Category Archives: Home Buying

Is refinancing for you? With some planning, there may be big savings ahead

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With mortgage interest rates at an all-time low, many homeowners are considering re-financing their loans. Depending on several variables, this could be a very wise move to lower your monthly payments and even shorten the length of your current mortgage. But before jumping into the process, let’s investigate several questions to ask yourself.

  • How is your credit score? Has anything changed that may affect your good rating? These days a credit score of 760 and above get you the best rates.
  • How much equity do you have in your home? Lenders want to see around 20 percent equity for refinancing, but even if your equity is lower, there are refinancing options available through the government’s Making Home Affordable program.
  • How long are you staying put? If you plan to move within the next two years, refinancing is not a good option. The fees associated with refinancing could eat up any interest savings you may have gained.
  • How much does it cost to refinance? Just like buying a home, there are fees associated with refinancing. Do the math. Are lender fees, closing fees, title search costs, inspection fees and credit search fees worth it financially for you to refinance?
  • How much will you save? Talk to your lender first. They will help you compare refinance expenses with different lengths of loans and calculate when you’ll begin saving.

Researching the answers to these questions will give you a good assessment about refinancing your home. When you believe it’s worth pursuing, go prepared. Lenders want to consider your whole financial picture. Gather your recent checking, savings and investment statements, tax returns, W2 forms and pay stubs. The more information you have, the quicker you could be on your way to lower monthly payments and major savings.

GM, our economy, jobs and housing market all win with assembly plant expansion

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The General Motors announcement that the company will invest $380 million to expand the Wentzville Assembly Plant, add at least 1,260 new jobs and in the near future expand the present line with a second shift of 400 workers, is all great news for the St. Charles County region. The expansion will produce the mid-sized Chevrolet Colorado pickup truck while the second shift will support demand for the Chevy Express and GMC Savanna.

This commitment to our area and our residents is just what we need to make our way back to economic and housing stability. Jobs and housing are the keys to economic revival; without one we don’t have the other.

Who will be affected by this decision? Just about everyone. Laid off workers will return to their jobs, new workers will be trained and hired. Local construction companies will benefit from building the new expansion, parts suppliers will be kept busy producing and will hire new workers. The housing market will get a huge boost. Along with stable jobs comes the ability to buy a home in our community.

Our public institutions will also benefit–with the infusion of new jobs and business expansion come more tax revenue to help cities balance their budgets, improve public services and take on new projects. School districts are winners too. More taxes may prevent the elimination of vital educational programs and could bring back more teachers.

Local restaurants, grocery stores, bars, retail stores, your favorite gas station always experience the financial benefits of a huge expansion like the Wentzville plant.

The next two years will be the most exciting and positive experience we’ve had in a long time. And, we’re ready to showcase the best homes available in the St. Charles area!

Is there a light at the end of the tunnel?

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  • For the first time this year, Year to Date Units Sold exceed total units sold in 2010-3379 in 2011 to 3356 in 2010, but total volume sold still lags because Median Sale Price this year is lower, $163,00 to $173,000 last year. We still expect by 2011 year end, total volume may exceed last year.
  • The second half of 2011 is dramatically better than the same time last year. Last year after the tax credit expired, sales tanked. We are now in a true -no sugar added market…a new normal for certain.
  • Important to note, total active listings are down considerably, bringing inventory levels down currently to about 8 months worth compared to a year ago at 12 months worth…hence, absorption rate getting back to near normal. Once inventory drops below 5 months, it begins to transcend into a seller’s market.
  • The key factor to watch is Mortgage Interest Rates. They are poised to increase, but we don’t know exactly when. A simple 1% increase in mortgage rates, say, from 4% to 5%, will cause a typical family to have to scale down their purchase by nearly 15%…or said another way…If you qualify now at 4% for a $200,000 home, but you choose to wait, and rates increase 1% to 5%, the same borrower now qualifies for only $170,000 home. That is the true cost of waiting.
  • Lawrence Yun, PhD, Chief Economist for NAR has noted several indices that indicate there is light at the end of the tunnel. He will be our SCCAR guest Feb, 2011…stay tuned.
  • Thanks again to Cindy Fox, our volunteer statistician, for her unwavering service for PR for over three years now. :)


With unpredictable weather comes unpredictable water damage. Homebuyers should be vigilant about finding moisture hotbeds.

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Weather is unpredictable, regardless of the nightly forecasts. We checked the 2012 issue of Farmers’ Almanac as backup and, for the Midwest, predictions are average temperatures (whatever that is) and wetter than normal. Looks like our friends in the Northeast are going to take a pounding again this year.

For potential homebuyers, weather can play a big part in the home’s saleability. We’re talking about leaks, drips, mold and structural damage that happen because of weather. Smart home sellers have done a pre-sale inspection with a qualified inspector to address any of these issues. Still, buyers should watch for any signs of moisture.

As you tour the home, look for these moisture alerts:

  • Look up and in front of you. Windows and skylights are prime places for water and air leaks. Houselogic.com suggests shaking the windows a bit. If they rattle, the frames aren’t secure and you’ve got a leak there. As for skylights, if you can see through the frame and brown spots are present, this is a sure sign of a leak. Most likely, water has collected on the drywall, which can lead to rot and mold.
  • Doors are another area prone to leaks. Is the weather stripping around the door adequate to keep out drafts and moisture? Are the hinges secure, balancing the door correctly? Can you see daylight through cracks around the door? If so, more work needs to be done here.
  • Check corners in the rooms. Are there stains, do the floorboards creak, has the woodwork pulled away from the wall? If so, there may be problems behind the walls, most likely caused by water leaks.
  • Your inspector will go up on the roof while you stay put on the ground. He’ll let you know about missing shingles, chimney leaks, loose flashing and droopy gutters.
  • In the basement, check the walls, especially in older homes, for moist stone and water pooled in the corners. Also, look at the floor for staining, cracks and protrusions, indicating a water issue is somewhere under the home.

As a buyer, pay careful attention to areas that may be hotbeds for water damage. It doesn’t have to be a deal breaker, but you do want to be vigilant to head off any unwanted surprises.

Home prices up, mortgages lower in metro region. Support preserving the mortgage interest tax deduction

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What a difference a week makes! Even with Congress finally dealing with the debt ceiling issue for the time being, and then Standard & Poors downgrading the U.S. credit rating to A++, bright spots are popping up in the St. Louis metro housing market.

First, St. Louis is ranked number four in Clear Capital’s analysis of the 15 best performing housing markets for the last two quarters. Through July 2011, our area increased 12.5 percent in home prices. Clear Capital analyses loan data for mortgage and bank lenders.

Mortgage rates are following the overall trend of the economy, which dipped again last week to even lower marks. Local rates ranged in the 4.375 percent for a 30-year fixed rate loan and 3.625 for a 15-year fixed rate loan. These rates are a bit lower than Bankrate.com’s national average on a 30-year fixed rate mortgage of 4.54 percent and 3.68 percent on a 15-year fixed rate. So even with all the doubts, now could be the best time for you to buy or sell.

As your real estate agents, our job is to help you navigate through the buying and selling process with the end result of a fair price for both and the best mortgage rate available. We also help preserve benefits for homeowners that have been in place for decades and support efforts to keep the mortgage interest tax deduction in place.

Our economic recovery is based on jobs and home ownership. Now is not the time to deter homeownership by reducing benefits that will even lengthen the time it takes to experience a robust economy once again.

You can help too. Contact your senators and representatives to express your support for this issue now.