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Which Is Better : 15-Year Fixed Rate Mortgage Or 30-Year Fixed Rate Mortgage?

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15-year fixed rate or 30-year fixed rate?As a home buyer or refinancing household in Minneapolis, you have choices with respect to your mortgage.

You can choose a loan with accompanying discount points in exchange for lower mortgage rates; you can choose adjustable-rate loans over fixed rate ones; and, you can choose loans with principal + interest repayment schedules or repayments which are interest only, as examples.

For borrowers using fixed rate loans, there’s also the choice between the 30-year and 15-year fixed rate mortgage. Each has its positives and negatives and neither is “better” than the other.

Choosing your most appropriate fixed-rate term is a matter of preference and, sometimes, of budget.

The 15-Year Mortgage
With a 15-year fixed rate mortgage, mortgage rates are often lower as compared to a comparable 30-year fixed rate mortgage. However, because loan repayment is compressed into half as many years, the monthly payment will necessarily be higher, all things equal. On the other side, though, homeowners using a 15-year fixed rate mortgage will build equity faster, and will pay less mortgage interest over time.

The 30-Year Mortgage
With a 30-year fixed rate mortgage, mortgage rates tend to be higher as compared to a 15-year fixed rate loan, but payments are much lower — sometimes by as much as 50%. Lower payments come at a cost, however, as mortgage interest costs add up over 30 years. Regardless, 30-year fixed rate mortgages remain the most common mortgage product for their simplicity and low relative payment.

Which One Is Right For You?
There is no “best” choice between the 15-year fixed rate mortgage and the 30-year fixed rate mortgage. Choose a product based on your short- and long-term financial goals, and your personal feelings regarding debt. Mortgage applicants choosing the 30-year fixed rate mortgage can qualify to purchase homes at higher price points, but those using the 15-year fixed rate product will stop making payments a decade-and-a-half sooner.

There are benefits with both product types so, if you’re unsure of which path works best for you, speak with your loan officer for guidance and advice. For Minnesota Real Estate Calculators

Simple, Inexpensive Ways To Prep Your Home For Sale

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Tips for better home staging

When St Paul homeowners get ready to list, advice will often come from all corners of their personal and social network — what within the home to upgrade; what to repair; what to replace.

And, although some advice remains valuable, much of it can be ignored.

The costs of an expensive upgrade are rarely recouped at the time of sale and studies show that smaller, simpler actions can yield a bigger return on your investment of time and money.

Here are four inexpensive, yet highly effective, ways to prepare your home for sale.

Improve the curb appeal
It’s not just the inside of your home which should be inviting to buyers — the outside of your home should be, too. Trim hedges, maintain the lawn, power wash the walls and try to inject some color, where possible. Your yard is your home’s first impression on buyers. Make it a great one.

Lighten up the place
Extra sunlight lends an airy feeling to your home, and interior lights provide cozy glow. Therefore, wash your windows, pullback your drapes, replace burnt-out bulbs, and add outdoor lighting to your landscaping, if possible. Also, keep your home lit in the evenings in the event that potential buyers drive by after-hours. With the lights on, your home will look cheery instead of dark and gloomy.

Store unnecessary furniture and personal objects
Less can be more when it comes to showing your home so put your knick-knacks, your stacks of books and your fridge-covering artwork in storage. Be sure to avoid stashing personal items in closets because buyers expect closets to be clutter-free as well.

Paint a pretty home
A new coat of paint will freshen up any room so paint where needed. However, stick to neutrals such as grays and tans. Also, consider repainting rooms bathed in bright, fun colors — this can divert a buyer’s attention away from the home and toward money-costing “projects” that would come with buying the home.

With the help of your REALTOR® and a little hard work, these tips should help you increase your home’s appeal to a wide variety of buyers without breaking the bank. It may even help you sell your home more quickly.

More Bullish Data : Housing Starts Climb 3.6%

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Housing StartsAccording to a joint release from the U.S. Census Bureau and the Department of Housing and Urban Development, Housing Starts rose 3.6% in October 2012, climbing to a seasonally-adjusted, annualized rate of 894,000 units.

A “housing start” is a new home on which construction has started and the report gives buyers and sellers across Minnesota yet one more reason to be optimistic for the 2013 housing market.

Regionally, Housing Starts varied.

The West and Midwest Regions posted gains between September and October 2012; and, the South and Northeast Regions posted declines. The latter was affected by the effects of Hurricane Sandy.

  • West Region : +17.2% from the month prior
  • Midwest Region : +8.9% from the month prior
  • South Region : -2.5% from the month prior
  • Northeast Region : -6.5% from the month prior

Single-family housing starts — starts for homes not considered multi-unit properties or to be apartment buildings — was mostly unchanged, slipping 1,000 units on a seasonally-adjusted annualized basis.

The Housing Starts data is the third housing-related release this week that hints at a strong start for the 2013 housing market.

Early in the week, the National Association of Homebuilders released its Housing Market Index (HMI), a measure of home builder confidence in the new construction market. The HMI posted 46 — the highest reading since 2006. With mortgage rates low and buyer traffic high, builders are expecting a rash of sales between now and the New Year, and an elevated number of closing over the next six months, in general.

The HMI is scored on a scale of 1-100. One year ago, it read 19.

Then, the National Association of REALTORS® showed Existing Home Sales climbing 2.1% and home supply fell to a multi-year low. At the current sales pace, the entire U.S. home inventory would be sold in just 5.4 months. Analysts believe that a home supply of less than 6.0 months favors home sellers.

In unison, these three housing market reports suggest a sustained, national housing market recovery. Home prices are expected to rise into next year’s housing market.

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