Just Listed! 5 new homes for sale in Frisco! make sure to check them out!

Source: Just Listed! 5 new homes for sale in Frisco! make sure to check them out!

Rent vs. Buy: Either Way You’re Paying A Mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

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Gorgeous 2-story home on golf course lot! Comes with plenty of upgrades! Plantation shutters! Fabulous chandeliers! Open concept.

$326,900 2813 SUNSET RIDGE MCKINNEY, TX

MLS: 13278677   Type: Single Family   County: Collin   City: Mckinney   Area: Mckinney Area  Neighborhood: Sunset Ridge #2   Zip: 75070   Style: Traditional   # Rooms: 11    Stories: 2   Taxes: $6,627

BEDS	BATHS	HALF BATHS	SQR FOOTAGE	LOT SIZE	BUILT
4	2	1	2,429	7,405	1991

Gorgeous 2-story home on golf course lot-lots of upgrades, updates! Beautiful hardwoods thru-out downstairs. Plantation shutters! Fabulous chandeliers! Open concept. Liv-dining combo! Gas log stone FP in fam rm. Gourmet island kit-granite-ceramic cktop, blt-in oven & micro, 42 inch cab. Master down, gard jet tub, his-her van, WIC. 3BR’s & gamerm up. Huge Pergola cov dec-blt-in benches, overlooks golf course. Lots of yard! See list of upgrades.

ELEMENTARY SCHOOL	MIDDLE SCHOOL	HIGH SCHOOL
Valleycree Distance: N/A Miles	Faubion Distance: 2.48 Miles	Mckinney Distance: 1.51 Miles

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Distressed Property Sales Hit New Low

The National Association of Realtors (NAR) just released their Existing Home Sales Report revealing that distressed property sales accounted for 6% of sales in October. This is down from 9% in 2014 and the lowest figure since NAR began tracking distressed sales in October 2008.

Below is a graph that shows just how far the market has come since January 2012 when distressed sales accounted for 35% of all sales.

Existing Home Sales Up Year-Over-Year

Mortgage interest rates remained below 4% in October prompting existing home sales to stay at a healthy annual pace of 5.36 million. Year-over-year sales were up 3.9%.

Inventory of homes for sale remain below the 6-month supply that is necessary for a normal market, as they fell 2.3% to a 4.8-months supply. The shortage in inventory has contributed to the median home price rising an additional 5.8% to $219,600.

NAR’s Chief Economist, Lawrence Yun had this to say about the lack of inventory:

“New and existing-home supply has struggled to improve so far this Fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets.”

There is good news though, as Yun went on to say:

“As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago.”

Bottom Line

If you are debating putting your home on the market this year, now may be the time. Buyers are still out there looking for their dream home. Meet with a local real estate professional who can help you determine your best plan.

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PERFECT for 1st time buyer or downsizing. ONE story open floorplan!

$159,900 1418 KINGSTON PLACE PROVIDENCE VILLAGE, TX

MLS: 13275479   Type: Single Family   County: Denton   City: Providence Village   Area: Denton County North Of 380   Neighborhood: Providence   Zip: 76227   Style: Traditional   # Rooms: 6    Stories: 1

BEDS	BATHS	HALF BATHS	SQR FOOTAGE	LOT SIZE	BUILT
3	2	0	1,308	3,920	2003

PERFECT for 1st time buyer or downsizing. ONE story open floorplan in family friendly community. Significant commercial growth in area provides plenty of retail, restaurant, medical and grocery store availability. Welcoming front porch with sitting area. Spacious LA with mstr BR split from the secondary BRs. Kitchen with plenty of cabinetry and counter space overlooks the LA. Kitchen provides access to the enclosed patio and fenced backyard.

ELEMENTARY SCHOOL	MIDDLE SCHOOL	HIGH SCHOOL
Providence Distance: 0.51 Miles	Navo Distance: 1.49 Miles	Ryan H S Distance: 7.23 Miles

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Millennials: What FICO Score is Needed to Buy a Home?

In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some Millennials are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage.

The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos :

“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”

So what credit score is necessary?

A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.

In actually, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months.

Bottom Line

Millennials who are considering a home purchase should get advice from a local real estate or mortgage professional now. They may be surprised how much the requirements for a mortgage have eased.

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2,460 SqFt. 4BR 2Bath $304,900 1705 USA DRIVE PLANO, TX

$304,900 1705 USA DRIVE PLANO, TX

MLS: 13277797   Type: Single Family   County: Collin   City: Plano   Neighborhood: Park Ridge   Zip: 75025   Style: Traditional   # Rooms: 10    Stories: 2   Taxes: $5,230

BEDS	BATHS	HALF BATHS	SQR FOOTAGE	LOT SIZE	BUILT
4	2	1	2,460	8,712	1987

TREES & LANDSCAPING frame this lovely home. Wood-look flooring is in the entry, dining rm & family rm. The stairway & 2 closets in entry. Plantation shutters in the dining, bedroom, landing & study. Kitchen has tiled floors, backsplash & double oven. Living rm has gas log fp & view of pool. Great entertainment area in back yard with huge covered patio with fan, pool with spa surrounded by iron fence & yard has 8ft board-on-board fence.

ELEMENTARY SCHOOL	MIDDLE SCHOOL	HIGH SCHOOL
Hedgcoxe Distance: 0.29 Miles	Hendrick Distance: 0.12 Miles	Clark Distance: 1.98 Miles

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Home Equity Matters A LOT!

There are many reasons, both financial and non-financial, that homeownership remains an important part of the American Dream. One of the biggest reasons is the fact that it helps build family wealth. Recently, Freddie Mac wrote about the power of home equity. They explained:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home’s appreciation. In a nutshell, your money is working for you and contributing toward your financial future.”

They went on to show an example where a person bought a home for $150,000 with a down payment of 10% ($15K), resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance).

The chart below demonstrates the home equity built after 7 years of making mortgage payments and assuming the historic national average of 3% per year home appreciation:

And that number continues to build as you continue to own the home.

Merrill Lynch published a report earlier this year that showed the average equity homeowners have acquired by certain ages.

Bottom Line

Home equity is important to building wealth as a family. Referring to the first scenario above, Freddie Mac explained:

“Now, if you continued to rent, and made the same payment of $684.03 per month, you’d have zero equity and no means to build it. Building equity is a critical part of homeownership and can help you create financial stability.”

Put your housing cost to work for you and your family. Meet with a real estate professional today to explore your options.

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Plano Open house Weekend! here are the list of homes open for the weekend! check them out! Make sure to Drop by! one of them could be your Dream Home!!

Plano Open house Weekend! here are the list of homes open for the weekend! check them out! Make sure to Drop by! one of them could be your Dream Home!! Click on this link to view all the available homes!

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Want to know the value of your home?  Click here: Find Your Homes Value Now For FREE.

Want to learn more information about a specific property?  Click here: The Kimberly Davis Group-Looking to Buy or Sell… The Kimberly Davis Group is ranked #1!

 

 

Open house Weekend for Frisco TX Area! make sure to check them out now and Drop by this weekend!

Open house Weekend for Frisco TX Area! make sure to check them out now and Drop by this weekend! Click on this link for more information!

Like us on Facebook: The Kimberly Davis Group

Want to know the value of your home?  Click here: Find Your Homes Value Now For FREE.

Want to learn more information about a specific property?  Click here: The Kimberly Davis Group-Looking to Buy or Sell… The Kimberly Davis Group is ranked #1!