Real Estate Blog

A loaf of bread used to be a nickel. A movie ticket was a dime. Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.

The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.

The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than

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Selling Your Home? Make Sure the Price is Right! Selling Your Home? Make Sure the Price is Right! | MyKCM If you’ve ever watched “The Price is Right,” you know that the only way to win is to be the one to correctly guess the price of the item you want without going over! That means your guess must be just slightly under the retail price.

In today’s shifting real estate market, where more inventory is coming to market and home values are projected to appreciate at lower rates, homeowners will not be able to price their homes as aggressively as they were able to just last year.

They will have to employ the same strategy: be the closest without going over!

As we have explained before, pricing your home at or slightly below market value actually

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Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set. “Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”

The full breakdown is in the chart below: Buying a Home Young is the Key to Building Wealth | MyKCM

The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left

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Buying a House This Year? This Should Be Your 1st Step! Buying a House This Year? This Should Be Your 1st Step! |

MyKCM In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

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The Cost Across Time 

 Friday January 11th, 2019  First Time Home Buyers, For Buyers, Infographics, Interest Rates  

The Cost Across Time [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • With interest rates still around 4.5%, now is a great time to look back at where rates have been over the last 40 years.
  • Rates are projected to climb to 5.0% by this time next year according to Freddie Mac.
  • The impact your interest rate makes on your monthly mortgage cost is significant!
  • Lock in a low rate now while you can!
 
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How to Save Thousands of Dollars in Interest on Your Mortgage

How to Save Thousands of Dollars in Interest on Your Mortgage | MyKCM

One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your loan.

Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well.

When you make ‘extra’ payments toward your loan, the key is to let your lender/bank know that you want the extra funds to go toward your principal

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When Is My First Mortgage Payment Due After Closing?

A very popular question from a home buyer is “When is my first mortgage payment due after closing?”.  More than likely your mortgage payment is due on the first of each month.  Actually, traditional mortgage loans like conventional, FHA, VA, and USDA loans require payments due on the first of each month.  But, there are sometimes options of the first payment date.  In this article, we explain…

  • How a first payment due date is determined

  • Mortgage payment vs. rent

  • Interim interest meaning

  • Interim or daily interest calculation

  • Possible payment options

first mortgage payment

 

Interim Interest Meaning

Interim interest, also called per diem interest, is

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Zillow Strategy Provides Free Leads to Real Estate Agents

It is flat out guaranteed that if you Google any property address or real estate topic, Zillow will show near the top of the results.  Arguably, Zillow.com has become the biggest name in real estate.  Actually, many buyers start their home shopping process here or other sites such as Realtor.com, Trulia, or Homes.com.  Over the years, Realtors had a love – hate relationship with the real estate behemoth.  The leads provided from the website can provide a significant stream of income for real estate agents.  Yet, the increasing cost and the duplication of leads is a big source of pain among many agents.

Although, a recent update we share in this article has provided a way for smart,

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Successful Real Estate Investing Tips for Taxes, Cash Flow, & Qualifying

Are you wondering how to start investing in real estate?  Maybe you own a rental property already?  So many choose residential rental properties for investment income for several reasons.  These include potential appreciation in value, income tax write offs, funding retirement, and providing income along the way.  In order to achieve real estate investing success there are two main keys:  Knowledge and a great Realtor.  In this article, the goal is to share knowledge in these key areas:

  • Rental Property Write Offs
  • How Lenders Calculate Rental Income
  • Rental Property Cash Flow
  • Buying a New Rental Property
  • Avoid a Tax Ticking Time Bomb!

Real Estate

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