Mortgage rates are continuing to hover in a tight range. We saw last week in the Freddie Mac PMMS that they moved a little bit lower, but that’s not a trend we expect to sustain over time. Read on for more details. Where are mortgage rates going?Â Â Â Â Â Â Â Â Â … View Article
When shopping for a home, many of us know our basic focal points, such as identifying the right neighborhood or finding a house with the ideal number of bedrooms and bathrooms. These factors are important, but there are other home features (some very large and some very small) that can greatly contribute to the enjoyment of your new home. Let’s make sure you don’t miss any of them. Here are five opportunities to maximize the benefits of your purchase that go beyond just the house and why each one deserves your consideration. Home Buying Consideration #1: The Garage Garages are a very important feature for many homebuyers, and can even end up being a dealbreaker for some buyers. More than a parking spot, garages provide valuable storage and project space, as well as a way to protect your vehicles from all types of damage. When you are first shopping for a home, you may know that you want a garage, but you may not have considered all of the variables that go into the garage design, and which choice is right for you. Garage Design: Why it Matters When evaluating garage design, it’s important to start by considering what you may want to use the space for, and what external factors (such as weather) might impact your use. Here are several major garage design aspects to keep in mind as you house hunt. Rental space: Depending on the size and layout of your garage, is there space that could be rented out full time, or used as a short-term rental to generate additional income? That extra income could be directed towards your mortgage payment. Storage opportunities: Does the garage have room to store what you need to reduce in-home clutter? Is there space for shelves, or even room in the rafters? Potential property value increase: According to the sales comparison approach (SCA), one of the most recognizable forms of valuing residential real estate, a “finished” garage that feels like an extension of the home’s indoor living space is one of several features that can increase overall home value. You may also want to consider the possibilities of eventually remodeling a bland garage in an otherwise perfect home. Attached vs. Detached Garages: Pros vs. Cons One of the biggest distinctions in garage design is whether a garage is attached or detached. Often influenced by lot shape (narrow lots on an alley often have detached garages, wider lots with a driveway often have attached garages) or the age of a home, having a detached or attached garage has both advantages and disadvantages. Attached Garages: Pros Convenient access to your cars, storage, and other items, particularly if you live in an area with an extreme climate Attached garages are often less expensive to build, and can be climate controlled by accessing the electrical and HVAC systems that are part of the home As attached garages are the most popular type of garage, having one typically increases the value of your home Attached Garages: Cons If you’re thinking of adding one, it may not be possible to fit on a narrow, urban lot Since they offer direct access to the home, they can be a security and fire risk They can be hard to add onto or expand, and any additions or changes might require more expensive permits and extensive inspections Adding an attached garage, particularly to a vintage home, may look strange or otherwise detract from the exterior look of the home Noisy garage activities may be heard more inside the home Detached Garages: Pros More flexibility in size, layout and location, lot size and shape permitting It’s easier to add room for cars, storage, and projects, and to add onto if needed Less fire and security risk to your home Less of an impact to the look or curb appeal of your home Can increase the resale value of your home Detached Garages: Cons Particularly in bad weather, less convenient in terms of access Will require separate utilities, HVAC, and more May not be allowed by your HOA or city permitting office Now that we’ve examined the garage, let’s take a look at another key feature — what’s going on with the front and backyard? Home Buying Consideration #2: The Yard No longer limited to just a lawn, yards have now become an extension of the home. A convenient, well-designed outdoor living space is something that many homeowners desire. Yards can be great spaces for entertaining and are often much less expensive to create than comparable indoor entertaining spaces. Here are some important yard elements to consider. Trees and landscaping: Important for both aesthetic and practical reasons, trees and landscaping can increase your yard’s appeal. A mature, well-designed landscape is valuable, as it represents an investment of both time and money. Outdoor kitchen: Whether you are grilling for two or entertaining 200, an outdoor kitchen makes cooking fun and convenient. Fireplace or fire pit: This stylish focal point makes it easy to keep enjoying your yard, even after dark or in cooler weather. Automatic sprinklers, drip system, and misting system: Automatic sprinklers and drip systems can keep your yard looking lush for a low cost, and are particularly valuable in dry climates. Misting systems can also keep you cool on hot days. Deck or Patio: A stylish outdoor surface makes it easy to enjoy your yard, and many new construction materials require little to no maintenance. Shed: Well-designed sheds can go beyond storage, offering everything from a private workspace to extra space for guests to sleep. So, you’re considering the finer points of a yard. But what about adding a body of water to that yard for cooling off on hot days? Here’s the pros and cons of investing in a water element for your next home. Just starting your home search? Here’s the best time to begin. Home Buying Consideration #3: The Pool Pools and hot tubs are perhaps the most controversial of all outdoor home features. Some homebuyers totally avoid them, and some won’t look at a house without them. Which side are you on? Here are some factors to consider. Backyard Pool and Hot Tub: Pros Pools and hot tubs can be aesthetically pleasing Both are also useful for entertaining In warmer climates, pools can provide a way to enjoy the outdoors comfortably If you like to swim, engage in other aquatic exercises regularly for fitness, or use a hot tub for muscle and joint pain, having your own can be convenient In hot climates where pools are common (i.e., Arizona, California, Florida), having a pool can significantly increase the resale value of your home Backyard Pool and Hot Tub: Cons Both pools and hot tubs require regular maintenance that includes chemicals, cleaning, and repair Many families with small children do not want a pool at home due to safety concerns Your insurance cost may be higher, and your utility bills may go up as well, particularly for heating a pool When it is time to sell your home, there are many buyers who will not want a house with a pool A pool is a big decision that comes with both maintenance and benefits alike. You can always opt for a different kind of water feature, like a backyard stream. But if you’re looking to streamline your life, investing in home tech devices is almost a no-brainer. Home Buying Consideration #4: The Appliances and Tech Gadgets As technology improves and designs continually evolve, having up-to-date appliances and other devices in your home has become increasingly important. For example, while attractive kitchens are near the top of many house-hunters’ wish lists, there are items within those kitchens that can help — and items that can hurt — when it comes to increasing a home’s value. Appliances That Can Help Property Value Commercial-grade appliances: Particularly in high-end properties, many buyers expect to see appliances from luxury or professional brands. Smart devices: Thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks, and doorbells are just a few of the relatively new smart home devices that homebuyers are now beginning to appreciate and even expect. Appliances That Can Hurt Property Value Old and energy inefficient: These power-sucking products will cost you in both your utility bill, and the resale value of your home. Homes totally lacking certain appliances: Is your property missing a dishwasher, indoor laundry, or other key features? This can be a major turn-off for buyers who don’t want to have to complete a complicated remodeling and installation project. Mismatched appliances: Appliances from different eras or in different colors can make your kitchen look unfinished and low-quality, even if your other finishes are fantastic. Looking to stock up on home amenities? We’ve targeted the seasonal best deals for doing so. Now that you’ve considered the key interior and exterior components of your dream home, there’s one last important element to contemplate: the driveway. Home Buying Consideration #5: The Driveway Walkways and driveways connect your home to the outside world and play a crucial role in the curb appeal of your residence. Although often overlooked, they are important home features that can be messy and expensive to replace or update. If you are evaluating the driveway at a potential home, or considering an update at your current home, the first choice you will need to make is whether you want asphalt or concrete. Both have benefits and drawbacks that may vary depending on your climate, landscape, and usage needs. Today, many homeowners and buyers are also looking for something beyond the basics, with driveway design trends including elaborate paving materials, irregular shapes, and additional features like extra parking for guests. Know the Tricks, Now Land the House Although these five features may not be your first considerations in the house-hunting process, they are important elements that you will use or interact with nearly every day. Add them to your consideration list, and you will be sure to end up in a customized home that you enjoy and treasure. If you’ve found your ideal home with all the right features, reach out to a PennyMac Loan Officer today or apply online to get pre-approved for the loan that’s right for you.
Federal Reserve Gov. Lael Brainard said regulators are seeking to “understand the potential benefits and risks” from utilizing artificial intelligence in the financial services sector.
Today’s mortgage and refinance rates Average mortgage rates edged upward again yesterday. So they ended the week appreciably higher than they started it. Still, even after that poor period, they’re […]
Conforming loan limits for 2021 rose more than 7% across the United States. Freddie Mac and Fannie Mae loans now go up to $548K in most counties.
Mortgage rates went to bed last night knowing they were at risk of a volatile day today. Georgia’s senate race has been in focus for 2 months now because it had the chance to change the balance of power in congress. With both seats flipping from red to blue, that’s exactly what happened today. While the election results have only been confirmed for about an hour, the bond market (which underlies interest rate movement) was already bracing for impact in the middle of the night. Specifically, bond yields (aka “rates”) were already quite a bit higher by the time the election was finalized this afternoon. When the bond market deteriorates (aka, moves lower in price and higher in yield), mortgage rates are typically rising at a similar pace. Does the mortgage market r eally care that much about
Posted To: MBS Commentary
While it's essentially a given the bigger stimulus is on the way with democrats controlling the senate (thus implying more Treasury issuance and a quick adjustment to higher yields as a result), it's worth remembering that the underlying phenomenon creating the need for that stimulus is still a thing. Today's big miss in the December jobs report provides a solid reminder. Sure, bigger stimulus pushes rates higher, but covid-driven economic realities continue trying to hold rates down (with plenty of help from the Fed). Jobs numbers like today's do absolutely nothing to push the Fed away from its ultra bond-friendly stance. Here's a quick run-down: Nonfarm Payrolls -140k vs 71k f'cast, 336k prev Unemployment Rate 6.7 vs 6.8 f'cast, 6.7 prev Notably, the 336k was revised…(read more)
You were all set to buy that new car or house. You may have even picked out the cherry-red convertible or the Cape Cod with the spacious yard — until your bank stopped you in your tracks.
Your loan has been denied, and now you’re not sure what to do.
It’s a pretty common scenario, and unfortunately, there isn’t always a quick solution.
Home buying hurdles exist – but research, creativity and flexibility will help you clear them.
Today’s mortgage refinance rates stay historically low overall | January 4, 2021 Fox Business