Blog - Laura Anderson

Leveraging the Reverse Mortgage

by Alissa

It’s no secret that the reverse mortgage has been on the rise lately. For those aged 62 and older, it can mean the difference between buying a home they think they can afford, and buying a home they love.

See how the reverse mortgage can help

When you’re ready to choose a home to spend the remainder of your life in, the idea of taking on another mortgage payment can be daunting, especially during a time where you’re living off a fixed income or retirement savings. Not to mention, you may need access to additional funds to secure your quality of life. For some, this means buying the home they love, or staying in the home they love, just wouldn’t be feasible.

That’s where the reverse mortgage comes in.

What is a reverse mortgage exactly?

With a reverse mortgage, those age 62 and older can have access to an FHA insured loan designed to help them buy their next home or refinance their current home with one initial investment, without having monthly mortgage payments. Though the borrow needs to be the primary occupant of the house, they won’t need to repay the loan until they no longer use the home as their principal residence or fail to meet the obligations of the mortgage.

Because of this leniency, more cash flow can be freed up for retirees to use toward medical expenses and house upkeep, among other necessities. The borrower also has convenient options to access these funds including taking a line of credit, a lump sum, or monthly payout. With the amount of options a reverse mortgage provides, it’s no surprise that more and more seniors are considering it to help them through their retirement.

Who’s taking advantage of it?

Studies by the National Association of REALTORS® show that 22% homebuyers are age 62 and older, the age at which a borrower can apply for the reverse mortgage. Of these homebuyers age 62 and older, 82% are taking out a mortgage on a new home purchase. However, less than 1% of these homebuyers are using a reverse mortgage, even though it may provide a better option for them and their needs.

Learn more

A Reverse Mortgage can entail a complex set of decisions relating to finances, as well as anticipating future needs as you or your loved ones age.

Contact Laura at 323.646.6569 for a complementary consultation to review your current housing situation, discuss your lending needs and outline the topics to weigh as you consider your next move.

source: https://sres.realtor/blog/blog-home/leveraging-reverse-mortgage

Mortgage Rates May Go Even Lower in 2020, Forecast Says

by Kevin Hamilton

Homebuyers can rest assured they’ll still get a great deal on a mortgage this year, even if they’re paying a high price for the actual home.

In a new economic outlook, mortgage titan Fannie Mae says it expects mortgage rates to remain low and stable throughout 2020.

The company’s brother firm, Freddie Mac, recently revealed 30-year fixed mortgages averaged just 3.9% throughout 2019, making it the fourth-lowest year on record.

In its forecast, Fannie Mae says it expects this year’s rates to be even lower at just 3.7%, while five-year adjustable rate mortgages are likely to hold at 3.3%.

Match that with “strong labor markets, rising wages and improved household balance sheets,” and conditions look perfect for prospective homebuyers. Yet the usual hitch remains: There’s never enough homes on the market.

In short supply

“It’s still a seller’s market because the growth in supply, while it’s accelerating, still hasn’t caught up to the growth in demand,” Doug Duncan, Fannie Mae senior vice-president and chief economist, tells MoneyWise.

He adds that the near-record number of adult children living at home will eventually try to get their own places, meaning demand will only continue to surge.

“Boomers are not moving, so the existing home supply is still at very low levels,” he says.

In its outlook released Jan. 21, Fannie Mae notes that the number of homes for sale was down 5.7% in November compared to the year before, making it the scantest November in at least 20 years.

With such a tight supply smothering the demand, the company expects 2020 to be “comparatively muted” for sales of new homes after a brisk 2019.

What buyers can expect

So if you’re shopping for a home this year, there’s a good chance you may encounter a bidding war. And if you’re putting your house on the market, congratulations: You might see the same.

Despite the dearth of available homes, the Mortgage Bankers Association recently reported that homebuyer demand for mortgages hit its highest level in more than a decade.

And while the number of purchases remains flat, Fannie Mae says all of those factors — meager supply coupled with a strong job market spurring demand — are sending prices skyward and shattering loan limits.

The U.S. median price for an existing home in November was $271,300, up 5.4% from the same month the year before, according to the National Association of Realtors. That marks 93 straight months of gains.

The decline in interest rates is partly responsible, Duncan explains. Lower rates mean people can take out bigger mortgages while keeping their monthly payments the same.

“That ends up pushing up house prices, because people end up bidding a little more,” he says.

Use our mortgage calculator to see what a monthly payment might look like on a $271,300 home.

A comeback year

Builders are reportedly standing by to capitalize on these trends. Fannie Mae expects the demand to inspire enough builds this year to return housing construction to prominence as a driver of the country’s economic growth.

Its theme for this “comeback” year: “A Resilient Economy Overcomes Risks to Drive Housing.”

“If employment stays strong and income growth stays strong and house-price appreciation is strong, those are all incentives for builders to build as fast as they can,” says Duncan, noting a new emphasis on building smaller, entry-level homes.

Pointing to a sign of things to come, Fannie Mae says the number of single-family houses started, as well as the number of permits issued, rose in December to new highs, continuing recent upward trends.

Duncan says it’s “very doubtful” homebuilders will actually be able to keep up and use all their permits due to the bottleneck of skilled labor in the country — but they’ll certainly try. Even if the country were to slip into a recession in years to come, he says, builders will have more than enough incentive to keep building.

“Demand for housing doesn’t fall so much as slow down.”

Review and compare low mortgage rates in your area today.

If you or anyone you know is looking to sell, buy or has questions about real estate, please connect with me.

source: https://finance.yahoo.com/news/mortgage-rates-may-even-lower-123511225.html

How to Buy a Vacation Home

by: Sarah Fisher

original article: https://finance.yahoo.com/news/buy-vacation-home-215047021.html

Buying a vacation home might seem like the getaway that you’ve always dreamed of. But you should be aware of all that can go into buying and owning one. You’ll need to consider factors like whether you already own a home, whether you intend this to be an investment or just a getaway, what it will cost you and more.

Paying for a Second Home

People who buy a second home often pay cash. A 2017 research study from the National Association of Realtors found that although only 13% of primary homebuyers pay cash, 29% of vacation homebuyers pay cash.

That makes sense, since getting a mortgage for your vacation home might be difficult. Your lender might require a higher credit score than for a first home and mortgage rates are likewise often higher. And in general you’ll need to put down a larger down payment for a second home – sometimes as much as 30%.

If you can’t put down cash on your vacation home, but want that weekend getaway, you still have options. If you own your first home outright or have a healthy amount of equity, you can tap into that equity to pay for your vacation home or fund the down payment.

You can use your equity by getting a cash-out refinance of your first home, known as a home equity loan or a home equity line of credit. There’s a downside to this, however. You can deduct the interest only if the loan used to buy a second home is secured by that home, not your primary residence.

What Type of Home is It?

You’ll need to consider how you plan on owning and using your new property. From a financing and tax viewpoint, you’ll have to label your home as either a primary residence, a second home or an investment property.

If it’s a primary residence, you can buy it for a minimum of 3% down, as long as your loan isn’t more than $417,000, and get significant tax benefits as a homeowner. That might be a good fit for you if your vacation home is the only property you actually own. Some millennials now rent apartments in cities, but buy vacation homes outside of the city, since they can get a larger home for less money.

If you can’t think of a reason to rent out this new vacation home when you’re not there, but already own a primary residence, you’ll probably want this to be your second home. Mortgage rates and tax benefits for second homes are the same as mortgage rates and tax benefits for primary residences (though obviously you won’t qualify for any first-time homebuyer benefits). If it’s a second home, you can go there any time you want, but lenders won’t allow you to rent it out. You can buy your second home for 20 percent or more down, and qualify for the loan using your full primary residence cost in addition to your full second home cost.

You can classify your home as an investment property, which you may want to do if you’re planning on renting it out when you’re not living there. You can still use the home as a residence whenever you’re not renting it. However, rates are usually 0.25% or 0.375% higher than rates for properties classified as second-home properties, and your down payment will most likely start around 30%. You qualify for a loan on an investment property using your full primary residence cost as well as your full investment home cost, but you can use rental income to help you qualify for the loan. You get fewer tax benefits, but the extra income you get through renting may be worth a lot more than the tax benefits.

Buy Within Your Budget

You know what your financial goals are, and you should have a pretty good idea of how much you’re able to spend on your vacation home, whether you’re putting down all cash or planning what your month-to-month expenses will be after you take out a first or second mortgage.

If you’re planning on renting out your property, don’t count on that when you estimate what you can afford. You should also take added costs into account when making your estimates, including home insurance, taxes, utilities and maintenance costs. Be realistic when estimating these costs, maybe even over-estimate the costs. Better to be safe than sorry.

f you’re planning on putting down cash, the amount you can afford to pay should be pretty straightforward, although you should consult with a financial advisor if you’re not sure how much you can spend on a home and still achieve your financial goals.

On the other hand, you might not realize what your month-by-month costs will be if you take out a mortgage. SmartAsset’s mortgage calculator can give you an estimate of your month-by-month costs depending on what down payment you can afford, where you’re planning on buying your home and your credit score.

Location Matters

Consider buying inside the United States, and better yet, close to your primary residence. Buying property outside of the U.S. can be complicated and you’ll have to take potentially expensive travel costs into account. In addition, if you buy a vacation home that’s easy to get to, you can get more use out of it. It’s easier to go to a weekend getaway if you only have to take a two-hour train ride rather than a six-hour drive. Purchasing a home close to your primary residence also makes it easier to keep an eye on the property and perform regular maintenance.

However, keep all the seasons in mind when buying your vacation home. Will you want to visit the area in January and July, or just for two or three months out of the year? It might end up being cheaper to rent if you’re not spending a lot of time there.

If you only plan on spending peak summer or winter months at your vacation home and renting it out the rest of the time, you’ll want to make sure that people will rent your property during the off-season. Make sure prospective renters have access to what they might need like stores and hospitals.

If you know the area you’re buying in inside and out, this won’t apply to you. However, if you’re an out-of-towner, you’ll want to hire a local real estate agent who knows about the location you’re looking to buy in. If there are issues you wouldn’t know about such as rental restrictions or seasonal road closures, a local real estate agent can warn you.

The Bottom Line

Buying a vacation home can be a great investment or a great getaway for you and your family or both. However, you’ll want to make sure you’ve planned for potential contingencies so that you won’t be blind-sided by unexpected problems and can make the most of your new property.

That’s true whether you’re buying it as a primary residence, a second home or an investment property. Of course, one of the main personal finance principles applies as well: make sure you can afford to both buy and maintain the property.

Mortgage Tips

Consider talking to a financial advisor about buying a vacation home. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors who will help you achieve your financial goals, get started now.
SmartAsset’s mortgage calculator can help you figure out what a monthly mortgage payment would be for your dream vacation home. It even takes homeowner’s insurance and possible taxes into account. We can also help you calculate your closing costs.

Photo credit: ©iStock.com/LuCaAr, ©iStock.com/flyzone, ©iStock.com/Bogdan Kurylo

This Weekend’s Beverlywood Open House Guide

Click here to see these Faircrest Heights and surrounding neighborhood properties available to tour this weekend on Saturday, January 25th through Sunday, January 26th.

Work With A Local Expert

If you’re looking to buy or sell a home in Reynier Village or the Los Angeles area or just want advice on the state of the market, you should call someone who knows the area and LA market inside out, please contact me at 323-646-6569 or Laura@LauraAndersonRealtor.com. I live, shop, & work here alongside you. I sell real estate in the areas of our city I am most passionate about – Faircrest Heights, Reynier Village, Mid Wilshire, Mid City, Culver City, DTLA, Playa Del Rey, Hollywood Hills, Los Feliz, Hancock Park, and Beverly Hills. At Keller Williams, I am one of the top ten agents in my office, receiving many production awards, and I am a member of the “Agent Leadership Council”, but that’s the behind the scenes stuff. What matters to you is that I am passionate about what I do, where I live, and that I understand the local real estate market. I want my clients to be happy, offer referrals, and do business with me again.

Spruce up your house for spring sale

By Allie Beth Allman & Associates

original article: https://www.dallasnews.com/sponsored/real-estate/2020/01/19/spruce-up-your-house-for-spring-sale/

Take small steps, one at a time, according to the experts at Allie Beth Allman & Associates

Kitchens can sell a home, so spruce up yours before placing the residence on the market, according to Allie Beth Allman & Associates.(Stephen Reed / Allie Beth Allman & Associates)

If you are thinking about listing your home for sale this spring, it’s time to get started sprucing up, cleaning, repairing and replacing.

Only a few houses can be made ready in a week or two, but don’t let the to-do list overwhelm you.

Take small steps, one at a time, and soon your home will be ready to sell for top dollar, according to the experts at Allie Beth Allman & Associates.

Here are some tips to get you started.

Amp up curb appeal – Walk out to the front of your home, close your eyes and pretend you’re a buyer seeing it for the first time.

What’s your impression? Is the home welcoming? How does the front door look? Does the house need painting or pressure washing? Are the lawn and shrubs trimmed? Do you want to see inside? Would you buy this house?

Home checkup – Hire a professional inspector to point out any problems potential buyers will notice. Go room by room and make a list. For more expensive items, such as a new roof or HVAC system, get estimates from professionals, which your Realtor can use in negotiations.

Declutter and de-personalize – Make it easy for buyers to visualize themselves living in the house. Remove all photos and personal decor, including children’s names on their bedroom walls. Too much clutter makes your home look smaller and messy. Throw away, donate or pack items for your new residence. Repaint rooms in neutral colors to turn them into blank canvases.

Clean deep – Hire a professional cleaning service or do a deep cleaning yourself. Don’t forget the baseboards, which will give the entire house a polished look. Clean the windows to let in more light.

Update kitchens and baths – More than any other room or feature, these rooms sell a home. Paint, caulk and replace the hardware on cabinets and drawers. Spruce up tile grout with vinegar or lemon juice.

Clean the flooring – Your once smooth, shiny wood flooring may have become scratched and dull.

A coat of wax will work wonders and is much cheaper than refinishing. Clean carpets make the home feel and smell great.

Revive the lighting – Replace bulbs or fixtures to put a sparkle in the house.

Organize storage spaces – People touring your home will open your cabinets, drawers and closets to see how much space they have. Reduce the cans and boxes in the kitchen. Hide the toothbrushes in the bathrooms and store some of your clothes to make the closets look bigger.

… (read more)

What to expect when buying a house in Los Angeles in 2020

If your budget is less than $1.5 million, agents say it’s going to be competitive

Real estate agent Tami Pardee is reviewing five offers on a one-bedroom condo she listed at $465,000 in Culver City.

That type of demand is not surprising given that the asking price is less than a typical LA condo and it’s located in a walkable, transit-friendly neighborhood with shops and restaurants. What’s more surprising is that when the offers stared rolling in, the dwelling had been on the market for all of three days in a time period that she says is typically slow for Los Angeles real estate.

“Our open houses over the holidays, when we usually get 10 people, we were having 30 to 40 people,” says Pardee, founder and CEO of the Westside brokerage Halton Pardee and Partners.

Homebuying in Los Angeles in 2020 is off to a busy start. Agents and real estate observers say that in the “lower” end of the market—where homes are priced below $1.5 million—the early action might be indicative of the year ahead.

“It’s tighter in the lower price thresholds for sure,” says Jonathan Miller, whose real estate and appraising firm, Miller Samuel Inc., tracks home prices in Los Angeles. “Unless there’s a change in economic conditions in some material way, it’s hard to make an argument that things are going to change all that much in 2020.”

In a nationwide survey conducted by Zillow, investment strategists and real estate experts predicted that prices will cool off or even fall in some of the West Coast’s priciest markets this year, including Los Angeles, where the median price of a single-family home was $650,000 in November.

But Los Angeles brokers say they expect prices to stabilize or grow at a slower pace than they did in 2018, when price records were notched month after month.

“Even though buyers have more power over transactions than they did two years ago, it didn’t swing 100 percent in their favor,” says Miller.

What is working in their favor? Low interest rates. What’s not? Low inventory. Plus, “the economy is so robust, there are plenty of buyers,” he says.

That means home shoppers should expect to compete with multiple offers in popular areas like the Westside and in “transforming neighborhoods” in Northeast Los Angeles and South LA, regions where home prices grew the most over the last decade.

“You’re going to see between $799,000 and $1.4 million be the hottest price points,” says Courtney Poulos, owner of ACME Real Estate. “Buyers need to be prepared to make competitive offers.”

That could mean submitting offers for over asking price, but that’s not the only way to get “creative.”

“Perhaps remove loan or appraisal contingencies,” says Poulos. “Don’t expect a perfect house or ask for exorbitant credits on the request for repairs.”

And, if you still keep getting out-bid, look for houses that have been sitting on the market for a long time, a sign that they might be overpriced. Embrace homes that might not be well-staged or stylish and consider doing some work on the property to make it suit your tastes.

“Millennial buyers want to feel that they can just bring their toothbrush… they can’t imagine doing work,” says Pardee. “It would be good to look for places that need work and add value.”

If that’s the case, Poulos says there are financing options to build renovation costs into a home loan. For example, an adjustable-rate mortgage, while not always ideal, will typically have lower monthly costs in the first few years, which could allow buyers to save more money for repairs.

Poulos also encourages buyers, especially those searching for their first homes, to keep in mind that they’ll likely live in the home for at least half a decade.

“Ask yourself: ‘Will this work for me for the next five to seven years?’ It opens up so many possibilities,” she says.

If you or anyone you know is looking to sell, buy or has questions about real estate, please connect with me.

source: https://la.curbed.com/2020/1/9/21056801/buy-house-los-angeles-real-estate-market-2019

This Weekend’s Beverlywood Open House Guide

Click here to see these Faircrest Heights and surrounding neighborhood properties available to tour this weekend on Saturday, January 18th through Sunday, January 19th.

Work With A Local Expert

Downsizing Made Easy

Are you overwhelmed with the amount of items cluttering your home? Are you thinking, “Where is all my stuff going to go? This will never fit in a smaller home, let alone a smaller condo.” Here are some tips and tricks to help you prepare to downsize into a smaller home or condo

Tips to help you prepare to downsize

Don’t give up! Downsizing and getting rid of some bigger items can be a lot easier than you think. Here are some tips to help you simplify the process.

Stay on task and on schedule

When you begin thinking about downsizing, it’s important to stay on task and adhere to a specific time-line or check list. It’s easy to procrastinate and wait until the last minute to worry about where all that stuff is going to go once moving day comes. However, the longer you put it off, the more stressful things can get.

Plan for the new space

To begin, plan ahead by figuring out how much space will be available in your new home. See if they have a floorplan available that you can take a look at. An idea of how much space you will have can help narrow down which items will make the move with you.

Use a tagging system to categorize items

From there, work on separating and tagging the items that will stay behind into different categories. What items can be donated? What items will be sold? What items can go to children or other family members? Creating a tagged system like this can streamline the downsizing process and will help keep you organized.

Stay empathetic

While working with family members remember to try and stay empathetic. Many people attach memories to their belongings, making it hard for them to say goodbye. What may look like a piece of junk to you, may have sentimental value to your family member. Keep their feelings in mind as you help them make the tough decisions.

Help get belongings where they need to go

Once you have finished deciding on where everything will go, it’s time to get everything to its respective place or new owner. You may have family members or friends nearby that will be willing to assist with getting these items where they need to go, but in the case that they do not, consider helping them hire a downsizing professional or moving company to take on the burden of transporting everything. As a Senior Real Estate Specialist, I have access to different vendors, that will do just that, creating a stress-free move for all involved. Please feel free to give me a call for vendor referrals.

As space clears up in your home, and moving day approaches, you’ll be thankful you started the process early and built your support system.

As your Senior Real Estate Specialist (SRES), if you or anyone you know is looking to sell, buy or has questions about real estate, please connect with me.

This Weekend’s Beverlywood Open House Guide

Click here to see these Faircrest Heights and surrounding neighborhood properties available to tour this weekend on Saturday, January 11th through Sunday, January 12th.

Work With A Local Expert

The New Spring Real Estate Market is Here. Are You Ready?

original article: https://www.mykcm.com/2020/01/08/the-new-spring-real-estate-market-is-here-are-you-ready/

Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research, January 2019 was only 1% behind February for the most monthly views per listing on realtor.com.

So, what does that mean? The busiest season in real estate has just begun.

The same research indicates,

“Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation’s largest markets.”

With the reality of fewer homes on the market in the winter, and that supply naturally increases as we head to the spring market, waiting for more competition to list in your neighborhood this year might put you behind the curve. Perhaps now is the time to jump into the market.

George Ratiu, Senior Economist at realtor.com says,

“As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier.”

There is a lot of speculation in the market about why the search for a home is shifting to an earlier start. The one thing we do know is if you’re thinking about buying or selling a home this year, the earlier you get started, the better.

Reminder: When should you sell something? When there is less of that item for sale and the greatest number of buyers are in the market. That’s exactly what is happening in real estate right now.

Bottom Line

The new spring market for real estate is underway. If you’re considering buying or selling, let’s connect, so you have the advantage in this competitive market.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.