Archive | March, 2021

Homeowner Equity and Wealth Accumulation

23 Mar

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National homeowner equity grew in the fourth quarter of 2020 by $1.5 Trillion or 16.2% year-over-year based on a CoreLogic analysis. The study was done on the six out of ten homeowners who have mortgages on their home.

The fourth quarter of 2020 also saw the number of mortgaged residential homes with negative equity decrease by 8% from the third quarter. Compared to the same quarter in 2019, negative equity decreased by 21%.

Equity is defined as the value of the home less the mortgage owed. Negative equity means that the homeowner’s debt is more than the value of the home. Appreciation is the dynamic that is moving homeowner’s equity to the positive position.

On a national basis, according to National Association of REALTORS®, annual price growth for the last ten years has been 6.4%. In the last five years, it has grown at 7.3% annually. According to the CoreLogic Home Price Index, home prices in December 2020 were up 9.2% from the year before.

Frank Nothaft, Chief Economist for CoreLogic, is quoted as saying “the amount of home equity for the average homeowner with a mortgage is more than $200,000.”

Equity in a home is a significant component of net worth. The latest Survey of Consumer Finances reports the median homeowner has 40 times the household wealth of a renter: $254,000 compared to $6,270. According to the 2019 Survey of Consumer Finances by First American, housing wealth was the single biggest contributor to the increase in net worth across all income groups.

The study also concluded that housing wealth represented nearly 75% of total assets of the lowest income households. For homeowners in the mid-range of income, it represented 50-65% of total assets and 34% of total assets for the highest income households.

Renters do not benefit from the appreciation of housing or the amortization of the mortgage which are significant contributors to home equity that results in net worth. Examine what a down payment can grow to in seven years with a Rent vs. Own.

301 Misty Meadow Drive, Allen

18 Mar

301 Misty Meadow-8

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1412 Snowberry Drive, Allen

18 Mar

1412 Snowberry-2

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3440 Goldendale Drive, Farmers Branch

17 Mar

3440 Goldendale edit-29

Updated Home In Premier Farmers Branch Location!

3 Bedrooms / 2 Baths / Hardwood Floors / 2 Car
1488 sq ft / Built 1960 / Dallas Schools

CLICK HERE TO VIEW HD TOUR

This beautiful and charming ranch-style home is centrally located in Farmers Branch and offers gorgeous updating to include the kitchen and both baths and an inviting floor plan all nestled on a large lot. The classic elevation of this home is enhanced by mature landscaping and upon entry your guests will be greeted by rich hardwood floors and a spacious open floor plan with large living area and elegant formal dining. Any chef would delight in cooking in the open kitchen with beautiful upgraded granite counter tops, stainless steel appliance to include a gas range, painted cabinets and pantry for plenty of storage space. Enjoy breakfast in the cozy breakfast nook and it’s completely open to a spacious family room.

The master retreat boasts a roomy walk-in closet and recently upgraded (2017) En suite bath with modern cabinetry, granite top sink, updated fixtures and beautiful walk-in shower.  The other bedrooms are a generous size and are served by an updated bath with a trendy vanity and modern fixtures. The open patio and large backyard is an entertainer’s delight with recently upgraded
exterior rear lighting. Other outstanding features and upgrades are…recently installed HAVC (2017), hot water heater (2017) hot water line throughout the house, attic access stairs (2017), hardwired up to code smoke detectors and recently installed gutters (2017). The location offers easy access to 635 and 35 and restaurants and shopping (Galleria). With its warm and neutral tones and upgrades throughout…..this home is move-in ready and priced to sell!!

Please contact Jeff Jacobs at 972.978.6539 for more information or click HERE.

For more information and other homes for sale in this area, check out www.myrealtytown.com 

2609 Princeton Drive, Flower Mound

15 Mar

2609 Princeton-1

Stunning & Updated 4-Bedroom Home on Large Lot!

4 Bedrooms / 3.5 Baths / 2 Car / Game
3524 sq ft / Built 2000 / Lewisville Schools

CLICK HERE TO VIEW HD TOUR

This stunning home boasts a spacious, open, and split design floor plan all nestled on a large lot. Upon entry you will be struck by the beautiful laminate and ceramic tile floors and soaring ceilings in the family room. Enjoy natural light streaming through the wall of windows with a gorgeous view of the backyard. The formal dining room is the perfect place for family and friend gatherings. Any chef would delight in cooking in the large kitchen that includes plenty of storage in the built-in cabinets, walk-in pantry, large island, tile countertops and ceramic flooring. Preparation of meals is easy with the electric cooktop, oven and built-in microwave oven. A sunny breakfast bar opens to an expansive family room with a gorgeous fireplace for those cozy cold weather gatherings! The Master suite is highlighted by an ensuite bath, garden, jetted tub and dual sinks. Additional features are the separate shower, generously sized master closet with plenty of storage and a sitting area.  In addition there are split designed bedrooms upstairs with one of the rooms having a private bath. Additionally there are another full bath and half bath. Entertain in the spacious game room with surround sound. This lovely home has warm and neutral tones throughout.

You will enjoy the large backyard with an open patio that can be transformed into your very own outdoor retreat. The attached 2 car garage and utility room are a plus and other outstanding features are the recently replaced roof, additional gutters and 2 hot water geysers. This home is within walking distance to all 3 schools and convenient to shopping areas. You must see this move-in ready and priced to sell home!!

Please contact Jeff Jacobs at 972.978.6539 for more information or click HERE.

For more information and other homes for sale in this area, check out www.myrealtytown.com 

811 Youpon Drive, Allen

11 Mar

811 Youpon-2

Stunning & Updated 5-Bedroom on Rare Lake View Lot

4 Bedrooms / 2.5 Baths / Game / Pool / Spa
2619ft / Built 1993 / Allen Schools

CLICK HERE TO VIEW HD TOUR

Beautiful home on quiet corner of cul-de-sac lot in Cottonwood neighborhood. Vacation at home this summer enjoying the gorgeous backyard oasis with covered patio and additional stone patio sitting area with built-in grill! Inside you’ll revel in hand-scraped hardwood floors in many rooms, and a sleek, gourmet kitchen with granite counters, double oven and wine chiller fridge. Private master suite features a spa-like bath including unique furniture style vanity and jacuzzi tub!

Recent updates include 2 AC units, water hater, privacy fence, windows and thermostats. Within a mile of Joe Farmer Rec Center and frisbee park, and across the creek from Ford Park with water park, tennis walking trails, playground and more.

Please contact Laurie Solomon at 469.307.7724 for more information or click HERE.

For more information and other homes for sale in this area, check out www.myrealtytown.com 

Skip the Starter Home

9 Mar

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For generations, people have begun their homeowner experience with a “starter” home. Part of the logic may be that by beginning with a smaller home, they can learn what it takes to run the home and discover some of the unexpected costs that come along with it. A slightly longer view into the future could suggest a different strategy.

As of March 4, 2021, the average 30-year mortgage rate according to Freddie Mac was 3.02%; up .37% from the week of January 7th this year. At the same time, in 2020, the rate was 3.29% and in 2019, it was 4.41%. That is a difference of 28 and 139 basis points.

The principal and interest payment on a $300,000 mortgage would have been $236 higher two-years ago and $44 more one-year ago. Today’s low mortgage rates are saving buyers lots of interest especially when you factor in the median tenure for sellers is approximately ten years. Even though prices have increased over the last two years, some people may be able to afford more now with the lower rates.

Anticipating the future wants and needs now may present some opportunities for preparing for the inevitable. By purchasing a larger home today, a buyer can lock in today’s low rates and prices to allow themselves room to grow without the expenses of moving.

Each time you sell and purchase a home, there are expenses associated with each side of the transaction. Purchase costs could be 1.5 to 3% while sales expenses could easily be 2.5 times that much. These expenses lower the value of your equity.

Instead of looking at the low mortgage rates as generating a savings from the payment you might normally have to make, consider it an opportunity to purchase more home that will possibly meet your needs for a longer time while eliminating the cost of selling and purchasing in the transition.

6221 Tyning Circle, Frisco

4 Mar

6221 Tyning-5 edit

Stunning & Updated 5-Bedroom on Rare Lake View Lot

5 Bedrooms / 4 Baths / Study / Game / Lake View Corner Lot
4031sq ft / Built 2003 / Frisco Schools

CLICK HERE TO VIEW HD TOUR

This gorgeous home in sought after Turnbridge Manor boasts a versatile floorplan with 4 spacious bedrooms, a private study, large game room & premium lake view location. Upon entry your guests will be greeted by rich hardwoods in the formal living and dining areas as well as the private study. The spacious formal living area has soaring 20’ ceilings & the formal dining boasts double crown molding and upgraded chandelier. The private study at the front of the home has beautiful coffered ceilings, extensive built-ins and cabinets and a convenient powder bath with upgraded vanity, mirror and lighting. The gourmet kitchen would delight any chef with its double convection oven, recently installed Whirlpool stainless microwave, gas range and Bosch
dishwasher & butler’s pantry. A large island with storage, 42” abundant cabinets with crown molding and stylish hardware provide exemplary cooking and storage spaces. Enjoy your coffee in the large breakfast area with a beautiful view of the lake or check your calendar of the day’s events at the built-in planning desk with cabinets.  The kitchen is also open to a spacious family room with breakfast bar, vaulted ceilings and upgraded fireplace with gas logs.

Upstairs are 4 spacious bedrooms, two that have walk-in closets and share a Jack & Jill bath. Whether it’s friends or family, they will feel more than welcome in the other 2 bedrooms that are split sharing a hall bath making an excellent guest suite. The centralized and large game room is a great space for study and play. The split and private Master retreat enjoys boxed ceilings, two closets and an upgraded spa style bath with an oversized frameless glass shower and surround tile, light fixtures, large jetted tub and upgraded backsplash behind the vanities and mirrors.

Outdoors is awesome with an enlarged covered patio with stamped concrete for relaxing and entertaining with gorgeous lake, fountain and park views. The backyard is surrounded by a recently (2020) stained custom Board on Board fence, mature trees and pool-sized yard. Other outstanding features are warm and neutral tones, recently updated hardscape and landscape, front door Ring doorbell, a 3-car garage with extensive built-in shelving and a utility room complete with cabinets and room for a freezer. Turnbridge Manor is a beautiful community and within walking distance to all 3 schools, enjoys scenic Taychas Trail traversing West Rowlett Creek, has a large community pool, several parks and two large lakes for fishing and relaxing. This home is priced to sell and move-in ready!!

Please contact Jeff Jacobs at 972.978.6539 for more information or click HERE.

For more information and other homes for sale in this area, check out www.myrealtytown.com 

Your Refund Could Open the Door

2 Mar

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One of the silver linings to filing your income tax return is finding out that you are going to receive a refund that could literally open the door to owning a home. If you happen to be one of these fortunate taxpayers, your next decision is what to do with it.

With the average tax refund near $3,000, it could be the ticket to buying a home sooner rather than later. Regardless of the size of your refund, it can be used toward the down payment or closing costs of the home.

Most people think it takes 10% or more down payment to purchase a home, but actually, it is much less because of several low down payment mortgages . There are VA and USDA mortgages that allow for no down payment for qualified buyers. FHA has a 3.5% down payment program and FNMA and Freddie Mac have 3% down payment mortgages for qualified creditors as well as 5% down programs.

Closing costs for originating new mortgages can easily range from two to three percent of the purchase price but most lenders will allow the seller to pay part or all of them based on the agreement in the sales contract. If you are using a VA or USDA loan, your refund could go toward paying the closing costs.

On a practical matter, if you are due a refund, have it deposited directly into your account. It is necessary to trace the source of the funds. Cashing a refund check and depositing the cash adds an unnecessary aging requirement.

Maybe you have the money saved for your down payment and closing costs but you have other debt that is keeping you from qualifying for a mortgage. The IRS refund could be used to pay down that debt. However, you need solid advice from a trusted mortgage professional before you do that.

While the average tax refund might not cover the down payment on the median price home, it certainly helps. Your refund could make it a simple as 1-2-3 to get into a home.

  1. Get the hard, cold facts for the homes and mortgages in your area and price range.
  2. Get pre-approved with a trusted mortgage professional.
  3. Start looking at homes.

Download the jeffto get started.

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