Archives for January 2015

Home Buyers: 3 Signs It’s Time to Enlist a Real Estate Pro By Joe Szabo, Scottsdale Real Estate Team

January 30, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The growth of online real estate listings means consumers are equipped with information very early in the home buying process. A generation ago, to get listing information and access to historical data, home buyers needed to connect with a real estate agent much sooner — sometimes even prematurely. But today’s home buyers can do a lot of the legwork themselves, conducting research online and using home search and research applications independently, in addition to attending open houses. But this access to information doesn’t mean home shoppers can entirely go it alone. Buying a home is a major transaction, and all the data in the world can’t replace a knowledgeable and experienced local real estate agent. Here are some signs that you are ready to engage with a buyer’s agent:

You think you’ve found the home of your dreams, and you don’t know what to do next.

If you’ve been looking at homes for some time, you likely have a good feel for what you get for the money. You’ve gone to some open houses and have a few homes or searches saved online. Home shopping has become a hobby. But once you find the home of your dreams, it becomes a part-time job. Independent shoppers get comfortable with the market until their dream home hits them like a ton of bricks. The house is the motivator to take things up a notch. Reaching out to an agent will take you out of the dreaming phase and move you in the direction of actually buying a home.

You’ve found a home that appears too good to be true, but you can’t figure out what the problem is.

Suppose you stumble upon a house that seems like a great deal. It’s priced accurately for the neighborhood, but has been sitting on the market for weeks, if not months. You may have reached out to the listing agent to see the home in person or asked some questions of the agent at the open house. But that agent represents the seller, so you are not sure what the story is. In this case, you don’t know what you don’t know. That uncertainty, coupled with your curiosity about the home, is the best reason to pair up with a good local agent. They may know the house, its market history or, via their network, have access to information about the home. The house may have some major structural issues. Or the agent might point out that it is on a less desirable road or in a tough school district. These are the types of things that new, uneducated buyer wouldn’t know on their own.

You’ve been hit by a major life or financial event and need hard information to make a decision.

Sometimes you get news that changes your life’s course. Your landlord is selling your building, and you have 60 days to vacate. You’ve received the job opportunity of a lifetime or a huge increase in pay. Or you’ve done some tax planning and realize you are paying so much in taxes that you need to take advantage of the benefit realized by homeownership. When you need information fast, rather than taking the time to study the market independently, it’s easier to go right to the source. In a 30-minute phone call or in-person meeting, a local agent can get you up to speed on the market, pricing, timing and what to expect. You can quickly marry this information with your personal financial situation and start to devise a plan. A generation ago, potential home buyers, curious about getting into the market, had access to little information about homes for sale. They might have checked the open house section of the Sunday paper to get started. Or they simply called a local agent and engaged them. They may not have been quite ready to pull the trigger at that point, but they needed an agent to get them in the game, many times well before they were ready to purchase. While that agent is still an integral part of the process, today’s buyers can hold off a bit longer — as long as they know when the time is right to enlist help. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Increase Your Home’s Value in 5 Easy Steps By Joe Szabo, Scottsdale Real Estate Team

January 27, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Thinking about taking on some small home improvement projects to boost the value of your home? Here are some smart upgrades and fixes that won’t cost a lot, but could help you clinch a deal if you’re trying to sell.

Consider curb appeal

First impressions are everything, and potential buyers often decide whether they’re interested in a home within seconds. As they’re walking toward your house, they’re asking themselves, “Could I live here?” Keep the walkway swept and tidy, and spruce up your entryway landscaping with well-placed shrubs, new plants and trimmed hedges. And don’t underestimate the power of a new front door, fence or mailbox.

Buff up the bath

Sure, bathroom improvements can get pricey, but small cosmetic changes can reap big rewards. Consider replacing dated frosted glass with clear glass, updating fixtures or putting up new wallpaper. Other projects that are worth the effort include re-grouting the tile, replacing an old vanity with a new one and buying a new toilet seat.

Make your kitchen cook

The kitchen is the heart of the home. It’s where the family congregates, guests gather and the kids do their homework. To appeal to potential buyers, this space has to look clean, inviting and warm. Beyond making sure your appliances work well and look shiny, consider updating cabinet doors and drawers, light fixtures and faucets. And a basic coat of neutral paint can go a long way toward impressing buyers.

Let there be light

Is there an old chandelier that needs to come down? Dated lamps that age the room? Take care of that! Also, increase the wattage in dark rooms that lack natural lighting. Rooms will seem larger and more open. Visual space — or how large a home feels — is crucial.

Reconfigure the layout

Assuming you’ve already covered the basics, such as removing clutter and personal belongings to make rooms look larger, why not take it one step further and think about reconfiguring the layout? Substituting one room’s use for another is a cheap way to transform a two-bedroom home with a den into a three-bedroom home, for example. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Home Organization: Embracing Order in the New Year By Joe Szabo, Scottsdale Real Estate Team

January 22, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team For many people, the new year represents a clean slate, and brings a renewed sense of possibility and enthusiasm. It’s a wonderful time to get your home organized in anticipation of the busy months ahead. Effective storage solutions and organization systems will enable you to enjoy your home to its fullest. Here are some tips to put you on track for an orderly and productive 2015.

Learn to let things go

The first step in any organization plan is purging. This can be the hardest part, but it is also the most rewarding. Do not keep what isn’t functional or doesn’t bring you joy. Also remember that something you let go of might bring someone else a great deal of pleasure. If you’re not sure you can part with an item, store it in a box and see if you miss it or need it. This is a great litmus test for what’s truly necessary.

Don’t let the perfect be the enemy of the good

Any organization effort is better than no organization effort. It’s best to approach a behemoth task like organizing your entire home in stages. The house provides us with natural barriers. Think of each room as its own project and it will begin to feel more manageable. And remember that it gets worse before it gets better, so don’t feel discouraged early on. Organizing is not something that happens in one day – it is a journey and a state of mind.

Think outside the box store

A trip to the Container Store can be fun, but unorthodox storage solutions make for a more interesting space. Beautiful, one-of-a-kind pieces can be highly practical and help make your home more functional. Make use of available and affordable materials when possible to stretch your home organization budget. This bookcase was made out of old wine boxes and then stained a dark walnut color.

The three Bs: bins, buckets and baskets

Oh, and jars. (But that doesn’t start with a B.) Once you’ve whittled down your belongings to favorites and must haves, you’re going to need somewhere to store them. Baskets and buckets have a wonderful visual impact in a room — filling nooks, resting against chairs, and adding texture and color. They are also highly functional for storing everything from toys and blankets to magazines and shoes. Keep an eye out for unexpected vessels, like this gigantic industrial mixing bowl that is now a great solution for avoiding entryway clutter. Using jars in the kitchen to store dry goods can make open shelving a lot more appealing. Bonus: With healthy grains and goodies in plain sight, you’ll end up using them more often.

Use your vertical space

If your home doesn’t have a huge footprint, vertical solutions are essential for staying organized. These can be implemented in a more practical manner, like stacking bins and boxes under your bed or in your closet, as well as through design decisions. Capitalizing on vertical space draws the eye to different parts of the room and creates a sense of balance, in addition to saving important real estate on the floor. This curio cabinet makes excellent use of a corner that might otherwise be neglected. A hanging light above has a nice visual impact and doesn’t take up any additional space. The best reason to get and stay organized? You’ll save yourself valuable time — which means you can focus on doing things that really matter to you. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Setting Up a Home Office That Works for You By Joe Szabo, Scottsdale Real Estate Team

January 19, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In recent years, the line between working and living in our homes has become blurred. More people want a home office, whether it’s a simple space for taking care of household matters, a spot for the inevitable papers and projects that make their way home from work, or a dedicated area for a full-time business. For a few minutes a day or 40 hours a week, working at home is always more fun in an area with loads of function — and some personalization, too. Here’s how to create a snazzy home office space that will make you look forward to clocking in.

The essentials

Some experts have said there are only two essentials for a functional home office: a comfortable chair and a door that closes. Most people, however, probably have a few more requirements. Basic elements of designing a room include smart space planning, adequate lighting and sufficient storage. When setting up your home office, also consider functionality and comfort.

Get horizontal

Start with your work surface. Stock desk units come in a variety of materials, but may be difficult to fit in with your room. Modular office furniture is more flexible and comes in many styles. Or look to repurposed furniture. With some judicious changes, you can turn flea market finds and antiques into acceptable home office elements. Don’t hesitate to make a piece your own with a simple coat of paint in your favorite color.

Take a seat

Chairs need to be functional, but an office chair isn’t your only choice. If you’ll be spending a lot of time working in the office, consider including a lounge chair or chaise. It will make a comfortable spot for reading or coffee breaks. For your desk, choose a chair with an adjustable seat and armrests to protect your spine and help reduce aches and injuries. To personalize it, add a throw pillow to coordinate with window coverings or other decorative elements in the room.

Essential details

Make a list of everything you need, from pencils and paper clips to research materials and file folders. Pick a color scheme and purchase the necessities in your favorite palette. Measure all the electronic equipment you’ll require to determine where it will fit best. And make sure you add some favorite framed photos or artwork to inspire you. To create softness and texture underfoot, layer on an area rug to anchor your space.

Light it up

Natural light is great, but you’ll need ambient and task lighting as well. Here is another opportunity to add a bit of personal style to your space via lamp shades, crystals and fixture finishes. Watch out for the possibility of glare, especially when finding a place for your computer screen. If your office space doesn’t have a door, you can establish a sense of privacy by the way you orient your work surface or by using a screen or file cabinets to mark off the area. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

3 Ways to Create a Dynamic Home Library By Joe Szabo, Scottsdale Real Estate Team

January 15, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team While e-books and the Internet are clearly here to stay, it doesn’t mean home libraries, or library-style features in rooms, are leaving any time soon. My husband and I have finally agreed to and embarked upon the first of our home renovations. Part of that is turning the “rec room” into a library and office for the both of us. We decided to go with a bold color, which you will get to see in the season finale next month. Create your own inspiring place to read and work with these three tips.

Choose a bold color for bookcases

I typically stay away from staining and wood finishes. Fortune favors the bold, and I believe a dark color can really enliven a dreary, stuffy library design, turning it from boring to brilliant in one step. I love the drama of a high-gloss lacquer, too — particularly with metallic accents added. This is a great way to update a traditional library and create someplace you will want to hang out in all the time.

Customize existing bookcases

In one instance, I used small built-in cases, removed the shelves and had a custom insert built in with a beautiful hexagon pattern. This really updated the boring old shelves. You can achieve a similar look by removing some or all of your shelving and having a cabinet maker add a little zing to what is already there. A fresh paint job will complete the update. This is a fairly economical way to give you whole library a facelift.

Create customized bookcases in any room

This is a way to utilize a spare bedroom that never gets used, or a basement that has seen better days. Create a custom bookcase with your cabinet maker and find a design that really suits you. For example, in one project I had the cabinet maker create a “running bond” pattern — similar to what you see with subway tile — to create a pleasing yet simple pattern. Another time I created a a bookcase with all square, rather than the standard rectangular, openings. In the center I created an opening that allowed us to add a vase and decorative items. Whatever pattern you choose will make the space truly your own. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Buying a Home in 2015: 3 Resolutions to Make It Happen By Joe Szabo, Scottsdale Real Estate Team

January 12, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Many home buyers enter and leave the real estate market several times before making a purchase. Priorities shift and — unlike a seller who signs an agreement and has a tangible product to sell — buyers aren’t necessarily tied to any timeframe, unless it’s self-imposed. With the start of a new year, many on-and-off home shoppers resolve to intensify their search and finally purchase a home. Whether it’s because of a better-understood tax benefit, the realization of a big bonus or simply a frustrating rental situation, many buyers re-enter the market and get serious. Here are some resolutions for buyers who want to make 2015 the year of their new home.

Enlist an ally

Many buyers spend time in the dreaming phase of home shopping — looking at listings online, researching the mortgage process, running numbers and following the local market. But serious and active buyers hook up with a strong local agent to make it happen. Agents can serve as a guiding light thanks to the wealth of market knowledge they bring to the table. A good local agent has completed dozens of transactions and understands the process and the market — not to mention the home buying process — like the back of their hand. If things go sideways, they will steer you in the right direction. Leverage their experience.

Balance feelings and data

There is so much (sometimes conflicting) real estate information available that it is easy to get overwhelmed. A home purchase is not the same as picking out a new tablet, smartphone or even a used car. Aside from the huge financial commitment of a home purchase, there are emotional and practical implications that may be less obvious. You may walk through a designer kitchen and imagine your family having dinner there, or see a particular block and suddenly feel that you belong there. No spreadsheet or equation will account for those feelings, wishes or desires. Trying to reconcile these feelings while analyzing potentially conflicting statistics, online data, blogs or forums will be a challenge. If you have a reliable local agent and have been looking for some time, you can feel confident in your market knowledge, while also trusting your instincts.

Abandon the notion of getting a deal

Everyone likes to get a great bargain. But in real estate, deals aren’t always easy to come by. Dozens of fragmented sellers — unaffected by inventory levels and with different motivations for selling — drive each market. If you are continuously on the hunt for a “deal,” this could be a red flag that you are not ready to buy. If you need to purchase a car, you likely research car prices online before heading to the dealership. You understand that the values range, and attempt to get your car as close to the lower end of the range as possible. If not, you won’t be buying a car. Will you wait another year to see where prices are? Probably not. Instead, you make a car purchase based on the best deal you can negotiate at that time. The same goes with home buying. Buyers who spend considerable time learning the market will have experiential knowledge of what they can get for their money and where. They have a realistic view of the market. Making a low-ball offer may be understandable when you first enter the market. You could be uninformed or nervous, and putting in a low offer is a way to test the waters. But if you’re continually making unrealistic offers, you need to ask yourself if you are ready to be a home buyer. Your low-ball offers may be your way of sabotaging your home buying prospects. Every buyer is different, and real estate purchases are one part financial, one part emotional and one part practical. The road to buying a home is not a straight and narrow path, like buying a car. If you truly want to buy a home in 2015, dedicate yourself to the effort, and set yourself up for success. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

December 2014 Paradise Valley Arizona real estate market update

January 12, 2015 Joe Szabo

Happy New Year! With the holidays behind us it’s time to get back in gear and start 2015 off right. Let’s take a look at how the Paradise Valley real estate market faired in December. New listings are down from November with a total of 59 new listings vs. 68 in November. This is a 13.2% decrease in new listings. New contracts were down slightly from November by 13.9% however closed sales jumped a whopping 75% from the previous month, 42 in December vs. 24 from November. The median sale dropped 13% from $1,195,000 in November to $1,039,500 in December. December closed with a tremendous spike in closed sales – let’s hope this continues through January! During these up and down activity months it is more important than ever to consult a real estate professional that knows the Paradise Valley market.

Dec 2014 Paradise Valley detailed market report

Considering a purchasing or selling a property in Paradise Valley? Call Joe and Linda Szabo – The Real Estate Experts! We hope that you enjoy reading and analyzing the Paradise Valley Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com or Joe@AZLuxuryHomes.com. You can also visit https://www.AZLuxuryHomes.com or https://scottsdalerealestateteam.com to find out more about Paradise Valley Homes for Sale and Estates for Sale in Paradise Valley and to search the Paradise Valley MLS for Scottsdale Home Listings. Please note that this Paradise Valley Real Estate Blog is for informational purposes and not intended to take the place of a licensed Paradise Valley Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale and Paradise Valley Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Paradise Valley, The Szabo group delivers experience, knowledge, dedication and proven results.

December 2014 Scottsdale Arizona real estate market update

January 9, 2015 Joe Szabo

Happy New Year! With the holidays behind us it’s time to get back in gear and start 2015 off right. Let’s take a look at how the Scottsdale real estate market faired in December. New listings are down from November with a total of 605 new listings vs. 834 in November. This is a 27.5% decrease in new listings. New contracts were down slightly from November by 9.4% however closed sales jumped a whopping 59.7% from the previous month, 626 in December vs. 392 from November. The median sale dropped 4% from $375,000 in November to $360,000 in December. December closed with a tremendous spike in closed sales – let’s hope this continues through January! During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

Dec 2014 Scottsdale detailed market report

Considering a purchasing or selling a property in Scottsdale? Call Joe and Linda Szabo – The Scottsdale Real Estate Experts! We hope that you enjoy reading and analyzing the Scottsdale Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com. You can also visit https://scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results.

Renters: Are You Ready to Buy a Home? By Joe Szabo, Scottsdale Real Estate Team

January 8, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team For renters planning to buy a home, preliminary steps like creating a budget and saving for a down payment are obvious. Here are five more advanced steps toward moving out of your rental and into a dream home of your own.

Understand the full cost of homeownership

As a renter, a single rental fee covers your monthly housing payment. But as a homeowner, four main factors go into your monthly housing payment: principal, interest, taxes and insurance (P.I.T.I.). Understanding these costs will help you determine how much house you can afford. Together, principal and interest comprise your monthly mortgage payment, with the principal paying down your loan balance each month, and the interest paying your fee for borrowing the money. Use a mortgage calculator to determine how much of your payment goes toward principal versus interest each month. Taxes refer to property taxes, which are assessed by the county you live in. They average 1.2 percent of your home’s value each year. Insurance — paid to a homeowner’s insurance company of your choice — is required when you have a mortgage. Lenders require that your insurance cover the cost of rebuilding the home if it is ruined by fire or other disaster. This “replacement cost” is determined by your insurer, and must be agreed to by your lender. Insurance will typically cost $700 to $1,200 per year for a single family home. For condo owners, there’s a fifth monthly cost category: homeowners association (HOA) dues. These fees cover common area amenities, landscaping, ongoing upkeep and reserves for future maintenance like roof replacement or exterior painting. These monthly dues range from $100 for cheaper condos to $1,000 or more for luxury condos. Single family home buyers can take a useful cue from HOA budgets, which generally require that at least 10 percent of dues go toward reserves. Even if you’re not buying a condo, it’s a good idea to set up a similar savings plan for future maintenance like replacing a roof or major appliances.

Know your homeowner tax benefits

Mortgage interest and property taxes are deductible when you file your annual tax returns, and reduce taxable income. These deductions significantly lower your cost of homeownership. For example, for a $300,000 home with 20 percent down and a 30-year fixed mortgage at 4 percent, monthly P.I.T.I. is about $1,545. Tax deductions reduce this total housing cost to about $1,215.

Study rent-vs.-buy math

Often, people judge the cost of renting vs. buying by comparing P.I.T.I. to a rental payment. But to get an apples-to-apples comparison, you actually have to look at after-tax-benefit homeownership costs and rent costs. Using the example above of a $300,000 home that costs $1,215 per month after taxes, you could compare this residence to a home that rents for about $1,200. If the $300,000 home was more spacious or in a more desirable area, the math would seem to favor buying — but don’t forget this example requires a $60,000 down payment.

Identify mortgages that fit your budget and timeline

If you don’t have 20 percent to put down, you can still get a mortgage with as little as 3 percent down. However, if your down payment is less than 20 percent, you’ll have to pay mortgage insurance, which is about .85 percent of your loan amount, and isn’t tax deductible. Your monthly P.I.T.I. (which includes mortgage insurance) is about $1,995 on a $300,000 home with 3 percent down and a 30-year fixed mortgage at 4 percent. After tax deductions, this total housing cost drops to about $1,614. And you’d only need $9,000 for the down payment. You can also lower your rate and P.I.T.I. with a shorter-term loan like a 5-year ARM, but rates on these loans will adjust in 5 years, so you risk having a much higher payment if you plan to stay in the home longer than that.

Start preparing your credit score now

Credit scores are critical for getting the best mortgages with the lowest rates. Lenders want reliable on-time payment history as well as credit depth. More credit accounts are better, so renters with only one credit card should consider obtaining more credit. Just note that your credit score can drop 5 to 15 points when you first open a new account, then will come back up when you’ve established a good payment history. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Mortgage Rate Update By Joe Szabo, Scottsdale Real Estate Team

January 5, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.72 percent, down from 3.73 percent at this same time last week. The 30-year fixed mortgage rate hovered between 4.01 percent and 3.75 percent for most of the week before settling at the current rate.

“Rates were volatile last week, primarily driven by low participation during the holiday-shortened week,” said Erin Lantz, vice president of mortgages at Zillow. “Aside from Monday’s sharp decline in rates due to bad news out of Greece, we expect continued volatility this week due to limited activity as lenders and consumers focus on the New Year’s holiday.” Additionally, the 15-year fixed mortgage rate this morning was 2.98 percent, and for 5/1 ARMs, the rate was 2.83 percent. Purchase mortgage application activity Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the week prior. To learn more about this Zillow analysis, click here. What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.