If you invest in a savings account, you’ll make less than 1% and will have to pay income tax on the earnings. If, on the other hand, you contribute something extra to your house payment on a regular basis you’ll essentially earn at the mortgage interest rate which is bound to be more than you’re earning in the bank.

Making additional principal contributions on your mortgage will save interest, retire debt and build equity. An extra $100 a month in the example shown will save thousands in interest and short the term of the mortgage as well. Reducing your cost of housing is another way to improve the investment in your home. Becoming debt-free is a important goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell and all the years in between.

For more suggestions on managing your mortgage in the Denver area, please contact TeamCox Realtors – Piney Creek real estate specialists at 303-400-6060.

CLICK HERE FOR OUR FREE Denver Property Search

Fallen Denver home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, Denver rental prices are continuing to rise at a fast pace, according to a new report by Hotpads.com, a rental listing service.

Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report. Denver home prices are widely viewed to have bottomed out and are expected, by most economists, to rise commencing in the spring of 2012.

“In a lot of cases it’s getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling,” Paul Gleger, author of the report, told AOL Real Estate. If you are currently renting, this may be the best year ever to invest in your first home in the metro Denver area.

For information on Denver real estate, please contact TeamCox Realtors at 303-400-6060.

CLICK HERE FOR OUR FREE Denver Property Search

If you are moving to Denver, Colorado, and plan on financing a new home, you should know that there is a difference between getting Pre-Qualified & Pre-Approved. A Pre-Approval letter is a document from the lender that confirms you can borrow up to a certain amount based on a completed loan application, credit check, tax returns and employment verification. This Pre-Approval goes much further with the listing agent and the seller when submitted with an offer. On the other hand, a pre-qualification letter is a document from a lender that states they will give you a loan based on a conversation with the lender and what you told them about your financial situation. Neither letters are an absolute guarantee that the lender will give you the loan one, two or three months later. Financial situation can change dramatically as the days and weeks get closer toward a closing date. If a buyer decides to finance a new Lamborghini during escrow, the buyer could be sleeping in that car instead of a bedroom and the loan wouldn’t close.

It’s imperative that a buyer in escrow understands that he/she may be subjected to last minute credit checks and funds verifications along the way heading towards closing. Not to fear however, if you remain conservative throughout your escrow period when buying a house and keep your job through that period of time, your Pre-Approval letter from your lender is most likely golden! So remember, Pre-Qualifying & Pre-Approving is not a binding contract requiring the lender to extend the loan, nor is it a requirement for you to take on the loan. It’s simply your first real step in preparing to submit offers.

You may ask, why can’t I just qualify at the last minute and save the trouble of meeting with a lender, after all I have great credit? Lenders will not close a mortgage loan for a property that is unidentified. This means, that you cannot receive your loan until you have found the home you want to purchase. The pre-qualification enables you to see your buying power, and your Pre-Approval enables you to jump on your dream deal the moment you know that’s the one!

For more information on the pre-approval process, please contact TeamCox Realtors – Denver real estate specialists – at 303-400-6060.

CLICK HERE FOR OUR FREE Denver Property Search

We hope that you had an enjoyable Thanksgiving weekend. While you were battling crowds at the grocery store last week, according to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 3.98 percent from 4.0 percent, which is close to the lowest point of 3.94 percent seven weeks ago. The average rate on the 15-year fixed mortgage decreased to to 3.3 percent from 3.31 percent.

We can’t stress enough how important it is for prospective Denver homebuyers to take advantage of these historically-low interest rates. Even a small decrease in a mortgage rate can make a noticeable difference in a monthly payment and increase your buying power. There is a great selection of Denver homes for sale on the market, and now is a great time of year to purchase a home since there are fewer buyers than in the spring.

For information on Denver real estate or Denver mortgage rates, please contact TeamCox Realtors at 303-400-6060. We would be happy to recommend some credible Denver mortgage lenders or help you crunch the numbers on what you can afford.

CLICK HERE FOR OUR FREE Denver Property Search

President Obama unveiled a new mortgage plan last week, aimed at reducing monthly mortgage payments for distressed homeowners who owe more than their properties are worth (more than 125 percent of the value of their home). He announced steps for these homeowners to refinance their loans at low rates (around 4 percent).

Is this plan going to help distressed Denver homeowners? Not necessarily. One million borrowers may qualify across the county, but this is only 10 percent of people who need help. Why? The program is limited to those who owe more than 25 percent above the current value of their homes and there are many other obstacles, inlcluding qualification barriers and high upfront costs.

According to a recent Denver Post article, the program will have limited impact in Colorado since it hasn’t experienced a severe real estate downturn. Thankfully, it’s hard to find Colorado homeowners who owe more than 125 percent of the value of their homes. The program will have a stronger impact on states like California, Arizona and Florida, where home values have fallen dramatically over the past few years.

Despite this, nearly 21 percent of mortgages in Colorado are under water, or worth less than the amount owed, so while this new program may not be the answer, there are many other options.

TeamCox Realtors - Denver real estate specialists – is a Certified Distressed Property Expert, or CDPE. We are trained to help distressed Denver homeowners explore all of their options to avoid foreclosure, including short sales, loan modifications and much more. If you are having trouble with your mortgage, or owe more than your home is worth, please contact us at 303-400-6060.

Avoid Foreclosure in Denver

CLICK HERE FOR OUR FREE Denver Property Search

Today’s Standard & Poors/Case Shiller home price index indicated an increase in national home prices by 3.6% from April-June. Also, today’s bond markets recovered much of the losses in the past week. What does this mean? Since interest rates are so low, now is simply a great time to buy and sell a home in the Denver real estate market.

Today’s Interest Rates:

Conventional 30 Year Fixed: 4.25% 0 Origination (4.39 % APR)
Conventional 15 Year Fixed: 3.25% 0 Origination (4.34% APR)
FHA 30 Year Fixed: 3.875% 0 Origination (4.27% APR)
VA 30 Year Fixed: 3.875% .25 Origination (4.36% APR)
Jumbo 30 Year Fixed: 4.875% 0 Origination (5.11% APR)

*All Rates are assuming an 80% LTV, 740 FICO Score, Owner Occupied, SFR. Conventional, FHA and VA examples loan amount of $240,000. Jumbo example loan amount of $500,000.

For information on the Denver real estate market, or for a Denver lender recommendation, please contact TeamCox Realtors at 303-400-6060.

CLICK HERE FOR OUR FREE Denver Property Search

The rate trend is still increasing, although we did see an improvement today. The MBS, mortgage backed securities, trend is higher priced bonds and slightly lower rates.  There was lots of volatility today and these lower rates may not hold.  If you have a mortgage pending, our advice would be to lock your rate.

For more information  interest rate trends, or for lender recomendations, please contact TeamCox Realtors – Denver real estate specialists at 303-400-6060.

CLICK HERE FOR OUR FREE Denver Property Search

Our Denver clients often feel that they are the only buyers out there with the courage to purchase a home.  Well, listen up Denver homebuyers! You are definitely not alone. Investors, first-time buyers, and Denver move-up buyers are all out exploring the Denver housing market. Not only have Denver interest rates remained low, but the Denver inventory of homes for sale is still pretty darn good. 

Here is some encouraging news from the National Association of Realtors:

There’s good news in the latest housing market forecast for 2011 from the National Association of Realtors (NAR). After dipping 4.8% last year, sales of existing homes are predicted to grow 7.9%  this year, to 5.3 million. The gain for 2012 is forecast to be a little less, up 4.5%, to 5.53 million. The existing home median price went up 0.3% in 2010, a nice recovery from the 12.9% price drop of 2009. For 2011, the NAR sees it rising 0.5%, to $173,000, then another 2.4%, to $177,900, in 2012.

All of this is great news for the Denver real estate market. If you are in the market for a new Denver home, or if you are still sitting on the fence, please give a TeamCox Realtors a call at 303-400-6060. 

Homeownership is still the single best way to financial freedom!

CLICK HERE FOR OUR FREE Denver Property Search

There is good news on the Colorado foreclosure front this Christmas. Foreclosures in Colorado’s 12 most populated counties declined last month, according to the Colorado Division of Housing. The number of foreclosures in Colorado’s largest counties decreased 4.2 percent to 2,932 from 3,059 from October to November.

Unfortunately, these numbers may provide a bit of false hope since many lenders still had a backlog of foreclosures to process after foreclosure sales were halted this fall. Overall, though, Colorado, has experienced a decreasing foreclosure rate from last year, which is good news for the overall Denver real estate market.

If you are looking to avoid foreclosure in Denver, please contact TeamCox Realtors.  We are trained CDPE specialists, or “Certified Distressed Property Experts,” who specialize in helping distressed Denver homeowners. The holidays can be a particularly stressful time financially, so please contact us at 303-400-6060, if you need help with Denver short sales, or doing a possible loan modification.

Colorado Foreclosure Update

Avoid Foreclosure in Denver

CLICK HERE FOR OUR FREE Denver Property Search

It’s hard to believe that the year is practically over. Where has 2010 gone? We are all starting to wonder what is in store for the Denver real estate market in 2011. Here are some of our advice and predictions:

Jobs: Housing demand could rise if the labor market picks up faster than expected. In this scenario, prices would firm up earlier in the year.

What to Look For:  Three straight months of rising sales, along with a decreasing inventory of homes on the market (a six-month supply is considered healthy). It is currently at 11 months.

What to Do:  It really is impossible to totally time the market. Even if prices fall a bit more, mortgage rates could rise later in the year, offsetting the drop.

Already a Homeowner?  Refinance–even if you just refinanced a few years ago, since refinancing again may save you thousands.
If you can shave at least one point off your rate and you plan to stay in your home for at least four years, refinancing makes sense. On a two-year-old $300,000 loan at 6.5%, refinancing will save you $465 a month and $120,000 in interest. Or, go with a 15-year loan, which averages 3.7%. Your payment will jump $225, but you’ll own your home 13 years earlier and save $253,000 in interest.

If you would like to find out your best options in the Denver metro area, please contact TeamCox Realtors  at 303-400-6060. We can help guide you through the complexities of analyzing what is in the best interest for you and your family.

CLICK HERE FOR OUR FREE Denver Property Search