#HomeOwnershipBuildsWealth

#HomeOwnershipBuildsWealth

The family home is a real estate, not an ATM from which to withdraw equity. A HELOC  is not an investment strategy any more than paying full boat for life insurance and borrowing your cash back at the current rate. A good investment is paying off a substantial debt so you can free up cash flow for future investments.

One additional principal only (not escrow or PMI) payment each year will reduce your 30 year mortgage to about 23 years (saving up to $56,000 at 6.5%). Two additional principle only  payments will drop your 30-year mortgage to about 17 years, while making twelve extra principle payments will allow you to pay off a 30 year mortgage in 10 years! Your lender likes you to pay mostly interest on the whole loan at the beginning, not equally through the term because of how your ratios are amortized, so the wise person adds an extra principle payment or two per year to reduce the loan term.  PMI and interest payments may be changed by your lender, however the wise borrower uses their freedom to make prepayments, since debtors pay interest on what they owe every month.  

While home improvement contractors and town assessors like you to make big investments in renovations, your wise financial planning self likes debt resolution and income creation through designated asset allocation. Perceived benefits of debt with a low (<5%) mortgage rate are: 1) the fact money gets easier to earn in the future due to inflation, 2)the interest expenses tax write off may be valuable, and c), you might more money investing those 2 payments a year somewhere else.

I have learned a lot since 1996 as a licensed real estate agent in Connecticut, and enjoy discussing options of wise planning, when buying, selling or investing real estates. As a Connecticut Fidicuary REALTOR since 1996 I advise you to complete due diligence with your fiduciary accountant or financial planner as well. ©David Carr 11.3.17 All Rights Reserved 203-877-2704 x 400826

New-Haven-Hartford-Springfield-commuter-train-coming-soon

CT Rail New Haven Hartford Line Proposed Fares for Rail Service Announced

CT Rail New Haven Hartford Line Proposed Fares Announced

On Monday, October 23, 2017, the Connecticut Department of Transportation (CTDOT)  announced a 35-day comment period on the New Haven to Hartford, Hartford to Springfield Train Line. The CTDOT is providing a variety of ways to submit comments on the proposed fares ($6.25 from New Haven to Springfield with senior/disabled discounts).

Look at the stops along the corridor here.

Both CTrail - Line and Amtrak trains will serve the 6-17 roundtrips along the New Haven-Hartford corridor, and up to seven from Hartford to Springfield. The SAFE Analysis and proposed fares do not apply to Amtrak service on this  81 minute train trip that will travel up to 110 mph.

New Haven continues to gain traction as a regional hub of economic and transportation resources, making now a good time to become and expert in your market.  David Carr, Licensed REALTOR since 1996. The foundation of your success in real estate, here when the time is right for you.

The best financing options may be overlooked......

When you are getting ready to buy a home and deciding what your monthly payment will be, the best financing options may be overlooked in the excitement of touring homes and neighborhoods.

The Connecticut Housing Finance Authority provides some of the most competitive home ownership opportunities in the state for individuals who make less than $89,000 per year and want to buy homes under $281,000. In target cities like New Haven, house prices and incomes go up, as in Fairfield County

As your exclusive Fiduciary Buyer Representative, I will help you understand options that will save you money every day.

Remember, if you spend $4000 extra on origination fees of a thirty year 4% fixed rate mortgage, you will pay around $160 extra interest per year to borrow those higher fees. Multiply that by 10 or twenty years, and you see how much the right decisions are worth.

Saving a half, or a whole percent can change your costs on a $200,000 mortgage $500-$1000 per year, enough to make extra principle prepayments, or have some extra cash on hand for steak and lobsters.

If you skip the lobster and steaks, choosing an extra principle (no extra interest) payment per year, you can pay your 30 year mortgage down in about 23 years. Make two extra principle payments per year and pay off in about 17 years. If you double your principle only payments you can pay off a 30 year mortgage in about 10 years! You have to decide if that cash is best invested paying off this debt, investing in a higher yield investment, or just having more steak and lobster parties.

Since 1996 I have maintained my commitment to helping my clients build wealth with the leveraged power of home ownership, delivering “the Foundation of Your Success in Real Estate” since 1996

Sincerely,

David Carr       Berkshire Hathaway Home Services New England

203-877-2704 Extension 400826                          “On the Green” in Milford Connecticut

CT now ranked 32 in 2016, moving up 7 in national Economic Indexes

10/4/17 (CT) Connecticut ranked 32nd out of the 50 states and the District of Columbia (DC) in the State Economic Indexes (SEI) in 2016, moving up from the 39th position in 2015. In fact, last year's overall economic performance was the best in terms of the ranking in six years. Colorado, once again, ranked first in the nation with the highest index last year (145.3), while Wyoming came in last (102.6). Our state's index of 120.5 was close, but below the nationwide median value of 124.5.

SOURCE
https://www1.ctdol.state.ct.us/lmi/digest/pdfs/cedoct17.pdf

Connecticut real estate remains under valued,  with lower taxes than New York and New Jersey, supported by excellent quality of life factors. Since 1996 REALTOR David Carr, M.A.  has guided buyers and sellers of real property through the course of transaction management, providing patience, active listening,  expertise, perspective, comparable market analysis as a licensed fiduciary agent. Enjoy the less than two hours Metro North ride to Grand Central Station when you move to my shoreline neighborhood.

Buyers may qualify for 105% financing on owner occupied properties up to $676,000 in targeted areas of Connecticut with buyer income up to $153,000, paying as little as 3.25% for a 30 year fixed mortgage.    Now is a good time to call 203-877-2704 ext 400826, or find me online as David Carr Connecticut Real Estate

Connecticut 4th Best State for Teachers to Work

9/27/17 (CT) - Connecticut placed in the top four when WalletHub’s analysts compared the 50 states and the District of Columbia based on 21 key indicators of teacher-friendliness. Our data set ranges from teachers’ income growth potential to pupil-teacher ratio to teacher safety. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

Connecticut continues to place high in quality of life rankings, which is why people see the value of living here. Climate, recreation, health, access to so much within 150 miles, and a beautiful shoreline served by Metro North Commuter Rail, placing Grand Central Station less than 2 hours from New Haven.

Learn why you might find value living in the state of steady habits when you team with David Carr, your licensed real estate fiduciary since 1996.  Call 203-877-2704 Extension 800426 to have a conversation, or find me online as David Carr Connecticut Real estate  

#Connecticut 4th Best State for Teachers to Work
#David Carr Realtor Since 1996

Increasing Advertisements for Home Equity Loans

 9/14/17 (CT) Over the past couple months I have noticed an increase in advertisements for Home Equity Loans and refinancing n Southern Connecticut. This may be indicative of increased confidence in appraised property values by lenders and investors.

While one can not say for certain what the future holds, since 2012 the Carr Value Shelf  has maintained a position that the base FHFA-HPI index of 173-178 is a unique indicator of value to Connecticut, locally, and in relation to broader national markets. Connecticut trails the nation in house price value  recovery, and is  rated "undervalued"  in September 2017 by Core Logic (a data analytic company).

Regarding home equity loans, I do not endorse using your real estate equity as a CAM (cash access method).  If you have equity in your home consider investing in property that will provide income and tax advantages over time. The person, family or organization  who operates within their means and invests 10% of their income will be rewarded with future financial security.

People who have debt must invest an additional 10% of their income in debt retirement to avoid the ling term consequences of interest payment servitude. This means a person who makes $60,000 gross, taking home $48,000 after taxes should strongly seek to do  *whatever it takes*  to invest $4800/year in their future, and $4800/year in resolving  debt to assure a secure financial future.

Let me help you by offering this plan for financial independence now, so you can live a better life in five years

Fannie Mae (Conventional Loans) is increasing their max debt to income ratio

8/1/17(CT)  Fannie Mae (Conventional Loans) is increasing their max debt to income ratio from 45% to 50%.   This is actually going to be a huge deal.   For a couple making 80K in total income this would allow $333 in extra monthly debt payments.   That actually translates to about 60K in additional purchasing power for that couple.   And the more a person makes in income the more their purchasing power would increase. 

FHA still goes to approx. 55% in debt ratio but this move will definitely enhance the conventional side including the conventional CHFA program.

Below is a link to an article that explains the change.

http://www.realtor.com/news/real-estate-news/easier-to-get-a-mortgage/

When you are thinking about Southern Connecticut Real Estate, be an expert I your market b emloyin David  Carr as your exclusive fiduciary buyer's agent or marketing partner. Since 1996 I am proud to be the foundation of your success in real estate

Call me at my office 203-877-2704  x 400826 (Direct to my cell)

"On the Green" in Milford CT

Good To Know!