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When it comes to comparing interest rates for a mortgage loan, home buyers often have the option of choosing a loan with a lower interest rate by paying discount points.
Simply put, discount points are fees charged by the lender to reduce (discount) the interest rate charged to the borrower. A point is equal to 1 [...]
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A demonstration of the impact changing interest rates have on the affordability of a home. It is easy to think that a change of interest rates of 1% is not that big, but when you consider a move from 5.25% to 6.25% (one percent), that is really an increase in the cost of borrowed money of 29%! What do you think would happen if labor costs rose 29% or land costs rose 29%?
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Much is written about real estate appreciation (or now real estate depreciation) and many points of reference are used to “validate” the rates that are being computed. But I warn you, most references to appreciation are just plain wrong.
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I wrote a blog article last year about predicting future home sales based upon a correlation between population growth and home sales. I was/am trying to create a model that should demonstrate, over time, the amount of sales we should expect in the Tallahassee real estate market. Today I am going to update that model [...]
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There are so many distractions that can lure us away from our study of the real estate market and finding the direction of the market. With inaccurate reporting, hype, and media blitzing, it is a wonder anyone really knows what’s going on at all.
But don’t worry, it really isn’t that hard to tell where the [...]
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Having posted my real estate blog article on predicting future home sales, I am encouraged to see the great feedback that readers are providing. For the most part, it appears that readers accept the notion that homes sales correlate to population and population change. However, there are some great points made by readers which challenge [...]
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There has been some debate lately in the Tallahassee real estate market regarding how one would measure appreciation rates of homes in a given real estate market. Some people like to think that you compare the median home price in our market today with the median home price from a year ago, and that will [...]
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