Rules of Real Estate: 5% rule!

Most new homeowners learn the hard way that home catastrophe happens when you least expect it. Combat surprise financial devastation by following the 5% rule...

Set aside 5% of your purchase price per year for ongoing maintenance and upkeep. If you are lucky, you won’t have to tap it all each year, allowing you save up for larger projects and/or proactive maintenance.

Under Contract: #650 Starlet Drive in 63031.

Even though it is only February, the swift Spring market pace is in full swing, St. Louis! If a property comes on the market properly priced and prepared, it sells within hours. My 1st time home buyer clients were quick on the draw of this adorable move-in ready ranch...

... and their urgency paid off.  Starlet hit the MLS at lunch time, we toured it by dinner time, we wrote a contract by bedtime, and over a half dozen Buyer appointments had to be cancelled by the morning as we beat them to the party! Time is of the essence friends. Hire a proactive Realtor!

#650 Starlet Drive closes escrow in April. A warm thank you and congratulations, J and A, on your big purchase!  As I have said before, I am a HUGE advocate of young people trading in rent for a mortgage.  Rent or buy?  The numbers don't lie! Buying is the best and only way to begin to build a financial nest egg.  Period.

In St. Louis and considering a move in 2019? The time to start planning is now! Have a friend who is looking for an agent?  I proudly base my business on direct referrals and wear my past client reviews like a badge of honor.  Let’s connect...

Prepaying cuts YEARS off the life of a loan...

My previous clients (1st time buyers) posted this online today... 

I had to share! Such an inspiration and testament to principal-only prepaying on a loan. They saved themselves a WHOPPING $77,000 in interest (30 yr mortgage) and years of debt by creating a prepay plan early on and sticking to it! Amazing, right? 

Use THIS helpful payoff calculator to see how how much money you can save yourself with a little discipline and a solid plan in place. 💰

Rent or Buy? The numbers don't lie!

Rent or buy?

Numbers don't lie, friends.

We bought our 1st house at 22 and 26 at the urging of my (real estate investor) father and it was probably the best financial decision that we ever made! 🏡💰 We made 47k profit (more than we COLLECTIVELY made per year at the time) in addition to a little payment equity in only 6.5 years. We benefited from tax breaks and instant equity thanks to a strategic and smart buy, which ultimately set us up for a more financially healthy future.

THE FACTS: You are either building your landlord’s nest egg and financial future or your own. Stop making your landlord rich by putting equity in their pocket and pay yourself!  You don't have to wait until you can afford your forever home or the PERFECT house on the PERFECT street.  Be smart and start building wealth now!  Work your way up to that home, step by step.  It works!

In St. Louis?  I would love to help!  Let's connect:

In the Press: Thanks for the quote, Money Magazine!

It was incredibly kind of Time's Money Magazine to recently quote me again...

Particularly, as it is a topic that I am so passionate about.  Becoming "house poor" is one of the most devastating financial mistakes that a Buyer can make, in my opinion.  When a disproportionate amount of one's monthly income is spent on mortgage, taxes, insurance, association fees, and utilities... it leaves room for little else.  No renovations, no Life emergency fund, no savings, no vacations, no FURNITURE. The very best way for a Buyer to avoid this financial pitfall is by controlling the conversation and being budget-focused from the get-go, at the time of preapproval!  A reputable mortgage lender will follow your lead and respect your parameters.

Affordability is an incredibly important topic in the real estate industry. Thank you for allowing me to share, Money!
  
Connect with Time- Money Magazine on the web HERE and on Twitter HERE for helpful financial news and tips.  

In the meantime, if you are in St. Louis and contemplating a move or have more questions about financing... I would love to help!  Learn more about me HERE, call me at 314.298.5275, or email me at cnenonen@cbgundaker.com.

The 2016 St. Louis Real Estate Market Thus Far

The ultimate ‪‎St. Louis‬ real estate expert is Jim Dohr, the President of my company- Coldwell Banker Gundaker. His summary of 2016 thus far is spot on...

Low rates + low inventory= a fast and furious Spring market favorable for both Buyers and Sellers!

In St. Louis and contemplating a move?  I would love to help you find your dream home!  Learn more about me HERE. See what my clients have to say about me HERE or on LinkedIn.

Interest rates matter- be informed!

The real estate industry touts "historically low rates" but what does that mean to the average consumer at face value? Not much. Thanks to my friend and Senior Loan Officer, Andy House, for the incredible graph above to help put the current rates into perspective.

Interest rates matter.  They matter a LOT and directly affect not only Buyers, but homeowners who wish to refinance.  

Most Buyers are payment-driven. They know how much they can afford to pay each month even before they obtain an official pre approval.  

FOR EXAMPLE:  Let's assume that you are comfortable with a $1,250 interest payment...

Your housing affordability DROPS with each increase in the mortgage interest rate. 

Per above,  if mortgage rates rose up just 1% from 3.75% to 4.75%, you would lose a whopping $33,750, or 11.25% of your purchasing power. If rates rose 2% to 5.75%, you would lose $62,003 or 20.67% of your purchasing power. That is serious money, people!

In short: the lower the interest rate, the more house you can afford for the SAME PAYMENT. Rates directly impact your affordability, Buyers. Don't let these great ones slip by as 3rd quarter increases are projected.

If you are contemplating a purchase over the next few months, I highly recommend getting a loan preapproval now. It is the first step of the buying process, and rates are still comfortably hovering below 4%.   

Learn more about Andy House HERE and feel free to contact him directly for a free approval or mortgage advice. He is stellar, my clients love him, and I trust him emphatically after years of wonderful service to myself and my clients.

2015 Real Estate Tip: Watch the rates!

Lower interest rates equal higher affordability, plain and simple. Experts predict a raise in rates by mid-2015, the 1st increase by the Federal Reserve since 2006.

Rates have been historically low for almost a decade, though I urge people not to take them for granted per below...

While home loans are predicted to remain below a super healthy 5%, this could drastically affect those who soon plan to purchase a car or who currently hold credit card balances.

Knowledge is power, folks. Financially plan your 2015 accordingly!

Read more here: http://goo.gl/AdKMch

NAR predicts Missouri home values to increase in 2015

Good news, St. Louis Homeowners!

The National Association of REALTORS® just announced that they predict  a 3-4+% increase in Missouri home value in 2015! Terrific news for not only our real estate market, but our overall economy, as well!

Ready to discuss a possible future move in the St. Louis Metropolitan Area?  I would love to help!  The time to prepare is now.  

Rule of Real Estate: Know your numbers. Check your credit score for FREE

Answer this question honestly:  

When was the last time that you pulled your credit reports? 

The fact is, your numbers matter!  I did the annual examination of my credit reports this AM- fast, easy, and painless.  I figured that this would be the perfect time to share the information on the blog with you!

Did you know that under the Federal Fair and Accurate Credit Transactions Act (FACTA), you are entitled to a free peek at your credit report once per year?  To comply with their obligations under FACTA, the three major credit reporting agencies (Equifax, Experian, and TransUnion) organized the web site AnnualCreditReport.com,  allowing consumers a way to easily exercise this right.  The website is safe and FREE TO YOU, providing all American consumers an easy mechanism to receive their three free credit reports per year.

Ok, so why don't people use this service?  After 13 years of discussing money matters with clients, I hear 4 reasons repeatedly.

1) I didn't know about the service.
2) I hate talking credit.
3) I have no plans for a big purchase, so why bother
4) By FAR, the most common- I don't want to damage my credit

Whether preparing for a large purchase (house or car) or NOT, an annual credit report check is necessary and advised to ensure that you are "moving in the right direction", that your identity has not been compromised, and to allow you the ability and adequate time to dispute any discrepancies. 

I equate the fear of facings ones' numbers to someone who refuses to go to the doctor every year.  The fact is: knowledge is power. Once you rip off the band-aid and HAVE the information in hand... you can work with it. When it comes to your finances (or your health for that matter), ignorance is NOT bliss.  If your goal is to build and maintain a healthy credit score, checking your credit report on a regular basis is a good first step. 

Just do it.  Face the music.  Take control of your finances and pull your report HERE.  You will be relieved that you did, I promise!

Per the Annual Credit Report site:  Keeping an eye out for three things can help to have a positive impact on your credit score: suspicious information, score factors and signs of identity theft. It’s a common misconception that having your credit checked will harm your score and this isn’t always the case. 

There are two types of credit inquiries

Hard Inquiries
These types of inquiries, such as when a potential lender checks your credit report to approve a loan, application, rental agreement or other contract, can show up on your credit report and damage your score to some degree. Companies will need your permission to review your credit report. 

Soft Inquiries
These inquires occur when you’ve given permission to access your credit report for things like employee background checks or when you review your own report. Soft inquires won’t affect your credit score.

Checking Your Credit Report for Signs of Identity Theft

The following issues may be indications that you’re a victim of identity theft:

• Accounts that don’t belong to you
• Inquiries that you haven’t authorized
• Addresses that you can’t recognize or haven’t lived at
• Checking for Unfamiliar Information

Sometimes information on your credit report is reported incorrectly by the company to the credit bureau. Some examples of incorrect reporting include:

• Accounts that are open being reported as closed
• Late payment reports that never occurred
• Incorrect numbers that deal with credit balances or credit limits

Reviewing Your Credit Score Factors

Your next step is to take a look at your credit score factors. These detail those issues that hurt or help your credit score. 

Positive credit score factors include: punctual payment history, age of accounts and low balances. 

Negative score factors include: being been more than 30 days late, having several inquiries, and having one or more legal judgments in your credit report. 

Rules Of Real Estate: It Pays To Be A Homeowner!

Home owner equity is a substantial component of home owner wealth.  

It pays to be a homeowner!  

2012 Homeowner Tax Deductions

Yep, it is that time again... tax time!  We can all agree- necessary evil.  That being said, the news is not all bad. 

Homeowners, particularly you first-timers-  the deductions now available to you as a homeowner will likely reduce your tax bill substantially. Particularly if you have been claiming the standard deduction up until now...  the extra write-offs as a result of owning a home will almost certainly make you an itemizer. Suddenly, the state taxes you pay and your charitable gifts will earn tax-saving deductions as well, which equals money back in your pocket.  *cha-ching*

Below are the most common real estate tax deductions. For more information about these tax incentives and to determine which ones you may qualify for, please consult  your tax advisor

Mortgage interest:

For most people, the biggest tax break from owning a home comes from deducting mortgage interest. Your lender will send you Form 1098 in January listing the mortgage interest you paid during the previous year. That is the amount you deduct on the Schedule A tax form. Be sure the 1098 includes any interest you paid from the date you closed on the home to the end of that month. This amount is listed on your settlement sheet for the home purchase. You can deduct it even if the lender does not include it on the Form 1098.

Mortgage Points:

When you buy a house, you may have had to pay "points" to the lender to obtain your mortgage or buy down your rate. This charge is usually expressed as a percentage of the loan amount. And, believe it or not, you may get to deduct the points even if the seller paid them for you as part of the deal. The deductible amount should also be shown on your 1098 form.

Real-estate property taxes:
You can also deduct the local property taxes you pay each year. In the year you purchase your residence, you likely reimbursed the seller for real estate taxes he or she had prepaid for time you actually owned the home. If so, that amount will be shown on your Hud-1 settlement sheet. Include this amount in your real-estate tax deduction. You can't deduct payments into your escrow account as real-estate taxes, as these deposits are simply money put aside to cover future tax payments. You can deduct only the actual real-estate tax payments made from the account by your lender.

Private mortgage insurance premiums:
For mortgage loans with a down payment of less than 20% of a home's cost usually include a premium for private mortgage insurance (PMI), an extra fee that protects the lender if the borrower fails to repay the loan. PMI premiums can be deducted by home buyers. This write-off phases out as income increases above $50,000 on married filing separate returns and above $100,000 on all other returns.

Home improvements:
Save receipts and records for all improvements you make to your home, such as landscaping, storm windows, fences, a new energy-efficient furnace and any additions. When you sell your home, the cost of the improvements is added to the purchase price of your home to determine the cost basis in your home for tax purposes.

Energy credits:
Some energy-saving home improvements to your principal residence can earn you an additional tax break in the form of an energy tax credit. To learn more visit: www.energytaxincentives.org

Tax-free profit on sale:
Another major benefit of owning a home is that the tax law allows you to shelter a large amount of profit from being taxed if certain conditions are met. If you are single and lived in the house for at least two of the five years before the sale, then up to $250,000 of profit is tax free. If you're married and file a joint return, up to $500,000 of the profit is tax free if you lived in the house as a primary home for two of the five years before the sale.

DEAL ALERT: 20-40% off at 3 local Borders Bookstores

There is no doubt that consumers become more tight and resourceful during economic downturn, and that retailers feel the pinch as a result! The latest local casualty happened when Borders Bookstore announced that they were closing 200+ stores nationally as part of a Chapter 11 restructure.... Let's face it: in the day of the Internet and e-readers like Kindles... print media is a dying breed. Period. Add into the equation the HUGE savings at your fingertips found on online retail powerhouses like Amazon and Half.com. It is no wonder that the overhead of a huge retail store would be too high to continue operation?!

Sadly, 3 of the 9 local Borders locations including Chesterfield Mall, Mid Rivers Mall, and Manchester Road in West County were victims of the downsizing. As a result, they are clearing house. We took advantage of the major discounts over the weekend, up to 40% on some items, but are not happy as a Borders-loyal family...In my opinion, no online deal beats a visit to the bookstore to wander and explore the shelves. Though it looks like those days are soon over. If you have your eye on a book... the time to hit Borders is now. The deals are unparalleled.

Still falling!

I said it a few weeks ago, but wanted to reiterate...
If you have been considering a loan refinance OR your current interest is at 5% or above... the time is NOW!! Do not wait. The rates are at historical lows, yet again, and they will not last.

According to the latest Freddie Mac survey, the average interest rate for a 30-year home loan dropped to 4.4% last week.

I have received almost a 1/2 dozen phone calls and emails from past clients over the past 2 weeks, all inquiring the same thing: Is a refi worth the hassle at this point? Here is a basic interest rate calender...




That being said, there are many other factors to consider during the loan restructuring process, as well: your current rate, how long you plan to stay in the house, how much equity you have, and the fees associated with the loan restructuring.

My best piece of advice on how to proceed to ensure a refinance is favorable to your current financial situation? Make a call to your lender, crunch the numbers, and see how the cards fall. It can't hurt and you can always change your mind. If it works out in your favor, however, it could save you a LOT of money.

Savings alert...

Considering a purchase or refi?


The time is NOW, NOW, NOW! Lock in your rates/loans quickly.

This week, mortgage rates plummeted to their lowest point in 40 years. The average for a 30-year fixed-rate loan sank to a ridiculously low 4.69 percent. Rates for 15-year and five-year mortgages hit record lows, as well.

That means MAJOR savings and more house affordability. If you have any questions regarding the rates and the pros/cons/logistics of refinancing and/or purchasing a home in this market, email me at cdnandthecity@charter.net.

Good new St. Louis...

... you have been ranked by Forbes Magazine as one of the TOP FIVE recession proof cities, US wide, to retire in! St. Louis ranked third for cost of living, fourth for median monthly housing cost and sixth for median home price. Read more about it here...

Interest rates plummeted...

Still more good news for 1st time home buyers: the 8k tax credit, record low prices, and now super low interest rates...
If in need of a refinance... the time is NOW!