, handles and cabinet hardware. Today, a popular hardware finish is satin brass, which offers a brushed, matte look more subtle than the ’90s trend and bold black. This update could apply to kitchen hardware as well!

Organize Kitchen Pantry:

Your kitchen could probably use a few updates, but it’s best to start with one project at a time. Don’t attempt to renovate your complete kitchen over a single weekend. However, there are a few weekend renovations that are quicker than others.

One easy project is to reorganize the pantry, cabinets and shelves. Take some cabinet organization tips from House Beautiful and before the weekend arrives, take note of your current organizational method. Is there a spot for everything, or is there that one appliance that inevitably stays on the kitchen counter? Rearranging your cabinets may offer you extra shelving space, allowing you to squeeze in something extra. As you assess your pantry and cabinets, also ask yourself if you could use any drawer inserts or containers to keep collections together, making it easier to locate. Rotating spice racks are a great way to keep everything neat and within reach as you cook.

Make a Bookshelf Bar Cart:

Bar carts add great storage and make entertaining a breeze. Now you can create your own out of an old bookshelf with a few simple steps from designer Brian Patrick Flynn.

Update Your Bathroom Door:

Take any basic door and add instant drama with a bit of trim and the color of your choice. Here, a bluish-gray hue brings this plain white door to life. Follow the instructions found here.

Install New Flooring:

While you may not be able to install new flooring throughout your entire home in a single weekend, you can start small with something like a bathroom, kitchen or mudroom. Choose proper flooring for the space with moisture-resistant or waterproof qualities. The best bathroom flooring could be anything from vinyl sheet to waterproof hardwood. Beauflor Pure vinyl plank or tile is a fantastic waterproof flooring option. Raintree Flooring also offers a variety of styles and will increase your home’s resale value.

Create a Feature Wall:

Find a wall in your home that could use an extra touch. Whether it’s a wall in the entry foyer or a wall behind the fireplace, consider how to draw the eye toward it. Start with paint chips and find a color that matches your home’s existing decor. Keep in mind that with a feature wall, you can choose a more fun, bright color instead of sticking with a safe neutral. You can not only paint in a single day, but once it’s dry, you can even hang artwork and accessorize areas, like the fireplace mantel, to complete your feature wall.

Bridging the Gaps on the Road to Homeownership

February 15, 2024

West + Main Homes

Colorado, Colorado Springs, Minnesota, Mountains, National, North Carolina, Oklahoma, Oregon

Homeownership is a major part of the American Dream. But, the path to achieving this dream can be quite difficult.

While progress has been made to improve fair housing access, households of color still face unique challenges on the road to owning a home. Working with the right real estate experts can make all the difference for diverse buyers.

It’s clear that achieving homeownership is more challenging for certain groups because there’s still a measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Black households continue to have the lowest homeownership rate nationally (see graph below):

Homeownership is an important part of building household wealth that can be passed down to future generations. According to a report by the National Association of Realtors (NAR), almost half of Black homebuyers in 2023 were first-time buyers. That means many didn’t have home equity they could use toward their home purchase.

That financial hurdle alone makes buying a home more challenging, especially at a time when affordability is a major concern for first-time buyers. Jessica Lautz, Deputy Chief Economist at NAR says:

“It’s an incredibly difficult market for all home buyers right now, especially first-time home buyers and especially first-time home buyers of color.”

Because of these challenges, there are several down payment assistance programs specifically aimed at helping minority buyers fulfill their homeownership dreams:

The 3By30 program offers valuable resources for Black buyers, making it easier for them to secure a down payment and buy a home.
For Native Americans, Down Payment Resource highlights 42 U.S. homebuyer assistance programs across 14 states that make homeownership more attainable by providing support with down payments and other costs.
Fannie Mae provides down payment assistance to eligible first-time homebuyers living in Latino communities.

Even if you don’t qualify for these programs, there are many other federal, state, and local options available to look into. And a real estate professional can help you find the ones that best meet your needs.

For minority homebuyers, the challenges that remain can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process. These professionals aren’t only experienced advisors who understand the market and give the best advice, they’re also compassionate educators who will advocate for your best interests every step of the way.

Bottom Line

Connect with a real estate professional to make sure you have to make sure you have the information and support you need as you walk the path to homeownership.

Blog

There’s a lot of confusion in the market about what’s happening with day-to-day movement in mortgage rates right now, but here’s what you really need to know: compared to the near 8% peak last fall, mortgage rates have trended down overall.

Read more at KeepingCurrentMatters.com

Related Links

Spring brings new beginnings and a fresh start to everything around us.

Read more at Rismedia.com

Related Links

A new, more affordable repayment plan for federal student loan borrowers may come with another advantage: It could make it easier to become a homeowner.

Read more at CNBC.com

Related Links

Every homeowner has that list of home repairs that’s been lingering on their to-do list.

Read more at Twenty & Oak and HGTV

Related Links

Homeownership is a major part of the American Dream. But, the path to achieving this dream can be quite difficult.

Read more at KeepingCurrentMatters.com

Related Links

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