Hopefully this finds you after having a safe and joyous holiday season. In case you’re looking for some reading on Wisconsin Rapids real estate, here are some gems from the first 6 months. Happy reading!
Read. Enjoy. Educate yourself.
Click here if you have a Wisconsin Rapids real estate question.
Thank you to everyone, and I look forward to helping you reach your goal of buying, selling or to just learn about real estate. For your convenience you can automatically receive updates through email by clicking here. (It’s easy, fast and safe…and remember I respect your privacy)
The Federal Reserve continues to try and boost the national housing crisis. Mortgage rates on Thursday fell to a 37 year low. Average rates on a 30-year fixed rate mortgage rate declined to 5.19% down from the previous low of 5.47%.
The government’s aim in these debt purchase programs is to bolster the mortgage market, free up lenders to make new and lower-rate loans and stimulate the worst housing market since the Great Depression.
Mortgage rates should stay low and we will stay below 6 percent throughout much if 2009 as the Fed continues to pour money into mortgage-backed debt with the goal of keeping mortgage rates low.
In the previous two months 30-year fixed rate mortgage rates have fallen more than 1% and it appears like rates will “continue to remain low for the majority of 2009 as well” said HSH vice president Keith Gumbinger.
My intial thoughts:
- Now is an excellent time to buy. Wisconsin Rapids home prices are very reasonable and their are many different homes to choose from (no matter your price range).
- This is also the time to refinance.
- If you think you’ll be selling your current residence in the next couple of years, you should seriously consider selling now.
Why sell now?
At some point interest rates will rise again. Lets say mortgage rates eventually climb back to 6.25%. The payments on a $150,000 mortgage would be:
- 5.19% = $822.74 per month
- 6.25% = $923.58 per month
As mortgage rates climb back to “normal” your mortgage payment will have gone up over $100 per month for the same loan.
What that means is you may not be able to afford a $150,000 mortgage at the higher interest rate. In order to keep your mortgage payments the same, in two years you’ll be purchasing a home worth less than your current home.
At an interest rate of 6.25% a $133,500 mortgage will equal your payment on a $150,000 mortgage at 5.19%.
In essence you’re losing over $16,000 in buying power when mortgage rates go back up. This will cause less homes to be on the market as well as less people who are willing to buy, especially if they take advantage of today’s low interest rates.
Read this for more information on how dropping interest rates will affect your buying power.
Click here to see a graph detailing interest rates since 1971.
Update: interest rates did hit 4.5% last week, for all of an hour…
Sources: Home Loan Rate Flat After Fed Cut and Headed Lower and Yahoo! News
As mortgage rates continue to fall, the Department of Veteran Affairs is also lowering interest rates for veterans who qualify.
The Wisconsin Department of Veterans Affairs is currently offering a 30 year fixed mortgage at a rate of 5.875% to any qualifying Wisconsin veteran. Only a 5% down payment is needed and their is no private mortgage insurance (PMI) requirement. Click here to see what your payments would be.
There are no income limits for this program and the maximum mortgage amount is $385,000.
To obtain the required Certificate of Eligibility to participate in the home loan program, veterans should contact their local County Veterans Service Officer.
For further information about WEVA loan programs click here to visit their web site or call (800) 947-8387.
Selling your Wisconsin Rapids home during the holiday season brings with it many challenges. Not the least of which is how much holiday decorating should you do when your home is for sale?
It’s important to be as tasteful as possible with your decorations. Decorating your home for the holidays is very similar to staging your home when it initially went on the market.
Following is a list of simple, easy to implement ideas that will not only allow you to enjoy the holiday’s, but also to continue to market your home:
- Add tasteful, generic decorations. Keep your decorations generic, simple and elegant. Think minimalist-”one wreath, one tree, one dining room centerpiece.” Also, be wary of using religious symbols.
- Trade nonseasonal for seasonal decorations. Ballinger calls for trading one seasonal decoration for one nonseasonal decoration.
- Don’t imitate Scrooge. Buyers are expecting to see some decorations… So indulge them.
- Think green, metallic and white. Think classical and again, elegant. By staying away from the stereotypical reds and greens you’re making a positive lasting impression with buyers.
- Remember the joy of entertaining. The holiday season is a very emotional time of year for many, stage your home so it looks inviting for a holiday party.
- Be mindful of valuable gifts. Keep all expensive gifts and heirlooms out of view. Although, you’d like to trust everyone, it’s not worth losing your great grandmothers china or your daughter’s new iPod.
- Keep decorations up for a limited time. Although most homeowners keep decorations up well into January or later (myself included) experts suggest keeping decorations up for two weeks prior to Christmas and two weeks after.
- Add warmth and energy. Before you leave for a showing turn your Christmas lights on and start a fire. The Christmas lights will help illuminate your homes exterior and make it safer for buyers and agents.
- Minimize smells. Think holiday aromas-baked goods and live greens. These smells are very calming…
- Play soothing music. Experts say this is when you should stray from season selections. Instead choose favorites that are appealing year round.
- Use timely marketing materials. Any marketing pictures that were obviously taken in the summer need to be swapped out. Why? It shows buyers that your home has been on the market for awhile.
- Remember winters threat. Keep your walkways and driveways free and clear of all ice and snow.
These tips will help show your home in the best possible light this holiday season.
Read the full article: Rules for Tasteful Holiday Decor
Photo Credit
Sellers, have you been listening to what buyers are asking?
- Where will I eat? I want to have enough space for my family, plus a little extra when I invite my friends and family over to show off my new digs.
- Where will I sleep? My bedroom can’t be to small, plus my kids are growing by leaps and bounds…
- Where will I store stuff? I keep stuff… I’m not planning on throwing my stuff away when I buy my new home. Show me that you have enough storage.
- Where will I play? I have friends and we like to hang out. Can I throw the ball around with my kids in the yard? My kids love to play outside, can they? Can my dog run around outside?
- How much work will I have to do on my new home? I’m busy, kinda handy…but life is hectic. Why can’t you make it easy on me and do some of the simple stuff? I want move in ready.
- Who or what will I see when I look out my windows? Who I live next to is important to me. I need to feel safe, plus I want to live in an area where people take care of their stuff.
- Will I fit? I’m busting out of my current place. That’s one reason why I’m moving. Will my wife and I, our two kids, dog, cat, fish and the rest of us fit in your house?
- Where am I located? How busy is the street I’d live on? How close to the schools are we? To my work? My wife’s? Gas may be down now, but I don’t trust it… and I’m sorry, but we don’t all fit in a Prius, and there’s no way I could afford it anyway…
Sellers–Some things you can’t control, but some you can. This buyer, with all his questions is going to wait for you to give him answers to his questions or he’s moving on… He’s not going to wait long for an answer either.
He’s in no rush, because your home is a dime a dozen…
PHONE: (715) 572-8372
My name is Adam Holberg and I’m a Realtor with First Weber of Wisconsin Rapids. This website is designed to inform and help bring conversation to a topic I love, real estate.