Sellers Archives - Page 5 of 23 - Ed Powers Real Estate - Fort Collins, CO

July 21, 2020July 21, 2020

How Lenders Set Mortgage Rates

Ever wonder how mortgage lenders set interest rates for their loan programs each and every business day? Wonder why some lenders quote the exact same rate for the exact same program? Maybe why one lender is lower than others? Here’s some insight on how mortgage lenders set their rates each day.

First, note that mortgage lenders set their rates on the same basic set of indices. There are some exceptions, primarily mortgage lenders who issue their own loan programs that intend to keep the loans internally and collect interest on the loan rather than selling the note.

Adjustable rate mortgages and fixed rate mortgages are priced a bit differently. An adjustable rate mortgage, or ARM, is tied to a specific, universally tradeable index, such as the 1-Year Constant Maturity Treasury. Each morning, the “secondary” departments of these mortgage companies look up the current price of an ARM index and then add a margin to it. If for example the index came in at 1.75% and the margin was set at 2.00%, the new rate for that specific program would come in at 3.75% and stay there until the next adjustment.

Fixed rate mortgages, at least for most of them, are set in another manner but also use a specific index. Currently, the index used for most fixed rate conforming loans is the Universal Mortgage Backed Security, or UMBS. This is the index lenders use when setting fixed mortgage rates scheduled to be sold to either Fannie Mae or Freddie Mac.

Okay, so if most lenders use the same index when setting fixed rates, why are they sometimes different? That can depend upon different factors. Lenders compete for mortgage business in different ways, but they all want to compete based upon a competitive rate. The rate doesn’t always have to be the lowest rate but should be in the ballpark.

Maybe a customer has a long-lasting banking relationship with a bank and also has quite of bit of cash sitting in different checking and savings accounts. That customer might be offered an extremely competitive rate based upon loyalty of the customer as well as the amount of assets the bank holds. The rate in this instance doesn’t have to be the lowest because the borrower is focused more on trust and relationships than the rock-bottom rate.

On the flip side, for mortgage companies that don’t have such an established relationship, rates take on a more serious note. A mortgage company with less media exposure compared to established banks might need to entice a potential borrower with some very competitive mortgage rates. But again, they set their prices on the same set of indices.

Sometimes a mortgage lender has taken an aggressive approach and priced their loans very low and suddenly their pipeline is full. They’re overbooked and overworked. Their marketing campaign is working but now their loan processing times have slowed to a crawl. It’s not unheard of for a mortgage company to raise rates temporarily to turn off the spigot. It happens. Lenders certainly want to make a profit, otherwise the mortgage market would dry up, but they want to be smart about it.

Message me if your thinking about buying a Fort Collins or Loveland home at m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

July 20, 2020July 20, 2020

Maybe Quartz Counters Are The Answer For Your Kitchen

Has the tide finally turned on granite? In the last few years, granite has continued to be a popular choice for kitchen counters, but has lost ground to quartz, which is now the go-to for homebuyers and renovators, not to mention design shows and flippers. If you’re getting ready to redo your kitchen or are building a new home, here are all the reasons to swaddle your counters in quartz.

1. Endless options

Whether you’re looking for something super sleek or want to replicate the look of natural stone without the maintenance, you can find it in quartz.

“One of the main reasons quartz has exploded in popularity is due to appearance,” said HGTV. “Quartz has the look of stone while also allowing homeowners to customize the design. While granite offers many options in terms of appearance, you may have to search for the right piece that matches your color scheme. With quartz, the selection process is much easier.”

2. May be better for larger surfaces

The prevailing trend in kitchens today is an open kitchen with a large island. But large slabs of granite to cover an entire surface in one piece are hard to come by, sometimes even nonexistent depending on the size, and are expensive if they are found. More likely, more than one granite slab will need to be used for a large island or expansive countertops. Because quartz is engineered, it can be created in larger slabs. And if more than one slab is needed, seaming them together looks, well, seamless because there is no need to carefully color match natural pieces together as you would do with granite.

3. Easy maintenance

Granite needs to be resealed one a year, which is no big deal for most people. But the daily care required of granite can push them toward toward a solid surface like quartz. “With quartz, cleaning the counter is easy. The quartz washes off with soap and water and looks as good as new. You don’t have to use special bacteria-preventing soaps,” said Leeza Surfaces.

4. No staining

A main consideration for many people when choosing countertops is warding off stains. Juice, wine, or other food and drinks can permanently stain granite. According to HGTV, “Some oils and acids can stain” as well.

5. Scratches and burns

Granite can also scratch and burn, ruining the look. Quartz is scratch resistant and able to handle hot pots without burning or discoloring, although it’s not recommended you put anything super hot directly down on either surface.

6. Cost

Granite can be less expensive than quartz depending on the grade of the stone, but, when it comes to exotic granite, “Quartz is less expensive,” said Leeza Surfaces.

7. Eco-friendliness

“The only way granite ends up in your kitchen is if it’s quarried and that uses a lot of energy. If you opt for a high-end slab from Italy, for example, there will be considerable transportation involved. Try using indigenous stone when possible or visit salvage shops for pieces that can be cut to fit your needs,” said HGTV. “Since quartz is engineered, it can be more environmentally-friendly than granite if you use regionally manufactured stone and local fabricators. This cuts down on the distance the material needs to be transported.”

If that’s not enough to convince you, maybe these quartz kitchens will do the trick.

Message me if your thinking about selling your Fort Collins or Loveland home at m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

July 17, 2020August 4, 2020

What Rooms to Focus on When Flipping a House For Cheap

House flipping is one business where it pays to find the cheapest ways to transform a living space. Although you never want to cut corners on quality, you can cut your expenses down by focusing on renovating the rooms that really matter. Buyers today often choose homes that they know might need a little fixing up such as the garage. However, they do tend to prefer homes that already have the necessary rooms remodeled so that they can begin enjoying it right away. Focusing on these areas of the house will make it easier to flip it fast once you put it on the market.

Create a Multifunctional Spare Room

Many homes today have a spare room that tends to be slightly smaller than the others. In older homes, this room might have once been used as a sitting room to visit with guests. Newer homes often advertise this room as an office. Since the room is smaller, it is easy to do a fast renovation such as adding a fresh coat of paint. You can also upgrade the windows and add a decorative door that allows it to be used for anything from a home office to a kid’s playroom.

Cook Up a Sale with a Gorgeous Kitchen

Today’s modern open floor plans make it impossible to hide a poorly designed kitchen. In most cases, you can expect that the kitchen will be one of the first things that buyers will ask to see. Even when a kitchen is hidden from public view, buyers want to know that they’ll have a comfortable place to prepare meals and gather with their friends. Kitchen remodeling is a must for any time that you are flipping a house. Upgraded countertops, cabinets and floors go a long way toward getting people interested in your house.

Dazzle Buyers with a Stunning Master Bathroom

The master bathroom falls close to the kitchen when it comes to areas that people notice. Check out the hottest bathroom trends before you plan a remodel, and try to incorporate a few into your plans. Adding double sinks or a soaking tub will have buyers imagining themselves relaxing in the spa-like space at the end of a long, hard day.

There is an art to making money as a house flipper. Learning where to save on costs and when to invest is as simple as understanding the preferences of the average buyer. When you think about it, it just makes sense to spruce up the areas of a house where people spend the most time. Choosing to upgrade a kitchen or bathroom may require a little extra work, but it can pay off by giving you a much higher profit margin in the end.

Message me if your thinking about buying or selling a Fort Collins or Loveland home at m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

July 16, 2020August 4, 2020

Mortgage Secret That Could Save You Thousands

[CAUTION: Before you start making that extra payment, you’ll want to make sure it’s allowed. Some lenders either don’t facilitate the process or don’t credit the payment more than one time per month. Many lenders decide to hold partial payments in an account until the rest of it is received.]

Should you be refinancing right now with sub-3% rates? Probably. But are there other ways to save on your mortgage that you might not know about? Definitely. A little-known mortgage payment trick could save you thousands over the life of your loan.

So what’s the big secret? Paying your mortgage twice per month.

We know what you’re thinking: “How does paying double save me money?” Let us explain. Paying twice per month doesn’t mean making the entire monthly payment twice. It means paying half of the total every two weeks.

“The practice is called bi-weekly mortgage payments, a strategy where mortgage loan customers pay their mortgage loan every two weeks, instead of once a month,” said Experian. “The idea is to chop down your mortgage payment more quickly, and in the process, lower the amount of interest you pay on your mortgage overall.”

So how does paying every two weeks cut down on your total amount and save you big time? When you pay monthly, you make 12 payments per year. Pay every two weeks, and you actually end up making 13 full payments. And that one extra payment is directed toward the loan’s principal.

“Since the homeowner is reducing the amount of the loan balance quicker, they are also reducing the amount of interest charged over the life of the loan,” said MortgageCalculator.org.

What to ask your lender

Before you start making that extra payment, you’ll want to make sure it’s allowed. Some lenders either don’t facilitate the process or don’t credit the payment more than one time per month. “Many lenders decide to hold partial payments in an account until the rest of it is received,” said MortgageCalculator.org.

Other companies may allow bi-weekly payments but charge a fee. “Rarely, some lenders will charge you to make biweekly payments, since it’s essentially twice as much work for them to process,” said Magnify Money. “If your lender does this, it may be better to stick with your normal monthly payment plan. If you want to make biweekly payments, you can still do so manually for free by setting aside a portion of your paycheck on your own, paying your normal monthly payment, and then submitting an extra payment once per year.”

How much can you save?

This scenario illustrates the type of long-term savings that make bi-weekly payments attractive. “Say you have a 30-year fixed-rate mortgage for $250,000 with a 4 percent interest rate. Your monthly payment would be about $1,194, and the total interest paid over the life of the loan would be $179,673,” said Bankrate. “In the same scenario, using a biweekly mortgage calculator, your total interest paid over the life of the loan on a biweekly plan is $150,450.40. That means you’d save more than $29,000, and pay off your loan in 25 years instead of 30.

Another alternative

If making a payment every two weeks isn’t feasible, consider a lump sum payment once a year. Maybe you get a Christmas bonus, a merit bonus, or a tax refund. Using this windfall and allocating the equivalent of one mortgage payment would make a huge dent in your principal. “By paying one extra payment of $1,285.33 each year” on a “25-year loan of $250,000 with interest at 3.75%…the loan amortization schedule with extra payments shows that you would repay the loan 2 years and 11 months earlier and save $17,381.35 in interest,” said Interest.com.

Message me if your thinking about buying or selling a Fort Collins or Loveland home at m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

July 15, 2020July 20, 2020

Preparing Your Home for Sale During the Pandemic

Despite the ongoing coronavirus pandemic, the real estate market must go on. Homeowners still need to sell, house-hunters still need to buy, and real estate agents still need to make a living. But the typical home selling process involves frequent contact with strangers—which is not recommended during this time of social distancing.

By now, you’re probably getting pretty good at making adjustments in your everyday life to protect the health and safety of yourself and those around you. Along the same lines, there are steps you can take to show your home to potential buyers without risking your health or hurting your chances of a sale. Here are some tips to prepare your home for sale in the coronavirus era!

Get Help with Staging

According to The Mortgage Reports, staged homes sell an average of 73% faster than non-staged homes. Staging involves eliminating clutter, incorporating decorative elements, and adjusting the layout of your furniture to improve the flow of your home. The overall goal is to make your home appear bigger, brighter, and more inviting to potential buyers. Fortunately, some staging steps are easy to tackle on your own, such as cleaning, decluttering, and depersonalizing. These steps will help buyers picture themselves living in your home instead of feeling like intruders in someone else’s space.

When it comes to décor, however, it’s best to hire a professional. An interior designer can help you stage your home to effectively show off key aesthetic elements as well as the features that make your space functional. You can easily find freelance interior designers on job boards like Upwork. To keep yourself and your designer safe, make sure they have adopted special procedures to conform with CDC recommendations for COVID-19.

Don’t Neglect Your Curb Appeal

Don’t let your home preparations stop at your front door! Even if buyers aren’t visiting your home in person, they will still want to see your home exterior. In fact, a picture of your home exterior will likely serve as the bait that draws potential buyers to your online listing. Don’t neglect your curb appeal!

Tool Review Lab recommends several ways to boost your curb appeal—even if you’re on a tight budget. For example, you could power wash your front porch and siding, install a new mailbox, hang modern house numbers, and do some basic lawn maintenance.

When it comes to your front yard, make sure your lawn is lush, freshly mowed, and free of weeds and dead spots. Consider planting new flowers and remember to weed and mulch the beds to keep everything looking neat. You may even want to hire a professional to give the trees and shrubs around your yard a good trim.

Consider Safer Showing Alternatives

While it’s clear that hosting an open house is off the table, you may also want to limit in-person showings. Offer your buyers no-contact alternatives! Shoot a video walkthrough of your home and upload it to your online listing so buyers can tour your home virtually. You could even schedule live video-chat showings with interested buyers so they can ask questions about your home or request specific shots of rooms or features.

Since buyers will form a first impression of your home based on your listing, make sure it does your home justice. Write a strong listing title, include a detailed and exciting description, and post plenty of high-quality photos. A great real estate agent can help you craft your listing so that it properly showcases your home’s best features. Your real estate agent can also help you navigate virtual showings! Take the time to find a professional who is well-versed in using online tools to connect with buyers.

Selling a home in the age of the coronavirus is bound to be a bit of a challenge. Thankfully, the real estate industry has been quick to adopt virtual alternatives to open houses and buyers are happy to continue their housing hunt online. With some special attention to staging and a solid virtual presence, you’ll have no problem closing a sale during the pandemic!

Message me if your thinking about selling your Fort Collins or Loveland home at m.me/EdPowersRealEstate