Pendulum Swings Back for Mortgage Rates

The pendulum swung back for mortgage rates this week, with rates for 30-year and 15-year fixed mortgages averaging higher for the first time this year, according to the Freddie Mac's Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage averages 4.19 percent with an average 0.4 point, while the 15-year fixed-rate mortgage averages 3.40 percent with an average 0.4 point. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averages 3.20 percent, also with an average 0.4 point.

"The 10-year Treasury yield increased more than 10 basis points this week," says Sean Becketti, Freddie Mac's chief economist. "The 30-year mortgage rate moved up, as well, to 4.19 percent—a 10 basis point-jump. This week marks the first increase in the mortgage rate since December 29.

"The 2.8 percent decline in existing-home sales in December is a reminder of the lack of homes for sale," Becketti says. "According to the National Association of REALTORS®, supply is at its lowest level since 1999, a factor that should support higher house prices regardless of the oscillations of the mortgage rate."

Article shared from: RISMEDIA, Friday, January 27, 2017

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Beverly Stermer, REALTOR®
Long & Foster Real Estate, Inc.
16 Gosnell Crossing STE 102
Staunton, VA 24401
540-294-3145
540-997-3300
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Making the Jump: Transitioning from a Tenant to a Homeowner

Becoming a homeowner for the first time is an exciting and stressful process. However, once the papers are signed and the keys are in your pocket, your work really begins. Homeownership can be fraught with financial and emotional perils, especially if you've been renting from a landlord up until now. Landlords are on the hook for not only minor repairs, but also major upgrades, yard work, taxes and fees associated with building ownership, as well as normal upkeep such as painting and cleaning carpets.
 
Before You Buy

The best way to make a smooth transition to your new home starts before you buy. A proper inspection can alert you to problems that already exist with the property. New homes shouldn't have many issues, but it's always wise to get an inspection anyway to ensure that everything has been installed properly. After inspection, you want to work on your budget. You should build home maintenance and upkeep into your monthly budget.
 
A basic rule of thumb for your maintenance budget is to put aside 1 percent of your home's purchase price per year. This means if your home costs $300,000, then you should put aside about $250 a month for major home repairs. Of course, new homes shouldn't need immediate major repairs, but by saving this money from the get-go, you'll never have nasty surprises when an appliance breaks down, or when you need a new roof in 10 years.
 
Tips to Maintain Your Home

Once you're in your home you'll want to stay on top of maintenance. This doesn't just mean yard work, gardening, snow removal and window cleaning, although all those things are important. You'll want to do an annual survey of your major appliances. This should include things you don't usually see or think of, such as your water heater, furnace or boiler, and air conditioner.
 
You should know what these things look like when they're performing properly, and you should have the name of a trusted HVAC professional, plumber and electrician just in case you should ever need them. You should also keep a close eye on your roof and any plumbing pipes that are visible, as these can often be some of the most expensive repairs. Catching a problem early is always ideal.
 
Financial Changes

Another difference between renting and owning is your financial state. The first year you own a home your taxes will be much different, so even if you do file your taxes yourself, this year might be the year to turn to a tax professional.
 
You'll also have to have money to spend to fill up your new home! Chances are you have a lot more square footage to work with now, and you may need additional furniture or even appliances if your new home didn't come with them. Start reading reviews and comparison-shopping early on for things like washers, dryers and lawn mowers if you can. Buying a lawn mower in May is far more expensive than buying one in January. While it might seem silly, the last year models are usually very similar when it comes to appliances, so figure out when the new versions are released. Floor models (appliances that have been out for people to look at) are also a great choice, as they haven't actually been used.
 
The best part of owning your own home is that it is all yours. You can paint, arrange and decorate to your heart's content. However, the worst part of owning your own home is that it's all yours, and if there's three feet of snow to be shoveled, water pouring out of the toilet or a dryer that just won't dry, these are all problems you'll have to figure out how to fix—with a little help from the pros, of course.
 

Article By: Megan Belnap

Published on: RISMEDIA, Wednesday, January 25, 2017 Ready to buy or sell?  Give me a call and let's get started! Beverly Stermer, REALTOR® Long & Foster Real Estate, Inc. 16 Gosnell Crossing STE 102 Staunton, VA 24401 540-294-3145 540-997-3300 Click here to go to my website.

2016 Brings 10-Year Drop in Foreclosures

While many of us were all too pleased to say buh-bye to 2016, one positive thing the year gifted us was the lowest foreclosure rate in 10 years.
 
According to recently released data from ATTOM Data Solutions, 2016 foreclosure filings were reported on 933,045 U.S. properties, down 14 percent from 2015 to the lowest level since 2006.
 
For an even bigger boon, the Year-End 2016 Foreclosure Market report shows that 0.70 percent of U.S. housing units had at least one foreclosure filing in 2016, the lowest annual foreclosure rate nationwide since 2006, when 0.58 percent of housing units had at least one foreclosure filing.
 
Location, Location, Location
So where are the foreclosures still happening? The District of Columbia had the highest share of legacy foreclosures with 76 percent, followed by Hawaii (66 percent), New Jersey (64 percent), Nevada (63 percent), Delaware (61 percent), and Massachusetts (61 percent). In terms of total number of legacy foreclosures, New Jersey led the way with 32,279, followed by New York (31,838), Florida (29,411), California (17,208), and Illinois (12,244).
 
Some Still Rise
Counter to the national trend, 15 states and the District of Columbia posted a year-over-year increase in foreclosure starts in 2016, including Delaware (up 37 percent); Connecticut (up 35 percent); Maine (up 30 percent); Rhode Island (up 26 percent); Arizona (up 15 percent); and Massachusetts (up 12 percent).
 
Bank repossessions also showed conflicting trends. Despite dropping to a 10-year low, down 16 percent from 2015 and down 64 percent from 2010, bank repossessions rose in a whopping 21 states. Repossessions in Massachusetts rose 61 percent, Alabama moved up 32 percent, New York rose 21 percent, Virginia rose 9 percent, and New Jersey inched up 4 percent.
 
"The national foreclosure rate stayed within an historically normal range for the third consecutive year in 2016, even as banks continued to clear out legacy foreclosures from the last housing bubble, particularly in the final quarter of the year," says Daren Blomquist, senior vice president at ATTOM Data Solutions, the new parent company of RealtyTrac. "Foreclosures completed in the fourth quarter had been in the foreclosure process 803 days on average, a substantial jump from the third quarter and indicating that banks pushed through significant numbers of legacy foreclosures during the quarter. Despite that push, we still show that more than half of all active foreclosures nationwide are on loans originated between 2004 and 2008, with a much higher share of legacy foreclosures in some markets."

By Zoe Eisenberg

RISMEDIA, Saturday, January 21, 2017 Ready to buy or sell?  Give me a call and let's get started! Beverly Stermer, REALTOR® Long & Foster Real Estate, Inc. 16 Gosnell Crossing STE 102 Staunton, VA 24401 540-294-3145 540-997-3300 Click here to go to my website.

Sellers-Preparing to Sell

Selling your home doesn’t just mean hiring a realtor to stick a sign out front. There are a lot of preparations you should make to ensure you get the best offer possible in the shortest time.

Repair.
Just because you’ve gotten used to the cracks in the walls and the rattles in the radiators doesn’t mean a buyer will too. If you have hardwood floors that need refinishing, be sure to get it done—hardwood is a huge selling point. Buyers like to snoop around, so be sure to fix any sticky doors or drawers as well. Finally, don’t forget to address any issues with the exterior—fences, shingles, sidewalks, etc. After all, without curb appeal, some buyers may never get to see the inside.

Neutralize.
You want buyers to see themselves in your home. If your living room has lime green shag, wood-paneled walls, and all your collectibles and personal photographs, this will be much harder for them to do. Try replacing any bold color choices in your floors and walls with something more neutral—beiges, tans, and whites. Repainting and reflooring will make everything look fresh and new, and help prospective buyers imagine all the possibilities.

Stage. 
Once your house is clean and updated, it’s time to play dress up. Home stagers can add small details and décor touches that will bring out the possibilities in the various spaces in your home: lamps, mirrors, throw rugs and pillows, flowers, decorative soaps and towels, patio furniture. Home staging can be particularly useful if your home is especially old or if the exterior looks dated. Think of it as a little mascara and rouge—if it’s done right, you notice the beauty, not the makeup.

Ready to sell?  Give me a call and let's get started! 

Beverly Stermer, REALTOR®

Long & Foster Real Estate, Inc. 

16 Gosnell Crossing STE 102

Staunton, VA 24401

540-294-3145

540-997-3300

Click here to go to my website.

FHA Announces Reduction on Annual Mortgage Insurance Premiums

In a recent surprise announcement, the Federal Housing Administration (FHA) will be reducing its annual mortgage insurance (MI) premium by 25 basis points—or 0.25 percent—for most new mortgage loans that have a closing or disbursement date on or after Jan. 27, 2017.

The great news is that all borrowers using an FHA home loan closing on or after this date will receive the lower annual premium regardless of when they applied for financing.

An FHA home loan is a government loan that is insured by the FHA. An FHA loan may provide an option for home buyers requiring a lower down payment option of 3.5 percent down.  The program may also allow gift funds to be used for all or a portion of a down payment and/or closing costs, and seller contributions are allowed up to 6 percent of the loan amount.

In an effort to help make housing more affordable for more home buyers and homeowners, U.S. Housing and Urban Development Secretary Julian Castro said the new rates are projected to save new FHA-insured homeowners about $500 annually on a $200,000 loan.

According to economic research and data conducted by the Board of Governors of the Federal Reserve System1, homeownership becomes more appealing when the cost of credit falls. Here’s why:

• Potential buyers for whom FHA loans are the most economical option (i.e., first-time homebuyers, others with little cash on hand or those with lower credit scores) are therefore directly incentivized to buy when premiums drop.
• Monthly payments may determine whether a particular application gets approved for credit or denied. A lower MI premium will favorably affect qualifying debt-to-income ratios.

And higher loan amounts may result in a higher savings amount. For example, on a $300,000 sale price with 3.5 percent down, the current annual MI payment would be about $203 per month. Beginning on Jan. 27, the MI payment would be $145 per month. That is a savings of almost $700 in the first year!

Check out this article from CNBC to learn more, and be sure to contact your local mortgage consultant with any questions you have about your mortgage financing options.

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1. FEDS Notes, Changing FHA Mortgage Insurance Premiums and the Effects on Lending, https://www.federalreserve.gov/econresdata/notes/feds-notes/2016/changing-fha-mortgage-insurance-premiums-and-the-effects-on-lending-20160929.html

An FHA home loan may not be the best product for all borrowers. Not all loan types are available to all borrowers. Not all borrowers will qualify. Borrowers will be subject to qualification and must satisfy all underwriting requirements and conditions. Some and/or all qualifying criteria may be set by independent third party program sponsors. Consult your mortgage consultant and carefully consider each of your home financing options so you can determine the home loan that is right for you.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC. All Rights Reserved.

Reprinted with permission from the Prosperity Home Mortgage, LLC, blog.

Beverly Stermer, REALTOR®
Long & Foster Real Estate, Inc.
16 Gosnell Crossing STE 102
Staunton, VA 24401
Cell: 540-294-3145
Office: 540-997-3300

I am never too busy to help you or your friends, co-workers & family! Give me a call! 

When Packing a Storage Unit, Strategy Is King

By Paige Tepping

RISMEDIA, Thursday, January 12, 2017— Whether you're in the process of downsizing or simply looking to open up your home a bit (without saying goodbye to your belongings for good), self-storage units offer a practical solution to the issue surrounding lack of space homeowners are faced with on a day-to-day basis.   While factors such as security, cleanliness, temperature control, customer service and price will likely play a large role in determining which self-storage unit best fits your needs, the process doesn't end there. In fact, much like packing to move from one house to another, maximizing the space within your self-storage unit begins with having a plan in place.   1. Be Prepared. Once you've made the decision to rent a storage unit, even if it's a short-term solution, it's important to come up with a plan before you begin haphazardly shoving items into the space. While this may save time on the front end, it will undoubtedly work against you when it comes time to clear the unit out.   2. Use the Space Wisely. If you're storing bigger items—or anything that's awkwardly shaped—take the time to break them down (if possible) in order to get the most use out of the space. This means disassembling tables, workout equipment, kitchen carts, etc.   3. Take Inventory. Good memory or not, you're bound to forget every last item stored in the unit. Even if it only makes an appearance once every few years, you'll want to remember where your fine china from Great Aunt Gertrude is when she comes calling.    4. Label Everything. If you plan to fill your storage unit up with boxes, be sure to label them so that you can quickly and easily identify what's inside. It's also important to make sure all labels are facing the same way.   5. Map It Out. In addition to making note of everything that's stored in your storage unit, it's a good idea to map out where everything is located. This way you can easily grab something when needed.    6. Place Items Strategically. Keeping like items together (or packing things according to which room or family member they belong to) is a simple way to add a level of organization to the process.   7. Leave a Walkway. For those renting a large self-storage unit, don't forget to leave a walkway down the middle when filling the space with your belongings. Not only will this make it easy to grab things when you need them, it will keep you from having to climb over boxes and other items when you need to grab something from the back of the unit.   Article shared by: Beverly Stermer, REALTOR® Long & Foster Real Estate, Inc.  16 Gosnell Crossing STE 102 Staunton, VA 24401 Cell: 540-294-3145 Office: 540-997-3300 As always, I am happy to assist you with your real estate needs and am never too busy for your referrals! Article by: Paige Tepping RISMedia's managing editor. This was originally published on RISMedia’s blog, Housecall.

Sales in the Snow: 5 Home Staging Tips for Wintertime

While winter isn't traditionally considered the best time to sell your home, there's no reason you can't get an offer during the colder months with the right staging. In fact, a study found that homes sold faster and for more money in the winter months, even in cold cities like Chicago. Here are five winter home staging tips that can increase your appeal to potential buyers. 

1. Clear the Walkways

Whether you live in an area with heavy snow all winter or you've had a big storm on a day with several showings scheduled, all areas of the yard should be accessible for buyers. That means not only making sure there's a safe, snow-free path to the front door, but also that paths are cleared to any outdoor areas the buyer will want to view. This means sheds, patios, garages and recreation areas. And while entries can get grimy if your family is in and out with their boots on, this area should be kept spotless and clear of debris.

2. Let There Be Light

Although our instinct in winter is to hunker down indoors, put your home in its best light by opening all shades and draperies, as well as turning on all available light sources (including closet lights). The exception? Turn off televisions and computers, which don't necessarily add to the warm glow you're trying to achieve.

3. Keep It Toasty

Speaking of a warm glow, your home should project a feeling of warmth to potential buyers when it's cold outside. If you have a fireplace that's in good condition, that's a great place to start. Try setting your thermostat a degree or two higher than usual to give buyers a reason to linger instead of heading back out into the weather.

4. Embrace the Holidays

While REALTORS® usually advise packing away personal belongings when staging a home to create a clean canvas for buyers, tasteful holiday decorations can help create the warm, family feel you're trying to achieve. Think lush wreaths, a tree with inviting white lights and candles in the windows for subtle yet powerful emotional appeal.

5. Don't Ignore the Outdoors

Although your landscaping won't look as gorgeous as it does in the spring, pots of evergreens can help add some color to your walkways and yard. Always make sure that gutters are cleaned and shrubs are trimmed, too.

Beverly Stermer REALTOR®

Long & Foster Real Estate, Inc. 

16 Gosnell Crossing STE 102

Staunton, VA 24401

Cell: 540-294-3145

Office: 540-997-3300

As always, I am never too busy for your referrals!  

Article by Dixie Somers RISMEDIA, Wednesday, January 04, 2017. This was originally published on RISMedia’s blog, Housecall.