Why Should You Pay Your Landlord’s Mortgage When You Can Build Your Own Equity?

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Over the years we have seen many different faces of the real estate market and these days the marketplace is hopping! Still, so many people are hung up on renting versus buying. Rather than wasting away thousands upon thousands of dollars every year toward someone else’s mortgage – why not invest in your own future? We take a look at just a few of the many advantages to owning your home as opposed to renting.

Very Few Choices, Lots of Rent
Most landlords these days know that renters are either leasing their apartment because they have credit issues, or because they simply don’t realize that buying a home these days is as affordable as renting. But with the many people that are out there renting, fewer properties are available for lease giving landlords the opportunity to charge more rent – a lot more rent.

Today’s Low Rates, Tomorrow’s Equity
Buyers today are able to leverage the historically low interest rates that are still available. They may not last forever but at least for now and projected until at least the end of 2013 you can get a great rate. The lower your interest rate, the stronger buying power you can expect to have when buying and building your own equity.

Comparable Monthly Payments, More Amenities
Think of the freedom one has when they own their own home. Now if you could buy a home for the same amount of money it costs you each month to rent, the amenities you will enjoy in a home far outweigh an apartment. You will have the freedom to do what you want with the space while enjoying the autonomy that comes with homeownership.

Tax Advantages That Put More Money In Your Pocket
Homeowners, particularly new homeowners, enjoy many tax benefits of owning their own residence. For starters, you can deduct all your property taxes from your income taxes. You can also deduct mortgage interest and if you have a loan that has private mortgage insurance, that too is a viable tax deduction. Also, depending on your tax bracket you may be able to afford more house for the same monthly payment amounts.

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To find out how you can maximize your housing dollars while at the same time invest in your future – contact us today. As your trusted real estate advisor and financial expert, Mike Roth and Allan Ripple work together on many transactions – working to secure stronger futures for our friends, neighbors, community members and clients

Like-New Property Hits the Market

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A neutral décor combined with updates makes the home at 3374 S. 114 Street a gem. In a great neighborhood, this property in West Allis is in a cul-de-sac west of highway 100 off of Oklahoma. It’s ideal for the first-time or move-up buyer. Here are the details.   

This three-bedroom property is like new. It features neutral colors, new carpets, new windows, new light fixtures and new paneled doors throughout. The home has a side driveway and a 2 ½-car garage that has lots of storage space. The home is basically maintenance free with aluminum trim, new gutters and new roof, as well as vinyl siding. Located on a quiet street, it’s safe for kids to play in the front yard. 

As you enter the house there’s a large living room and dining room combination. The kitchen features an open concept, new cherry cabinets, new countertops with lots of space, stainless steel appliances and a built-in microwave. New hardwood floors complete the look in the kitchen and extend into the hallway. 

Other features make this property stand out. The bathroom has been completely remodeled and includes all-new ceramic tile, fixtures, flooring and a large vanity. The bedrooms feature slide-by closets. Off of the kitchen is a huge family room—a bonus room—that has its own exit and lots of window space with a view of the backyard. It’s a great getaway room. Top off all these perks with a huge basement you can finish for even more square footage. It also has gas heat and central air. You’ll also have plenty of room in the backyard for a play set or grilling out. 

Believe it or not, it’s priced at $169,900. With interest rates below 4%, the monthly payments would be less than rent.  Call us at (262) 797-6453 so you can see this home.     

Now’s the Time to Sell

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Everyone wants to know what’s going on in the real estate market. Here’s a recap and insight on what how buyers and sellers can take advantage of it.  

In 2012 sales were up 20 to 25% from 2011. They are up again in the first quarter in the greater metro Milwaukee area by 11.5%, which is good news. The number of listings over the last five years has been larger than ever with times when the inventory was as high as 14 to 16 months. (This means that if another home did not come on the market, it would take 14 to 16 months to sell the available inventory.) Now listings are down in the greater metro area by 18.3%, so there are fewer homes on the market. The average list-to-sales price ratio on average is now 96% of the asking price.

What does this mean for sellers? If you’ve thought of selling your home, the time is now. Since there are fewer homes on the market, there’s more competition for available homes. Low inventory often translates into multiple bids, high list-to-sale price ratios and being able to negotiate better terms. It’s a great time for sellers.

If you’re in the market to buy a home, be aggressive. When a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller. Remember, inventory is low. If you hesitate, the property could be gone because others will be making offers.

Keep in mind that mortgage loan rates are still fantastic, which makes buying a home more affordable than ever. A 30-year fixed-rate mortgage hovered at record-low rates during 2012 and is still low into 2013, but the rates won’t last forever. Interest rates are still below 4% with some as low as 3% with a 15- or 20-year fixed-rate mortgage. If you wait and interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment.  

Give us a call so we can tell you where to be positioned and how to be successful in this market. Please contact us at (262) 797-7453. We’d be happy to assist you.

Lot Loans and New Construction Loans Offer Fantastic Benefits to Future Homeowners

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New construction is making a comeback. Partly because the demand is rising and partly because our economy is finally rising up to the challenge that many in the construction industry had to face after our housing market crash several years ago.

But today’s a new day and lenders out there are willing and eager to loan money to qualified future homeowners. We talked with Allan Ripple of Johnson Bank, who shared some of the excellent program his bank offers to people looking to build their dream home on a lot and those that just want to secure that piece of paradise to build on it later.

New Construction Loans Offer Financial Flexibility

These adjustable rate loans are offered in 1-year, 3-year, 5-year or 7-year terms depending on the end goal of each construction project. One of the greatest benefits of these loans is that during the first 12 months, the construction period requires only a payment obligation of the interest accrued on the amount drawn. In other words, borrowers are only paying interest on the money that the contractor draws to build the house during the first 12 months of the loan. This is a huge financial benefit that can easily offset some of the otherwise daunting expenses that come with a resale home purchase.

During this time, there is no need for Private Mortgage Insurance plus the minimum down payment on the loan is only 5% of the total loan amount. Once the house is built, borrowers have the option to convert the construction loan to a regular 30-year fixed rate loan, which would result in a new amortization schedule starting from that point on. Private Mortgage Insurance would be collected in cases where a 20% down payment was not made on the 30-year fixed loan.

Vacant Land Loans Are Perfect for Short-Term Uses

There are also some loan products designed to assist buyers that are not quite ready to build but have found the land on which they would eventually like to build their home. Done as renewable balloon loans, borrowers have the option to choose 1-year, 2-year or 3-year terms with the expectation that these loans will mature.

For the greatest financial benefit, however, the general consensus is to close on both the land and the construction of the home at the same time. This product requires a 15% down payment for lots that are fully improved with property subdivision clearance from the municipality, road infrastructure plus utility connections at street level.
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For more information on how you can take advantage of these great loan products – or if you are looking to buy, sell or invest in a property, we invite you to contact us today!

Lessons Learned at the Mike Ferry Organization Conference

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Each year, over 2000 thousand of our country’s top real estate agents convene in a hot spot to gather together and compare notes on what works best for them in their quest for continued success. This year, as we move into the day 2 of the conference, I wanted to share with you just a few of the ideas I’ve learned in their series “The Art of Selling”; things that we will continue to practice and perfect moving forward with the Mike Roth Team.

Attitude is Everything

Time and again we hear of instances where someone with a lackluster attitude consistently fails to raise the bar and achieve success. Well in real estate, nothing could be truer and one of the main principles of a quality real estate agent is to maintain an upbeat and positive attitude when presenting real estate.

Aim High and Goals Get Achieved

If you set high standards and top goals – you will achieve them, says Mike Ferry. The ONLY way to get results is to have high expectations of yourself and your organization, which in turn almost always ends up in great results.

High Energy = High Success

Right up there with attitude, is high energy. When you operate on a strong level with enthusiasm, drive and ambition – it’s no wonder that you will successfully sell real estate and foster strong long-standing relationships in the process.

Focus On Clients’ Needs is Key

Clients’ needs are all encompassing and they are what ought to drive every single real estate agent’s business. By staying 100% focused on clients’ wants, needs, desires and inhibitions – nothing but utmost success can be expected.

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If you would like to hear more about what we’ve learned through the MFO this year or if buying, selling or investing in real estate is something on your mind these days – we invite you to contact us today!

Good News! Banks Are Lending Money and They're Lending Plenty of It!

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When the housing market crashed in 2006/2007, no one could have predicted where the real estate industry would be at the beginning of 2013. But here we are and things have changed a LOT in that relatively short period of time. It turns out that banks are back lending money, there are fewer distressed properties on the market and overall things are looking up.

So if you have been waiting and watching the marketplace, now’s the time to jump off the fence and get started in your home buying or selling endeavors. Here is what Allan Ripple of Johnson Bank had to say about our local lending industry.

Banks Are Openly Lending Again and Have Plenty of Money to Lend

Contrary to what many would believe, banks do indeed have money to lend and for the first time in a while now they are actively lending again without jumping-through-fire processing. Sure, lending institutions are still concerned about making sure no stone is unturned in applications and they want to be sure the borrower can shoulder the debt, but the process is easier than it was just a couple years ago.

All You Need is Good Income and a Good Credit Score

Someone with the ability to spend at least one third of their income on a housing payment is likely approved, assuming they have the credit-worthiness to be able to manage the debt. For the standard conventional loan, consumers will need a credit score of at least 620. If your score is less than that, Allan suggests meeting with him to discuss ways to improve that score fairly quickly.

Down Payments Needed Start at 5% of the Purchase Price

For most conventional loans, the minimum down payment required is just 5% of the purchase price, which for many homebuyers is very doable. When you factor in that for rental properties you would have to pay first and last months’ rent plus a security deposit, the minimum down payment is very doable.

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We’re asking that you spread the good news around: Banks are lending money and it’s a GREAT time to buy or sell a house! Allan Ripple of Johnson Bank can be reached directly on his cell phone at 414 852 7022 and of course you can also reach the Roth Team at 262 797 6453. We look forward to hearing from you!

Mortgage Market Update 2013 – Plus Predictions for the Housing Market Ahead

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We had the good fortune to speak with Allan Ripple of Johnson Bank, a veteran mortgage professional that has been in the industry for over 20 years. He shared with us his thoughts on the mortgage industry.

In the past several decades there have been a lot of changes in the lending industry with interest rates. With rates fluctuating anywhere from today’s historic low rates starting at 2.55% to the high point rivaling credit card interest rates near 19%.

Mortgage Rates Today

Here’s a snapshot of interest rates for a typical single-family home from the day this video was recorded on January 10, 2012:

10 year fixed rate at 2.55%

15 year fixed at 2.6%

20 year fixed at 3.25%

30 year fixed at 3.3%

Adjustable rates in today’s market as per the day of recording our video:

1 year at 2.25%

3 year at 2.375%

5 year at 2.625%

7 year at 3%

Closing costs are on average about $1,500 and they include everything to move you in – including the cost of an appraisal, title insurance, recording fees with the register of deeds office and more.

Allan’s Prediction for 2013

With the Federal Reserve working hard to keep the housing market flowing with activity, Allan does not foresee any immediate hikes in interest rates. With the unemployment situation not improving as much as we would have liked it to by now, we can expect things to continue as they have been for the past eighteen months or so.

Buyers can expect to have low interest rates for at least the next 18 months to two years. So it continues to be a great time to buy a home, sell a home or refinance an existing mortgage.~

As always, we’d love to help you with your real estate endeavors and welcome the opportunity to work with you. Please contact us directly or if you’d like to get in touch with Allan he can be reached on his cell 414 852 7022.