Should buyers worry about PMI?

Some first time home buyers who can't afford to put 20% down worry about Private Mortgage Insurance.  PMI, like ordinary interest paid on a home mortgage is tax deductible for many home buyers.  Considering that most of your monthly payment in the first year's of your home loan, the amount of interest you pay each year can really add up.

Besides the pride of ownership and not having to worry about "the rent going up," home ownership has its advantages.  At tax time home owners smile that the biggest costs of home ownership - interest and taxes - are deductible according to today's tax guidelines.

So at the end of the year the home owner has deductions that significantly offset what they have paid in monthly payments.

Of course everyone's situation is different so its important to check with your tax advisor.

Perhaps the bigger worry for buyers paying PMI is the amount of their payment.  After all, paying an extra $200-$300 per month on top of the regular payment may be a big hit to the budget.  The cost of saving up for a bigger down payment may m ean home prices rise beyond what you can afford.

Your best bet is to meet with a lender to find out how much home you can afford.  A mortgage expert will explain your options so you can decide what is best for you.

If you are ready to make the move from renter to home owner and need references for a good lender, contact me so we can help.

Home values, sales up in East Valley

Home sales in Redlands, Highland and Yucaipa, Ca. are up 10% so far this year.  The median sales price is up 7%.  That's great news for sellers.   With 567 single family homes and condos for sale (up 5% to last year), buyers have more choices.  Still, buyers are finding that they need to be quick with full price offers if they want to win and bid in this hot market.

This chart shows you what's average in the East Valley.

More homes hit the market

Over 20 home sellers attended our home seller seminar last night in Laguna Niguel.  Lots of questions about the future for home prices and buyer demand.  The market is hot, hot, hot right now with many homes selling in days or just a few weeks.  The big question is how long this will last.

Is this the right time for you to buy or sell your home?

One thing is for sure, buyer demand for homes in the East Valley rose sharply in the past 2 months.  Many homes are selling quickly with multiple offers.

If you are thinking of selling the next step is to find out what your home is worth.  Yes, you can check Zillow but reports show that Zillow estimates miss actual values by 18-25%.   Recent sales and a Broker's Professional Opinion are more accurate.  Call or contact me to day for current market value for your home.

Thinking of buying?  Home prices continue to rise. Interest rates are low.  If you plan to buy and live in  your new home for more than 5 years then we should talk.  The next step would be to meet with a lender to find out how much home you can buy.  May I refer you to lenders I trust?

I am here to help you.

Home buyers roar back in March

Demand for homes in the San Bernardino Valley spiked in March.  Stronger employment, high consumer confidence and low interest rates combined to prompt more home sales.  Sales rose 21% to last year and 53% to February.

Meanwhile, the average sales price climbed to $280,211, up 15% to last  year and 7% to February..

Are you thinking of buying or selling? Call me so we can get started.

What's ahead for housing?

More people are thinking about buying and selling . Yesterday at a gathering to celebrate a close friend's birthday I had conversations with a woman who is ready to sell a home in Joshua Tree, a couple thinking of selling in Fontana and buying something smaller, and a couple that's renting who are ready to buy in Yucaipa. All this within a group of 25 nice people.  Lots of interesting questions I was happy to answer.

Free home buyer's seminar!