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There are several costs that are associated with buying and owning a new home. One you might be less familiar may be the idea of PMI. What exactly is PMI and when might you need to worry about it?

Private mortgage insurance or PMI, refers to the special type of insurance that is required when your down payment is less than 20 percent of the total value of your home. If you default on your loan, PMI will pay off the outstanding balance of your mortgage, thus protecting your lender. 

How much can you expect to pay for PMI each month? The actual amount usually varies based on the amount of your down payment as well as the amount of coverage required by your lender. Typically, PMI equates to half of one percent of your loan’s value. Therefore, if you take out a $200,000 home loan, you could reasonably expect your PMI to cost $1,000 per year. Divided over the course of twelve months, that would add approximately $83 per month to your mortgage payments.

That is certainly a significant increase, particularly for first-time homebuyers who may be concerned about making a mortgage payment each month. There are advantages to PMI, however. For instance, you may find that you are able to purchase a home with less of a down payment than might otherwise be possible. Paying PMI may also increase your chances of loan approval when the lender knows their investment is not at risk.

The good news is that while PMI will add to the cost of your mortgage each month, it does not have to be forever. You can usually eliminate the cost of private mortgage insurance once you have attained 20 percent equity in your home. That is certainly an incentive to work toward paying a little extra on the principal of your loan each month. Additionally, if you happen to live in an area where property values are on the rise, you have a better chance of reaching the desired 20 percent equity level within a shorter period of time. If you believe you have attained 20 percent equity in your home, it can be worth it to contact your lender. Be aware that the lender may request a new appraisal, however. This is a fee you may be responsible for paying. Get in touch with me at 817-690-0976 and I will be happy to answer any questions you may have about purchasing your new home.

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

Photo by Avi Waxman on Unsplash

Home security should always be a priority, and almost always should be installed and maintained by professionals. If you’re going to upgrade your security, it can be helpful to know a bit about what goes into that security. Today’s focus is on doors, but we’ll talk about windows and sliding glass doors in the future. Settled into a new house, relaxing after the process of buying and moving, the last thing you want to do is worry about your safety.

Doorknob locks are the most basic type, and on doors leading from the outside comes the inherent problem that they are easy to defeat. They aren’t really enough to provide reliable security. They should always be paired with a deadbolt. An attachable chain lock on the inside might make you feel safe, but is easily overcome by physical force. 

A study by the city of Chula Vista discovered “that 87% of the break-ins … targeted the one door that had no deadbolt lock.” The deadbolt lock is a physical safety lock, securing the door in the frame with a metal bolt that slides into a receptacle in the door frame. The bolt itself should be steel and at least an inch long. The strike plate, where the deadbolt locks into place, should be securely set into the door frame with screws that are strong, durable and at least three inches long. Shorter screws are easily torn out of the wood. You might consider two deadbolts in the same door, one above the door handle and one below it.

Another option is to replace your entire door and door frame with a steel security door and a steel frame.

There are also a variety of high tech lock systems on the market. Keypads are the most common of these, and are widely and successfully used in commercial settings. Biometric deadbolt locks read your fingerprint before they release the bolt, but these locks are not perfect, and some of them failed in tests conducted by Consumer Reports.

A good alarm system is the best back up for any door. The major reason for this is that very few criminals want to get caught, and the alarm is going to scare most of them away quickly.  But, alarm systems can come with problematic contracts with alarm monitoring companies, which are beyond the scope of this post. 

If you’re in the market, security is something that we can prioritize as we look at possible homes. If you want to do more research, try Consumer Reports which offers a buying guide and a set of reviews. Contact me today for a referral at 817-690-0976.

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

Photo by Al Elmes on Unsplash

Having the proper amount of insulation in a home is imperative in saving energy costs.  It is estimated that 65% of American homes are under-insulated, thus raising the estimated energy bills nearly 40%. Insulation is not frequently on a person’s primary list of interests when purchasing, or even maintaining their current home.  However, it should be.  Not only does insulation play a huge role in sustaining a comfortable home in which to live, but more importantly it is paramount in saving you a vast amount of money. 

As energy costs are continuously on the rise, it only makes sense to equip your home with the correct amount of insulation. Insulation conserves energy, thus saving you money. Homes built as recently as the late 1970’s have insulation levels far lower than the recommended levels of today.   And should you be looking to purchase a home this winter, be sure it too, is properly insulated.     

Most insulation will pay for itself over a very short period of time.  The best return on your money is to insulate where there currently is none. So, are you baffled on where to begin?  Calling me is a great place to start. Whether you are looking to purchase this winter, or simply need advice on maintaining your current home, I know the value and importance of home insulation. I will be able to offer you guidance on who to contact and for what reasons.  Insulation companies endorsed by your realtor will perform energy audits and assessments on your current home, or the home in which you are looking to purchase.  The audit will assure that the home is properly sealed.  And if not, it will report on ways to improve its energy efficiency.  The assessment from the insulating professional will determine the current R-value of the insulation, measuring its ability to resist heat traveling through it.  Depending on the results, suggestions will be made on where, and how much insulation should be added.

Regardless of anything else you do this winter, make it a priority to examine the insulation levels in your current home, or potential purchase.  Adding insulation is an easy step to take as a homeowner, to save up to 20% on your next energy bill. There is a wide variety of insulation options.  Working with your realtor and the insulation professional, you can decide on which variety is most suitable for the home’s particular needs.  Some of the newer “Green” versions of insulation even come with federal tax incentives. 

The dread of receiving this year’s winter electric bills could be alleviated, get in touch with me at 817-690-0976 and I will be happy to help you get started.

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

Photo by Erik Mclean on Unsplash

As summer winds down and fall approaches, you will hopefully get some relief from the hot weather of recent weeks. As the temperatures cool, this makes a great time to take care of home maintenance tasks outside and prepare your home for the winter months. What should you do around your home in the fall to make sure you are ready for the next season? Here are five things you definitely should not skip during your fall maintenance.

1. Lawn maintenance is common in the fall. If you choose to aerate in the fall, then you may want to fertilize your lawn after that. The summer is harsh on your grass. Giving it some attention after the weather starts to cool can help it recover before its dormant winter season. If you do fertilize your lawn, you will need to water it as well if the weather doesn’t cooperate with you. Without watering, your fertilizer will be wasted.

2. Fall is a great time to seal and stain your deck. Depending on your deck, this may need to be done annually or every two to three years. You need to avoid the wettest season and while summer may have plenty of time that isn’t wet, it may be too hot for you to do this kind of activity depending on the size of your deck. While you may have some fall rain, you should likely have plenty of dry days too so you can complete this activity without getting into the cold months. While your area may be drier in the winter, if there is rain, it is likely to stick around longer since the temperatures are cooler. Most likely the fall will still have plenty of warm, sunny days to make deck maintenance ideal.

3. Empty the gutters and downspouts and make any necessary repairs. When the leaves start to come off the trees in the fall, it is best to have your gutters empty so they aren’t overloaded. Overflowing gutters can pull away from the house causing damage and allowing water to flow into your home.  This damage is often hard to spot until it has progressed to a big and expensive problem.

4. Winterize any outdoor water sources. This includes outdoor spigots, irrigation systems, sinks, fountains and anything else. If temperatures dip below freezing with water in the lines, it could cause your pipes to burst creating an expensive and messy repair.

5. Have your fireplace cleaned for the new season if you didn’t have it done at the end of fireplace season. If this is not something you have been doing regularly, talk to the person that comes out about the recommended schedule for this maintenance task depending on your fireplace usage habits. Fireplaces provide great heat during the winter but can be dangerous if they aren’t properly maintained.

Routine maintenance is critical to caring for your home and protecting your most important asset. Anytime you need a recommendation for a home professional to assist you with something big or small around your home, give me a call 817-690-0976.

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

Image by 123switch from Pixabay 

When you are moving into a new home, you may want an entirely new look to go along with that. Even if you are happy with most of your current furnishings and don’t need to change everything, a move may mean more space or different space that you need to furnish. If interior design isn’t one of your hobbies, where do you find ideas that will help you turn your house into a home. Start with these five sites to find lots of great design inspiration for your new home.

HGTV.com
HGTV is full of great ideas for everything house related. Ideas of all kinds can be found in whatever style you are looking for. From the front porch to the backyard and everything in between, HGTV is full of stunning ideas. Browse ideas by room or style until you find just the look for you.

Havenly.com
Havenly.com is the perfect option if you are never quite sure how to pull a room together. For a small fee, they will ask about your style and make recommendations that meet your budget and style. This is a great option if you don’t want to buy a prepackaged room of furniture and just can’t decide what goes together.

Houzz
This website brings together home professionals of all kinds to share ideas and experiences that you can search and browse until you find the right one for you. Whether you are looking for a fresh look for one room or the whole house, Houzz can make it easy to find.

Modsy.com
Modsy is another option to work with a designer for a small fee. They will provide design ideas within your budget then offer you discounted prices to purchase the items through them so you don’t have to track everything down yourself. They offer unlimited changes to their design recommendations and will keep working with you to get it right.

House Beautiful
The companion website to the magazine shares design ideas from a variety of sources. From whole designs to focus pieces to make a perfect statement, this site is full of ideas that you will love.

These sites are just a starting point to help you find the perfect design inspiration for your home. If the DIY approach to style isn’t for you, you can always call a local interior designer to help you style your home. Call me for a local referral for a stagger, Pam Snowden 817-690-0976.

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

Photo by Spacejoy on Unsplash

The buzzword virtual is attached to everything today. Virtual learning, virtual meetings, virtual shopping, and now virtual house hunting. Sure, there are a few things that you really can’t do virtually but with the Coronavirus pandemic, people have figured out unique ways to adapt to almost any situation, and searching for a new home is no different. Here are some ways you can expect to search for a new home with virtual tools.

Virtual tours are common to find on homes for sale but have seen significant updates in recent years. It is now common in many price ranges to find 3D tours that incorporate a floor plan of the house with photos and walk you through the home step by step. These tours allow you to feel like you are walking through the home from the comfort of your computer or smartphone. While a tour like this may not make you 100% sure the home is for you, if you don’t like the 3D tour, you will likely be able to eliminate the home from consideration and not need to see it in person.

Another issue with virtual house hunting now is that you may be moving to a new area but unable to travel. Once you have viewed any tours available for the properties you are interested in and narrowed down the search to your top choices, your agent can schedule appointments to view the properties and connect with you over Facetime or Skype to allow you to walk through the property with them. Since your connection will be live, you can ask questions and the agent can go through the home at your own pace and show you any area you want to see. This is a great option if you are unable or uncomfortable with viewing the home in person at this time.

Working with an agent who is familiar with the latest technology will make it easier for you to purchase a home at this time. After you select a home, you would like to make an offer on, I will prepare the contract and send to you for electronic signatures so there is no risk during signing. While the property is under contract, the home inspection will still need to take place but the inspector can share information with you after the inspection so you can review any issues.

If you have purchased a home before, this may be a little different than your last experience but it doesn’t have to be scary or overwhelming. I will work with you each step of the way to make sure you are comfortable and understand everything that is going on and are ready to move forward. Contact me today and let’s discuss your real estate goals!

Pam Snowden

Realty World Professionals

817-690-0976 (cell)

Pam@pamsnowden.com

www.PamSnowden.com

April 22, 2020 — Austin

Home sales and median home prices across Texas experienced a moderate increase in the first quarter of 2020, according to the 2020-Q1 Texas Quarterly Housing Report released today by Texas REALTORS®. Although this time period includes the beginning stages of the COVID-19 outbreak, the statistical representation of its impact on the Texas housing market will be made more apparent in the second and third quarters of the year.

“The housing statistics for the first three months of the year show the continuation of more than a decade of growth in the Texas housing market,” said Cindi Bulla, chairman of Texas REALTORS®. “However, the rapid growth of the global pandemic we are facing is poised to affect this momentum. Before this unprecedented event and the economic downturn and shelter-in-place orders, our biggest market concern was the lack of affordable housing to meet the tremendous demand.”

During the first quarter of 2020, 75,052 homes were sold in Texas, jumping 7% compared to the first quarter of 2019. Statewide, the median price increased 5.1% to $241,500. Price class distribution showed that the largest percentage of homes sold across the state (33.8%) were in the $200,000-$299,000 price range.

Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, commented, “Sales activity in the first quarter experienced strong momentum. However, as a result of COVID-19, many sellers have begun pulling their listings to wait out the quarantine. This will only add to our housing shortage and strained inventory availability. Sales are anticipated to drastically drop in Q2, as we’ll be comparing our market to the previous record-breaking year. In the long-term, there will be continued demand within the Texas housing market as long as the job market is able to rebound quickly.”

Active listings dropped 8.9% to 91,363 listings in the first quarter of 2020. Texas homes spent an average of 67 days on the market during the same time frame, one day more than the first quarter of 2019. Housing inventory in Texas decreased 0.5 months from 2019-Q1 to 3.0 months of inventory.

Chairman Bulla concluded, “While these statistics will serve as an important historical reference and benchmark for future recovery, they don’t represent the full market impact of COVID-19. The data for the second and third quarter of 2020 will be the market story, giving us a better look at the post-crisis implications on the Texas housing market. The good news is we went into the disruption with positive velocity and will be ready to come out the other side with a swift recovery. In the meantime, opportunities are everywhere, and we Texans always outperform expectations.”

About the Texas Quarterly Housing Report

Data for the Texas Quarterly Housing Report is provided by the Data Relevance Project, a partnership among local REALTOR® associations and their MLSs, and Texas REALTORS®, with analysis by the Real Estate Center at Texas A&M University. The report provides quarterly real estate sales data for Texas and 25 metropolitan statistical areas in the state. The Texas Real Estate Year-in-Review Report in February and the Texas Real Estate Mid-Year Report in August are released in lieu of the Q2 and Q4 reports each year. To view the report in its entirety, visit texasrealestate.com.

Property Tax Reform

https://www.weatherforddemocrat.com/news/local_news/utgcd-manager-we-re-abandoning-the-proposed-acreage-increase/article_35bbc271-8f3a-5eee-9e58-e5ebfcb9e4f1.html

http://www.zillow.com/digs/guides/diy/winter-maintenance-checklist/