Homeownership Finally Makes Political Debate

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I steer clear of talking politics and religion with even the best of friends. But, I think this is a factual and informative perspective.

Finally, the issue of homeownership has become a platform talking point in this year’s presidential debate. Yesterday, one of the candidates running for President spoke out about the importance of homeownership in America. One candidate remarked:

“Homeownership is about more than just owning a home. It is about putting roots down in a community with better schools, safer streets and good jobs. And it is about building wealth, as homeowners build equity in their home one mortgage payment at a time…We must make sure that everyone has a fair shot at homeownership.”

This post isn’t political!

It doesn’t matter who said it first. It doesn’t matter the political party. What matters is that EVERY candidate for our country’s highest office realizes the important role homeownership plays in the development of our nation. The fact that homeownership was finally brought to the forefront of the debate is great news – no matter which way you lean politically.

Pop of Pink

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There is one thing I turn to as my “never fail” color and that is Pink! A pop of pink in any house is like pouring out a welcome mat for family and friends.

The color pink is happy, wild, cheerful, gay, sweet, and magnificent when used with neutrals. Find a spot, any spot, in your home and throw up a little pink.

Even nature likes to toss in some hot pink to mix it up with this happy color.

Here Comes The Sun

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 Why you should apply for a loan on a sunny day. Fun Fact:

A new study reveals an unusual correlation between the weather and mortgage approvals. Cleveland Fed researchers scoured data from the National Oceanic and Atmospheric Administration from more than 2,000 U.S. counties from 1998 to 2010 for the study.

The study suggests a positive sentiment emerges in sunny weather, which leads to higher credit approvals. On the other hand, rainy days make lenders tighter with the credit.

The sun doesn’t appear to fire up applications much, but researchers say the percentages are noteworthy. “Sunny sentiment” was found to boost credit application approvals by 0.80 percent. On overcast days, however, approvals dropped by 1.41 percent, the study found.

Not sure if this is true but I would go your loan application on a sunny day! Like the song says: “It’s going to be a bright, bright, sunshiny day.”

Information courtesy of REALTOR.com

 

Homeowner’s Net Worth is 45x Greater Than a Renter’s

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Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). In a Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater. The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

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Put Your Housing Cost to Work For You

Simply put, homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, CALL ME and I will guide you through the process. 407-925-7721 (Cell or Text).