It is not uncommon for homeowners to outgrow a home, but knowing when it makes sense to trade up to a bigger home is important when making such a move. Of course the biggest questions involve finances.

Does your current home have enough equity built up in it to make sense? If you can sell your current home for a nice profit and have extra money to put down on your new home it will make your entire transition and easier one.

Can you afford the mortgage on your new home? If you can take the equity from your current home and put down a nice down-payment, your new mortgage could be similar to your current home’s mortgage which would make the entire transition more affordable. If your new mortgage is going to be a larger one make sure that your income has increased enough to afford it.

Analyze the market you are in. If your current home will sell quickly and for asking price or greater, will the new home you choose be more expensive as well? Look at the neighborhood you want to move to and know what homes are selling for.

There are a lot of factors that come into play when deciding to buy a bigger, better home but remember that the grass is not always greener. A bigger home will cost more to run and take more to upkeep. Take a good hard look and make sure that the decision is in your best interest for a solid financial future.

The current market conditions favor local Buyers. Interest rates remain low and available homes are showing an increase in availability. Homes in the $300,000-$450,000 are an excellent value. This market segment has been slow for the last 18 months.  We are seeing an increase in new listings and Sellers are motivated to work with buyers. Contact us for a custom search.

 Sourced from: Kinetic Content Library

Say good by to tax credit!

The tax credit is not a reason to ruch into making a bad decision, but it does represent an unprecedented opportunity. Please contact us for additional information or to discuss your real estate needs.

       Recently, you may have heard the term ”shadow inventory”. Shadow inventory refers to homes that have NOT been placed on the market . These are properties that Sellers would like to sell, but have refrained from listing. Generally, the reason is a combination of lack of urgency from the Seller and belief that market conditions will improve.   I’m experiencing a sharp increase in listing appointments. Sellers are anxious to take advantage of the tax credit motivated buyers. The growing optimism on the economic front has also resulted in an increase in seller activity. We should see some excellent opportunities in the next 45 days. Incredible interest rates (yes there is money for qualified buyers), depressed home prices, and NOW-fresh inventory. I anticipate marketing a wonderful attached home in the Red Lion area. Quiet neighborhood, great fenced yard, well maintained, minutes from I-83. Should list for under $145,000. I have another pending listing the Central School District. Features a cute yard, patio, and fish pond with privacy fence, wood floors in the living room & dining room, 4 bedrooms-minutes to I-83. Should hit the market in the next 10 days, under $140,000. If you know anyone that might be interested, have them contact me for a personal showing. WALT-800-494-7816

The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, the agency announced Tuesday.

The change is among a number of major changes the FHA is making to ensure its long-term financial soundness.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency’s finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet to be announced.