Interest Rates Over Time [INFOGRAPHIC]

Interest Rates Over Time [INFOGRAPHIC]

Interest Rates Over Time [INFOGRAPHIC]

Interest Rates Over Time [INFOGRAPHIC] | MyKCM

Some Highlights:

  • With interest rates hovering at near historic lows, now is a great time to look back at where they’ve been, and how much they’ve changed over time.
  • According to Freddie Mac, mortgage interest rates are currently hovering near a five-decade low.
  • The impact your interest rate has on your monthly mortgage payment is significant. An increase of just $20 dollars in your monthly payment can add up to $240 per year or $7,200 over the life of your loan. Maybe it’s time to lock in now while rates are still low.
You May Have More Home Equity Than You Think

You May Have More Home Equity Than You Think

You May Have More Home Equity Than You Think​

With home values appreciating, there’s a good chance you have more home equity than you think. Let’s connect to explore how you can use your equity in your next move.

The #1 Misconception in the Homebuying Process

The #1 Misconception in the Homebuying Process

The #1 Misconception in the Homebuying Process

The #1 Misconception in the Homebuying Process | MyKCM

After over a year of moderating home prices, it appears home value appreciation is about to reaccelerate. Skylar Olsen, Director of Economic Research at Zillow, explained in a recent article:

 “A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back.”

CoreLogic, in their January 2020 Market Pulse Report, agrees with Olsen, projecting home value appreciation in all fifty states this year. Here’s the breakdown:

  • 21 states appreciating 5% or more
  • 26 states appreciating between 3-5%
  • Only 3 states appreciating less than 3%

The Misconception

Many believe when real estate values are increasing, owning a home becomes less affordable. That misconception is not necessarily true.

In most cases, homes are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by almost a full percentage point since this time last year.

Another major piece of the equation is a buyer’s income. The median family income has risen by 5% over the last year, contributing to the affordability factor.

Black Knight, in their latest Mortgage Monitor, addressed this exact issue:

 “Despite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates…

Put another way, prospective homebuyers can now purchase a $48K more expensive home than a year ago while still paying the same in principal and interest, a 16% increase in buying power.”

Bottom Line

If you’re thinking about purchasing a home, realize that homes are still affordable even though prices are increasing. As the Black Knight report concluded:

“Even with home price growth accelerating, today’s low-interest-rate environment has made home affordability the best it’s been since early 2018.”

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The Many Benefits of Aging in a Community

The Many Benefits of Aging in a Community

The Many Benefits of Aging in a Community

The Many Benefits of Aging in a Community | MyKCM

There’s comfort in being around people who share common interests, goals, and challenges. That comfort in a community doesn’t wane with age – it actually deepens. Whether it’s proudly talking about grandchildren or lamenting the fact that our eyes aren’t as good as they used to be, it helps to be around people who not only understand what we’re saying but actually feel the same joys and concerns as well.

That’s why many boomers are deciding to move into an active adult community. In the latest 55places National Housing Survey, they were described by one out of three seniors as an “outgoing, social community of likeminded people.”

Bill Ness, Chief Executive Officer and Founder of 55places.com, explains:

“Baby boomers are now reaching the age when moving to an active adult community is the ideal opportunity for them…Many boomers now want to downsize, experience a maintenance-free lifestyle, and pursue more social opportunities. It’s exciting that there are so many choices for baby boomers.”

There’s still a desire, however, among many seniors to “age-in-place.” According to the Senior Resource Guide, aging-in-place means:

“…that you will be remaining in your own home for the later years of your life; not moving into a smaller home, assisted living, or a retirement community etcetera.”

The challenge is, many seniors live in suburban or rural areas, and that often necessitates driving significant distances to see friends or attend other social engagements. A recent report from the Joint Center for Housing Studies of Harvard University (JCHS) titled Housing America’s Older Adults addressed this exact concern:

“The growing concentration of older households in outlying communities presents major challenges for residents and service providers alike. Single-family homes make up most of the housing stock in low-density areas, and residents typically need to be able to drive to do errands, see doctors, and socialize.”

The Kiplinger report also chimed in on this subject:

“While most seniors say they want to age in place, a much smaller percentage of them actually manage to accomplish it, studies show. Transportation is often a problem; when you can no longer drive, you can’t get to medical appointments or to other outings.”

Driving may not be a challenge right now, but think about what it may be like to drive 10, 20, or 30 years down the road.

There are also health challenges brought on by a possible lack of socialization when living at home versus a community of seniors. Sarah J. Stevenson is an author who writes about seniors. In a recent blog post for A Place for Mom, she explains:

“Social contacts tend to decrease as we age for reasons such as retirement, the death of friends and family, or lack of mobility.”

Thankfully, research from the same article suggests if you’re spending time with others in a community, thus reducing the impact of loneliness and isolation, there’s less of a risk of developing high blood pressure, obesity, heart disease, a weakened immune system, depression, anxiety, cognitive decline, Alzheimer’s disease, and early death.

Though the familiarity of our current home may bring a feeling of warmth, comfort, and convenience, it’s important to understand that staying there may mean missing out on crucial socialization opportunities. Living with adult children, joining a retirement community, or moving to an assisted living facility can help us continue to be with people we enjoy every day.

Bottom Line

“Aging-in-place” definitely has its advantages, but it could mean getting “stuck-in-place” too. There are many health benefits derived from socialization with a community of people that shares common interests. It’s important to take the need for human interaction into consideration when making a decision about where to spend the later years in life.

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Marty Gale

Utah Realty

Ways to Declutter Before Listing the Family Home

Ways to Declutter Before Listing the Family Home

Ways to Declutter Before Listing the Family Home

 

1. Toss the Trash

We often become “clutter blind” to things that collect in our homes. If you have mail waiting to be sorted, handled, and discarded, magazines and newspapers you intended to
read (but probably won’t), and things that need to be recycled, donated, or thrown away, do that now. Go through every room in your house with a garbage bag and a donation bag. (Be sure to shred any sensitive documents so this information doesn’t fall into the wrong hands!)

2. Pare Down Furniture

If you have rooms overstuffed with furniture, they’ll appear too small and unwelcoming to potential buyers. Eliminate all unessential furniture and any upholstered items that are threadbare or excessively worn. It’s better to have less and use your best pieces to stage your home.

3. Depersonalize

Your home probably contains your favorite collections, cherished photographs, children’s artwork, postcards, and memorabilia. These items should be placed in specially marked boxes and tucked away for your move or to give to family members. This will help potential buyers imagine how the home will look with their items.

4. Clear the Surfaces

Look at every flat surface in your home. Things tend to collect on countertops, tables, and shelves, making a home look crowded and giving buyers the impression there’s no room for their life to unfold in this space. If a surface has more than a single decorative item (or a related grouping of three things), it’s too “busy” to be inviting to a potential buyer.

5. Un-stuff the Closets

Before listing your home, every closet should appear spacious and airy. Crowded closets look too small to use. In bedrooms, remove everything except for the in-season clothes you often wear and enjoy most. Everything else should be packed up or donated. Linen closets should be organized with a maximum of two fresh changes of sheets and pillowcases for each bed. Keep only your nicest
towels and washcloths. Retire the ratty ones to the rag box. The hall closet should hold jackets and coats for the current season and have enough room to accept visitors’ coats.

Ways to Declutter Before Listing the Family Home

Adapting Your Home

Adapting with Age

Most of us would prefer to age in our current home. But as health and aging issues make more areas of the home hard to access or pose a greater risk of injury, doing so can be difficult. We can begin to feel trapped and that selling our home is the only option. It’s not. Adapting your home to meet your aging needs is something your SRES® can help with when the time comes.

If health issues require you to move in with an adult child or any other loved one, your SRES® is there to help them with making the appropriate modifications to their home as well.

Potential Risks and Difficulties

You might know every corner, creaky floorboard, and exactly where every light switch is in your home, but at some point, familiarity turns to risk and everyday tasks become harder to manage. Knowing those potential risks and difficulties can help determine when adapting your home is necessary.

  • Raised thresholds
  • Bathrooms
  • Area rugs
  • Stairs
  • Doorknobs becoming difficult to turn
  • Cabinets and shelves become harder to reach

Certified Aging-In-Place Specialists

A certified aging-in-place specialist (CAPS) is a professional who can evaluate the home, find problem areas, and suggest the right home modifications. The answer may be as simple as adding grab bars in bath areas, flattening thresholds, and installing brighter lighting, for example. However, two-story living may require more significant remodeling to overcome these unique challenges.

Whatever the potential risks and difficulties are, a CAPS will advise on which changes will be the most beneficial and suggest cost-effective solutions.

Certified aging-in-place specialists are trained in:

  • The unique needs of the 50+ population
  • Home modifications
  • Common remodeling projects
  • Solutions to common barriers

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