You Don’t Need a Spouse to Buy a House

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Real estate trends occur for many reasons. The economy is often a factor, but other influences determine changes in demographics. The steady increase of women choosing career over family, combined with fewer couples marrying — or staying married — has led to a rising trend of single women buying homes.
The National Association of Realtors recently published statistics showing that single women account for 23% of first-time home buyers. That’s significant growth in a category that has slowly but steadily risen since the late 1990s. In contrast, single men make up just 15% of first-time home buyers.
What about repeat buyers, you ask? The numbers remain in line. Single women comprise 15%, while single men account for just 8% of second time (or more) home purchases.
With divorces and the overall slowdown of marriages leaving more single adults in the market for housing, it’s easy to see why single women are buying more homes on their own than ever before. Back in the ’90s, 52% of first-time buyers were married couples. Today that number is just 40%.
These statistics reflect my client base. It is very common for divorced or single women to contact me about buying a home. Some have children and some do not. What they don’t have is a spouse.
As this demographic grows, it presents more opportunities for me to help these women make smart financial choices about their mortgages. I love helping them understand the process and make good decisions for themselves, their finances, and their future.
If you know a single woman who is tired of renting or is divorcing and wants to know their options for buying a home, please have them get in touch with me for a consultation. I would be more than happy to answer their questions.

September’s Home Improver

Get Your Mind Into the Gutter

The fall is unforgiving when it comes to clogged gutters. If you haven’t already cleaned them out in the past few weeks, you should take care of it as soon as you are able. Leaves will be falling before you know it and if your gutters are already clogged, you may experience some unexpected damage to your home.
Here’s why:
Your gutters and downspouts control the flow of rainwater around your home. When they are clogged, the excess water has nowhere to go. This often causes the exterior of your home to decay prematurely and the cost for repair is typically much larger than the cost to pay a professional to clear your gutters. Notice more mosquitoes around the house than usual? Standing water in your gutters is a literal breeding ground for those pests.
You may think that the summer doesn’t add leaves so the gutters are probably fine. However, soil accumulated from the winter and spring can cause weeds to grow and thrive in the gutter and downspouts, causing heavy blockages even before the first fall leaves begin to change colors.
If you think you’ve got nothing to worry about because there aren’t many trees in your area, think again–especially if you happen to own a house with asphalt shingles. The granules in the shingles fall away during harsh weather and make their way into gutters and downspouts. Remember that brief but battering August hailstorm? That may have triggered an asphalt granule mini avalanche.
For all of these reasons, it is well worth taking the time to have your gutters thoroughly inspected and cleaned.

Why National Mortgage Trends Are Irrelevant

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You may have read an article in The Wall Street Journal or watched Diane Sawyer on ABC talking about housing market trends and alerting you of the best times to buy or sell your home. While the trends may be accurate on a national level, they may be entirely different when you consider them from a local — or even regional — perspective.

There are a few factors that cause these incongruities between national and regional trends. This past winter was so oppressively cold that only a few brave souls were diligently working on buying or selling their homes. This left the northeast region behind some other regions in home sales. Now that the weather has improved, we’re seeing a market correction, of sorts. More people are aggressively vying to buy in a market with limited inventory.

According to the National Association of Home Builders, the Housing Opportunity Index (HOI) for a given area is defined as “the share of homes sold in that area that would have been affordable to a family earning the local median income, based on standard mortgage underwriting criteria.”

HOI is a good indicator of determining trends because it takes both median income and affordability into consideration. Statistics show that Boston’s HOI has been in decline since 2012, largely due to a decrease in median household income combined with an increase in the median price for home sales. Nationally, the average percentage of affordable homes is 66%. Locally, the percentage is just 51%, a full 15% lower than the national numbers.

We can conclude from this that national numbers can’t be assumed to coincide with the local Massachusetts housing market. So when Diane Sawyer tells you to buy, sell or hold tight, it’s best to contact me for advice that comes from a locally informed source. I will gladly discuss all the concerns you have about timing your new home purchase and give you the best advice for your individual needs.

 

July’s Home Value Improver

Garden Pest Terminator: The Ladybug

Are you fighting a losing battle in your garden? Are the bugs eating your vegetables before you get a chance to enjoy them?

It’s no wonder farmers turn to pesticides to eradicate those flying and crawling garden pests. But half the fun of raising your fruits and vegetables yourself is to enjoy your own completely organic, toxin-free foods. So what’s an enterprising gardener to do? The solution: Ditch the pesticides and order up a big batch of ladybugs.

The ladybug is a natural, cost-effective eliminator of common garden pests. They especially love aphids, but will consume other bugs, worms and mites. They may come in a cute package, but they are a generalist predator and will keep your unwanted bug population under control.

You can pick up your ladybugs at some garden centers or you can simply order them online from Amazon (yes, they really have everything at Amazon, including boxes of 1500 live ladybugs, costing under $20).

Once your ladybugs arrive, wait until evening. Watering your plants before releasing them is a good idea, as the ladybugs may feel dehydrated from being in captivity. Doing this at night gives your ladybugs the best chance to remain in your garden as they acclimate themselves quietly overnight.

Will your ladybugs fly away? Yes, many will. However, the ones that stay will almost immediately start laying eggs, keeping your ladybug population flourishing. If you happen to notice a small black and red insect that looks like a spiny little alligator, that’s a ladybug larva. They may start off homely, but they hatch ready to eat your unwanted bugs.

Put those ladybugs to work and enjoy the harvest of your own organic garden.


Mortgage Trends 2013

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Where will mortgage rates head this year? Will the housing market pick up steam? Will the economy strengthen? We’ve gotten through January (and avoided the fiscal cliff), and while there’s still talk about debt ceilings and minting trillion dollar coins, I DO think it’s safe to make these predictions for 2013.

Prediction #1: Refinancings Will Remain Strong Mortgage rates should stay extraordinarily low unless the economy becomes much stronger than anticipated. Even borrowers who refinanced just a couple of years ago will be tempted by interest rates in the low-to-mid 3% range. During 2012, 80% of my loans were refinancing. I expect this trend to continue this year.

Prediction #2: Shorter Term Loans Will Continue to be Popular Rock-bottom rates take the sting out of refinancing to a shorter term. Monthly payments on a 30-year loan at 5% may be almost the same as the payments on a 20-year or 15-year loan at rates in the 3% range. Many of my clients are selecting shorter term mortgages that will be paid off before college tuitions hit or retirement arrives.

Prediction #3: Paperwork Will Continue to Increase Lenders are scrutinizing data and asking for more and more documentation. They are requesting letters from borrowers explaining every recent credit inquiry in their records, or explanations for non-paycheck deposits made to bank accounts. Instead of one year of tax returns, it is not unusual for a lender to request two years or more.

Prediction #4: Processing Times Will Stretch Appraisers are swamped and lenders are requesting more documentation than ever. The result is that loan underwriting and processing can take longer than anticipated. Delays vary from lender to lender, so I pick my lending partners carefully and work hard to guide applications along as quickly as possible.

Note: regarding the last two predictions, this is why working with a company like Westchester Mortgage can really help. At Westchester, one person handles your mortgage from beginning to end. You work directly with a licensed Massachusetts loan originator with years of experience. We handle all the paperwork in-house so that you don’t have to worry about it.

Read more about the Westchester Mortgage difference here