Blue Bell and Beyond

2 Myths About Mortgages That May Be Holding Back Buyers

Fannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” Studyrevealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.

Myth #1: “I Need a 20% Down Payment”

Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

Myth #2: “I need a 780 FICO Score or Higher to Buy”

The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Blue Bell Realtor

BHHS Fox & Roach Realtors

267-640-1120

How Scary is the Housing Affordability Index?

Some industry pundits are saying that the housing market may be heading for a slowdown. One of the data points they use is the falling numbers of the Housing Affordability Index, as reported by the National Association of Realtors (NAR).

Here is how NAR defines the index:

“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”

Basically, a value of 100 means a family earning the median income earns enough to qualify for a mortgage on a median priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.

The higher the index the easier it is to afford a home.

Why the concern?

The index has been declining over the last several years as home values increased. Some are concerned that too many buyers could be priced out of the market. Here is a snapshot of the index since 2009:

But, wait a minute…

Though the index has decreased over the last four years, we must realize that at that time there was an overabundance of housing inventory and as many as one out of three listings was a distressed property (foreclosure or short sale). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.

The market is recovering and values are coming back nicely. That has caused the index to fall.

However, let’s remove the crisis years and look at the current index as compared to the index from 1990 – 2008. We can see that, even though prices have increased, historically low mortgage rates have put the index in a better position than every year for the nineteen years prior to the crash.

Bottom Line

The Housing Affordability Index is in great shape and should not be seen as a challenge to the real estate market’s continued recovery.

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Neighborhood Realtor

BHHS Fox & Roach Realtors

267-640-1120

Don’t Get Caught in the Rental Trap!

There are many benefits to homeownership. One of the top ones is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.

Don’t Become Trapped

Jonathan Smoke, Chief Economist at realtor.com, reported on what he calls a “Rental Affordability Crisis.” He warns that,

“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”

In the Joint Center for Housing Studies at Harvard University's 2015 Report on Rental Housing,they reported that 49% of rental households are cost-burdened, meaning they spend more than 30% of their income on housing. These households struggle to save for a rainy day and pay other bills, such as food and healthcare.

It’s Cheaper to Buy Than Rent

In Smoke’s article, he went on to say,

“Housing is central to the health and well-being of our country and our local communities. In addition, this (rental affordability) crisis threatens the future value of owned housing, as the burdensome level of rents will trap more aspiring owners into a vicious financial cycle in which they cannot save and build a solid credit record to eventually buy a home.”

“While more than 85% of markets have burdensome rents today, it’s perplexing that in more than 75% of the counties across the country, it is actually cheaper to buy than rent a home. So why aren’t those unhappy renters choosing to buy?”

Know Your Options

Perhaps you have already saved enough to buy your first home. HousingWire reported that analysts at Nomura believe:

"It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment.

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)

Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream home. As we have reported before, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Let’s get together to determine if you could qualify for a mortgage now!

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Neighborhood Realtor

BHHS Fox & Roach Realtors

267-640-1120

http://www.whitpainrec.com/info/activities/program_details.aspx?ProgramID=27419

Harvest Festival in Whitpain Township

Friday, August 26, 2016

Montgomery County Community College - Whitpain Township Community Fest

Montgomery County Community College - Whitpain Township Community Fest
Click above for more info

Wednesday, August 24, 2016

Whitpain Township Dog Park Orientation

Dog Park Orientation

Whitpain Township Dog Park Orientation

For the safety, accountability, and enjoyment of users, Whitpain Dog Park is for registered members only. Orientation is mandatory in order to become a member of the Dog Park. Pre-registration is required and there is no cost to attend orientation.

Annual Membership Fees
Whitpain Resident: $35 for 2 dogs +$15/additional dog
Non-Resident: $50 for 2 dogs + $20/additional dog
Memberships expire on 12/31. If registering in the fall of 2016, memberships will expire 12/31/2017

You may register for a Dog Park membership immediately following the orientation ONLY if you bring the required membership form, COPIES of PA Dog License and vaccination records (rabies, bordetella, DHPP). Membership fees may be paid with check or cash at orientation.

Orientation attendees must check-in to ensure proof of their attendance. If you do not check-in, we will have no record of you completing the orientation and you will not be able to register for a membership. When you are ready to register for a membership, bring a registration form and COPIES of your PA Dog License and vaccination records. You may register for a membership in person at the Whitpain Township Building, Monday-Friday, 9 a.m. - 4 p.m. Cash, check, or credit card (Visa, Mastercard, Discover) accepted at administration office.

All information must be submitted together. Registrations with missing paperwork will NOT be accepted.

Important Information

Children under the age of 14 are not permitted in the Dog Park; children ages 14-17 must be accompanied by an adult.
Any adult planning on bringing their registered dog to the dog park MUST attend orientation!!
Please do not bring your dogs(s) to orientation.

How to Register for Orientation

Log in or create a household account to register
Choose desired orientation date and "Add to Cart"
Your registration will then be placed in the "Shopping Cart"
Click "Checkout" and "Pay Online" in order to register for orientation session
Choose the "No Payment" option to complete your registration
You must attend the full orientation session in order to receive a certificate of attendance
Please plan to arrive early - late entry will not be permitted once the session has begun
A minimum registration of six (6) people is required for the session to run

Additional Forms and Files:

Links:

Drive-In Movie at Montgomery County Community College on September 16, 2016

Drive-In Movie - Captain America: Civil War

Sponsored by: Montgomery County Community College and Whitpain Township Parks and Recreation

Drive-In Movie

This year's movie: Captain America: Civil War
Rated PG-13 for intense sequences of science-fiction violence and peril. Parents strongly cautioned – some material may be inappropriate for children under 13.
Held at Montgomery County Community College
Parking lot off MORRIS ROAD opens at 5:30pm
Movie starts at dusk
$10 per car / $5 with MCCC ID or parking pass
Hamburgers, hot dogs, pretzels, candy, and soft drinks for sale in Parks & Recreation Tent
CASH ONLY

Housing Market Slowing Down?

Housing Market Slowing Down? Don’t Tell Builders!

Many experts have been calling upon home builders to ramp up construction to help with the lack of existing inventory for sale. For the past two months, new home sales have surged, with July’s total coming in at the highest since October 2007.

The latest estimates from the US Census Bureau and Department of Housing and Urban Development show that sales in July were 31.3% higher than this time last year, and 12.4% higher than last month, at a seasonally adjusted annual rate of 654,000.

Zillow’s Chief Economist, Svenja Gudell, echoed the reaction of some as she commented:

“July(‘s) new home sales data was a surprise, but a welcome one. For years, the market has been practically begging builders to both ramp up their efforts overall and to put more focus on serving the less expensive end of the market. Today's data confirms both are happening in earnest.”

The National Association of Home Builder’s (NAHB) Chairman, Ed Brady, didn’t seem as surprised:

“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving. As existing home inventory remains flat, we should see more consumers turning to new construction.”

NAHB’s Chief Economist, Robert Dietz, believes this is just the start for new home sales if market conditions continue:

“July’s positive report shows there is a need for new single-family homes, buoyed by increased household formation, job gains and attractive mortgage rates. This uptick in demand should translate into increased housing production throughout 2016 and into next year.”

The existing home sales numbers for July will be released today and will shed more light on the overall health of the housing market.

Bottom Line

New home sales hit their highest mark in over 9 years. Buyers are out in force to find a home that fits their needs. Many are turning to new construction, as the inventory of existing homes has not been able to keep up with demand.

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Neighborhood Realtor

BHHS Fox & Roach Realtors

267-640-1120

Tuesday, August 23, 2016

Berkshire Hathaway Fox & Roach Chairman's Report Summer 2016

Click here: Chairman's Report Summer 2016

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Blue Bell Realtor

BHHS Fox & Roach Realtors

267-640-1120

Monday, August 22, 2016

‘Old Millennials’ Are Diving Head-First into Homeownership

Some Highlights:

‘Old Millennials’ are defined as 25-36 year olds according to the US Census Bureau.
According to NAR’s latest Profile of Home Buyers & Sellers, the median age of all first-time home buyers is 31 years old.
More and more ‘Old Millennials’ are realizing that homeownership is within their reach now!

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Blue Bell Realtor

BHHS Fox & Roach Realtors

267-640-1120

Whether You Rent or Buy, You’re Paying a 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 yours 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 at Freddie 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.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were 3.43% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Call me for all your Real Estate needs!

Debbie Mignogna, ABR, SRS

Your Neighborhood Realtor

BHHS Fox & Roach Realtors

267-640-1120