Happy New Year! We hope 2018 is your best year yet.
Happy New Year! We want to take a minute to thank our wonderful friends, clients, and family members who worked with us or helped us this past year.
Thank you so much for your trust in us here at Diamond Residential Mortgage- Libertyville. Jan has been serving mortgage clients for over 20 years now, and we are just very thankful for all of your support.
We hope you have a wonderful and fabulous 2018. Make it your best year yet!
Make 2018 your best year yet!
If you have any real estate or mortgage questions, remember, you can always give us a call. We would be happy to help you!
The Fed’s announcement to cut back its balance sheet means the longer you wait to buy or sell a home, the harder it might be for you.
The Federal Reserve just announced a move that will have a big impact on both home buyers and sellers.
At the latest Fed meeting on September 20th, Fed Chair Janet Yellen announced that the Fed would start to cut back its balance sheet. While that might sound boring compared to the usual announcements of Fed rate hikes, it's actually a very big deal.
You see, when the financial crisis hit 10 years ago, the Fed needed to take emergency measures, so it injected a huge amount of money into the economy. The Fed did this by buying up various financial assets totaling $3.5 trillion, an enormous sum that made up almost 25% of the entire U.S. economy at the time.
This money helped stabilize various markets and get the economy back on track. However, the Fed is confident that the economy is now doing well enough for it to slowly start taking some of that money back. And that's exactly what this announcement was all about.
As you can imagine, this is going to have a massive impact throughout the economy, including on real estate. According to experts, it will inevitably put upward pressure on consumer borrowing costs, such as mortgage rates, which have stayed fairly low in spite of the Fed's actions so far.
In other words, if you are thinking of buying a home, the Fed's most recent move will eventually make it more expensive for you to do so because you will be paying more in interest. If you are looking to sell your home, this might mean there will be fewer interested buyers, which might drive prices down and might make it harder to sell.
Now, this won't happen immediately, because the Fed's balance sheet rollback will be gradual. As a matter of fact, the Fed is only reducing its balance sheet by a mere $10 billion a month to start with.
But make no mistake, while the Fed's moves will take time to bear fruit, they will drive up interest rates, particularly as the Fed ramps this process up in the coming months.
That's why if you've been thinking of getting into the real estate market, now is such a crucial time.
If you have any questions, whether about buying or selling your home, or about the details of the Fed's announcement and what they mean for you, give me a call. I'm here to help.
Real estate investing is on the rise. Here are five different ways you can get involved.
Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence. In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties.
Real estate investing is on the rise. Here are five different ways you can get involved.
Are you curious about investing in real estate? If so, here are five different ways you can get started: 1. Buy and rent This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment. 2. Buy and sell Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016. 3. Real estate investment groups Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course). 4. Crowdfunding sites Recently, there's been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits. 5. REITs Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits. Each of these investing approaches offers a tradeoff between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional. If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.
Home remodeling is as hot as it's ever been. Here are five projects that bring the best return on investment.
Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year and now makes up a $324 billion market. According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return. 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck. 4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That's why a typical window replacement should yield at least a 70% return on your investment.
Some will make more sense for your home than others.
Clearly, some of them will make more sense for your home than others. If you're considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you'll be able to get. If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could be worth. I look forward to hearing from you!
The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it.
On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market? While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market. First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates. Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices.
These increases will not have any significant impact on our market.
Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending. Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year. In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you have any questions about our market or you’re thinking of buying or selling a home, give me a call or send me an email. I’d love to help.
Today I want to inform you about how Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt.
If you have a student loan or you are a cosigner on one, I have some good news for you.
Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt.
These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans.
The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage.
Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage.
Some folks are lucky enough to have their student debt paid by their parents or even by their employer. The thing is, Fannie Mae didn't take this into account when calculating the debt-to-income ratio. That's the second new change.
If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage.
If you can qualify for a mortgage right now, you definitely should.
If you can qualify for a mortgage right now, you definitely should. Rates are still at a historical low, and lots of great houses have recently come on the Libertyville market.
Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way.The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan.
This applies whether the loan is yours, or you're a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way, and the new rule makes it cheaper to do so.
If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, get in touch with me. I’ll be glad to help.
Today, I want to share with you all the options you have for an affordable down payment as a homebuyer.
What's the biggest obstacle to homeownership? According to a recent survey, "saving enough for a down payment" comes at the top of the list. A whopping 55% of prospective homebuyers cited this as their main stumbling block. And with the continuing growth of home prices, things aren't getting any easier. In fact, homeownership rates reached a 20-year low last November. It wasn't always like this. A decade ago, many lenders were offering easy, no-money-down mortgages. However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment.
"55% cited the lack of a down payment as their main stumbling block."
Here's the good news. If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options. First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners. Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It's possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs. Third, there's the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage. Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation. There’s one important thing you should know. If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments. Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases. In short, there are lots of options to make owning a home a reality for you, even if you haven't saved up tens of thousands of dollars. If you're considering buying a home, give me a call and we can discuss your options. Buying a Libertyville Home? Click here to complete your loan application. And if you need more advice on getting a no-money-down loan, give us a call at (847) 362-1335.
I recently read some advice for self-confidence from a teenage girl's website, and I think it can actually be really helpful to you and your career. Try thinking about these scenarios in a different way to help yourself.
Sometimes when we use our same introduction or phrasing over and over again, we can get a little bit stale. In turn, I think we can also lose a little bit of self-confidence. I came across this recent bit of advice from a teen girl's website, actually. It's something you can share with anyone to help with the idea of self-confidence: "What can I say to myself?"
Instead of thinking you're not good at something, ask yourself what you're missing.
Instead of "I'm not good at this," try thinking "what am I missing?" Instead of "I'm awesome at this!" try thinking "I'm on the right track." Instead of "I give up,” try thinking "I'll use some of the strategies we've learned." Instead of thinking "This is too hard," think, "This might take some time and effort." Instead of, "I can't make this better," think, "I can always improve, so I'll keep trying." I think this is something I struggle with in my own office. Likewise, another one that was kind of personal and funny to me was, "I just can't do math." I never said I couldn't do math, but I was never fond of algebra. Instead of "I made a mistake," think "Mistakes help me learn better." Instead of "She's so smart, I'll never be that smart," think "I'm going to figure out how she does it so I can try it (or so I can kick her ass!)" Another one I really like is instead of thinking, "It's good enough," think "Is it really my best work?" I've had this situation transpire with me several times over the last year with people I've met through networking groups that I hired. I was disappointed in their work knowing that they didn't do their best, and this is something that I started asking them. I'd say "I'm going to pay you for this, but is this really your best work?" Finally, the last item was, "Plan A didn't work," when you should be thinking, "Good thing the alphabet has 25 more letters." Hopefully, this helps you in your networking and your education. If you have any questions for me or there's anything I can do to help you in your career, give me a call or send me an email. I'd love to help you out!
Are you curious why so many people choose us to help them buy and sell homes? Let Liz Cannon tell you.
Here at Liberty Mortgage, we value our clients’ well-being above all else. As a testament to our dedication and the quality of service we provide, today we’ve brought in a former client of ours, Liz Cannon, to share her experience of working with us. “I could not be happier with Jan and her team and their services, hard work, and dedication,” Liz says. “They seriously were a lifesaver during the home buying process and I highly recommend if you are a first-time home buyer or looking to refinance your home that she’s the first person you call.”
I highly recommend her and I’d never buy a house without her.
Liz met Jan during a guest lecture she gave about mortgages at the College of Lake County in 2014. She left such a favorable impression that Liz was the first person she contacted when she and her husband decided to buy a house last year. Jan remembered Liz from their encounter and immediately invited her and her husband into her office for a thorough consultation. “She really does go the extra mile for her clients. She’s very charismatic. She used to be a teacher, so she’s great at explaining things in a way that isn’t confusing, and she doesn’t make you feel stupid for asking any sorts of questions. I highly recommend her and I’d never buy a house without her.” It was our pleasure to be able to help Liz and her husband buy their first house. If you are thinking about buying a home, please don’t hesitate to contact us. It would be our pleasure to help you too.
