Fewer retirees own their home free and clear, as 32 percent of homeowners ages 60 to 70 say it will take them more than another eight years to pay off their mortgage, according to American Financing’s Retirement and Mortgages survey.However, many say they intend to age in place, with 64 percent indicating they plan to remain in their current home. Seventy-one percent say they would prefer to make home renovations rather than move, even if a hea
The majority of buyers who obtained a mortgage last year made a down payment of less than 20 percent, according to the National Association of REALTORS®’ 2017 Profile of Home Buyers and Sellers. The median down payment in 2017 was 10 percent, according to the report.The bulk of buyers’ down payments came from their personal savings, but a fraction also came from the sales proceeds of a previous residence or assistance from family or friends
Luxury homes sold at a slower pace in 2017, as more properties in the high-end market were put up for sale, according to a new realtor.com® report. The number of million-dollar listings grew by an average of 3.9 percent.Luxury properties—defined as those with a sales price in the top 5 percentile—took 5.4 percent longer to sell in 2017 than in 2016, spending an average of 116 days on the market. Prices of luxury homes also increased 5.1 perc
Borrowers kicked off 2018 with a mortgage rate drop. The 30-year fixed-rate mortgage is now down a quarter of a percentage point from a year ago.“Treasury yields fell from a week ago, helping to drive mortgage rates down to start the year,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The 30-year fixed-rate mortgage fell four basis points from a week ago to 3.95 percent in the year’s first survey. Despite increases in short
For the first time since 2004, the renter population decreased, according to the Annual Rent Report from ABODO, an apartment listing service. Still, renters continue to outpace owners, according to the report.There are about 43 million renters in the U.S., which is more than a third of U.S. households, according to a report from Harvard University’s Joint Center for Housing Studies.Despite the decrease in renters in 2017, landlords continue t
The recent tax bill could cause the Federal Reserve’s rate increases to come faster—mortgage rates are expected to go up three or four times in 2018. This could push 30-year mortgage rates up past 4 percent in the new year.Mortgage rates typically follow the Treasury yield. The federal funds rate sets the stage for the path mortgages will take. The Mortgage Bankers Association forecasts that mortgage rates will go up, but will stay below 5 p
Over the past 12 months, many well-off Americans have been getting wealthier. The United States added more than a million new millionaires over the past year as stock prices rose, according to the Global Wealth Report published last month by Credit Suisse.That has helped fuel increases in many second-home markets across the country. Hawaii and Colorado may be the two luxury markets that saw the largest upticks in 2017, according to data from real
The phrase “house poor” describes buyers who’ve bought a home they can’t afford. Most financial advisers say those who spend 30 percent or more of their pretax income on housing costs qualify for such a label. Under that standard, nearly 40 million U.S. households are considered “house poor,” according to the State of the Nation’s Housing 2017 Report from the Joint Center for Housing Studies of Harvard University.Banks use different
The new tax law, which was signed into law at the end of 2017, will directly or indirectly affect most current and prospective homeowners. Those affected directly are mostly found in the higher-cost housing areas of the nation, and will find their mortgage interest deduction limited by a new maximum loan amount of $750,000, down from $1 million. There is also a cap on the deductibility of state and local taxes of $10,000. In addition, the gre
Retirees are finding that a $1 million nest egg—which was once considered a benchmark for a secure retirement—may no longer be enough. As younger generations age, they will likely see that having a million dollars in retirement may even put them at poverty risk when they retire, financial planners warn.A 67-year baby boomer retiring with $1 million will generate $40,000 to live off in the first year (adjusted for inflation and assuming a wit
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