Blog • Fun Facts • April 15, 2022

Interest-ing

by Rondi duPont

The recent increase in mortgage rates has started some home buyers to look at programs that have fixed rates for 7 years or 10 years instead of 30 years.

If a buyer believes it is likely they will move or even refinance within this timeframe, these types of programs can be a good option.

The obvious benefit is a lower monthly payment compared to a 30-year program.

Another benefit, which most people underestimate, is the savings in interest.

Today, for example, a buyer would have these options:

5.25% 30-year fixed
4.375% 10-year fixed
4.125% 7-year fixed

Over the first five years of the loan, the buyer would pay the following amounts in interest for each loan program for a $400,000 loan:

$101,126 for 30-year
$83,764 for 10-year
$78,831 for 7-year

So the savings in interest over the first five years compared to the 30-year program is:

$17,362 for 10-year
$22,295 for 7-year

For Buyers • April 13, 2022

Renting vs Buying: Which is better for you?

by Rondi duPont

Deciding whether to rent or buy can be a difficult decision, but with the right analysis, you can determine which is best for you. Knowing whether it’s the right time to rent or buy depends on your buying power, what you’re looking for in a home, your local market conditions, your plans for you and your household, and the responsibilities you’re prepared to take on at your residence.

Renting vs. Buying: Which is Better for You?

Renting gives you greater flexibility to relocate, fewer home maintenance responsibilities, and can often be more the more affordable option, depending on where you live. The extra costs associated with owning a home—interest payments, taxes, repairs—may be too much for some renters to handle. Becoming a homeowner has its respective advantages. You’ll have stable monthly payments and greater freedom to customize your living space. Advocates of buying will contend that purchasing a home is an investment in equity, which can increase in value every year you live in the home, whereas if you rent a property, you’re essentially paying for someone else’s mortgage.

Ultimately, the right decision depends on your situation. If you don’t plan to be living in the same place for at least five years, renting might be more logical, as it allows you more flexibility when it comes time to move again. If you’re looking to settle down for the better part of a decade or longer and can afford to buy a home, becoming a homeowner may be the better option. Here are a few additional considerations to guide your renting-versus-buying decision making process.

What are the local real estate market conditions?

Investigate the local sales and rental markets. Industry groups put out reports every quarter stating the average national sales price for a home and the average monthly payment for a rental. These reports are typically based on an average of all the cities in the U.S. But what really matters is what the numbers show when you dig into them on a local level. When looking at these reports, you’ll see there are some cities that fall below that average, while others rise above it. When comparing housing costs, be sure to base your evaluation on what’s happening in your city and neighborhood, not the nationwide averages.

For a quarterly breakdown of local market conditions, explore our Market Updates page. With data analyzed by our Chief Economist Matthew Gardner, each report breaks down the latest figures in home sales, home prices, and days on market for regions throughout Windermere’s footprint. Gardner also provides his estimation of where each market sits on the buyer’s-market-to-seller’s-market spectrum.

What can you afford?

Making the jump from renter to homeowner is often a question of affordability. Your mortgage rate will depend on your financial strength, your credit score, and other factors, so make sure to talk to a loan officer before you start looking for a home. Getting pre-approved for a mortgage will identify what you’re able to afford and helps strengthen your offer when the time comes.

To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. By using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.

Will you need to make repairs to your new home?

Buying a fixer-upper may seem like a great way to get a deal on a house, but if the money you spend on the repairs is too great, your profit could be diminished when it comes time to sell. The same is true for remodeling and improvement projects. There are various renovation financing loans available to you that can help with the costs of home repairs, though extra consultations, inspections, and appraisals are often required in the process of securing these loans. Ultimately, if you can only afford a home that demands major improvements, and you don’t have the skills to do much of the work yourself, you may be better off renting.

Can you rent part of the house you’re buying?

If you buy a house with rental-capable space (extra bedroom, mother-in-law unit, etc.), you could use the rental income to pay off your mortgage faster and contribute more to your savings. But, of course, you need to be willing to share your home with a tenant and take on the responsibilities of being a landlord or working with a professional property manager to help you with those duties. Renting out a space in your home will also require you to purchase landlord insurance on top of your existing homeowners insurance policy.

Making Your Decision to Rent or Buy

At the end of the day, the decision is up to you. Based on the conditions laid out above, it simply may not be the right time for you to buy. Fortunately, when it comes to being a homeowner, it’s not now or never. A real estate agent will be your ultimate resource in gauging whether it’s the right time to buy and guiding you through the process toward homeownership.

Mead Real Estate • Virtual Tours • March 28, 2022

No Need to Wait For a Home to Be Built!

by Rondi duPont

Move in Ready! 2125 Angus Street is a beautiful 5 bedroom 3 bathroom ranch home with a finished basement and 2 car garage. This home boasts vaulted ceiling in the living room and bedroom allowing light to flow in the windows. The back yard landscaping is complete with the full yard fenced. An additional storage shed stays with the home. Enjoy sitting on the back patio and gaze at the mountain views. No need to wait for a home to be built! Schedule your showing today! This home will not disappoint! Call (970) 401-0123 to schedule your private tour or click here for more information.

loveland real estate • Virtual Tours • March 28, 2022

Imagine Yourself Living Here…

by Rondi duPont

1714 Hitch Wagon Drive has home has so much to offer! It starts with the amazing property and unobstructed views. The 4 bedroom 3 bathroom ranch home sits on a 1/2 acre surrounded by open space and fields. Imagine waking up in the morning and seeing elk, owls, fox and other wildlife wandering around in your yard. Or sitting on the front porch gazing at the mountains. Once in the home, the home has 2 gas fireplaces to relax by in the winter. In the summer, enjoy sitting on the screened in porch or by the firepit in the backyard. The finished basement has plenty of room to spread out for recreation or a workout room, along with a family room. Don’t forget the 3 car garage, separate office and dining rooms. This home will not disappoint! Call (970) 401-0123 to schedule your private tour or click here for more information.

Blog • For Buyers • Fun Facts • March 25, 2022

Rate Perspective

by Rondi duPont

Given the recent increase in mortgage interest rates, we think a little perspective is in order.

The average 30-year rate for the last 40+ years is 7.5%
Rates are now back within the range where they were between April 2018 and February 2019
Between January 2000 and December 2009, the high was 8.15% and the low was 5.05%
Between January 1990 and December 1999, rates never went below 6.25%

Bottom line, while the increase in rates is challenging for active buyers, rates are still incredibly low historically speaking.

Fort Collins Real Estate • Virtual Tours • March 18, 2022

Adorable, Affordable, and Ideally Located!

by Rondi duPont

Cute affordable home in Fort Collins awaits! Looking for a home close to old town and easy access to I-25? This is it! 711 Tracey Parkway is a 2 bedroom 1 bathroom home that is perfect for someone looking for one level living in a detached home with a 1 car garage as a bonus. The beautiful mature landscaping will certainly make you smile on a summer day! Located near the community park and neighboring walking trails. Don’t forget about the community pool! Call (970) 401-0123 to schedule your private showing or click here for more information.

Blog • Fun Facts • March 18, 2022

Buy Before 5

by Rondi duPont

30-year mortgage rates just exceeded 4% for the first time in three years according to Freddie Mac.

We have new advice for anyone considering a home purchase in the next couple of years.

Buy before 5. This means buy before rates go to 5%.

Even though rates have been ticking up over the last several weeks, we believe that in a few years we will look back on this time and realize what a tremendous opportunity it was to have a mortgage under 5%.

So, don’t be discouraged by recent uptick in rates. Instead, feel great that you were able to buy before rates hit 5%.

Blog • Home Improvement • March 16, 2022

Farmhouse Interior Design

by Rondi duPont

Known for its signature chic comfort, the farmhouse style is a popular method of interior design for homeowners looking to blend elements of modern and traditional design. With a rustic charm at its heart that recalls images of the countryside and wide-open landscapes, the farmhouse style steadily picked up steam in the 2010s and continues to grow in the 2020s. The following information is a guide to understanding the characteristics that make up the farmhouse style and how you can translate them into your home.

What is farmhouse style?

The farmhouse style predominantly uses a white/grey/beige color palette which provides a foundation for complementing elements and brighter colors. Against this clean backdrop, rustic materials can really shine. Exposed wood beams of timber or reclaimed wood, shiplap, and wrought iron are materials typically used help to round out the aesthetic, creating that rural-with-a-touch-of-modern feeling that the farmhouse style is known for. These combinations create a sense of openness and simplicity in the spaces where they’re used. In the kitchen, the farmhouse style feels clean and inviting; in the living room, it beckons members of the household and guests alike to sit back and relax; and in the dining room, it creates the perfect setting for enjoying a meal together.

A farmhouse style kitchen with white surfaces, exposed beams, and wood accents.

Image Source: Shutterstock – Image Credit: Breadmaker

How to Decorate in a Farmhouse Style

When it comes to furniture, there are specific choices you can make that will help reinforce your personal farmhouse style. Functionality is a core principle of farmhouse design, exemplified by its use of reclaimed and found materials. When looking at furniture, tune your radar to pieces that are simple and functional rather than ornate and complex. Farmhouse’s warmth contrasts the colder feel of minimalism, so when thinking about texture, know that you’re not bound to selecting only the cleanest possible lines—feel free to experiment! With natural elements like stone and wood already providing a varied blend of textures, you can afford to be bold in your choice of throw pillows, blankets, carpeting, and furniture set pieces.

The farmhouse style will give you license to decorate with antiques and vintage materials. Items like armoires, wooden iceboxes, and vanities will find a fitting home among your complementary decorative items. With a prevalence of wood, choose grain patterns and wood tones that complement each other well without clashing. Clutter can get in the way of the coziness that the farmhouse style naturally evokes, so it’s important to keep your main living areas well maintained to truly let your home’s interior design flourish.

With the farmhouse style, it all comes back to comfort. If you’re looking to make the spaces in your home more comfortable, either fully adopting or borrowing from the farmhouse style may be just the ticket. For more helpful tips on home design, read our blog post on how to upgrade your bedroom:

A Guide to Upgrading Your Bedroom

Blog • For Buyers • March 14, 2022

New Construction: Why Work with a Buyer’s Agent?

by Rondi duPont

If you’re a buyer, you may have considered purchasing a new construction home. After touring the model home and talking to the builder’s sales representatives, you begin to wonder if it’s necessary to work with a buyer’s agent. Although it’s possible to move forward with the purchase of a new construction home without a buyer’s agent, you may be missing out on the benefits of having a representative at your side. Take a look at how a buyer’s agent can provide value in the purchase of a new construction home.

Buyer Agent vs. Builder’s Agent

Who Works for Who?

A sales representative is the builder’s representation in the sale of a new construction home. They can assist buyers by providing insight into the construction process, available upgrades, and answer questions related to what the builder is able to offer. That said, they represent the builder and will always advocate in favor of the builder. Think of it this way: in new construction, the builder is the seller and the sales representative is the listing agent.

An Expert on Your Side

Knowledge is Power

Working with a buyer’s agent gives you an advantage. Not only do they have experience with new-construction home purchases, but they are also familiar with major builders in the area and can speak to their quality of work. Moreover, buyer’s agents bring a working knowledge of the housing market to the table and can provide insight into current home prices. Tapping into a buyer agent’s knowledge and experience could save you time, money, and stress as you navigate the purchase of your new home!

An Agent is Your Advocate

Your Best Interest Comes First

A buyer’s agent will:

Negotiate on your behalf
Clarify what is included in the base price
Help you navigate the purchase amidst rising building costs
Help you obtain the best financing available
Provide guidance with regard to builder’s warranties and home inspections

Agent Commission

What’s the Cost to Me?

Traditionally, sellers are responsible for paying real estate agent fees. In the case of new construction homes, the builder will likely cover all or most of the agent’s commission. You may be able to work with a real estate professional at no cost to you.

For additional inquiries, please contact me directly.

Blog • March 11, 2022

3.2 Trillion

by Rondi duPont

The new CoreLogic Homeowner Equity Insights report shows that homeowners in the U.S. have seen their equity increase by a total of $3.2 trillion over the last 12 months.

Their data shows that 63% of all homes have a mortgage.

On average, U.S. homeowners gained $55,000 while the average increase in Colorado was higher at $75,000.

The other piece of good news from the report is that properties with negative equity reached the lowest amount in several years.

Only 2.1% of all properties across the U.S. have a value lower than the mortgaged amount. Negative equity peaked at 26% of all mortgaged properties back in 2009.