Remodeling: Cost vs. Value

Happy New Year!

If your goal this year includes home improvement or renovations you will definitely want to ask yourself: "When the dust settles, what are the benefits of a home improvement project?" This question is answered by the 2015 Remodeling Impact Report found in Realtor Magazine.

The report has 3 major sections: return on investment, the joy the remodel brings to a homeowner, and what has the highest buyer appeal (though not necessarily the highest return on investment).

Their findings:

#1 Interior Return On Investment (105%) = New Roof

#1 Project that made owners the happiest = Bathroom Remodel

#1 Highest buyer appeal (but not the highest percentage of ROI) = Kitchen Upgrade

The overall winner? When you look at the intersection of buyer appeal, cost, return, and owner joy, a new roof appears to be the smartest remodeling investment. 

Here is an illustration of their findings:

And your best bet is to speak to a realtor in YOUR AREA who knows the local market and can give you even more detailed advice on what will be a good return on your investment.

If you have questions on how I can help you achieve your goals, please feel free to contact me anytime.

Sincerely,

Chris 

Your Residential Lending Team

The #2 Largest Lender in the St. Louis Region

Cornerstone Mortgage is working it's way to the top.

There are two things I know to be true:

1. You don't get to the top without focusing on customer service
2. You won't do well with customer service if you don't love your company   

 Just like the Simon Sinek said, "Customers will never love a company until the employees love it first."  

I don't think it is a coincidence that our clients have a 96% satisfaction rate while our company has also been named a Top Work Place four years in a row.  As a collective family of professionals, Cornerstone has originated over $1 billion in closed loans AND advanced to the #2 Largest Lender in the St. Louis Region.   Happy employees = high customer service = happy clients.  An endless cycle of satisfaction.  I will toast to that at the New Year.

-Chris

Fed Announces Interest Rate Increase, Now What?

You may have heard the Federal Reserve raised its key interest rate on Wednesday, December 16, 2015 by .25% (from a range of 0% to 0.25% to a range of 0.25% to 0.5%). This is the first increase in nearly a decade. So how does this affect mortgage rates?

This increase doesn’t mean that the average rate on a 30-year fixed mortgage will increase by a quarter of a point. That’s not how fixed mortgage rates work.

An article on CNBC explained it perfectly:

“The Fed has little influence over long-term, fixed-mortgage rates, which are pegged to yields on U.S. Treasury notes, so don't expect higher mortgage rates to weigh on your ability to buy a home or refinance in the near future.” (One thing to keep in mind, however, is the fact that this hike could affect adjustable rate mortgages. Contact us today to see if it is the right time for you to refinance to a fixed lower rate).

CNBC had another great article “Why the Fed Move Doesn’t Matter to Mortgage Rates” if you have time check it out: http://www.cnbc.com/2015/12/16/why-the-fed-move-doesnt-matter-to-mortgage-rates.html

One important thing you must know is that mortgage rates ARE anticipated to rise to 5.5% by the year-end 2016. This can really affect your buying power. Higher rates = less purchasing power. A 1% increase in rates can equal 12% less buying power.

You may be wondering if this projected increase will affect home prices. In a Forbes article published last year, they outlined whether mortgage rate increases affected home prices, here is what they said:

“Mortgage rates only rise when people feel good about buying houses: inflation is pushing up home prices, and more people have jobs. The higher demand for housing pushes home prices up despite the higher mortgage rates.” (See more at: http://www.forbes.com/sites/billconerly/2012/12/18/when-mortgage-rates-rise-will-home-prices-fall/). 

This is good news if your focus is equity in your home (whether it be to sell or refinance). If your focus is buying a home, consider the fact that rates are expected to go up by the end of 2016. Use us as a resource for any of your questions, we are here for you.

Enjoy your weekend,

Chris

St. Louis Will Be the Nation's Second Hottest Real Estate Market in 2016

According to Realtor.com via the **River Front Times, the St. Louis metro area will be the nation's second hottest real estate market in 2016. "Next year looks to be the best year St. Louis has had in quite some time," says Jonathan Smoke, chief economist for Realtor.com. "We've been seeing strong demand in St. Louis, and if anything, it's starting to heat up even more."

Wow, this has a lot of implications! The good news is this could potentially mean that your current home value could go up, making it a perfect time to sell or perhaps refinance. And if you are in the market for a new home in the St. Louis metro area, start the process early. 

 
"If you're planning to buy next year, start early," Jonathan Smoke, chief economist for Realtor.com, cautions. "There's more inventory on the market relative to the people who want to buy in January and February compared to May, June and July. That tilts the demand in your favor."

What an exciting time for our community, but it could be costly if you wait too late in the year to purchase and prices have increased.

http://Good goo.gl/kg53Gc or goo.gl/dxbsoV VIP Code: 314-223-9824

Get up-to-date listings and notifications through our complimentary home search tool.  (Find the Home Scouting app on iTunes: goo.gl/dxbsoV  or Google Play: http://Good goo.gl/kg53Gc .  Just enter VIP code: 314-223-9824) and be sure to tell anyone you know to sign up.  

As always, keep in constant contact with your realtor and feel free to ask me any questions.

Have a great weekend,

Chris 

**See the full article at: http://www.riverfronttimes.com/newsblog/2015/12/02/st-louis-will-be-the-nations-second-hottest-real-estate-market-in-2016

TRID-Top 9 Things Real Estate Agents Should Know

Uniform State Test Adopted by Missouri

Fourteen months ago the MBA of St. Louis asked the MBA of Greater Kansas City and the MBA of Missouri to join us in affecting change in Missouri. (At that time, Missouri was one of only 14 states still requiring a second state-specific test for licensed mortgage loan originators).

On January 1, 2016, independent mortgage bankers will no longer be required to take a Missouri state-specific test.  This will allow loan officers to save money and time in getting their license.  Great news! 

Importantly, the list of all states/regulators that have yet to adopt includes: Arkansas, Colorado, Florida, Illinois, Minnesota, South Carolina (BFI and DCA), Utah DRE and West Virginia.

TRID-We Are Ready!

Summer is over and fall is here.  Along with the weather changing, the mortgage industry is going through a big change.  We want to make sure you know what is going on.  

Beginning October 3rd, TILA-RESPA (commonly referred to as "Know Before You Owe") changes took affect.  You may be wondering how this impacts you as the buyer?  

The whole goal of this rule is to help consumers understand their options, choose the deal that’s best for them, and avoid costly surprises at the closing table.  (These things have always been important to us).  

You may have also heard that these changes could possibly delay closings.   We want to assure you we have been preparing for these changes for the past 12 months and increased our staff.  We have always been committed to speed.  The main take away is to stay in constant communication with us early and often.  Last minute changes can, in fact, lead to your closing becoming delayed.

Watch this short video for more:

https://www.youtube.com/watch?v=BazmJYxZoGY&feature=youtu.be

If you have any questions, please give me a call.

Chris