Sunrise Homes & Renovations, Inc.

The Five Most Common Overlooked Expenses When Selling a House

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The Five Most Common Overlooked Expenses When Selling a HouseMost homeowners are so enthusiastic about putting their home on the market and getting the price they’re hoping for that the expenses involved in selling a home are forgotten. However, it’s often said that one has to spend money to make money, and selling a home is no exception! If you’re wondering what kinds of overlooked expenses will cut into your home sale, here are some costs to consider.

Minor Renovations

There are always a few things to fix-up when it comes time to sell your home, but by establishing what will best increase your home’s value, you can make it a good investment. Instead of going it blind, create a renovation budget so any cost you incur will pay for itself.

Staging Your Home

It’s possible you may be able to get away with minimal costs when it comes to home staging, but adding a few small details can improve the overall impression of your home. Instead of spending an abundance on dressing up your home, put your time into cleaning and de-cluttering for ample effect.

Closing Costs

It goes without saying that closing costs can add up to a lot of money at the end of the day, but many people forget they’re part of the transaction. Closing costs can include anything from transfer tax to title insurance to escrow fees so it may be worth talking to your agent to see if they can give you a deal.

Real Estate Commission

It’s easy to forget, but using a real estate agent to sell your home will require you to pay a portion of your home’s sale to them. While you may be able to negotiate this percentage with your agent, it’s worth realizing that an agent will help you garner a higher price and will do a lot of the leg work for you.

The Moving Van

It might be too soon to think about, but if you have a lot of stuff and don’t want to take on the task yourself, you’ll need to hire a moving company to help you relocate. Instead of leaving this to the last minute, contact a few popular movers to get pricing, and don’t wait until the last minute to schedule your move. If you’re desperate, you’re likely to pay more.

Selling a home can be a financial boon, but there are many expenses that can come along with it. If you’re currently preparing to put your home on the market, contact your local real estate professional for more information.

Vacation Home or First Mortgage Payoff?

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Vacation Home or First Mortgage Payoff?Imagine having some extra cash on hand, enough to make a significant financial decision that could potentially shape your future. You’ve worked hard to build equity in your home, and now you find yourself at a crossroads. Should you invest in a vacation home or use the money to pay off your first mortgage?

Vacation Home-Pros

A Place to Escape: Owning a vacation home provides you with a tranquil getaway, a place to unwind and recharge. It offers the potential for making lasting memories with family and friends.

Rental Income: If you decide not to use the vacation home year-round, you can rent it out during the times you’re not there. This rental income can help offset the property’s expenses and mortgage.

Potential Appreciation: Depending on the location and market conditions, vacation homes can appreciate in value over time, potentially leading to a profitable investment in the long run.

Vacation Home-Cons

Added Expenses: Owning a second property means added expenses beyond the initial purchase price, such as property taxes, insurance, maintenance, and potential association fees.

Time Commitment: Managing a vacation rental or maintaining a vacation home requires time and effort, especially if you don’t live nearby.

Market Volatility: The real estate market can be unpredictable, and the value of your vacation home may fluctuate, potentially resulting in a financial loss if you decide to sell.

First Mortgage Payoff- Pros

Financial Security: Paying off your first mortgage eliminates a significant debt, providing you with increased financial security and peace of mind.

Interest Savings: By paying off your mortgage early, you save money on interest payments over the life of the loan, which could amount to substantial savings.

Improved Credit: Paying off a mortgage can positively impact your credit score, as it demonstrates responsible financial management.

First Mortgage Payoff- Cons

Opportunity Cost: Using your funds to pay off the mortgage means potentially missing out on the potential returns from other investments or opportunities.

Liquidity: Once you pay off your mortgage, the money becomes tied up in your home equity, making it less accessible for other needs or emergencies.

Potential Tax Implications: Depending on your location and individual circumstances, there may be tax implications associated with paying off your mortgage early.

Considerations and Decision-Making Process

Making the right choice between a vacation home and paying off your first mortgage requires careful consideration of your financial goals, risk tolerance, and lifestyle preferences.

Choosing between investing in a vacation home or paying off your first mortgage is not a decision to be taken lightly. Both options have their merits, and the best choice for you depends on your individual circumstances and priorities. Take the time to carefully weigh the pros and cons of each option, and if needed, consult with a financial advisor who can provide personalized guidance based on your unique situation. Remember that whichever path you choose, responsible financial planning and thoughtful consideration will lead you to a more secure and rewarding future.

Vacation Home or First Mortgage Payoff?

by

Vacation Home or First Mortgage Payoff?Imagine having some extra cash on hand, enough to make a significant financial decision that could potentially shape your future. You’ve worked hard to build equity in your home, and now you find yourself at a crossroads. Should you invest in a vacation home or use the money to pay off your first mortgage?

Vacation Home-Pros

A Place to Escape: Owning a vacation home provides you with a tranquil getaway, a place to unwind and recharge. It offers the potential for making lasting memories with family and friends.

Rental Income: If you decide not to use the vacation home year-round, you can rent it out during the times you’re not there. This rental income can help offset the property’s expenses and mortgage.

Potential Appreciation: Depending on the location and market conditions, vacation homes can appreciate in value over time, potentially leading to a profitable investment in the long run.

Vacation Home-Cons

Added Expenses: Owning a second property means added expenses beyond the initial purchase price, such as property taxes, insurance, maintenance, and potential association fees.

Time Commitment: Managing a vacation rental or maintaining a vacation home requires time and effort, especially if you don’t live nearby.

Market Volatility: The real estate market can be unpredictable, and the value of your vacation home may fluctuate, potentially resulting in a financial loss if you decide to sell.

First Mortgage Payoff- Pros

Financial Security: Paying off your first mortgage eliminates a significant debt, providing you with increased financial security and peace of mind.

Interest Savings: By paying off your mortgage early, you save money on interest payments over the life of the loan, which could amount to substantial savings.

Improved Credit: Paying off a mortgage can positively impact your credit score, as it demonstrates responsible financial management.

First Mortgage Payoff- Cons

Opportunity Cost: Using your funds to pay off the mortgage means potentially missing out on the potential returns from other investments or opportunities.

Liquidity: Once you pay off your mortgage, the money becomes tied up in your home equity, making it less accessible for other needs or emergencies.

Potential Tax Implications: Depending on your location and individual circumstances, there may be tax implications associated with paying off your mortgage early.

Considerations and Decision-Making Process

Making the right choice between a vacation home and paying off your first mortgage requires careful consideration of your financial goals, risk tolerance, and lifestyle preferences.

Choosing between investing in a vacation home or paying off your first mortgage is not a decision to be taken lightly. Both options have their merits, and the best choice for you depends on your individual circumstances and priorities. Take the time to carefully weigh the pros and cons of each option, and if needed, consult with a financial advisor who can provide personalized guidance based on your unique situation. Remember that whichever path you choose, responsible financial planning and thoughtful consideration will lead you to a more secure and rewarding future.

What’s Ahead For Mortgage Rates This Week – September 5, 2023

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What's Ahead For Mortgage Rates This Week - September 5, 2023

Last week’s economic reporting included readings on inflation, consumer sentiment, and weekly readings on mortgage rates and jobless claims. 

 

Inflation Rates Are Similar in August

Month-to-month, the inflation rate holds relatively steady at 3.18 percent. This is slightly up when compared to 2.97 percent last month; however, it is significantly lower than the rate of 8.52 percent last year. When compared to the long-term average, inflation is trending in the right direction, as the long-term average is 3.2 percent.

Inflation rose at a pace of 0.20 percent in July and met analysts’ expectations. There was no change in the pace of month-to-month inflation from June’s reading of 0.20 percent growth. The Consumer Price Index also reported that year-over-year inflation reached 9.10 percent, which was the highest reading since reaching a 40-year high in mid-2022.

 

While we still wait for core inflation, experts predict it to come in at around 3.38 percent. Core inflation, also known as the CPI, excludes food and fuel prices, which are historically volatile. If core inflation comes in at 3.38 percent, this would be significantly lower than the July reading of 4.7 percent.

 

Right now, it is unclear whether the Federal Reserve will raise interest rates, as they are still waiting for other metrics, including the core inflation above.

 

Mortgage Rates Rise, Job Market Cools

The 30-year fixed, the preferred metric for mortgage rates, remains at around 7.53 percent. These are the highest mortgage rates of the last 20 years. Rates continue to rise when compared to July’s mortgage rates, which were just under 7 percent. This continues to put pressure on those interested in purchasing homes. The 15-year fixed mortgage rate is about 6.81 percent. This is slightly higher than the 15-year fixed for August, which was 6.55 percent on average.

 

When comparing these mortgage rates to last week, the 30-year fixed has gone up. It was 7.23 percent, on average, last week, and has jumped to 7.53 percent this week. The average rate for a 15-year fixed is 6.81 percent this week, which is slightly higher than last week, where the average 15-year fixed was 6.55 percent.

 

It appears that the increase in interest rates is finally having an impact on the job market. Unemployment rose to 3.8 percent, and the economy added 187,000 jobs in August. While these are still historically solid numbers, it is clear that the job market is cooling, when compared to July.


University of Michigan Consumer Sentiment Survey 

The University of Michigan released its monthly consumer sentiment report, and consumer sentiment has dropped slightly when compared to last month. The index reading was 72.0 in July, but it dropped to 69.5 in August. The overall sentiment regarding the economy also dropped from 76.6 in July to 75.7 in August. 

 

These numbers reflect that consumers are still a bit wary of economic conditions. While inflation continues to come down, many consumers are likely still nervous about the increase in interest rates and the cooling job market. While sentiment remains positive, there is some cooling in the economy.

 

What’s Ahead

During the next week, mortgage rates will get an update, and the Federal Reserve will receive some new metrics regarding the economy. These numbers will be very important for the Fed, as it decides whether it will raise interest rates again in September in an attempt to cool inflation further.

What’s Ahead For Mortgage Rates This Week – September 5, 2023

by

What's Ahead For Mortgage Rates This Week - September 5, 2023

Last week’s economic reporting included readings on inflation, consumer sentiment, and weekly readings on mortgage rates and jobless claims. 

 

Inflation Rates Are Similar in August

Month-to-month, the inflation rate holds relatively steady at 3.18 percent. This is slightly up when compared to 2.97 percent last month; however, it is significantly lower than the rate of 8.52 percent last year. When compared to the long-term average, inflation is trending in the right direction, as the long-term average is 3.2 percent.

Inflation rose at a pace of 0.20 percent in July and met analysts’ expectations. There was no change in the pace of month-to-month inflation from June’s reading of 0.20 percent growth. The Consumer Price Index also reported that year-over-year inflation reached 9.10 percent, which was the highest reading since reaching a 40-year high in mid-2022.

 

While we still wait for core inflation, experts predict it to come in at around 3.38 percent. Core inflation, also known as the CPI, excludes food and fuel prices, which are historically volatile. If core inflation comes in at 3.38 percent, this would be significantly lower than the July reading of 4.7 percent.

 

Right now, it is unclear whether the Federal Reserve will raise interest rates, as they are still waiting for other metrics, including the core inflation above.

 

Mortgage Rates Rise, Job Market Cools

The 30-year fixed, the preferred metric for mortgage rates, remains at around 7.53 percent. These are the highest mortgage rates of the last 20 years. Rates continue to rise when compared to July’s mortgage rates, which were just under 7 percent. This continues to put pressure on those interested in purchasing homes. The 15-year fixed mortgage rate is about 6.81 percent. This is slightly higher than the 15-year fixed for August, which was 6.55 percent on average.

 

When comparing these mortgage rates to last week, the 30-year fixed has gone up. It was 7.23 percent, on average, last week, and has jumped to 7.53 percent this week. The average rate for a 15-year fixed is 6.81 percent this week, which is slightly higher than last week, where the average 15-year fixed was 6.55 percent.

 

It appears that the increase in interest rates is finally having an impact on the job market. Unemployment rose to 3.8 percent, and the economy added 187,000 jobs in August. While these are still historically solid numbers, it is clear that the job market is cooling, when compared to July.


University of Michigan Consumer Sentiment Survey 

The University of Michigan released its monthly consumer sentiment report, and consumer sentiment has dropped slightly when compared to last month. The index reading was 72.0 in July, but it dropped to 69.5 in August. The overall sentiment regarding the economy also dropped from 76.6 in July to 75.7 in August. 

 

These numbers reflect that consumers are still a bit wary of economic conditions. While inflation continues to come down, many consumers are likely still nervous about the increase in interest rates and the cooling job market. While sentiment remains positive, there is some cooling in the economy.

 

What’s Ahead

During the next week, mortgage rates will get an update, and the Federal Reserve will receive some new metrics regarding the economy. These numbers will be very important for the Fed, as it decides whether it will raise interest rates again in September in an attempt to cool inflation further.

What’s Ahead For Mortgage Rates This Week – September 5, 2023

by

What's Ahead For Mortgage Rates This Week - September 5, 2023

Last week’s economic reporting included readings on inflation, consumer sentiment, and weekly readings on mortgage rates and jobless claims. 

 

Inflation Rates Are Similar in August

Month-to-month, the inflation rate holds relatively steady at 3.18 percent. This is slightly up when compared to 2.97 percent last month; however, it is significantly lower than the rate of 8.52 percent last year. When compared to the long-term average, inflation is trending in the right direction, as the long-term average is 3.2 percent.

Inflation rose at a pace of 0.20 percent in July and met analysts’ expectations. There was no change in the pace of month-to-month inflation from June’s reading of 0.20 percent growth. The Consumer Price Index also reported that year-over-year inflation reached 9.10 percent, which was the highest reading since reaching a 40-year high in mid-2022.

 

While we still wait for core inflation, experts predict it to come in at around 3.38 percent. Core inflation, also known as the CPI, excludes food and fuel prices, which are historically volatile. If core inflation comes in at 3.38 percent, this would be significantly lower than the July reading of 4.7 percent.

 

Right now, it is unclear whether the Federal Reserve will raise interest rates, as they are still waiting for other metrics, including the core inflation above.

 

Mortgage Rates Rise, Job Market Cools

The 30-year fixed, the preferred metric for mortgage rates, remains at around 7.53 percent. These are the highest mortgage rates of the last 20 years. Rates continue to rise when compared to July’s mortgage rates, which were just under 7 percent. This continues to put pressure on those interested in purchasing homes. The 15-year fixed mortgage rate is about 6.81 percent. This is slightly higher than the 15-year fixed for August, which was 6.55 percent on average.

 

When comparing these mortgage rates to last week, the 30-year fixed has gone up. It was 7.23 percent, on average, last week, and has jumped to 7.53 percent this week. The average rate for a 15-year fixed is 6.81 percent this week, which is slightly higher than last week, where the average 15-year fixed was 6.55 percent.

 

It appears that the increase in interest rates is finally having an impact on the job market. Unemployment rose to 3.8 percent, and the economy added 187,000 jobs in August. While these are still historically solid numbers, it is clear that the job market is cooling, when compared to July.


University of Michigan Consumer Sentiment Survey 

The University of Michigan released its monthly consumer sentiment report, and consumer sentiment has dropped slightly when compared to last month. The index reading was 72.0 in July, but it dropped to 69.5 in August. The overall sentiment regarding the economy also dropped from 76.6 in July to 75.7 in August. 

 

These numbers reflect that consumers are still a bit wary of economic conditions. While inflation continues to come down, many consumers are likely still nervous about the increase in interest rates and the cooling job market. While sentiment remains positive, there is some cooling in the economy.

 

What’s Ahead

During the next week, mortgage rates will get an update, and the Federal Reserve will receive some new metrics regarding the economy. These numbers will be very important for the Fed, as it decides whether it will raise interest rates again in September in an attempt to cool inflation further.