Interest Rates May Be on the Rise as Fed Announces Change

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

Many people have been asking us lately, What's the deal with interest rates? Where are they heading and what will the impact be?

Over the last few years the Federal Government has been buying mortgage-backed bonds at a very aggressive rate. This has had the effect of keeping interest rates near record-lows, at about 4.25% for a 30-year fixed-rate mortgage. However, the Fed has slowly been reducing the amount of mortgage-backed bonds they are buying. The have announced that they plan to stop buying them altogether, and that could happen as early as October. The end result would be that the artificially low interest rates we have been seeing may not stay there. Many anticipate rates to jump as high as 5.5% as early as this coming spring.

The higher rates are still attractive to buyers, historically speaking, as interest rates have been around 8% on average for the last 30 years. But if you do the math, the small percentage or so jump in rates could have a huge affect on your spending power. For example, if you borrow $200,000 at 4.25%, your monthly payment will be about $983 a month; a rate of 5.5% would make your monthly payment about $1,135 a month. If you plan on living in your home for 10 years, you could save as much as $18,000 by locking in current interest rates. 

If you have the option of moving today, we highly recommend it. We don't know how long it will be before we see rates fall this low again, so now is the time to lock in low rates for future savings. If you have any further questions about changing interest rates, please feel free to give me a call. I would love to discuss your real estate options with you.

Keep Your Home Protected While Away with These 6 Easy Tips

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

Summer is in full swing and many of us are taking those last minute vacations before the kids go back to school. Leaving your home can be worrisome, as there are many things that could go wrong while your away, We want to help relieve you of that stress, so we compiled 6 tips that will make you feel comfortable leaving your home:

• Have someone look after the house. Have a family member or a friend stop by a few times while you're away. You could also have them water your plants and make sure everything is in working order.

• Be careful about announcing your trip on social media. It's best to share your plans privately and wait to upload pictures until after you've returned.

• Don't leave the lights on. It is a dead giveaway that your home is vacant when the same light is on every night at 3 am. Invest in timers or simply leave the lights off.

• Stop your mail. Another dead giveaway is an overflowing mailbox. Call the post office and have them hold your mail until you return.

• Unplug your electronic devices. This will help prevent accidental fires and will even save you a few bucks on your power bill.

• Put your hidden key away. If you have a hideaway key, it's best to give it to someone you trust or lock it in the house while you're away.

Following these tips will help you rest assured that your home is safe while you are away. We hope you have a safe and enjoyable trip!

As always, if you are interested in buying or selling a home in the St. Cloud area, give us a call or shoot us an email. We're always available to chat.

Success is Easy to Recognize, You Just Need to Know What to Look for

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

With so many real estate agents out there, how can you know which ones to trust? What are the true marks of success?

The first thing you should know is that the real estate industry is very easy to get into - to get licensed, it's as simple as taking a few classes and passing a few tests. But a license only tells you the rules and how to follow them, not how to do the business and what it takes to be a successful agent. For instance, there is a 95% turnover every 5 years. The average agent only lasts around 6-18 months and sells only 2-4 homes. As you can see, most agents lack the experience necessary to give you the best possible assistance when buying or selling a home.

In our 39 years in the business, we have sold well over 3,000 homes. We're honored to have loyal customers that either work with us again, or refer us to their friends and family. Our experience has allowed us to single out 3 qualities that effective agents exhibit:

1. Training: Changes in technology, as well as with style and technique, make training crucial. We've been involved in training for 23 years, and talk with a business coach weekly. We also network with the top agents from around the country to stay up-to-date with what's happening in the market, using current techniques, and making sure we're providing quality service and knowledge for you.
2. Consistency: Many people get into the business to be their own boss, to do whatever they want. These are typically the kind of people who don't last long. Because real estate is a sales business, a successful agent is one who is diligent, attentive, and innovative.
3. Past Customer Support: Effective agents have returning customers or past customers who refer them to family and friends. In short, good agents build a relationship with those they work with - they ensure the transaction is mutually beneficial.

Many people don't realized that 70-75% of each year's business is generated by past clients. For example, we are honored to have worked with as many as 15 members of the same family. We have the kind of expertise money can't buy, and are humbled by our past customers for supporting us so graciously. If you want to join our family, or have any questions about the St. Cloud real estate market, give us a call or shoot us an email. We'd love to chat with you.

Things are Heating Up in St. Cloud!

There are many great St. Cloud area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (320) 240-3363 for a FREE home buying or selling consultation to answer any of your real estate questions.

 

It's summer time here in St. Cloud and the weather is heating up. Everyone is enjoying their time out on the lake and the beautiful weather has coincidentally been occurring at the same time that we are having wonderful mortgage rates in our area.

We just received the most recent Kiplinger news update and their projection for interest rates are in. They predict that they are going to be rising very soon. They expect long term mortgage rates to rise as high as 5.5% by early next spring!

The exciting news right now is that mortgage rates are currently right around 4 or 4.25% which means low payments for you, it's easy to qualify, and you'll save a tremendous amount of money over the next 10-20 years if you finance soon.

If you have any questions about the Kiplinger update or any questions about the St Cloud real estate market in general, please feel free to give me a call.