Connect

Find us on...

Dashboard

Log in using...

Seaport Real Estate Group Blog

 

Written by Robert H. Ruth

In last week’s post, I looked at the impact of waiting to buy a house when rates are rising, which is the situation we are experiencing at this point in time. As I explained, thus far in 2018, mortgage rates have risen about .75% to around 4.625% from the prevailing rate in December, which was 3.875%. I also looked at a scenario for first time buyers named John and Mary, who are attempting to purchase a $300,000 home with 10% down. Our analysis was predicated on the following assumptions …

  • John and Mary earn a gross monthly income of $7325. The house they want to buy will require escrows of $ 400 monthly for taxes and homeowners insurance and a 90LTV loan requires PMI at $ 112 monthly.
  • John and Mary’s monthly
743 Views, 0 Comments

Written by Robert H. Ruth

There are 2 new realities in the Real Estate marketplace for this Spring. First, mortgage rates are going up, and it does not appear likely that this will change any time soon. Second, due to the shortage of housing inventory in the US, we are firmly in the grip of a seller’s market with prices rising at a rapid pace.

If you have been watching the news over the last few months you’ve probably noticed that mortgage interest rates have started going up. Thus far, the increase has not been dramatic: at the end of 2017 the average rate on a 30 Year Fixed Rate Mortgage was 3.875%, and today, March 21st, the beginning of Spring, the average 30 Year Fixed Rate is 4.625%. That is a rate increase or .75% in 3 months. This might

416 Views, 1 Comment

Written by Robert H. Ruth

People attempting to buy a home are sometimes surprised by the true monthly cost of having a mortgage compared to what they are accustomed to paying each month for rent. So in an effort to help I have done the following exercise with some comparisons for you. This is intended to be a brief but informative little analysis so you can see how owning a home, and paying a mortgage, involves a little bit more than just comparing the payments.

Whenever I first sit down to discuss financing with buyers, I ask them how much their current rent is and what amount they would be comfortable paying each month on a mortgage payment. Let’s assume that a borrower is comfortable paying the same amount as they currently do for rent. I had

1,183 Views, 0 Comments

Written by Robert H. Ruth

This is a question I deal with on a regular basis working with homebuyers, so I thought you might benefit from an explanation of the key difference between these 2 products. 

When I first speak with a new client who is looking to purchase a home, they frequently have been referred to me by a Realtor or a builder. The Realtor doesn’t want to spend time with people who are not able to purchase, or who do not know their price range for a purchase. So my job is to help the buyers understand the home buying process, and then determine the correct price range they should be shopping in and how much mortgage they can afford given their current income and monthly debt load. 

  • I do this by asking them careful questions that
326 Views, 0 Comments

Written by Robert H. Ruth

If you are about to start looking for a home this Spring, you may come upon these terms. Beyond a simple definition for each of these, it is very important to know the different factors that define each, and how the different markets can impact a buyer.  This article will examine all these areas, and what may occur if we continue to see interest rates increase.

Seller’s Market Defined

A seller’s market exists when there are many more buyers seeking to purchase than there are homes available on the market. Stated differently, there are less houses available to satisfy a larger pool of buyers in the marketplace. This lack of listing inventory leads to rapid (at times excessive) price appreciation, very quick closings,

372 Views, 0 Comments

 

Written by Robert H. Ruth

Over the past 2 weeks I have commented on the increased volatility in financial markets and the impact this volatility has had on mortgage rates. This volatility has happened before, many times. The situation now is to try and figure out whether the mortgage rate market is at a tipping point or if this is more of a transition.

The reality is that it is very hard to predict what will happen tomorrow today. So I’m not going to make any predictions about interest rates. I am going give you some targeted advice about how to react to these changes so you can make sound financing decisions

Volatility is here to stay (for now)

Due to the fact that the Federal Reserve is reversing their policies of quantitative easing

365 Views, 0 Comments

Written by Robert H. Ruth

 Over the past few weeks, we have seen increased volatility in the stock market, and this has taken many people by surprise. The market has begun to behave in a less predictable manner and this has caught people off guard.  They are not accustomed to, or do not remember that markets ebb and flow and occasional volatility is all a part of investing.   

People also may have conveniently forgotten that the low interest rates we have seen since 2009 are not normal.  Those rates were engineered by the Federal Reserve to keep our economy functioning during the most severe recession since 1929.  Without the intervention of the Fed, our economy would not have recovered from the recession as quickly as it has, nor would there be

704 Views, 0 Comments

Written by Robert H. Ruth

Over the last 2 weeks we have been witnessing a significant change in the financial landscape in the United States. During this time we have seen the stock market come down from their recently achieved historic highs.  As the price of stocks has decreased, the value of investors’ portfolios, and 401K accounts, have been impacted.  

  • Whether this is a short term or a long term phenomenon remains to be seen.
  • The reality is that the rapid run up in market valuations since the election in 2016 occurred much faster than is normal, and therefore the likelihood of a correction had been anticipated for some time. 
  • What had not been anticipated was the swiftness with which the selloff has occurred. 
  • When this happens,
334 Views, 0 Comments

Written by Robert H. Ruth

Even though it is only the 3rd week of January, now is the perfect time to get positioned to buy a home. Here in New England the Spring market will heat up right after the Super Bowl with many property listings coming on. Make sure you are ready to take advantage of the market opportunities and do these 5 things so you can jump on a property you like and make the best offer.  Here are the 5 most important things you can do to prepare for house buying season:

Get your documentation organized

This includes the last 2 years of W2 forms, your 2 most recent paystubs, your most recent two months bank statements, and your most recent quarterly 401K or retirement account statement. If you are self- employed or earn

609 Views, 1 Comment

Written by Robert H. Ruth

The answer to that question is not completely known as of yet, but there are several areas of the final legislation that will affect people who own real estate.  This post will attempt to look at several areas in a bit more detail.  

  • As with any bill before Congress, there were groups who tried to gain an advantage or defend the position they believed would be affected by the proposed legislation, and this bill was no different.
  • Since I am not an accountant, I will not give any advice in that area in this posting. If you have specific tax questions you should consult a tax professional. 

The biggest changes in the law that will be felt by homeowners have to do with mortgage interest deductibility and

445 Views, 0 Comments