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DIY Lovers: ‘Greenify’ Your Home with These Three Eco-friendly Home Improvement Projects

March 2, 2021 by Bob Elliot

DIY Lovers: 'Greenify' Your Home with These Three Eco-friendly Home Improvement ProjectsAre you a homeowner who is searching for ways to make your home a bit more eco-friendly? Equipping your home with “green” improvements can save a substantial amount of energy and money, especially over the long term.

In today’s post we’ll explore a few projects that handy do-it-yourselfers can undertake in order to make a home a bit friendlier to the local environment.

#1: Focus on the Windows

Depending upon the time of year, windows have an impact on both heating and cooling costs. In the summer, older windows can drastically heat up a home causing cooling costs to skyrocket. In the winter, older windows can leak cold air within the home and let out the heat, which causes the heating costs to rise as well.

A simple replacement of older windows can save a homeowner as much as 30 percent on annual energy costs, as newer windows are more efficient at insulating the home against the weather conditions outside.

Combining a window upgrade with other energy-related changes can lead to even greater savings. For example, consider installing a ceiling fan in rooms that are generally occupied – such as the living room or family room – as these can circulate cool and warm air and help to reduce energy use.

During the colder months, use as much solar heating as possible. Open up curtains, and trim trees to allow for natural light to enter the home. The sun heats up the home through radiant heating, which is an effective and essentially free source of energy.

#2: Improve Your Insulation

A home that is properly insulated will help to preserve its heat and cool air. Heat can leak out from the home through cracks, but it can also occur through convection heating. The air within the home will eventually cool down from a steady decline of heat when the heat is transferred outside through the walls.

Beyond hot and cool air leaking out from the home, each room within the home can indirectly influence the temperature in adjoining rooms. This is especially true for the garage and any room that shares common walls. By using insulation in the garage, the home may cool down by as much as 10 degrees Fahrenheit.

#3: Install Smart Thermostats

Some green options simply mean a change in which type of appliances are used. In terms of a thermostat, a “smart” one like the Nest Thermostat can be installed. Use of one can cut energy costs by 20 percent, at minimum, by simply adjusting to the homeowners’ schedule.

Filed Under: Around The Home Tagged With: Around the Home, Home Maintenance, Upgrades and Renovations

What Are the Benefits of a 20% Down Payment?

March 1, 2021 by Bob Elliot Leave a Comment

What Are the Benefits of a 20% Down Payment? | MyKCM

 

If you’re thinking of buying a home this year, you may be wondering how much money you need to come up with for your down payment. Many people may think it’s 20% of the loan to secure a mortgage. While there are plenty of lower down payment options available for qualified buyers who don’t want to put 20% down, it’s important to understand how a larger down payment can have great benefits too.

The truth is, there are many programs available that allow you to put down as little as 3.5%, which can be a huge benefit to those who want to purchase a home sooner rather than later. Those who have served our country may also qualify for a Veterans Affairs Home Loan (VA) and may not need a down payment. These programs have really cut down the savings time for many potential buyers, enabling them to start building family wealth sooner.

Here are four reasons why putting 20% down is a good plan if you can afford it.

1. Your interest rate may be lower.

A 20% down payment vs. a 3-5% down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage interest rate they’ll likely be willing to give you.

2. You’ll end up paying less for your home.

The larger your down payment, the smaller your loan amount will be for your mortgage. If you’re able to pay 20% of the cost of your new home at the start of the transaction, you’ll only pay interest on the remaining 80%. If you put down 5%, the additional 15% will be added to your loan and will accrue interest over time. This will end up costing you more over the lifetime of your home loan.

3. Your offer will stand out in a competitive market.

In a market where many buyers are competing for the same home, sellers like to see offers come in with 20% or larger down payments. The seller gains the same confidence as the lender in this scenario. You are seen as a stronger buyer with financing that’s more likely to be approved. Therefore, the deal will be more likely to go through.

4. You won’t have to pay Private Mortgage Insurance (PMI)

What is PMI? According to Freddie Mac:

“PMI is an insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%. Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As mentioned earlier, when you put down less than 20% when buying a home, your lender will see your loan as having more risk. PMI helps them recover their investment in you if you’re unable to pay your loan. This insurance isn’t required if you’re able to put down 20% or more.

Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put down 20% on their next home. With the equity homeowners have today, it creates a great opportunity to put those savings toward a 20% or greater down payment on a new home.

If you’re looking to buy your first home, you’ll want to consider the benefits of 20% down versus a smaller down payment option.

Bottom Line

If you’re thinking of buying a home and are already saving for your down payment, let’s connect to discuss what fits best with your long-term plans.

Filed Under: Home Buyer Tagged With: Down Payment, Interest Rate

What’s Ahead For Mortgage Rates This Week – March 1, 2021

March 1, 2021 by Bob Elliot

What's Ahead For Mortgage Rates This Week - March 1, 2021Last week’s economic reports included readings from Case-Shiller on home prices, the Federal Housing Finance Agency also reported on home prices and the Commerce Department released data on sales of new homes and pending home sales. The University of Michigan released its Consumer Sentiment Index, and weekly readings on mortgage rates and jobless claims were released.

Case-Shiller Home Price Indices Report Fastest Price Growth in 7 Years

The S&P Case Shiller National Home Price Index reported December home prices rose at the fastest pace since 2014. The National Home Price Index posted a year-over-year home price growth rate of 10.40 percent in December as compared to November’s home price growth rate of 9.50 percent.

Case-Shiller’s 20-City Home Price Index posted December home price growth at a year-over-year pace of 10.10 percent as compared to November’s home price growth rate of 9.20 percent according to Case-Shiller’s 20-City Home Price Index. Phoenix, Arizona home prices rose at a seasonally-adjusted annual pace of 14.40 percent; Seattle, Washington home prices held second place with 13.60 percent growth, and San  Diego, California held third place in the 20-City Home Price Index with 13.00 percent home price growth. 18 of 19 cities reported higher home prices;  Detroit Michigan did not report data for December.

The Federal Housing Finance Agency reported year-over-year home price growth of 11.40 percent in December for homes owned or financed by Fannie Mae and Freddie Mac. High demand for homes and short inventories of available and affordable homes created challenges for first-time and moderate-income home buyers. Builders said that rising materials costs and labor shortages continued to impact new home construction.

 

New Home Sales Increase as Shortages of Pre-Owned Homes Persist

The Census Bureau reported 823,000 sales of new homes in January on a seasonally-adjusted annual basis. Analysts expected 850,000 sales based on December’s reading of 885,000 new homes sold. Homebuyers are turning to new homes as supplies of previously-owned homes are in short supply. Shortages of previously-owned homes continued as homeowners stayed in their homes due to economic uncertainty, unemployment, and ongoing concerns over the pandemic.

Pending home sales fell by – 2.80 percent in January as compared to December’s reading of – 0.50 percent.

Mortgage Rates Rise as Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week. Rates for 30-year fixed-rate mortgages rose 16 basis points to 2.97 percent; the average rate for 15-year fixed-rate mortgages rose 15 basis points to 2.34 percent. Rates for 5/1 adjustable rate mortgages averaged 22 basis points higher at 2.99 percent. Discount points averaged 0.60 percent for fixed-rate home loans and 0.10 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 730,000 new claims filed from the prior week’s reading of  841,000 initial jobless claims filed. Ongoing jobless claims were also lower; 4.42 million continuing claims were filed last week as compared to 4.52 million ongoing claims filed in the prior week.

The University of Michigan reported an index reading of 76.80 for its Consumer Sentiment Index in February, as compared to January’s index reading of  76.20.

What’s Ahead

This week’s scheduled economic reports include readings on construction spending, job growth, and the national unemployment rate. Weekly readings on mortgage rates and jobless claims will also be released.

Filed Under: Financial Reports Tagged With: Case-Shiller, Financial Report, mortgage rates

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