Lowest housing inventory on record for month of January, combined with steadily rising interest rates, sets metro Denver up for an early Spring selling season.
Boulder County Home Prices Soared Nearly 14% in 2016
It was another hot year for real estate in Boulder Country, with single-family homes gaining nearly 14 percent in value - the highest annual gains of the past five years.
Median home prices for the county as a whole rose 13.7 percent to the end the year at $529,000.
The low mortgage interest rates that you find online or in the newspaper aren’t necessarily what you’ll pay when you apply for a loan. Why? Because banks will charge you “discount” points to get the best rate, which adds to the cost of the loan.
Points, or discount points, are expressed as a percentage of the loan amount. The point "discounts" the interest rate, that's why it's referred to as a discount point. If your mortgage is $300,000, then one "point" is $3,000. For each point you pay, your interest rate should be reduced by about ¼ percent.
On a 30-year mortgage loan at $300,000 and 5.00%, the monthly payment works to $1,610 without any points.Paying one point ($3,000) would reduce the rate to 4.75%, making your discounted payment $1,564 per month.
That's a reduction of $46.00 per month. Now weigh the cost of $3,000. To get that, divide $46 into $3000. The result is 65. It will take you 65 payments to break even, nearly 5 ½ years. It’s worth it if you’re planning to stay in your home for 5 to 10 years or longer. If not, you’re far better off using the $3,000 to pay down your loan principal or buying furniture for your home.
There’s another way to get the best mortgage interest rate – that’s to have the best credit scores possible. Those with near or perfect credit are considered low risk by banks. As always, consult your financial advisor for more information about home loans.
HOMESELLERS' ADVICE
Clutter-free Countertops
Today's kitchens are filled with all kinds of gastronomical gadgets, but if you want to show your kitchen to its fullest advantage, here are five ways to keep clutter down:
Store unused equipment. Which appliances do you use the most? Chances are they’re not vegetable curlers or pasta makers. Store those appliances somewhere else, such as a butler’s pantry, food pantry or the garage.
Build an appliance garage. Many cabinetmakers offer an appliance garage that can be closed when not in use. You can also customize an appliance garage to extend the length of the counter.
Update appliances. If you need a microwave, get one that’s also a convection oven. Commercial-grade mixers have attachments that can make pasta and knead bread. The newest coffee machines can make tea, hot chocolate and all kinds of coffee shop specialty brews.
Mount what you can. Under cabinet mounting is easy to install. Paper towel racks, electric can openers, and task lighting can all be mounted under the cabinets to free up counter space. Throw out smelly dishrags and sponges, and store fresh cleaning aids in caddies under the sink.
Invest in organizers. Corner cabinets can be better utilized with swing out organizers. Drawers on rollers allow better access to all your storage. One charging station should serve multiple devices. Try installing one in the hall or utility room.
Once your kitchen is better organized, you’ll find it easier to prepare for showings and buyers will have an easier time seeing the kitchen’s best features.
