In its most recent Primary Mortgage Market Survey®, Freddie Mac reported that interest rates for 30 year fixed-rate mortgages (FRM) has dipped even lower, ending the week at an average of 3.49%. In fact, there has only been one week this calendar year that the 30 year FRM was above 4%. The 15 year FRM averaged out to 2.8%, which marks the 9th consecutive week it has been below 3%. To put these rates in perspective, they were 4.55% and 3.66% a year ago. Here’s the good, the bad and the ugly about 15 year FRMs vs 30 year FRMs when it comes to your Lake Havasu home.
These low interest rates not only mean great things for those people interested in purchasing a new Lake Havasu City home, but also for those homeowners who bought their Havasu haven a few years ago. Refinancing your property with today’s interest rate means you can save a bundle over what you are currently paying every month in mortgage payments. For example, if you bought your home in July 2007, you probably paid somewhere around 6.7% for a 30 year FRM (the average rate at that time). If your credit qualifies you for the best rate now, you would save 3.21% in interest. With a 15 year FRM, you would save more than 4% and you’d actually have your home paid off faster than if you stuck with the original 30 year plan.
Many Lake Havasu home buyers choose the 30 year FRM option because it is a bit more budget-friendly when you initially look at it. The monthly mortgage payment is much less than that of a 15 year FRM. This is due to the fact that it is spread over a longer period of time. But it will actually end up costing you so much more in the long run if you utilize the 30 year FRM instead of the 15 year FRM.
The total interest paid at the end of a 30 year FRM is astronomically higher than at the end of a 15 year FRM. For example, let’s say you purchase a $200,000 Lake Havasu City home. Your credit qualifies you for the 3.49% 30 year FRM or the 2.8% 15 year FRM. Your monthly payment for a 30 year FRM will be $897. The 15 year FRM will cost you $1362 per month. During the first five years you live in your Havasu home, you will have paid $33,182 in interest with a 30 year FRM but only $24,130 for the 15 year FRM. This is where it really gets ugly, though. At the end of your 15 year FRM, you will have paid a total of $45,161 in interest alone. However, at the end of the 30 year FRM, you will have paid an astounding $122,910 just in interest. That’s almost $78,000 more and it took you twice as long before you actually became sole owner of your property. That’s crazy!
With interest rates remaining at historical lows for Lake Havasu City homes, you’re getting the best deals ever for mortgage loans. However, you may want to consider the good, the bad and the ugly before determining whether to choose the 15 year FRM or 30 year FRM for your home loan. The 30 year FRM offers a lower monthly payment. But, with the 15 year option, you pay off your loan in half the time (even less if you make extra payments), pay MUCH less in interest and build equity up even faster. Just let me know when you’re ready to start looking for your dream Lake Havasu home.
FEATURED LAKE HAVASU HOME OF THE WEEK
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Garbage disposals are a great tool to have in the kitchen until they fail, and the repair costs can be expensive in some cases. Therefore I have some tips on how to avoid high garbage disposal repairs.
The very useful garbage disposal cuts down kitchen clean-up by cutting food into small bits that can safely flow through your drain pipe. However, as with any machine, they have limited power and are prone to breakdowns. But, the good news is that if you follow just a few basic guidelines for appropriate sink disposal, you can avoid costly repairs from clogs, plumbing and replacement parts.
You should always run cold water when using your disposal unit. Warm water usually liquefies fat from foods and can cause clogs. You should always run the disposal when you put food in the drain. If you leave food in the drain, you can cause too much work for the disposal when you add more food later.
When you have large amounts of food, add a little at a time so the disposal will have enough time to chop up the food properly before adding more. And, you should let the disposal run for a few minutes after the food grinding has stopped. You can also run a little dish detergent in the disposal to clean it from time to time.
Just like your kitchen knives, the blades on your disposal will become dull at some point in time. You can sharpen the blades by running a glass full of ice cubes through it. Ice cubes can be very useful for maintaining your garbage disposal. They beat against the walls of the disposal and between the blades to clear away build-up from food.
You can deodorize your disposal by cutting a lemon into quarters and putting it into the disposal. You can also add baking soda to the drain for a lemony fresh scent.
The community of Bullhead City, Arizona is located at the point where Arizona, Nevada and California all come together. This large connection makes Bullhead City the perfect place to relocate. Bullhead City is a rapidly growing city that sits next to the blue water of the Colorado River. The city’s beauty is striking as it provides a host of outdoor recreational activities
Bullhead City, Arizona is a hub of retail shopping for Western Mohave County and Southeastern Clark County, Nevada. Over five million tourists travel through Bullhead City each year to enjoy the weather and community events. And just across the Colorado River in Laughlin is one of the nation’s most popular gaming communities.
Bullhead City is an oasis in the desert, which makes it perfect for vacationers, retirees, and families. You will find hundreds of acres of city operated parks for hours of enjoyment. One of the more popular parks, Ken Favargue Park, has lighted basketball courts, bike trails, ball fields, playgrounds and a public pool.
The ever popular Rotary Park covers 300 acres of riverfront. The beaches are well maintained and offer Ramada’s, barbecues, a fishing jetty with fish cleaning stations, boat ramps, and a disc golf course. The park offers a lighted sports complex and is also host to regional tournaments. Bullhead City is known for its annual events. The most known events include the River Regatta, the big Chili Cook-Off, Comfest, and a wonderful Christmas Parade. And, other neighboring communities host events as well.
There are several educational institutions in Bullhead City with the largest being the Campus of Mohave Community College. For higher learning, you can get a 4 year degree from Northern Arizona University’s many programs, and the campus is right here in Bullhead City. Because of recent donations, there will be a new 14,000 square foot Health Science building built. The project began in January and is expected to be completed by August.
When you’re ready to relocate to Bullhead City or one of the surrounding communities, give Realtor® Liz Miller a call at 928-208-5184. You can also visit www.HavasuAreaHomes.com for more information on local real estate.
It can be a daunting task trying to figure out if you are ready to become a homeowner this year. However, there are some signs that you can look for that will help you know, for sure, that you’re ready to buy a home in 2012.
Signs that you may be ready to buy a home:
√You can pay a down payment and closing costs: Your down payment will be determined by a percentage of the mortgage you qualify for. Down payments can range from 3% up to 20% of the property’s value. Your closing costs will include mortgage points, title insurance, financing costs, taxes, and other prepaid items.
√You have become familiar with the real estate market: When buying a home, you need to be somewhat familiar with the current real estate market and have a realistic view about what you need and want in a home. A Realtor® can help the more difficult aspects of buying a home.
√Know what you can afford: For knowing exactly how much mortgage you can afford, there is a general guide to go by. Your monthly mortgage payment should equal to or be less than one-quarter of your gross monthly income. This will allow your finances to go to other debts as well without putting you in a financial bind.
√You have good credit: Having your credit in good shape is a plus when buying a home. Lenders will look at your credit history to see if you are credit worthy for a home loan. If you do not know what your credit score is, you can get a report from all three credit reporting companies simply by requesting one. The top three companies that lenders will view include Equifax, Trans Union and Experian.
√Know that extra expenses will come: Extra expenses will come when you purchase a home. This is much different than renting because you will now have to pay for all maintenance and repairs out of your own pocket.
If you have all the signs that you’re ready to become a homeowner in 2012, contact a Realtor® who can help you find your dream home this New Year.
If your plan is to remodel, you’ll need to know what your budget can allow before you contact contractors. You can try a project calculator which uses the largest construction database available to provide you a custom estimate on your project. The amazing thing is you can put in your zip code and project information and the Remodeling Budget Estimator will give you figures for dimensions, contractor, labor, material and local pricing.
The DIY Network site uses information from the most respected data sources that spans over thirty years in the construction industry. The data consist of a multitude of factors that impact your project, such as the consumer price index, specific materials, exact dimensions, local pricing and markup by the contractor.
The research is updated every 90 days throughout the nation to stay on top of material cost by hundreds of lumberyards. They compile labor cost by tracking trends and also collect data from professional remodeling contractors who use this pricing service. The costs are collected from over 200 areas in the nation and are priced to your particular area. The price from the DIY Network site is determined by the information you give the calculator. However, when you have a contractor come in they may find there are things that were not taken into consideration or a number of things that could impact the end price. Some factors that can affect the project are weather, unusual terrain, access to the work area, and scheduling.
You can find the remodeling estimator on the DIY Network site at: www.CostEstimator.com/diy/index.jsp
If you’re considering a move to Lake Havasu City, please take a look at one of the homes awaiting you http://searchallproperties.com/listings/859328/1680-MCCULLOCH-BLVD-S-Lake-Havasu-City-AZ