Should I buy a house now?

This is a great post:

Why Buy Now … Buying Power!

For home buyers with a long-term housing plan, today's mortgage rates are an incredible value as compared to even February of last year.  Last February, the 30-year fixed rate mortgage averaged 5.05 percent nationwide and today you are around 4.00 percent. If you are one of the many that have waited, you will have saved 13% on your mortgage payment. Take a look at the math :

February 2011 : $539.88 principal + interest for every $100,000 borrowed

February 2012 : $477.42 principal + interest for every $100,000 borrowed

That's $62.06 monthly savings for every $100,000 borrowed.

Same Mortgage Payment ~ 77% More Home

 When you buy a home, you think in terms of "monthly budget" and that's why mortgage rates are critical to home affordability. Your purchasing power is a direct reflection of the mortgage rates of the day. As mortgage rates rise, purchasing power falls. As rates dip, purchasing power rises.  This is why your mortgage dollar goes so much farther today as compared to 20 years ago -- mortgage rates are scraping rock-bottom in 2012 at levels that were previously unthinkable to economists. 

Let's say you have a monthly budget of $1,700 for your mortgage.

In 1991, a $1,700 mortgage payment gets you a loan size of $200,000

In 2011, a $1,700 mortgage payment gets you a loan size of $353,000

In other words, in 2012, for the same monthly payment, you can borrow 77% more from the bank than you could in 1991. Talk about a great deal!   

While property values rose, the affordability index dropped. With rates low and property values stabilizing, this becomes as close to the “perfect time” to buy as we can accurately estimate. No one knows when the bottom or top of any market comes until after it is long gone. Whether we are moving up, down, or laterally the forecasts say that now is the time.

Jim Harmelink

ERA Mortgage
NMLS# 283201
Office: (719)535-7405
Toll Free:(866)820-5526
Fax: (719)535-7393
Mobile: (719)651-0291http://jimharmelink.eramortgage.com/

If you like numbers and statistics you're going to LOVE the 2011 year-to-date Colorado Springs real estate market analysis and preview to 2012.  Happy reading!

Colorado Springs real estate statistics!

Call us if you have any questions. 
Tammy and/or Gayle

Should I clean my own carpet with one of those professional carpet cleaning machines?



Here's a pic of the professional carpet cleaning machine I use

 Have you ever considered buying your very own commercial grade carpet cleaning machine?  Well I did it, and here's my story:

I used to rent one from Home Depot every few months or so (just like the one pictured above).  Then I got tired of schlepping that thing back and forth (it's heavy) so I asked if I could buy it.  They, of course, obliged to the tune of around $400.  Which, I believe, is about market rate for one of these carpet cleaning units.  I saw one at Costco, similar unit, different brand, for about that.  New is probably better.  I bought a used one for some reason.  Was it a good investment?  If you consider spending @ $100 a pop to have the professionals do it, perhaps it pays for itself after 4 or 5 uses.  But remember the opportunity cost and sore muscles (if you're out of shape like me). 

If you decide to spring for one (or rent one), here's a couple things I've learned over the years:

• The handle folds down & makes it slightly more compact & easier to carry.  It's still heavy though.
• Use hot water with little to no "shampoo".  I will either directly spot-treat or place a 1/4 cup of Folex in with the water if necessary.   Folex is the best because it doesn't foam up or leave residue. I used a foaming shampoo once, and it reminded me of that episode of the Brady Bunch when the washing machine overflowed with suds.
• Use your bathtub to fill the blue water bucket.  I used to do it at the sink, which made a mess & took forever.  I even went so far as to boil water on the stove & then put it in.  Loser.  I know.  Beware: I think hot cleans best, but it can loosen the glue. 
• Dump the dirty water in the toilet.  It will be filthy, disgusting and likely have pet hair and small rocks, which the toilet can handle.  I used to poor it in the kitchen sink & the disposal almost blew up trying to grind those tiny rocks. 
• When cleaning, pull the machine backwards and go slowly, slinging that cord over your shoulder. I was told when I rented it to be sure, whatever I did, DON'T run over that cord! I've never done it.  Not sure what really happens, but just in case. 
• You'll get used to the loud, obnoxious noise, but when it changes to a different kind of annoying buzzing sound, it's out of water.  Watch the little clear tube in back as well, because it will show the level of water.
• Try to do it on a day when you can have the windows open & the ceiling fans on.  It get super humid.
• If you use the hand tool, be sure to connect it properly.  I had Home Depot order me a new one, got home and realized they had the water hose opposite the suction hose end and I had to rework it.
• When done, take the blue bucket off, and if possible get it lower than the unit itself.  Then pull the clear tube on the back down, into the bucket, and the remaining water will come out. 
• It's not a bad idea to run a bucket of clear, clean water through using the previous step.
• Afterward, I also hold the hand tool hose up to an outdoor water spigot to rinse it through.

Did I do the right thing buying this machine?  Should I have kept renting or just hired someone to do it?  I'm not sure.  I like to think I'm saving a bundle, and I like to do it when/where I want to.  I guess I like to have the control too.  This last go-around, I actually used the spray hose on a few dirty walls & wiped 'em down while I was at it!  Cleaned my car's carpet & upholstery too.  Now that I know the ropes, I think it was worth it.
http://www.motherdaughterrealestate.com/

How to know if a property has a well in Colorado

Try checking this website:  Colorado Division of Water Resources Search Page

Here's what the main search page looks like.  I had the most luck using the legal description on the property I was researching.  Good luck!
Of course we sell properties with wells, so give us a shout!

Beware of Foreclosure Rescue Scams!

Beware of Foreclosure Rescue Scams!

PikesPeakParent.com : Plant flower bulbs right to avoid spring no-shows

PikesPeakParent.com : Plant flower bulbs right to avoid spring no-shows

Colorado is a "table funding" state for real estate transactions

In Colorado, we are what's called a "table funding" state.  That means when your real estate transaction is closed (usually by a title company),  all money is due and payable (in "good funds" of course; which includes cash, certified check or wire transfer) and title to the property is exchanged.  In a typical situation, that means when the buyer brings money to the closing table (whether via a mortgage lender or cash) that money is then distributed to pay the liens against the property (i.e. the mortgage), the real estate brokers and/or attorneys, the title company, insurance company, and if there's money left over, the seller. Thus, the term "table funding".  Ocassionally, the buyer will even walk away with money if they've obtained a 100% mortgage loan, which is the refund of their earnest money. 
Upon the conclusion of the signing of the seemingly endless documents and distribution of the money, the transaction is officially closed, or sold.