HomeReport
Real Estate & Finance News That Affects Your Home                                                         Page  1 2 3 4

May 2009 - Page 2

GREEN SAVINGS Green Homes Pay And Sell Energy-efficient "green" homes obviously benefit homeowners with lower operating costs. According to Marc D. Gould, vice president for the business specialties group at the National Association of REALTORS®, green homes also sell faster and for more money per square foot. Green homes spend roughly 25% less time on the market compared with conventional homes. 70% of buyers are more inclined to purchase a green home than a conventional one. A recently conducted American Institute of Architects poll found that 90% of the registered voters surveyed would pay $5,000 more for an energy-efficient home than a conventional one. If you're interested in purchasing a green home, we'll put that at the top of our search list to help you find one. Getting ready to sell? You may want to improve your home's energy efficiency first. Call us to find out which improvements could best help you recoup your costs and attract buyers. GREAT RATES Today's Super-Low Interest Rates Spark Refinancing Boom Did you know that in 1981 interest rates on 30-year fixed-rate mortgages averaged 16.63%? If you were trying to buy or refinance a home back then, anything under 10% would have seemed like a slice of heaven. Today's rates would have seemed positively mythical. Rates change daily, so the first step in deciding whether refinancing could benefit you is to get a current rate quote and an estimate of closing costs and fees. (We'll be happy to provide a list of lenders we've worked with who can help.) Of course, homeowners with the best credit get the best rates, so be sure to check out your credit report -- whether you are buying or refinancing -- before contacting a lender. You can obtain a free credit report once every year from each of the three major credit reporting agencies -- Equifax, Experian, TransUnion. You can even see your credit reports today by making your request online at www.AnnualCreditReport.com. Allow 15 days for processing time if you request your report by phone -- (877) 322-8228 -- or by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. If you are refinancing, a major decision factor will be whether the difference between today's rate and your current mortgage rate is enough to justify the costs of refinancing. You are likely to see the biggest difference in interest rates if you: Have improved your credit score since purchasing. Took out a jumbo loan (at a higher rate) and your loan balance is now below the conforming loan limit (which varies by area nationwide). You made less than a 20% down payment (and paid a higher rate) but now own 20% equity in your home. Cancelling private mortgage insurance (PMI) is another possible savings opportunity in this situation. You'll want to make sure you will own the home long enough for the money you save by refinancing to recoup the costs. For example, if you pay $5,000 in refinancing costs to lower your monthly payment by, say, $100 ($1,200 per year), you would need to keep the home just over four years in order for your savings to recoup the costs ($5,000 ÷ $1,200 = 4.17). Refinancing can benefit homeowners in a variety of ways: Lowering your monthly mortgage payment. Shortening the term of your loan to save interest expense. Shifting from an adjustable-rate mortgage to a fixed-rate mortgage. Consolidating loans. Tapping your home's equity, perhaps to pay for a major expense, such as college, or to pay off higher-rate debt, such as credit-card accounts. Page: 1 2 3 4 Back to Scottsdale Real Estate Web Site