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How to Properly Maintain a Rural Property

July 29, 2022 By Claire Garlick Leave a Comment

Image Source: RISMedia

Living in the country is at the core of many people’s dreams. Fresh air, gardens and wild animals are a big part of the draw. If you’re considering a move to the country, there are some things you should know about maintaining a rural property. Here are a few tips to help you keep your rural home in top shape.

Water Well
Most rural properties rely on water wells for their water supply. This means that you’ll need to have your well regularly inspected and serviced to ensure that it is functioning properly. You’ll also need to be sure to know how your pump and tank work and how to troubleshoot and fix minor issues they may have. You’ll also want to have the proper equipment on hand in case of a power outage or other emergency or install a generator to power the pump in the absence of electricity.

Septic System
Another thing to be aware of if you’re moving to the country is that most rural properties rely on septic systems for their wastewater. This means that you’ll need to have your septic system inspected and pumped every few years to keep it working properly. You’ll also want to be careful about what you put down your drains and toilets as some things can clog and damage your system. When buying a property, it’s a good idea to have local experts come out and do an inspection on the system to assess its age, size, and condition to determine whether it is adequate for your family’s needs.

Foliage
One of the most attractive features of rural properties is the usually larger property sizes. Even if a property doesn’t have acreage, the lot sizes tend to be much bigger than city lots. If you’ve ever mowed your lawn and a few days later the grass was shin-high already, imagine how much effort it will take to tend a large yard. If you end up buying a rural property, this is a great time to consider a riding mower. They are versatile and can pull utility trailers, or even small garden plows. You’ll also need a variety of trimming devices for trees and bushes. In the country where “growing like a weed” manifests into reality, you’ll need to round up all the gardener’s power tools you can get!

Security
There is a common notion that living in the country is automatically safer than living in the city. While this may be true in some cases, there are also certain dangers that come with rural living. Because properties are often more spread out, it can take law enforcement longer to respond to an incident. This is why it’s important to have a good security system in place as well as a few well-trained guard dogs. You should also be aware of your surroundings and know who your neighbors are and how to get in touch with them in case of an emergency.

With a little bit of preparation, country living can indeed be the stuff of dreams. Just be sure to do your research and be proactive with maintenance to manage the challenges that come with a rural property.

 

Article source: https://blog.rismedia.com/2022/how-to-properly-maintain-a-rural-property/.

Filed Under: Home Maintenance Tagged With: Colorado Real Estate, Home Maintenance, owning a home, Real Estate Tips

Do You Know How Much Equity You Have in Your Home [INFOGRAPHIC]?

April 22, 2022 By Claire Garlick Leave a Comment

Infographic Source: KCM Blog

 

Some Highlights

  • If you’re a homeowner, your net worth has gotten a big boost. That’s because recent home price appreciation has increased your equity.
  • Your equity grows as you pay down your loan and as your home increases in value.
  • Over the past year, the average homeowner’s equity grew by $55,300.

 

Ready to sell? Get in touch today to talk about how you can use that equity to fuel your next move!

 

Article source: https://www.keepingcurrentmatters.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/.

Filed Under: Infographic, Real Estate Tips, Rent vs. Buy, Sellers Tagged With: Colorado Real Estate, For Sellers, Housing Market Update, Infographics, owning a home, Real Estate Tips, Rent vs. Buy, selling a home

Should I Move or Refinance?

June 18, 2021 By Claire Garlick Leave a Comment

Remodeled kitchen.
Photo courtesy of Buffalo River Studio

The level of equity homeowners have is at an all-time high. According to the U.S. Census, over 38% of owner-occupied homes are owned free and clear, meaning they don’t have a mortgage. Those with a mortgage are seeing their equity skyrocket too. Every time real estate values increase, homeowners get a dollar-for-dollar gain in their home equity.

According to the first-quarter 2021 U.S. Home Equity Report from ATTOM Data Solutions:

17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.

The count of equity-rich properties in the first quarter of 2021 represented 31.9 percent, or about one in three, of the 55.8 million mortgaged homes in the United States. That was up from 30.2 percent in the fourth quarter of 2020, 28.3 percent in the third quarter and 26.5 percent in the first quarter of 2020.

This surge in home equity has given most homeowners the opportunity to use that equity in one of two ways:

  1. Refinance to cash out some of the equity or lower their current payment
  2. Move to a home that better fits their current needs

Let’s break down the possibilities.

1. Refinance

An abundance of equity and record-low mortgage rates can make refinancing a home very easy. Some homeowners choose to refinance so they can lower their payments. Others convert a portion of the equity to cash while keeping their monthly payment the same.

There are many homeowners who could take advantage of lower rates and higher levels of equity, but they haven’t yet. According to an Economic & Housing Research Note from earlier this month, there were over five million homeowners with a loan funded by Freddie Mac who would benefit by refinancing their loan. As of January 2021, there were:

  • 452,122 loans with an average mortgage rate of 6.17%
  • 1,027,834 loans with an average mortgage rate of 4.39%
  • 3,687,780 loans with an average mortgage rate of 4.21%

With mortgage rates currently hovering around 3%, any of these homeowners would benefit from refinancing. They could lower their payments by hundreds of dollars per month or cash out large sums of equity while keeping their monthly payment the same.

Example:

If a homeowner has a $200,000 fixed-rate mortgage with a 6% interest rate and refinances that loan to a 3% interest rate, their monthly mortgage payment (principal and interest) will go from $1,199 per month to $843 per month – a savings of $356 a month, or $4,272 each year.

On the other hand, if they keep their mortgage payment the same, they could cash out a significant amount of their equity.

2. Move into your dream home

The past year prompted many households to redefine what a dream home really means, and it’s something different to everyone. Those who have a high mortgage rate could use their equity as a down payment and perhaps buy their next home without significantly raising their mortgage payment.

Example:

Suppose a person bought a house for $216,000 at the height of the market in 2006. (The median home price in May of 2006). If they put 10% down and took out a mortgage of $194,400 at 6.41% (the average rate in 2006), the monthly mortgage payment (principal and interest) would have been $1,217.

According to the National Association of Realtors (NAR), a typical single-family home has grown in value by approximately $150,000 over the last fifteen years. That means the $216,000 house would be worth about $366,000 today.

After deducting selling expenses, they would be left with about $130,000 ($150,000 minus approximately $20,000 in selling expenses).

A seller could take that equity and use it as a down payment on a new house. Let’s assume they purchased a home for $450,000 (roughly $80,000 more than the value of their current home). If they put the $130,000 down, they could take out a mortgage of $320,000 with a 3% interest rate. The monthly mortgage payment (principal and interest) would be $1,349. Therefore, they could buy a home worth $80,000 more than the one they have today and only spend an extra $132 per month.

Bottom Line

Whether you’re refinancing your house or moving to a new home, your current mortgage rate and your level of equity are crucial in your decision-making process. Look at your mortgage documentation to find out your interest rate, and then contact us to determine the potential equity in your home. You may be surprised by the opportunities you have!

 

Article source: https://www.keepingcurrentmatters.com/2021/05/20/should-i-move-or-refinance/.

Filed Under: Finance, Real Estate Tips Tagged With: Colorado Real Estate, Colorado Springs, Finance, owning a home, Real Estate Tips

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Claire Boynton, The Platinum Group Realtors Monument Colorado Real Estate

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