Tuesday, December 4, 2018 / by David Veenstra
Kalamazoo MI Real Estate - Every three years, the Federal ReserveSurvey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.
The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. This was a nationwide study of averages and we believe this to be accurate for the Kalamazoo real estate market too.
There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the ...
Monday, June 18, 2018 / by Veenstra Team
Kalamazoo MI Real Estate: An economist responded when asked how interest rates would change: “They may fall some and then, rise and after that, they’ll fluctuate.”
Just because interest rates have been low for ten years doesn’t mean they are supposed to be low or will stay low. The Federal Reserve has raised interest rates twice this year and are expected to go up twice more plus three times next year. Mortgage rates have risen from 3.95% to 4.62% since the first of January.
Increased rates directly affect the payments on homes but so does the price. With inventory levels remaining low, the prices will continue to go up. When interest rates and prices rise at the same time, it costs buyers a lot more.
If the mortgage rates go up by one percent and prices increase by five percent in the next year, the payment on a $250,000 home could go up by $200 a month. In a seven-year period, the buyer would pay $18,000 more for the home.
People planning to buy a ho ...
Monday, June 11, 2018 / by Veenstra Team
Kalamazoo MI: Dreaming of owning a second home on a lake or a condo in two places to be able to be snow birds? We would love to help you accomplish that dream! Our team is able to help you buy a home in the SW Mich area and we can connect you to a pre-screened REALTOR of integrity in any state or Canada so you will be sure you are working with a great agent anywhere. We are often asked whether a second home get taxed like a primary residence? They do have some key tax differences. Here is a quick summary of what we understand to be the differences. This article is intended for informational purposes and advice from a tax professional for your specific situation should be obtained prior to making a decision that can have tax implications. Note that we have been told that a principal residence is the primary home where you live and a second home is used mainly for personal enjoyment while limiting possible rental activity to a maximum of 14 days pe ...
Monday, May 7, 2018 / by Veenstra Team
Kalamazoo real estate - For the last 25 years, most buyers have gotten a new mortgage or paid cash when purchasing a home. Years ago when we (David and Cindi) purchased our first house, we assumed a mortgage at 8% interest when the rates were about 12.5%! We were thrilled to save so much money every month!
There haven’t been significant numbers of assumptions in the past 25 years because interest rates have been steadily going down and FHA and VA have also added qualification requirements on assumptions that were not present in the past. Since interest rates were going down and If a person had to qualify, they might as well do it on a new loan and get a lower interest rate.
Even though mortgage money is currently attractive and available, it is at a four-year high. When interest rates on new mortgages are higher than the rates of assumable FHA and VA mortgages originated in the recent past the question becomes.....Does it make sense to consider the possibili ...
Tuesday, October 17, 2017 / by David Veenstra
Kalamazoo Real Estate - There could be some legitimate reasons for not buying a home but indecision should not ne one of them. Indecision is rooted in not having enough information to move forward to own a home or continue renting. The Veenstra Team is typically able to provide the right information and connect you to the right service providers to provide the needed information to allow our buyers and sellers to make the wisest real estate decisions.
If you keep renting, at the end of the year, you have had a place to live and a pile of receipts that helped the landlord pay for his house. Deciding to buy a home will give you a place to live that is yours and all the things that come with that.
When you consider principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than the rent you’re paying. The principal reduction included in each payment is like a forced savings account that increases as your mortgag ...