How Current Interest Rates Can Have a High Impact on Your Purchasing Power

How Current Interest Rates Can Have a High Impact on Your Purchasing Power

How Current Interest Rates Can Have a High Impact on Your Purchasing Power | MyKCM

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history!

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month.

How Current Interest Rates Can Have a High Impact on Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.  If you are looking to sell your home, give San Ramon Real Estate expert Jason Kerner a call at 925-400-7007 or KernerHomes.  

You DO NOT Need 20% Down to Buy Your Home NOW!

You DO NOT Need 20% Down to Buy Your Home NOW!

You DO NOT Need 20% Down to Buy Your Home NOW! | MyKCM

The Aspiring Home Buyers Profile from the National Association of Realtors(NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that the main reason why non-homeowners do not own their own homes is that they believe that they cannot afford them.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

A recent survey by Laurel Road, the National Online Lender and FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.

According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.

What these people don’t realize, however, is that there are many loans written with down payments of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO®Scores

An Ipsos survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores for approved conventional and FHA mortgages are much lower.

The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724. The chart below shows the distribution of FICO® Scores for all loans approved in May.

You DO NOT Need 20% Down to Buy Your Home NOW! | MyKCM

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but you are not sure if you are ‘able’ to, let’s sit down to help you understand your true options today.  As your San Ramon Realtor Expert, I am always available to discuss your personal situation.  Give me a call at 925-400-7007 or KernerHomes.

San Ramon Summer Fun

San Ramon Summer Fun is here!  San Ramon hosts a lot of summer fun events.  If you are looking for a few fun summer entertainment ideas with the kids, here are a couple of the upcoming activities you might want to check out:

Forest Home Farms- Just Keep Mooooving and Victorian Lawn Games

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June 23, Forest Home Farms is hosting a free event called Just Keep Mooooving.  The event is free and runs from 11am- 2pm.  The event teaches the importance of cows contribution to farm life.  They will also offer instruction on how to milk cows and make butter.

June 30, Forest Home Farms is hosting Victorian Lawn Games from 11am- 2pm.  Come to learn a few outdoor lawn games that the Victorian’s enjoyed during those historic days that pre-date cellphones.  They also offer free lemonade making lessons.  Let your youth experience homemade lemonade that does not come from a can or plastic cup.

For more information, go to Forest Homes Farm Summer Fun Events

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Family Camp Out

Saturday to Sunday, June 23-24 is the great outdoor adventure called Family Camp Out.  Registration for this event is required.  Go to Family Camp Out to sign up.  Fees are $21 per resident. Check-in is Saturday from 3pm-5pm and activities begin at 4pm.

The event takes place at our beautiful Rancho Community Park.  Camp out under the stars while enjoying all types of games like crafts, star gazing with the Mt. Diablo Astronomy Society and enjoy a Ranger-led camp fire program.  BBQ dinner, water bottle and light breakfast are included.  You will need to bring all your own camping gear for the event.  What a wonderful way to spend the weekend with the kids!

 

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Outdoor Movies in the Park- SING

Friday, June 29 at 8:30pm, the City of San Ramon is hosting the family-friendly moving SING at the Central Park Amphitheater.   Bring the whole family for this fun-filled movie!   For more details about the movie and event, go to Summer Outdoor Movies.  The movie is expected to run for 1 hour, 48 minutes and is rated PG.

If you are looking to buy or sell a home in the fabulous city of San Ramon, give me a call.  As your San Ramon Real Estate expert, I am always available to discuss your individual needs.  You may reach me at 925-400-7007 or KernerHomes.  Make it a great day!

 

 

Parents Say Kids’ Opinions Matter Big When Buying a Home

Parents Say Kids’ Opinions Matter Big When Buying a Home

Parents Say Kids’ Opinions Matter Big When Buying a Home | MyKCM

A recent survey conducted by Harris Poll and released by SunTrust Mortgage found that “55% of homeowners with a child under the age of 18 at the time when they purchased their home said that the opinion of their offspring played a major role in their home buying decision.”

When the results were broken down by the parent’s age, millennials (those 18-36) led the way with 74% of homeowners saying that their child’s opinion was a factor in choosing which home to buy. Eighty-three percent of renters believe that their child’s opinion would be a deciding factor when looking to purchase a home.

So what features in a home are most important to kids?

Parents Say Kids’ Opinions Matter Big When Buying a Home | MyKCM

Coming in at 57%, it should come as no surprise that gaining their own bedrooms was the top most-desirable feature of any home for kids, followed by a large back yard to play in at 34%.

Todd Chamberlain, Head of Mortgage Banking at SunTrust explained the reasoning behind the survey,

“As a parent of two kids, I know from experience that including children in the home buying process is not only fun for the whole family, but also educational for our homebuyers of tomorrow.”

Bottom Line

If you’re thinking about selling your home this year, make sure to highlight all the kid-friendly features your home has to offer so that you can sway the real decision makers.  To discuss your personal situation and needs, contact San Ramon Real Estate Expert Jason Kerner at 925-400-7007 or http://www.KernerHomes.com

4 Reasons Why Summer Is a Great Time to Buy a Home

4 Reasons Why Summer Is a Great Time to Buy a Home!

4 Reasons Why Summer Is a Great Time to Buy a Home! | MyKCM

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insights reports that home prices have appreciated by 7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.

Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have increased by half a percentage point already in 2018 to around 4.5%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage –either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.  As your San Ramon Realtor expert, I am happy to help answer any questions about your individual situation.  Let’s put my 16 years of experience to work for you.  925-400-7007 or http://www.KernerHomes.com

Millennials are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes | MyKCM

A new trend has begun to emerge. With home prices skyrocketing in the starter home category, many first-time homebuyers are skipping the traditional starter homes and moving right into their dream homes.

What’s a Starter Home?

According to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom). “Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.”

Finding Their Forever Homes Now

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to rent.

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. As the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane Swonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to research from Trulia. This has driven prices up and has led to bidding wars.

Many first-time buyers who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

Bottom Line

If you plan on purchasing your first home this year, let’s get together to determine how much house you can afford. You may be pleasantly surprised.  As your local San Ramon Realtor, I am available to answer all your questions.  Give me a call at 925-400-7007 or KernerHomes.

4093 Sugar Maple Drive Danville

4093 Sugar Maple Drive Danville

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Beautiful Home in Danville Nearby Blackhawk Plaza

3 Bedrooms | Office | 2.5 Bathrooms | Approximately 2,549 Sq | Ft

This beautiful home is located in the gated community of Silver Maple in Blackhawk, situated on a private lot backing to open space. Perfect location – within walking distance to Blackhawk Plaza.

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Large Formal Living Spaces

The spacious formal living room is a showstopper, with large picturesque windows and a floor-to-ceiling marble fireplace. The adjoining formal dining room features two sliding glass doors leading to a very charming patio deck – great for entertaining.

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Gorgeous Great Room

The great room has vaulted beamed ceilings, a brick gas fireplace, hardwood flooring, and two sets of glass sliding doors leading to two separate patios.

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Upgraded Kitchen

The kitchen has a lovely view of backyard and decking, white cabinets, hardwood flooring, newer stainless steel double oven and electric cooktop.

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.40 Acre Lot

The master suite has glass sliding doors to balcony, large walk-in closet, and updated bathroom with tile flooring and countertops, large soaking tub, and shower with glass enclosure.

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If you are looking to buy or sell a home, contact San Ramon Realtor Jason Kerner at 925-400-7007 or http://www.KernerHomes.com.  For more information about this property, go to http://www.4093SugarMaple.com

Access: An Important Factor in Getting Your House SOLD!

Access: An Important Factor in Getting Your House SOLD!

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Access: An Important Factor in Getting Your House SOLD!

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.
By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
Limited Access (example: the home is only available on Mondays or Tuesdays at 2pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.

With May proving to be the best month to sell your home, access can make or break your ability to get the price you are looking for, or even sell your house at all.  If you are looking to sell your home, give San Ramon Realtor Jason Kerner a call at 925-400-7007 or http://www.KernerHomes.com.  Put his 16 years of experience to work for you.

San Ramon High Schools Rank Superior in Country

San Ramon High Schools Rank Superior- US News & World Report

Dougherty Valley High School **GOLD AWARD

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Congratulations Dougherty Valley High School!  Dougherty Valley High is ranked 37th in California and was given the GOLD award for ranking #241 nationally.  In addition, DVHS ranked #49 in STEM Schools. 74% of the students attending DVHS participate in Advanced Placement coursework, 40% take AP tests and 94% of those participants who take the exams pass.  With 98% of its Seniors graduating, DVHS is considered a GOLD award winner because of its successful college prep program.  For more details, go to DVHS.

    • College Readiness Index 70.7
    • AP® Tested 74%
    • AP® Passed 94%
    • Mathematics Proficiency 87%
    • Reading Proficiency 96%

California High School

Congratulations to California High!  It is ranked #1177 in the National Rankings, according to US News & World Report.  It has earned a SILVER medal.  Schools are ranked based on their performance on state-required tests and how well they prepare students for college.  CHS was just ranked #214 in California with a 99% graduation rate.  We are looking forward to seeing all those graduates receive their diplomas in a few weeks.  For more information about the report, go to CHS

All rankings:

  • College Readiness Index 42.4
  • AP® Tested 47%
  • AP® Passed 86%
  • Mathematics Proficiency 72%
  • Reading Proficiency 87%

Congratulations again to our award-winning San Ramon High Schools!  If you want to buy or sell a home in San Ramon, give me a call.  Let me put my 16 years of experience to work for you.   http://www.KernerHomes.com or 925-400-7007.

204 Dandelion Lane San Ramon

204 Dandelion Lane, San Ramon

204 Dandelion Lane, San Ramon
204 Dandelion Lane, San Ramon

204 Dandelion Lane, San Ramon has just been listed by San Ramon Realtor Jason Kerner.  For more details, you may go to 204Dandelion.com or contact Jason for a private tour at 925-400-7007.

About 204 Dandelion Lane, San Ramon

Luxurious living in the sought-after Alta Mira at Gale Ranch. The bright, airy ambiance boasts soaring ceilings and oversized windows. An open-concept floorplan provides a seamless flow and sophisticated setting for hosting parties and special occasions.

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The main rooms include a large formal living room and dining room, and an open kitchen the chef will love adorned with stunning granite slab counters, and stainless steel appliances. There is a bedroom and full bathroom downstairs. Upstairs features a large master suite and remodeled spa-like master bathroom with an abundance of granite and stone. Secondary bedrooms are very large and share a remodeled hall bathroom.

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Other desirable features include hardwood flooring, custom window coverings, designer paints, custom closet shelving, and recessed lighting.

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204 Dandelion Lane sits on a cul-de-sac with a gorgeous front porch and lovely front and backyard landscaping. The excellent location is near San Ramon award winning schools, Blackhawk Shopping Center, parks, and walking/biking trails for spending time in nature.

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If you are looking to buy or sell a home in San Ramon, contact your local San Ramon Realtor Jason Kerner at KernerHomes.  Make it a great day!