The Factors that control your interest rate when buying a home and why they don't matter as much as you think they do.

 Most people buy a home because it solves a particular problem for them.  They could be relocating, upsizing, or downsizing for whatever reason.  Some rely on the interest rate as an indicator for their purchase.  The interest rate is the cost of borrowing that money and is an added expense (when not paying in cash) on top of the principal (the actual price one pays for the home).  

On top of the Principal and interest there is taxes and insurance when purchasing.  These all roll into an acronym PITI.  Ultimately the lender you receive the loan from will use your total PITI to calculate the debt to income ratio (DTI), which determines how much money you can borrow.

Most buyers look at the interest rate as an indicator of whether or not they will buy a home.  But why?

There are key factors that are uncontrollable for buyers and the amount of interest they pay on the mortgage.  I'm not talking about what specific home you want or the income someone makes or even their already realized debt (credit cards, cars, existing mortgage(s), etc.).  If your financial goal is to buy a house- the best time to buy is now because it is an investment.  

Yes, The current impact of upward movement in interest rates means that you have lower purchasing power and higher monthly payments.  These factors can be minimal considering ou can negotiate a lower purchase price and plan to refinance later.  Which will be money either directly saved or a future sum of money pending interest rates fall.  Which over the 30 year life of the loan is most probable.

If you're interested, and most aren't, you can follow the 10-year US Treasury yield to determine how interest rates react.  As bond yields rise due to government spending and inflation, mortgagers raise their consumer rates to maintain profit margins.  Immediately as discussed above when interest rates are high it significantly reduces home-buying power.  Don't let these numbers deter you from your purchase there are hidden benefits to higher interest rates.

When interest rates are high this reduces the purchase price.  If you are already pre approved for a loan the high rates tend to reduce the number of buyers which gives you more power force the seller to lower the asking price.  You are not locked into your interest rate forever-the purchase price you are.  Meaning when the real estate market cycle comes full circle you will have the opportunity to refinance.  Opening possibilities of selling and realizing your equity gained.  

I can go into why buyers win more in negotiations but that would be giving away trade secrets and I'm tickled that you have read this far already.  So, text me "homebuyer" if you would like to know more how my services can benefit you.  260-221-9673  or clickrobley.realtor

Letter to son

You can always call me no matter what. Only a select few get to have sons and, fewer still that both relationships are recognized. It’s worth saying that I never saw your grandpa(my dad) much during my junior high years. He was there for me with a couple of projects but if I ever had a question I would go to your grandma (my mom) or solve it myself. I know comparing two people is and can be tricky, however when it’s direct lineage one has to. At near zenith in order to learn to be better. I’ve tried to limit the time I speak about the comparisons between you and I. Mainly focusing on allowing you to follow the paths in front of you. Speaking of paths: I hope some of them I’ve laid a great path and have the similar feeling that you will choose differently at times and then play the cards we are delt… Wait bad analogy. BC cards is a loose some game. I'm talking easy wins and apples and fruit brought low for you to easily understand what it takes to get. More like.. the above view on a herd of elephants. Noticing the trails of some individual matriarchs. Highlighting other more rogue or younger elephants that seem to enjoy taking a slightly different path to test the strength of the terrain. Ultimately the path laid by a large elephant in front, particularly the matriarch, is the path the rest fall in line with. It is well known and tried and true. It helps the herd and feals natural after a while. Others see you and like to fall in line. Elephants are really intellegent. The have a long life to live relative to the animal kingdom. They are not savage but have strength that is untouched. One bull can destroy everything in its path. A herd can walk at any pace, wherever they choose.

The Kitchen

The kitchen is the homes hearth. For many homes it is the center of family activity. It is also the most often remodeled room in the American home. A well designed kitchen with plenty of cabinets and counter. Space can often compensate for other shortcomings in the home. Updating your kitchen can vary from smart, low-cost, cosmetic improvement, such as new wallpaper, or window treatments, to a total renovation of the space. And enjoyable kitchen is both efficient and attractive. Improvement should be made with this in mind. They should also coordinate with your family's lifestyle and the amount of time the family spends in the room. Investment Remodeling the kitchen is almost always in an excellent investment in terms, both of adding space for your families enjoyment, and an increasing the resale value of your home. Remodeling cost very depending on the number of appliances, quality of cabinets, type of countertops, and labor required to do the job. Most experts agreed that for the average American home, a mid-level remodel that includes new flooring, good quality, cabinets, countertops, and reasonably priced fixtures, and appliance is the best way to ensure a good return on your investment. For a complete remodel, the rule of thumb is not to spend more than 15% of the value of the home. Planning Solid planning is the main ingredient and determining the outcome of your remodel. Begin by thoroughly thinking through what you want the outcome of the remodel to be. The more complicated the project, the more important it is to receive professional advice. A kitchen remodel is something that you should only have to do once, so you want to take the time to do it right. Because of the wide range of cost and types of products available, it is important to first establish a realistic budget. Avoid under improving or over improving the space by selecting materials that are comparable and value with those used other homes in your neighborhood. This is necessary if you want your house to increase in value in relationship to the cost of the remodel. Components When selecting the new components for your kitchen, you have a lot to look forward to. Cabinetry and its accessories have come along way in the last 15 years. Whether you choose the traditional look of wood or the high tech style of euro/contemporary, you can select convenient features like Lazy Susan's and appliances that will make your kitchen, extremely functional and cleverly uncluttered. While plastic laminate is still the most popular countertop material available, your options also include ceramic tile, wood, natural stone, and synthetic solid surfaces that resemble marble or granite. Today's appliances are sleek, flexible, and offer more convenience than ever before. As a group, they are better looking than those of the past. They have a built-in look, fit, flush, and blend in well with surrounding cabinets. Most common colors or specialized finishes that fit in with any kitchen decor. As the center of the family activity, your kitchen is the most important room in the house. A well designed kitchen establishes a base where not only hungry bodies are nourished, but the families lifestyle is eased as well.

Home Safety and Security

Duplicate Keys Have duplicate keys made and keep them in convenient places so that samll children who lock themselves in the bathroom or other rooms can be freed promptly. When you take a vacation leave a key with a trusted neighbor. If you forget to attend to something before you leave or if an emergency arises, your neighbor may be abele to help you. Deadbolts Install deadboltlocks on all doors with access to the outside. By having a locksmith or security specialist come to your home to make an evaluation, you can deterimine the degree of security you would like to have. Smoke Detectors Install smoke detectors on every level in your home and check their alarms once a month. Change the batteries at least twice a year- when you change the time on your clocks. Chimney Inspection Have your chimney profeesionally inspected and cleaned, if necessary, at least once a year to remove soot and flammable creosote. A clear chimney will prevent a buildup of dangerous carbonmonoxide gas in the home. Always use a screen on your fireplace. Only burn materials designed for a fire place. Put ashes in metal containers and remove them from inside the house. Fire Extinguishers You should buy one fire extinguisher for every level of the home. Each member should be familiar with their locations. Have them checked annually to make sure they are fully charged. Be sure you and family know how to turn of the electricity, gas, and water in the event of an emergency. Carbon Monoxide Detectors For maximum protection, two carbon monoxide detectors are recommended per houshold; one located in the furnace rooom, the other near sleeping areas.

Buying First Home

Buying a home for the first time can be overwhelming. As a knowledgeable professional it's my pleasure to answer your questions and I'm committed to making the home buying experience, satisfying one for you. To help you begin your journey, here are some answers to a few questions that the first time homebuyers may ask as they begin their quest to purchase their first home. Why should I buy instead of rent? A home is an investment. When you rent, you write your monthly check and that money is gone forever. When you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. you can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years, building equity for you. How do I know if I'm ready to buy a home? You can find out by asking yourself a few questions that will help guide you in your first purchase. Do I have a steady source of income? Have I been employed on a regular basis for the last 2 to 3 years? Is my current income reliable? Do I have a good record of paying my bills? Do I have a few outstanding long-term debts, like car payments? Do I have money saved for a down payment? Do I have the ability to pay a mortgage every month, plus additional cost? If you can answer, "yes" to these questions, you're probably ready to buy your own home. What is title insurance and why do I need it? An owner's policy of title insurance protects the buyer against loss for title threats undiscovered at the time of closing, and provides a defense in the event of claims against the title pursuant to the terms of the policy. How much money will I need upfront to buy a home? In general, you need enough money to cover three expenses: the earnest money (variable), down payment, and closing costs. In addition to the mortgage payment, what other costs do I need to consider? Utilities, property, taxes, homeowners insurance, and maintenance costs are a few of the extra expenses to be considered. Additionally, there may be homeowner association or condo association dues. How are pre-qualifying and preapproval different? Prequalification is an informal way to see how much you may be able to borrow. A preapproval is the lender's commitment to lend to you. Should I use a real estate agent? How do I find a good one? A good real estate professional can guide you through the entire process and make the experience much easier. All of the details involved in home buying, particularly the financial ones, can be mind-boggling. Start by asking your family and friends if they can recommend an agent. Look for an agent as well and understands your needs. The ideal agent knows the local area well and has resources in contact to help you in your search.

Searching for a Realtor? Be careful who you choose and the outcome may be correlated. But, for not the reasons you may expect.

Let's start right out with spilling the beans: Realtors are and should be chosen baised on the positive impact they will have on the buying or selling of the real estate they are chosen to represent via a client. An unspoken yet commenly used theme and frequently discussed topic amoungst clients : how will their relationship with Realtor "Jane" affect our social structure? Of course it could be disasterous to choose a realtor or agent who isnt supported, prepared, or knowledgable. However, many dont realize thats exctly why they have the Realtor Designation in the first place. Not getting into passing all of my national and state tests in Ohio and Michigan let me tell you it's not as easily replicated as one may presume. Here is a list of the Code of Ethics from https://www.nar.realtor/about-nar/governing-documents/the-code-of-ethics Above are some of the primary factors one might concider in choosing a Realtor. Unfortunatly, none of this matters on the home buying/selling timeline until certain milestones are crossed..Many people beleive the realtor you talk to is the one that you need to employ. Thats just not true in practice or in theory because real estate should be discussed. Authors note: Ive never klnown what someone thinks when they meet me. When Im conducting business I kow that my knowledge, skills, and abilities completely cover any fidicuary duties..Kwowledge from this can come from a total of Zero bad reviews or citations in the 15 years of being a licensced Realtor and the 26 years of providing housing and real estate servicecs for people and businesses. So why do deals go sour?! Communication and Market Conditions.

PURPOSE and new number 260-221-9673