ARE YOU READY TO OWN A HOME?

ARE YOU READY TO OWN A HOME?

Home ownership means you no longer pay monthly rent for the roof over your head. buying-a-home11When you leave, you can sell it to recoup the purchase price and earn any profit that you may have accumulated through your appreciation in value.

But don’t kid yourself. Home ownership comes with a slew of disadvantages, responsibilities, and downright headaches. So before going any further, consider whether your lifestyle and finances make home buying a smart move for you.

Except in a roaring real estate market, it usually doesn’t make sense to buy a home you’ll stay for less than three or four years, because the cost of the process of buying and selling your property means that you could lose money  from your equity.   On the other hand, you will not pay capital gain taxes if you’re in the property for at least of 2 years.

One key question is whether it costs more, on average, to rent or own in your area. The rule of thumb is that if you pay 33% in rent than you would for owning  including the monthly mortgage, property taxes, and any homeowner’s fees,  then it’s smarter to own a home then renting it.

As always, get your finances in order before committing to buy a home, and stay informed of all the options, alternatives and programs that will fit your needs.

Get help, and call a Realtor…Call me  714-963-7462.   Leading your way home!

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HELOCs the next home credit product?

HELOCs the next home credit product?

HELOCs the next thing home credit product?

HELOCs the next thing home credit product?

Highest level of home equity loans since June 2009. A total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since the 12 months ending June 2009, according to RealtyTrac.

The report also shows HELOC originations accounted for 15.4% of all loan originations nationwide during the first eight months of 2014, the highest percentage since 2008.

“This recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery and, more importantly, have regained much of their home equity lost during the housing crisis,” said Daren Blomquist.

Among the nation’s 50 largest metropolitan statistical areas with HELOC data available, 49 posted year-over-year increases in HELOC originations in the 12 months ending in June 2014.

Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).