Define What you are Looking for

DEFINING YOUR IDEAL HOME

The property you buy will be much more than a house; it will be your home. So before you go out and view houses, understand what you are looking for. Try answering the following questions to help you clarify the things that are most important to you in your ideal home and neighborhood.

Defining Your Ideal Home

1. For some people, “home” means a hub of social activity; for others it might be a place to retreat from the pressures of daily life. What does “home” mean to you?

2. Who will be living in your household? Will you often have other family member or friends visiting for more than a few days at a time? If so, you may want to consider an extra bedroom, or office room than can be used as an extra place to sleep.

3. If you will be working outside your home, what would you consider a comfortable commute (in time or distance)? Will you be working at home? Is public transportation a necessity?

4. What are the most important activities for the members of your household? For example: hobbies, recreation, school, entertaining, religious or cultural activities.

5. What are one or more features you liked most about the home(s) you have lived in previously? This might include: style floorplan, yard, view, and neighborhood. Will these features need to be included in  your new home, or are you willing the add them later on?

6. What are one or more features you disliked about the home(s) or neighborhood where you have previously lived?

7. What are the most important “must have” features of your ideal home and neighborhood? Why are they important?

Once you have answered these questions, you are one step closer to purchasing your next home! Be sure to contact me via phone, text or email to continue the homefinding process.

Historic National Housing Affordability

There has been some recent upward creep in payments, but take a look at this Harvard study of mortgage payment on the median priced home over the last 25 years

When you are ready to see how this applies to your unique situation, just call, text or email.

Ride for Kids

Everyone needs to pick their method to give back to the community.  Mine has been for years to support The Ride for Kids of the Pediatric Brain Tumor Foundation.

In the over 20 years that I have been participating, I have seen first hand the increases in longevity and survival of the kids. 

If you can give click here.

Thanks from me and the kids

Thinking about buying a home?

If you are thinking about buying a home the following guide will offer many answers.

click her for your FREE copy

As always, feel free to call, text or email with any questions.

The Power of Home Equity

Freddie Mac: Equity Matters (a Lot!)

 July 23, 2015  First Time Home Buyers, For Buyers

According to a Merrill Lynch survey, over 80% of the people in this country believe that homeownership is still “an important part of the American Dream”. There are many financial and non-financial reasons people feel this way.

One of the biggest reasons is because it helps build family wealth. Last week, Freddie Mac postedabout the power of home equity. They explained:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home's appreciation. In a nutshell, your money is working for you and contributing toward your financial future.”

They went on to show an example where a person bought a home for $150,000 with a down payment of 10%, resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance). They then illustrated what would happen after seven years of making a mortgage payment, assuming 3% per year home appreciation (the historic national average):

And that number continues to build as you continue to own the home. Merrill Lynch published areport earlier this year that showed the average equity homeowners have acquired at certain ages.

Bottom Line

Home equity is important to building wealth as a family. Referring to the first scenario above,Freddie Mac explained:

“Now, if you continued to rent, and made the same payment of $684.03 per month, you'd have zero equity and no means to build it.

Building equity is a critical part of homeownership and can help you create financial stability.”

To see how this applies to your unique situation, call, text or email 

Are you happy paying your landlord's mortgage

Stop Paying Your Landlord’s Mortgage!

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management atFreddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are projected to climb.

To see how this applies to your unique situation please call, text or email.

PAYING OFF YOUR MORTGAGE EARLY

PAYING OFF YOUR MORTGAGE

July 9, 2015AskHomesale.com15 year mortgage, 30 year mortgage, advice for buyers, advice for homeowners, for homeowners, help for homeowners, home loan, home mortgage, home payment,homesale mortgage, homesale realty, money, monthly mortgage, monthly mortgage payments, mortgage, payment rate, real estate, refinance, should i refinance, statement

If you are looking to pay off your mortgage earlier than you initially planned, there are multiple ways to get this done. Before you begin, check with your bank to make sure there are no hidden fees or charges for paying early.

Refinance your Mortgage

A good way to put a dent into paying off a 30-year mortgage is to refinance it into a 20-or-15-year loan. 15-year mortgages are the most popular, as there is considerably less mortgage interest in the long run. Be sure before making the change that you are financially able to do so, as changing to a 15-year loan commits you to higher monthly payments. If you are unsure about your financial ability to change to a 15-year, try staying on your 30-year loan and make payments as though you are on the 15-year one. This decreases the amount of time on your mortgage without adding the risk of a late payment.

Add a Little Extra

One of the best ways to pay your mortgage off early is to pay a little bit more where you can afford it. You can either do this by adding a set amount every month, or even just by rounding up every month. Even adding an extra 6 dollars to your monthly payments on a 200,000 dollar 30-year loan will save you 4 payments in the end. Make sure before doing this that you check your contract for any prepayment penalties.

 Unexpected Money

Adding a little bit extra every month is great, but another option to keep in mind is adding any unexpected or extra cash flow to your payment. This can include anything from tax refunds or work bonuses to inheritances and investment earnings. This way it doesn’t feel like you are paying as much as long as you do not rely on that money.

Bi-weekly Payments

In Australia, people make bi-weekly half-payments on their mortgages. Why does this make any difference? Well, there are 12 months in a year, so most people will be paying 12 months worth of their loan. Someone who is paying half of their loan every other week, however, will be paying 13 months of their mortgage since there are 52 weeks in a year. This allows you to pay more of your loan off without feeling like you are paying more than you were before.

 Other Options

These are great ways to cut down on the amount of time you have a mortgage, but there are many other ways as well. These include doubling up on your monthly payment 4 times a year and a money merge account. Money merge accounts should only be used by people who really understand cash management. If using any of the above options, it’s a good idea to get statements from your bank showing how much is still owed and also to make sure that any extra payments are going towards your principal and not being saved until the following year.

I do love to eat CUISINE SAFARI

Recent profile in Susquehanna Life

Cuisine Safari Member Profile - Allen & Margaret Gordon

 Jul 09, 2015 01:07PM, Published by David Maynard, Categories:  Travel, Arts+Entertainment, Shop+Dine

---

---

Cuisine Safari is a local Meetup.com group that explores ethnic food from various restaurants in the Central Pennsylvania area. This is a monthly profile on the members who are a part of the group where they can share their experiences and insights. This month we will be interviewing Allen and Margaret Gordon. 

CS: How long have you been a member of Cuisine Safari?

Allen: We have both been members for about 2 years

CS: What interested you in joining the group?

Margaret: The chance to experience new cuisines with new people was what attracted us the most.

CS: Where are you originally from?

Allen: I am from Maryland and Margaret is from New York.

CS: How long have you lived in Central Pennsylvania?

Margaret: Going on about 17 years now.

CS: What is your occupation?

Allen: I am a Realtor and Margaret is a Registered Dietitian.

CS: What is your favorite place that you have visited with the group?

Margaret: Spring Garden Korean Restaurant in Camp Hill.

CS: What is the most interesting meal you have had with the group?

Allen: The various dishes we tried at Spring Garden. Which include Banchan, Korean vegetable appetizers served before meals;  Boyang Jungol, lamb with vegetables cooked in casserole; Bulgoki, broiled marinated beef; Gopdol Bibimbap, steamed rice in pot with beef and vegetables in spicy sauce; Haemool Pa Jun, Korean style pancake w/ seafood; Jaeyook Bokeum, pan-fried pork with vegetables in spicy sauce; Jajang Myun, noodles with brown bean sauce with beef; Jogy Gui, Baked yellow Corvina fish; and finally Sul-Long Tang, long simmering beef with noodles & brisket.

CS: Have you traveled internationally? If so, where?

Margaret: Canada, Mexico, Venezuela, Spain, France, England, Scotland, Belgium, Holland, Germany, Czech Republic, Austria, Slovakia, and Hungary.

CS: What cuisines are you hoping to try in the future?

Allen: Indonesian, Hungarian but we are always game for anything.

Homes Selling Even Faster in Harrisburg

If it is priced right so it sells, the time that sold homes take to sell, is down substantially from last year.

If you are interested in how this applies to your unique situation, call, text or email

First Time Buyers are Back

1st Time Buyers Finally Crashing the Real Estate Party

There has been much conversation regarding the lack of first time home buyers in today’s real estate market. However, three recent reports seem to suggest that they are now entering the market in increasing numbers.

The most recent Existing Home Sales Report from the National Association of Realtors (NAR) reported that:

“The percent share of first-time buyers rose to 32 percent in May, up from 30 percent in April and matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers.”

And, in a recent Washington Post article, Ken Harney revealed that:

“According to a June 19 Campbell/Inside Mortgage Finance tracking survey, which polls 2,000 real estate agents nationwide, first-time buyers accounted for nearly 39 percent of home purchases in May; that’s the highest level since August 2010.”

Also, according to American Enterprise Institute's International Center on Housing Risk’s May First-Time Buyer Mortgage Risk Index (FBMRI), the share of first-time buyers stood at an estimated 52.2 percent.

Lawrence Yun, the Chief Economist at NAR explained:

"The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs."

Bottom Line

It seems that the number of first time buyers is increasing for the first time in a long time. This further lends credence to the fact that the residential housing market is back.

To see how this applies to you as either a Buyer or Seller, call, text or email.

AIR CONDITIONING FIXES WHICH ARE MUCH CHEAPER THAN REPLACEMENT

Think Your AC Won't Make it Through the Summer? We've Got the Fixes

By: Douglas Trattner

Is your AC making ominous noises? Maybe it sounds fine but isn't cooling. Here's a list of common air conditioning warning signs and their likely causes and fixes.

“Let comfort be your guide,” says Tom Hutchinson of Hutchinson Plumbing Heating Cooling. Air conditioning is all about comfort, so the simplest way to evaluate your system is to ask: Am I comfortable?

Air conditioning and HVAC units don’t last forever -- 12 years is an average lifespan -- and the moment they fail is usually when you need them the most.

The good news is that not every system malfunction spells total doom. Many nuisances are so cheap and easy to fix, you'll kick yourself for not doing them sooner.

Warning Sign #1: My Air Conditioning Won't Turn On

Possible cause: Often, the most likely culprit is the easiest to remedy: The thermostat isn’t set correctly, or power isn’t reaching the AC unit.

The fix: Make sure that the thermostat is set to AC or “cool,” that the temperature setting is correct, and that the battery is fresh. Second, check the circuit breaker: It could simply be a tripped fuse. 

Cost: Free

Warning Sign #2: I'm Not as Comfortable as I was Last Year

Possible cause: "Airflow is paramount to comfort," notes Hutchinson. If you aren't comfortable, the problem usually can be traced to issues with airflow.

The fix: Change the filter. (You should do this as part of regular HVAC maintenance anyway.) Depending on the quality of the filter, the amount of people living in the house, and if there are pets, the filter should be changed every 30-60 days. 

Outdoors, make sure there's at least 24 inches of clearance on the sides and 5 feet on top of the unit. Also, check to make sure there are no obstructions to the home's cold air returns and registers.

Cost: $5 to $20, depending on the filter.

Warning Sign #3: My Utility Bills are Abnormally High

Possible cause: A spike in operating costs typically signals inefficient operation. After a dirty filter (warning sign #2), the most likely culprit is a choked condensing coil. Located within the outdoor unit, the coil has countless cooling fins -- much like a car radiator -- that can accumulate dust and debris. 

The fix: Call out a pro for a spring tune-up.

Cost: $75 to $150

Warning Sign #4: Weird Noises During Startup and Operation

Possible cause: Rattling, buzzing, or ticking? The good news is that the cause might be little more than a loose screw. The bad news is that it could be caused by a bum blower motor (indoors) or bent fan blade (outdoors).

The fix: If you're lucky, a simple tightening here and lubricating there will fix the problem. If not, you might require a new fan motor or fan blade.

Cost: $75 to $150 for an inspection and tune-up; $150 to $750 for a new blower motor.

Warning Sign #5: The AC Shuts Off Before or Long After I'm Comfortable

Possible cause: Improper placement of the thermostat can wreak havoc on one's comfort. The unit might be in direct sun, too close to a register, or near a hot oven. Also, a remodel might have you spending more time where the thermostat is not.

The fix: Relocate the thermostat.

Cost: Free if you're handy (and plan on reusing the same unit); up to $250 for a new programmable unit, plus another $90 for an electrician to install it.

Warning Sign #6: There's a Puddle of Water Next to my Furnace

Possible cause: During normal operation, the system generates moisture in the form of condensate. That water collects in a pan and flows out a line either into a floor drain or condensate sump basin. An accumulation of water signals a blockage or disconnection of the tube.

The fix: Inspect the tube for crimps, clogs, and disconnections. Also, if the water flows into a sump basin, ensure that the sump pump is in good working order.

Cost: Free to clean out blockage; $20 to replace the tube; $40 to $110 for a new condensate sump pump.

Warning Sign #7: The Air Coming Out of the Registers Doesn't Feel as Cold as it Used to

Possible cause: The refrigerant lines aren’t insulated.

The fix: The outdoor unit is connected to the indoor system by two copper refrigerant lines, which should be covered with insulating sleeves. Make sure that they are. Also, the system may need its refrigerant re-charged.

Cost: $5 for insulating sleeves; up to $150 for a system re-charge.

Warning Sign #8: My AC Unit Refuses to Kick On at All

Possible cause: Burnt-out compressor

The fix: If the compressor fails, the unit won’t run. The only fix for this is a costly replacement of the equipment, which includes various small parts, new Freon, and labor.

Cost: $600 to $1,900. It might be wise to replace your air conditioner if it’s more than eight years old, or if the estimated cost of repair is more than 50% of the cost of a new unit.

When you have a real estate question, pleas call text, or email

MARKET IMPROVEMENT IN BOTH CUMBERLAND AND DAUPHIN COUNTY

Market absorption is a recognized measure of real estate markets.  6 months is generally considered to be a balanced market.

Through June in Cumberland County, the average supply is 4.7 months. A definite Seller's market indicator.  In Dauphin County, the market is basically balanced and Dauphin also has the most Seller friendly market in the $150,000 to $225, 000 range at 3.7 month supply.

When you are ready to see how this applies to your unique situation, just call, text or email.

YOU DO NOT NEED 20% DOWN

One More Time…You DO NOT Need 20% Down

 July 2, 2015  Down Payments, First Time Home Buyers, For Buyers

A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less and the number has increased through the first quarter of the year as shown by the graph below:

2. FICO Scores

The survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower:

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, let's get together and discuss your options.