Home Mortgage and Finance

There are currently 159 blog entries related to this category.

 

When I woke up this morning and heard the about the government shutdown, my first thought was, how it will effect Denver Real Estate? With the market still booming right now, I always dread these types of incidents popping up and slowing things down. After doing some research though, I feel pretty confident that the shutdown won't have a significant impact on the market as long as it is brief.

The biggest area of concern with the housing market whenever there is a government shutdown has to do with the mortgage side of the business. Since 90% of all loan activity is underwritten, insured or owned by government and its affiliated entities there is inevitably going to be a slowdown. FHA loans will feel the biggest impact. FHA will continue to

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Even with the higher interest rates, buying and owning a home in Denver remains cheaper than renting, so why are you still renting? A few months ago, when interest rates were in the 3% range, it was easy to see why buying was cheaper than renting.When I tell that to renters now, most don’t believe me because of the rising home prices around Denver and rates more in the mid to high 4% range. But according to a study by Trulia.com, it is 45% cheaper to buy than rent in Colorado.

To read the full study and to understand how they come up with their numbers, click here. It turns out that Denver is still one of the most affordable cities in the country and one of the best places to buy right now. With rents still on the rise and no signs of slowing, I

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  The Summer market is winding down with inventory rising a bit, creating a more balanced market in the Denver Metro area.  If you are thinking about making a move, or would like more information about these statistics, don't hesitate to reach out to a LIVE Urban agent at 303-455-5483.
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Interest rates in Denver have dramatically increased since May 8th.

When I first got into lending in November 1990, a 30-year fixed rate mortgage loan cost 10.0% (Freddie Mac data). In November 2000, loan interest rates were 7.4% and in November 2008, they were 6.1%. Our recent low rates were artificially driven down by government stimulus, which will taper off, according to Fed Chairman Bernanke. 

With all this seemingly bad news, mortgage rates are still at historic lows. Keep in mind, that the lower the interest rate, the more house you can own for less money. On a $300,000 loan, interest at 4.5% vs. 5.5% reduces a loan payment of principal and interest by $183.31 every single month. Of course, be aware that if your qualifying debt ratios are

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With interest rates up, and the heat of summer on, the crazy Denver Real Estate market has noticeably slowed down since July 4th. Speaking with fellow agents, it appears that a lot of buyers are holding off on buying until they figure out what rates are going to do and sellers finally got the message that it is a great time to sell so we have more inventory than we have had all year. Combined, this is a big reason why homes having gone from selling in a day to weeks or even months again.

I certainly understand why buyers are cautious about buying now and hoping rates will start to come back down. However, I don’t think we are ever going to see 3.5% again and I would argue that waiting for rates to drop another .125-.25% is the absolute worst

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How much of a down payment do I need to by a Denver home? Or, I don't have enough saved for a down payment yet. These are the two most common questions/statements I hear when starting to talk with potential home buyers. I am very surprised to hear that most potential buyers feel they need 20% down to buy a home when in fact, I would say 75% of the buyers I work with end up putting less than 20% down when they finally do buy their home.

The advantage of putting 20% down is that you don't have to pay a for mortgage insurance. Mortgage insurance is a fee that is added on to your monthly payment to help protect the lender until you have 20% equity built up in the property. While in theory this is a best practice, in reality, saving 20% for a home

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Is now a good time to invest in Denver Real Estate? I get the question a lot and the answer is YES! The rental market is even crazier than the Real Estate market if you can believe that with right around a 1% vacancy rate for rentals. Rental rates are the highest they have ever been and with these crazy low interest rates, you can cash flow a property in a manner that has never before been possible.

I've been investing in Real Estate for about 6 years now and since I bought my first duplex I've seen the monthly rents go up six hundred dollars a month. I've seen the largest increase in the past 3 years and expect when I rent it again next year I will be able to ask even more and it will rent the first day on the market once again.

To invest in Real

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Yesterday I wrote about how mortgage interest rates are the highest they have been in the past year and how it looks like they will be hovering around 4% for the foreseeable future. To read the full blog, click here. Now that we have an educated guess as to what rates will do most likely the rest of summer, it only makes sense to look at how this will impact the Denver Real Estate market and what it means to buyers and sellers.


If we look at historical data, we see that whenever rates increase, so does market activity. This occurs because it gets a lot of buyers off the fence who think they have forever to take advantage of the low rates. And it also convinces renters that if they don’t do something quick, their chance to own for less than rent

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This week, mortgage interest rates hit their highest level in past year and it has a lot of buyers out there pretty concerned. With an average around 4%, the rates are still near all time historical lows but when compared to the mid to low 3’s we saw in September, it is a pretty significant jump. To find out why the rates are higher now and the long term forecast for rates, I turned to the expert, Tracey McVicker with SWBC Mortgage.


According to Tracey, “interest rates have increased dramatically over the past 30 days or so.  Most of this is because the stock market has been performing so well, which is usually to the detriment of the bond market, and thus rates. We looked to be having a bit of a rebound until on Wednesday May 22, after Fed

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