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3 Money-Smart Reasons To Downsize Your Home

July 26, 2016 by Kay Monigold

3 Money-Smart Reasons To Downsize Your HomeLiving big isn’t necessarily living better. Apartment buildings, townhouses and multiplexes have become the new normal for increasing numbers of individuals, couples and families. It’s clear that for many people, smaller spaces are smarter, too.

This attitude is more than just a trend. According to TIME Magazine, multi-family dwellings like condominiums accounted for 40% of new construction in the United States in 2014 and the movement shows few signs of slowing down.

The change isn’t surprising when considering the benefits to moving, especially when it comes to sheer cost-savings. Whether residents are spending less cash or conserving their valuable time and resources, they’re going to see a difference in their bank accounts.

Here are three money-smart reasons to downsize that can lead to big savings.

1. Reduced Maintenance

Maintaining a single-family dwelling can be difficult. Clearing gutters, painting walls, weeding the garden and other unpleasant tasks have serious costs, as residents are forced to invest their valuable time and resources into these recurring chores.

Switching to a smaller space means less maintenance, which can lead to serious savings. Multi-family dwellings typically have a building manager who is responsible for upkeep, leading to serious savings.

2. Heating, Water and More

Utilities are much less costly after downsizing. The less square footage a home has, the less electricity, water and other utilities it will require. Residents have the potential to save hundreds of dollars in costs.

There’s also an added benefit if there are shared utilities divided between other residents of multi-family dwellings. Splitting subscriptions or services like Internet and cable can lead to much lower prices.

Moving to smaller spaces makes these invoices less expensive, which gives residents a bonus every month.

3. Location is Key

Apartment buildings, condominiums and other compact dwellings are often located in central areas close to useful services and businesses. This convenience is a major cost-cutting reason that encourages many people to move.

The Nielsen Company actually found that 62% of millennials would choose to live in communities that combine residential homes and businesses. By being closer to things they value, residents save themselves time, a valued commodity.

Why Moving is a Smart Move

These three money-smart reasons are major factors into why people move into smaller spaces. It’s hard to resist saved time and resources, reduced maintenance, lower utility bills and increased convenience. Learn more about potential savings from your local mortgage professional today.

Filed Under: Real Estate Tips Tagged With: Home Seller Tips, Real Estate Tips, Selling a Home

What’s Ahead For Mortgage Rates This Week – July 25, 2016

July 25, 2016 by Kay Monigold

Housing Starts, Building Permits Issued Rise

Commerce Department reports on housing starts and building permits issued were released Tuesday. Housing starts rose to 1.189 million in June against expectations of 1.165 million starts and May’s downwardly revised reading of 1.135 million starts, Housing starts rose by 4.80 percent on a seasonally-adjusted annual basis. This is good news for housing markets, but analysts said that demand for homes continued to exceed available supplies.

Building permits issued also rose in June to 1.53 million as compared to May’s reading of 1.136 million permits issued.

Existing Home Sales Increase: National Association of Realtors®

Sales of previously-owned homes rose three percent year-over-year and reached their highest level since February 2007 in June. Existing home sales rose by 1.10 percent in June to a seasonally-adjusted annual rate of 5.57 million sales. Analysts forecasted a reading of 5.48 million sales of pre-owned homes based on May’s reading of 5.51 million sales.

Analysts said that first-time home buyers are returning to housing markets and helped boost June sales and cited changing buyer demographics that suggest a return to owner-occupant home sales. First-time buyers accounted for 33 percent of pre-owned home sales in July, which was their highest reading since 2012. First-time buyers are important to housing markets as their purchases of existing homes enable current homeowners to sell their homes to buy larger homes or to relocate.

Mortgage Rates Rise, New Jobless Claims Fall

Mortgage rates rose across the board last week according to Freddie Mac’s weekly report. Rates for a 30-year fixed rate mortgage averaged 3.45 percent, which was three basis points higher. The average rate for a 15-year fixed rate mortgage also rose three basis points to 2.75 percent; rates for a 5/1 adjustable rate mortgage averaged 2.78 percent. Discount points averaged 0.50 percent for fixed-rate mortgage and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims sustained their streak and fell last week to 253,000 against predictions of 260,000 new claims filed and the prior week’s reading of 254,000 new claims filed. Analysts hailed declining jobless claims as a strong indicator that the economy and labor markets continue to improve. New jobless claims have remained below the key reading of 300,000 for 73 weeks. The four-week rolling average of new jobless claims fell by 1250 claims to 257,750. This reading is considered less volatile than week-to-week readings and offers evidence of steady improvements in labor markets.

What’s Ahead

Next week’s scheduled economic news includes the S&P Case-Shiller Housing Market Index, readings on new and pending home sales and the FOMC committee’s post-meeting statement on Federal Reserve monetary policy decisions. Analysts widely expect the Fed to hold firm on its current federal funds rate of 0.25 to 0.50 percent.

Weekly reports on mortgage rates and new jobless claims will be released along with a reading on consumer confidence.

Filed Under: Mortgage Rates Tagged With: Existing Home Sales, Mortgage Rates

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Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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