Blog - Leagan Realty

Short-Term Vacation Rentals: What To Know

March 15, 2023 by Lisa Eagan

Short-Term Vacation Rentals: What To Know If you are interested in purchasing a rental property, you might want a short-term rental that you can use as a vacation home. This can be a great way to generate some additional income, and you might be able to make thousands of dollars every week if you purchase a property in the right location. On the other hand, there are several important factors you need to consider before you purchase a rental property.

The Marketing Process

You are only going to make money on your rental property if you can convince people to stay there. Why would someone decide to stay at your rental property instead of a traditional hotel? You must be willing to put in the time and effort to develop a enticing marketing strategy that includes some beautiful photos and videos that will highlight the benefits of your rental property.

The Pricing

Of course, you want to make as much money as possible if you have a rental property, but keep in mind that you don’t want to price the property so high that you end up scaring people away. You might even want to change the price of your rental property depending on the length of their stay, time of year, or special events that might be happening in the local area. You will also want to take a closer look at the competition to see how much they are charging.

Protect Yourself And Your Property

You need to take steps to protect yourself and your property. It can be difficult to predict how your guests are going to treat your space, and you don’t want to rent to guess who could damage your property. Keep in mind that you could also be held responsible if someone is injured while renting your house. That is why you should consider purchasing additional liability protection.

Find The Right Rental Property

There are many advantages you may enjoy if you decide to purchase a short-term vacation home, but you need to make sure you are willing to put in the time and effort to make it profitable. You will want to work with a professional who can help you find the best option in the area.

What To Know About Property Lines

March 14, 2023 by Lisa Eagan

What To Know About Property Lines If you are in the process of buying a new home, you know that there are a lot of moving parts involved. You need to know everything you can about a potential house before you decide to purchase it, and that includes the property lines. What do you need to know about property lines, and why are they so important?

How Are Property Lines Drawn?

While property lines are the borders that separate one property from another, they are also legal boundaries. Essentially, property lines determine what you do and do not own. There is a chance that someone may place a fence directly on top of the property line, but there is no guarantee that the fence is in the right place. Usually, property lines are determined and drawn by a surveyor who takes a look at the land, refers to any deeds or records related to the properties involved, and lets you know exactly where the boundaries are located.

How Can You Find Your Property Lines?

When you are looking at a potential property, finding your property lines should be close to the top of your list. You are purchasing not only the building but the land around it, and you need to know where your land will end. This could determine potential projects you have in mind for the property. If you are building a house, there might be stakes in the ground clearly showing your property lines. If you are purchasing an existing property, you may have to pull legal records to figure out where the boundaries are located.

How Property Lines Play A Role After The Purchase

There are several situations where property lines could play a role after you purchase the property. For example, if you need to trim a tree, or if a tree falls on the property line, you may need to know who is responsible for getting rid of it. Furthermore, if there is a home improvement project coming up, you need to know the limits of that construction project.

Know Your Property Lines

You need to know the boundaries of any property you are thinking of purchasing. An experienced real estate professional understands how to look up documentation and let you know exactly where the property lines are before you move forward with the purchase.

What’s Ahead For Mortgage Rates This Week – March 13, 2023

March 13, 2023 by Lisa Eagan

What's Ahead For Mortgage Rates This Week - March 13, 2023

Last week’s economic reporting included Fed chair Jerome Powell’s testimony to the House of Representatives, data on job growth, and weekly readings on mortgage rates and jobless claims.

Fed: Chairman Powell says no decision on March rate hike

Federal Reserve Chair Jerome Powell said that no decision has been made about raising the Fed’s target interest rate range in March. Mr. Powell said, “We have not made any decision about the March meeting. We’re not going to do that until we see the additional data.” Mr. Powell said that the Fed is not on a “pre-set path. We will be guided by the incoming data and the evolving outlook.” Mr. Powell cited the upcoming jobs report and inflation data as examples of information used in decisions to raise or lower the Fed’s interest rate range. The Fed will announce its decision regarding its target interest rate range in its usual post-meeting statement on March 22.

Mr. Powell also said that the Fed may accelerate its pace of raising interest rates by 0.50 percent in its continued efforts to control inflation.

Freddie Mac reports higher mortgage rates

Average mortgage rates rose last week according to Freddie Mac’s Primary Mortgage Market Survey. The average rate for 30-year fixed-rate mortgages rose by eight basis points to 6.75 percent; the average rate for 15-year fixed-rate mortgages rose by six basis points to 5.95 percent.

Jobless claims rose to 211,000 claims filed from the prior week’s reading of 190,000 initial claims filed. analysts expected 195,000 first-time claims filed. The national unemployment rate rose to 3.6 percent in February as compared to January’s 3.4 percent unemployment rate.

What’s Ahead

This week’s economic reporting includes readings on U.S. housing markets, inflation, retail sales, and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be published.

The Top Benefits Of A Single Close Construction Loan

March 10, 2023 by Lisa Eagan

The Top Benefits Of A Single Close Construction Loan If you are thinking about building your own home, you might be wondering how construction loans work. There are plenty of options available, but one of the most popular choices is a single-close construction loan. This type of loan allows you to close on not only the construction expenses but also your financing costs at the same time. Essentially, a single-close construction loan will convert into your mortgage after the construction on your home is finished. What are some of the top benefits of this type of loan?

Save Time

One of the first benefits of a single-close construction loan is that you can save a significant amount of time. If you need to get a separate loan for the construction and financing processes, you will have to submit all of your required documents twice. Then, you will need to wait for the lender to review them both times. You can avoid this process if you combine the loans together in a single-close construction loan.

Save Money

Of course, you could also save a significant amount of money by going with a single-close construction loan. Keep in mind that each loan is going to have some origination and closing expenses. If you have to go through the process twice, you will have to pay these expenses twice. With a single-close construction loan, you only have to pay potential origination and closing expenses once, which can help you save money.

Fix Your Interest Rate

What happens if the average interest rate goes up during the construction of your house? This means that your mortgage may have a higher interest rate, and it could make your house unaffordable. You can avoid this risk by getting a single-close construction loan with a fixed interest rate. Then, if the interest rate drops down the road, you may be able to refinance.

Consider A Single Close Construction Loan

In the end, these are just a few of the top benefits of a single-close construction loan. While these loans are not necessarily for everyone, they could be right for you. Do not hesitate to reach out to an expert who can help you figure out if a single-close construction loan is right for your needs.

Navigating A Market With Higher Interest Rate

March 9, 2023 by Lisa Eagan

Navigating A Market With Higher Interest Rate Even though interest rates have gone up significantly during the past few months, there are still opportunities for you to find a home at a great price. The high interest rate can be discouraging for some people, but as long as you know how to navigate the market, you can still put yourself in a position to be successful.

Put More Money Down

The easiest way to combat a high interest rate is to reduce the amount of money you borrow. That means that you might need to put more money down. Of course, this means that you might need longer to save up a down payment, but there are other benefits you might notice as well. For example, if you are willing to put 20 percent down or more, you no longer have to purchase private mortgage insurance, which can help you save some additional money.

Increase Your Credit Score

You may be able to secure a lower interest rate if your credit score is higher. Remember that the lender will give you a lower interest rate if you are of less risk to them. If you increase your credit score, you improve your financial health, which means that the lender may offer you a lower interest rate. You can increase your credit score by correcting mistakes on your credit report, paying down your existing debt, and reducing your credit utilization ratio.

Consider an Adjustable-Rate Mortgage

You may even want to consider going with an adjustable-rate mortgage, usually shortened to ARM. This means that the interest rate on your loan will change with the market. If you feel like the interest rates are going to go down, this may be a way to save money; however, keep in mind that you may end up owing more money if the interest rates go up.

Refinance Your Home Loan Down The Road

If you are not willing to take the risk with an ARM, keep in mind that you can refinance your home loan later if interest rates go down. You might need to pay closing expenses again, but it could save you tens of thousands of dollars over the life of the loan if you decide to refinance.

Tired of Waiting for Summer? 3 DIY Projects That Will Keep You Busy Until the Weather Warms Up

March 8, 2023 by Lisa Eagan

Tired of Waiting for Summer? 3 DIY Projects That Will Keep You Busy Until the Weather Warms Up Do you find yourself staring out the window, longing for an early sunrise, hot days and late evenings? With spring just around the corner, it might feel like summer is a lifetime away.

However, the good news is that you can be productive around the home while you wait for summer to arrive. Let’s take a quick look at three easy do-it-yourself projects that will keep you busy until the summer sun is shining.

Add A Splash Of Spring-y Color

As long as you are willing to do the prep work, painting is one of the most straightforward home improvement projects you can undertake. It is also the best way to put your own personal touch in each room in your home.

If you haven’t painted before, it is best to start with a single room. Spend an hour or two watching instructional videos on YouTube before you head out and begin buying supplies.

The colors that you choose are up to you, but if you are going for a ‘spring’ look, consider pastel colors including soft greens, powder blues and creamy whites.

New Planters For The Garden

If you have a flower or vegetable garden, building new planters is a fun weekend DIY project. You can make planters out of wood, but a more durable option is to use granite, marble or another hard stone.

Simply buy four slabs of stone and a tube or two of stone adhesive. Line up the slabs together and, using a ruler, ensure they are at 90-degree angles. Caulk or glue the slabs on the inside of where they meet and then tape them together on the outside to hold them until the glue cures.

Bird Seed Rings For Your Feathered Friends

Do you enjoy the sound of birds around your home? If so, bird seed rings are the perfect treat to attract them. Creating these delicious treats is easy. Combine gelatin, corn syrup and flour into a thick paste. Mix this paste with a bag of bird seed, ensuring that it is fully combined. Then mold the rings together using a donut pan. Hang these tasty treats outside for your feathered friends to enjoy.

Investing your time in home improvement projects is an excellent way to wait out the sunny days of summer. If you decide that it’s too much work to renovate and that you would rather explore a new home, give us a call. Our friendly mortgage team is happy to help you get ready for your next purchase.

Understand Your Options When You Refinance A Home Loan

March 7, 2023 by Lisa Eagan

Understand Your Options When You Refinance A Home Loan Are you interested in refinancing your mortgage? There are a variety of reasons why you might want to refinance your home loan. For example, you might want to secure a lower interest rate, or you may want to reduce your monthly payment. You might even want to tap into the equity you have in your home for some quick cash. There are different loan options available, so you need to think carefully about which one is best for your needs.

The Conventional Mortgage Refinance

One of the first options you will consider is a conventional mortgage refinance. This could be the best option for you because it provides you with the greatest degree of flexibility. For example, you can shorten the term of your mortgage, pull cash out of your home’s equity value, and even reduce your monthly payment. Typically, your credit requirements will be a bit higher than the other options, so you should work with an expert if you are considering this option.

FHA Streamline

Another option you might want to consider is the FHA streamline. Many people like this program because it is a shorter, less expensive program. The credit requirements are also a bit lower, and you might not need to get your house appraised. On the other hand, you cannot choose this option if you want to pull cash out of your home’s equity value.

Jumbo Loan Refinance

If you have a loan that is greater than the conventional loan limits, then you may be required to perform a jumbo loan refinance. Because the loan is so large, the lender takes on a significant amount of added risk, and that is why the credit requirements are typically higher as well. You may also need to verify not only your income but also your cash reserves.

Find the Best Refinance Program To Meet Your Needs

These are just a few of the many options available if you are interested in refinancing your home loan. The right option for one person is not necessarily going to be the right option for someone else, so make sure you reach out to an expert who can help you find the right loan refinancing option to meet your needs.

What’s Ahead For Mortgage Rates This Week – March 6, 2023

March 6, 2023 by Lisa Eagan

What's Ahead For Mortgage Rates This Week - March 6, 2023 Last week’s economic reporting included readings from S&P Case-Shiller home price indices, data on pending home sales, and weekly readings on mortgage rates and jobless claims.

S&P Case-Shiller: December Home Price Growth Slows in 20-City Index

Home price growth slowed in December according to S&P Case-Shiller’s 20-City Home Price Index. Home prices rose by 4.60 percent year-over-year as compared to November’s year-over-year home price growth rate of 6.80 percent. The top three cities for home price growth in the 20-City Index were Miami, Florida, Tampa, Florida, and Atlanta, Georgia.

Former leading cities for home price growth have fallen to the bottom of the 20-Cities Home Price Index. Year-over-year home prices fell by -4.20 percent in San Francisco, California, and were – 1.80 percent lower in Seattle, Washington. The slowest pace of home price growth was reported in Portland, Oregon with a year-over-year home price growth rate of + 1.10 percent.

In related news, the Commerce Department reported construction spending rose by 5.70 percent year-over-year in January. Although analysts expected month-to-month construction spending to rise by 0.30 percent in January, spending fell by -0.10 percent as compared to December’s positive reading of 0.70 percent growth in month-to-month construction spending.

Mortgage Rates, Jobless Claims

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose by 15 basis points to 6.65 percent. Rates for 15-year fixed-rate mortgages rose by 13 basis points on average. Initial jobless claims fell below 200,000 first-time jobless claims for the seventh consecutive week with a reading of 190,000 first-time claims filed as compared to the expected reading of 197,000 initial claims filed and the previous week’s revised reading of 192,000 claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on job growth, national unemployment, and weekly readings on mortgage rates and jobless claims. Several Federal Reserve officials are scheduled to testify before House and Senate committees next week. Fed Chair Jerome Powell will attend and will also testify.

What Is Mortgage Insurance and How Does It Benefit Me?

March 3, 2023 by Lisa Eagan

What Is Mortgage Insurance and How Does It Benefit Me? Let's Take a Look Are you in the market for a new home? If you are considering a mortgage, you may be curious about mortgage insurance, commonly referred to as PMI or MI. Let’s explore the topic of mortgage insurance, including how it works to reduce risk and how it benefits you as the mortgage borrower.

Mortgage Insurance = Risk Reduction

You might not know this, but the toughest part of the home buying process for many individuals and families is coming up with the required down payment. For example, if you were to buy a $200,000 home, you may want to invest $40,000 or $60,000 or more in the down payment. The remainder would be borrowed in your mortgage, which you would then pay off each month.

Most mortgage lenders require a minimum of 20 percent as a down payment. In the example above, this means having $40,000 cash on hand before you buy the home. If you can’t come up with this much, your lender may require mortgage insurance be purchased to protect them in case you default on the loan.

Mortgage Insurance Can Help You Qualify

Since mortgage insurance reduces the lender’s exposure to risk, it can help you in a number of ways during the qualification process. First, you can put less in your down payment than you had initially intended, which can increase your buying power and the size of home you can afford. Mortgages backed with a private insurance policy tend to be approved a bit faster than those that aren’t. Also, if you decide that you don’t need it later, many mortgage insurance policies can be canceled, which saves you a bit of money.

Look For Supplemental Benefits

Finally, don’t forget to ask your mortgage lender about any supplemental benefits offered with your mortgage insurance policy. Some policies protect you in the event that you lose your job or provide a partial claim advance if you can’t pay your mortgage. Note that not all policies have these benefits, so be sure to ask.

While it is true that mortgage insurance provides benefits to lenders, it also offers significant benefits to you as the borrower. To learn more about mortgage insurance or to get pre-approved for a mortgage so you can buy a home, give us a call today. Our friendly team of real estate professionals is happy to help.

S&P Case-Shiller: December Home Price Growth Slows

March 2, 2023 by Lisa Eagan

S&P Case-Shiller: December Home Price Growth Slows Home price growth slowed in December according to the S&P Case-Shiller 20-City Home Price Index. Year-over-year home prices rose by 4.6 percent in December as compared to November’s reading of 6.8 percent growth. Rising mortgage rates caused home prices to dip as potential buyers delayed home purchases and demand for homes fell.

Craig J. Lazzara, managing director of S&P Dow Jones Indices, said: “The prospect of stable, or higher mortgage rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers. Mr. Lazzara concluded: “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”

The S&P Case-Shiller National Home Price Index fell by a seasonally-adjusted figure of -0.30 percent in December but rose by 5.80 percent year over year.

S&P Case-Shiller 20-City Index Shows Slowing Home Price Growth for December

Nationally home prices fell by -0.30 percent month-to-month and were 5.80 percent higher year-over-year.

Case-Shiller’s 20-City Home Price Index is widely used as a benchmark for U.S. home prices; December’s top three cities for rising home prices were Miami, Florida with 15.90 percent year-over-year home price growth; Tampa, Florida followed with 13.9 percent home price growth and Atlanta, Georgia reported 10.4 percent year-over-year home price growth in December. The 20-City Index reported 4.60 percent year-over-year home price growth as compared to November’s reading of 6.80 percent year-over-year home price growth.

Home prices fell the most in formerly hot markets; in San Francisco, California home prices dropped by -4.20 percent year-over-year and home prices fell by -1.80 percent in Seattle, Washington. Portland, Oregon had the lowest pace of home price growth with a year-over-year reading of 1.10 percent.

In related news, the Federal Housing Finance Agency reported home price growth data for homes owned or financed by Fannie Mae and Freddie Mac. Home prices rose 8.40 percent year-over-year between the fourth quarters of 2021 and 2022.

Analysts said that lower home prices were caused by rising mortgage rates and lower demand for homes caused by buyers’ concerns about a possible recession. Limited supplies of available homes helped reduce potential losses caused by less buyer demand for homes. High mortgage rates, competition with cash buyers, relatively high home prices, and slim supplies of available homes continue to present challenges to first-time and moderate-income home buyers.