FHA PMI Insurance Premium Is Reduced

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So, what does this mean?  The Federal Housing Association insures loans for borrowers who get FHA loans and traditionally, the borrower will put down less than 5% of the purchase price.  The PMI is insurance the borrower pays FHA in case they default on the loan and is included in the monthly mortgage payment.  For example, a $300,000 dollar loan would have a PMI of approximately $337.50 per month.  With these new changes, the new cost for the insurance with the same loan amount is approximately $212.50 per month.  I know what you’re thinking.  I am selling my house so how does it affect the sale of my property?  If your house’s value is $315,000 or less, there will be more buyers who can afford to purchase the property because with the reduced PMI payments, buyers can afford higher priced houses.  This means if you plan on selling your house there will be potentially more buyers interested in looking at your property and a quicker sale.

            With this news, you want to know if interest rates will increase any time soon.  The current interest rate for a 30 year fixed mortgage has been floating around 3.75% to 4.0% for the past couple of months.  The big question is when will they go up and how will it affect the housing industry. The federal government has said that interest rates will not increase until the economy shows multiple quarters of strong growth or inflation increases.  Most economists believe it will be sometime towards the end of this year, although this is still speculation.  In the past when interest rates increase more buyers enter the real estate market and look to purchase a home from fear of missing the opportunity.  What this all means is that both things will bring around a lot more buyers looking at your property, so be ready. 

Big Brother Is Always Watching

Your brother has posted yet another amusing story about his precocious child.  Your mother is ranting about her latest health crisis, and your friends can’t stop posting embarrassing pictures from their latest party.  You share, comment, retweet, and pin just like a pro.  Maybe you even post a few things to your Facebook, twitter, Instagram, Pinterest, LinkedIn, etc. accounts.  You just can’t get enough of social media, and why not, yolo! (You only live once) Your profiles on social media say a lot about you.  Everything from what interests you, to what friends you have, to whether you use capital letters or text speak can make a difference in how you are viewed.  You think you and your collective of “friends” will get a laugh and will be the only people who look at it anyway.  Or so you think.

In this day and age, your friends may not be the only people looking at your profiles.   Oh sure, you have protected yourself from all the unsavory people out there who could be looking in, but what about the less unsavory.  Who is looking at your profiles and why?  You might be truly surprised.  Students applying to college need to realize that checking social media of applicants is standard practice these days and can sometimes hurt someone’s chances of gaining admission.  Many have heard that employers are now cracking down on employees’ social media but did you know that they also routinely check it when someone is applying for a job.  What about if you are applying for a mortgage?  Yes, banks too are looking at your social media pages to make determinations about your credit worthiness.  So, before you tweet, share, comment, etc., make sure you remember, Big Brother is always watching.   

Be Ready to Kiss a Lot of Frogs

Valentine’s Day has come and gone and love is in the air.  You dream about the spending the rest of your life with that someone special and that includes the perfect house.  You have gone out and found the house of your dreams, or have you?  Is the house really perfect for you or are you looking at it through rose colored glasses.  You love the yard and the house is staged in such a way, that the romance begins.  Just remember, this is the first date and everything is on its best behavior.  But, you need to look beyond the appearance of the home to know what’s really behind the façade.  Just like in dating, until you have a clear idea what you are looking for, you may need to kiss a few frogs before you find the one that is really the house of your dreams. 

            

           Sellers really want to sell you their home, so they will always highlight the best features of the home.  What you need to do is determine whether those features are what you are actually looking for.  While a beautifully landscaped yard may have you dreaming of kids and dogs, what if the school system, or neighborhood, leave something to be desired.  A backyard with mature trees and a water feature are breathtaking, but are they there to drown out the highway noise just beyond the fence?  Sure, a home with newly installed white wall to wall carpeting may be stunning, but your four dogs and kids may make you think twice about that.  Have several dates with the home, as in visit it several times before making a decision because just like in romance, you need to find the one that fits you and your lifestyle.  However, do keep one thing in mind, in house hunting, just like in dating, the good ones are gone before you know it, so don’t make it a long engagement.  So pucker up and happy hunting.    

  

Smart House: The Home Automation Starter Pack

Whether you have visions of living in harmony with technology, like Star Trek, or nightmares that technology is the bane of human existence, (think HAL or Skynet), Smart technology is here to stay and it’s time to move into this century.  With all the gadgets and systems out there, it can be a little overwhelming to some people.  If you are slower to get on the bandwagon than some of your friends, there are a few items out there that will start you on the track towards your own smart home without going overboard.   The thing to keep in mind is that sometimes less is more and to look for things that are simple, not that expensive, and make things convenient for you. 

One of the simplest things to ease into the whole smart home arena is with a smart climate control device.  These devices help control the temperature of your home, thus saving energy and money.  The Nest Learning Thermometer is one out there that actually studies your habits and anticipates your needs.  It is the first on the market that has true artificial intelligence.  Too much for you, then try smart plug devices or lighting.  The Belkin WeMo can make anything with a plug a smart device.  Whether it is a lamp or a coffee maker, by plugging into the WeMo, your appliance is now connected to WiFi and can be controlled by your smartphone or computer.  The Phillips Hue bulbs with WiFi bridge and app can allow you to control your lights from a smart device as well as change their color.  You can even match the light ambiance in a photo on the app.  Outdoor landscape lighting is also going smart.  The Bluetooth Audio Path Light by CE Tech, allows you play your favorite tunes and create a lighting experience that will be the envy of the neighborhood, all controlled by your smartphone or any Bluetooth device.  What if you child is locked out of the house or you are laden with packages and just can’t fumble with your keys?  That’s right, even your deadbolt has moved into the technology age with Kwikset’s Kevo Bluetooth Enabled Deadbolt making your iPhone the key to your home.   Don’t have an iPhone, don’t worry there is also a key fob available.  So, you can now start your journey towards boldly going where no one has gone before without the fear and anxiety that Skynet is taking over your home.