Real Estate Information Archive

Blog

Displaying blog entries 1-10 of 32

Mortgage Rates Drop Below 4 Percent

by Tim Hart

The interest rate on a 30 year fixed mortgage loan dropped below 4% for the first time since June of 2013. The rate hit 3.97% this last week and now has become a more opportune time to consider purchasing real estate. The drop has been a much larger drop than other adjustments taken this year.

According to CNN real estate, the drop in rates have come because investors have been buying US treasury bonds in droves over the last week. In general, mortgage rates usually move in sync with the 10 year bond note, so when the yield fell to 1.86%, it seemed natural that fixed-mortgage rates would drop as well. Investors have moved to purchasing bonds because of the economic unrest in Europe. Rates have actually lowered because of investors actions, where most experts expected mortgage rates to rise after the Fed pulled back on its economic stimulus.

If you are considering purchasing real estate in Bozeman, Belgrade, Big Sky or the greater Gallatin Valley, lower rates may have made you far more eligible to buy than you may have been even a week ago. Over 30 years, even the smallest adjustments in mortgage rates can save you a lot of money in the long run.

Source: http://money.cnn.com/2014/10/16/real_estate/mortgages-rates-drop/index.html

Bozeman Considering Building a New Convention Center

by Tim Hart

The city of Bozeman is considering building a new convention center for the area’s residents. Those living in Bozeman, or looking to purchase real estate in Bozeman, will see changes take place on North 7th Avenue, assuming the plan is approved.  The plan would be put into the already established urban renewal project in the area. Currently, the city is accessing the feasibility of the plan before giving it the true go-ahead. The city will assess nearby properties and decide whether to include them into the new district, or draw new lines. The city is looking at two parcels of land, one north of the Holiday Inn and another just south of Baxter Lane.

The addition of a city center continues a growing trend to truly make Bozeman the center of all events, services and activities in the Gallatin Valley. Please see these other articles on the other building projects currently going on like the future aquatics center, sports complex, the cannery district improvements, and airport expansion. For anyone looking into real estate, this is great news, because in general, these major hubs will continue to see more foot traffic and with more traffic comes real estate buyers and sellers.

Source: http://www.bozemandailychronicle.com/news/city/bozeman-looking-to-pave-way-for-convention-center-near-north/article_e1a04886-535c-11e4-8799-2753b7164e2a.html?utm_medium=desktop&utm_source=block_953010&utm_campaign=blox

Boise’s Tiny House Tour Aims at a Different Kind of Buyer

by Tim Hart

I read a really fun article in the paper the other day about a real estate tour in Boise, Idaho with a different flavor from most home tours. The tour, unlike most ‘Parade of Homes’ style tours, focused on tiny homes, all under 1000 square feet. Gone are the days of 10,000 square foot mansions—well—maybe not but it certainly offered an alternative!

The tour started last year with the efforts of Boise High School Orchestra students, who were hoping to fundraise money for a trip to Spain.  The students were tired of the standard fundraisers like bake sales and car washes and turned to the city’s unique architecture in an attempt to garner the necessary funds for the trip. The students organized a “Tiny Home Tour” that offered Boise residents a chance to see how  the owner’s of these homes lived on the inside—for a small fee of course. The students had hoped for around 100 tourees, but they had more than 350 people sign up for it.

This year, the school will feature 10 homes, all of which are under 1,000 square feet. The tour includes homes built as far back as 1935 and homes as small as 400 square feet. One home actually came in a make-it-yourself catalog that came in a mail order kit. Tourees can expect to see some strange advantages to these tiny homes, including ornate, large yards even with small lots. Some owners have even said they can clean they entire house in 20 minutes. Not bad!

I would love to see a tour like this for Bozeman Real Estate. The houses don’t necessarily have to be tiny, but I love seeing how unique some of these older, smaller properties can be.

Source: http://www.oregonlive.com/pacific-northwest-news/index.ssf/2014/10/tiny_homes_featured_in_boise_h.html

Tim's Know Your Homes 101 - Victorian

by Tim Hart

Victorian architecture is unique in its presence and design. Victorian homes are almost always asymetrical, multi story buildings. Victorian homes are the essence of beauty over function. The roofs are always very steep and the home is decorated with all the bells and whistles including gables, bay windows and overhangs. Victorian homes are stately, with complex designs and ornate trim. On the interior of a Victorian home, expect to find intricate ceilings, chandeliers and mirrors, all harkening to the renaissance and (obviously) Victorian eras. If you are trying to uncover whether a house may be Victorian or not, dead giveaways include the castle-like tower or its long, wrap around porch. Purchasing a Victorian home can be expensive, but local and national progams exist to help subsidize attempts to purchase and restore such homes.

Wealthy Buyers Paying Lower Mortgage Rates

by Tim Hart

Wealthy homebuyers in the US are receiving cheaper loans in higher numbers than other homebuyers also applying for mortgages. These deep pocketed buyers are paying lower average rates on high dollar value loans known as jumbo mortgages. The Mortgage Bankers Association reported that the average rate of jumbo loans for houses above $417,000 or $625,000 in high priced areas averages around 4.24% interest. However, a normal buyer, paying an standard 30 year fixed mortgage can expect to pay interest rates of 4.36 percent.

Now, lenders are accepting smaller down payments and even waiving mortgage insurance. Down payments on the big loans can be as small as 10% of the value, compared to the standard 20 percent. Banks have even begun lowering the credit standards that they use to underwrite such loans. Before, a jumbo borrower would be expected to maintain at least a 700 credit score to even be eligible. Now, lenders have given out loans to people with scores as low as 650.

Why though? Well in general, banks are willing to give these friendly loans, not for the profit they make themselves, but oftentimes on the capital the can use with other clients. Banks take that capital to use in brokerage accounts or retirement funds, where such capital can exponentially increase profit margins. Then, they can turn to prospective clients and show them the investment potential of that bank. Keeping those big loans on the books allows them to invest and lend more, adding to their clientele and prestige.

Now may be the perfect time for big buyers to do just that—buy big. Mortgage rates are low, the market is stabilizing, and as banks continue to make jumbo loans more appealing, wealthy buyers can take full advantage.

 

Source: http://money.cnn.com/2014/09/21/real_estate/jumbo-mortgages-getting-cheaper/index.html

New Subdivision Coming for Bozeman Real Estate Market

by Tim Hart

Construction workers are updating and extending both Ferguson Avenue and Cattail Street to make room for a new subdivision, the Four Points. Crews started work on both roads on Wednesday. Once finished, Ferguson will be the only road between 19th Avenue and Love Lane that will directly connect Baxter and Huffine Lane. The west side of Bozeman has become very popular due to the decent prices of homes in that area, coupled with its solid infrastructure and transportation. The Four points subdivision will be adding several muli-family units. The already existing Sundance apartments will be adding 195 new residences. Bozemanites should see improved access and better traffic distribution with the improvement to the two roads. In terms of real estate, Bozemanites should expect to see a lot of new homes and apartments, with many looking for new occupants.

Source: http://www.kbzk.com/news/new-development-will-bring-road-changes-to-west-side-of-bozeman/

Mortgage Rates Hit Lowest for 2014

by Tim Hart

After mortgage rates dropped in the U.S. for the second week in a row, borrowing costs hit their lowest rate yet for 2014. This week, the average rate shifted from 4.12% to 4.1% for a 30 year fixed mortgage. Although the percentage shift may be small, when added up over 30 years, even the smallest changes can greatly impact the cost of home ownership. A 30 year rate has not been this low since the end of October last year. 15 year mortgages also saw price reductions, slipping from 3.24% to 3.23% this month. The 30 year rate has been consistently declining since it had hit a two year high of 4.58% last August. Experts foresee the lower rates supporting and fostering home demand. July trends support these expert’s claims, as previously owned homes sold at an annualized rate of 5.15 million this July, up 2.4% from June. The longer the rates stay low, the more activity can be expected in the future of the US housing market.

Source: http://realestate.msn.com/blogs/post--mortgage-rates-hit-new-2014-low

East Wilson School May Become Residential Area

by Tim Hart

It looks like Wilson School may see some new life as a residential area. Bridger Builders presented a case to the city to turn the area into 18 single household units. Looks like there will be a parking garage as well for new residents. I will be interested to see whether the city decides to move forward with these plans. The meeting is at 6pm on Monday the 25th.

Source: http://www.kbzk.com/news/future-plans-for-east-willson-school-to-be-presented-to-city/

Updates Coming for North 7th Avenue

by Tim Hart

City officials met this past week with professionals from California in the hopes of updating and renovating North 7th Avenue.  The California company, the Mayor’s Institute on City Design, helps prepare mayors to become the chief designers of urban areas, and they will be begin by focusing on the 7th Avenue area that stretches from Main to I-90.  The area could see zoning changes as well as aesthetic updates. For property owners in the area, the new focus on 7th and its neighboring streets could really improve home values in the future. Now may also be the time to grab up any open real estate in the area, as improvements could lead to higher prices later on.

 

http://www.kbzk.com/news/a-new-vision-in-the-works-for-bozeman-s-north-7th-avenue-corridor/

New FICO Credit System Changing

by Tim Hart

The credit scoring system may be changing for the better, at least for consumers with a shakier credit history. FICO has introduced their new credit system that is aiming to be more loan friendly towards clients with past, but paid-off debts as well as those with medical debt. The new FICO scoring system will take settled bills into consideration when adjusting someone’s credit score. If someone had owed money in their past, with the old system, their credit could be retroactively affected for seven years. Now, old, but paid off bills should not affect their credit score as much as before.

            The new FICO system will also remove the negative effects of having unpaid medical bills. Currently, 64.3 milion Americans’ credit scores are affected by these unpaid medical bills. By removing the negative impact of medical debt, some Americans may see their credit scores raise by 25 points. Considering that FICO scores are used to determin loan decisions around 90 percent of the time, many more people may find themselves eligible loan. Even more people will see their own rates lower, especially if they had been receiving less than friendly rates from banks. These new rates could greatly increase the number of Americans receiving loans and buying cars and houses.

Displaying blog entries 1-10 of 32

406-570-5730 | Contact Tim Here | Bozeman Brokers