Over half of Americans say they are likely to buy a home in the next five years

 

By Jesse Darland
Fifty-four percent of Americans are planning to buy a home in the next five years, a figure that's up 12 percent from last year.
Those surveyed also are willing to pay an average of $277,000 for a home and plan to contribute an average 32 percent down payment.
These numbers appear courtesy of the 2017 BMO Harris Bank Homebuyers Report.
Among other findings, the report revealed that 80 percent of first-time home buyers are planning to get pre-approved before making an offer. Ten percent of would-be buyers already are pre-approved.
Four out of five home buyers plan to set a budget before looking for a home. Also, a majority of those surveyed (65 percent) plan to consult a real estate agent.
Online real estate websites are consulted by 61 percent of respondents, while 38 percent seek recommendations from friends and family.
According to the findings, 70 percent of recent home buyers spent six months or less looking for their home before purchasing.
In addition, 10 percent bought a home because a specific property caught their attention, and not because they were actively searching.
"Future buyers are encouraged about their prospects for a home purchase in the near future, and they're keeping a healthy budget top of mind," says Steven Zandpour, senior vice-president and head of retail banking for Chicago Metro North, BMO Harris Bank.
Mobile app usage is growing, especially among millennials.
The report found that 37 percent of millennials plan to use a mobile device in their home search.
Millennials also are more likely than older age groups to get recommendations from friends and family (45 percent) when conducting a home search.

 

Property of the Week: Skyline Estates on the horizon

MADISON — Skyline Estates, located at Lot 4, Skyline Way in Madison, is a 17-lot subdivision offering lots ranging in price from $27,900 to $39,900 and ranging in size from 0.35 to 1.32 acres.

The cul-de-sac community offers privacy and gentle Western Maine views and the benefit of Madison taxes in addition to access to the scenic Silver Lake.

Theresa Bernhardt and Josh Brustin, who are listing the property, are excited to announce that the first spec offering on Lot 4 is well under way and scheduled for late September occupancy. Offered at $264,900 this chalet-style home offers three bedrooms, two baths, two-car drive-under garage, family room, cathedral ceiling great room, hard-surface counters, hardwood flooring, stainless appliances, an oversized deck looking out to Western Maine and sits on a half acre lot.

The MLS number is 4632311. Bernhardt of Pinkham Real Estate can be contacted at (603) 986-5286 or This email address is being protected from spambots. You need JavaScript enabled to view it..

 

Pinkham welcomes two new Realtors to team

CONWAY — Pinkham Real Estate has welcomed Nella Thompson and Charlie Monroe to its growing team of full-time real estate professionals.
Thompson, a lifelong Mount Washington Valley resident, comes to Pinkham as a seasoned veteran in the real estate industry. Says Josh Brustin, owner and principal broker at Pinkham, "With Nella's deep valley roots, background in construction management and unrelenting focus on her clients' needs, we are excited to be part of her upward career trajectory."
Monroe, although new to the real estate business, is not new to sales. His sales and marketing experience in other industries have provided him with a skill set that will translate well to real estate. "Charlie is the nicest guy you'll ever meet," Brustin says. "Although he's been successful in sales, the last thing you'd call him is a salesman. From our first meeting, it was clear to me that Charlie will be an active and enthusiastic member of our real estate and valley community."
Brustin added, "We are so happy that Nella and Charlie were drawn to our team approach, customer-driven philosophy, and commitment to staying at the forefront of real estate technology. Nella's clients absolutely love her, and Charlie's will, too.
Pinkham Real Estate, the longest-serving firm in the valley, as well as Pinkham Vacation Rentals, operate out of their brand-new office located on Main Street in North Conway Village.

Ask a Broker: Are there 10-year loans?

By Peter G. Miller
By Peter G. Miller
Question: We expect to retire in about decade and want our home paid off by then. Lenders make loans for 30 years and 15 years. Do they also make them for 10 years?
Answer: While it's not especially common, lenders certainly can originate 10-year mortgages and will be happy to do so.
The reason lenders are delighted to offer 10-year financing is that such mortgages represent little risk because the loan balance is rapidly reduced and there's no chance the borrower can hang on to the loan for 30 years — good news for lenders who do not want their funds tied up at one fixed rate for a long time when better rates are available.
There are a number of attractions with 10-year mortgages.
First, interest rates fall as loan terms get shorter because with shorter loans there is less rate risk for lenders.
Second, monthly payments rise as terms get shorter because there is less time to repay the debt.
Third, there is a substantial rate discount between 30-year financing and rates for 10-year loans.
Let's look at a comparison.
Imagine that you can get a $200,000, 30-year, fixed-rate financing at 4 percent, 20-year loans at 3.75 percent, 15-year mortgages at 3.35 percent, and 10-year loans at 3.25 percent. The monthly payments for principal and interest look like this:
• 30 years: $954.83
• 20 years: $1,185.78
• 15 years: $1,415.08
• 10 years: $1,954.38
If you choose the 10–year mortgage, the minimum monthly payment will be $1,954.38. Under the terms of any mortgage financing you will not be allowed to pay anything less.
This might be a problem if in the future you have income loss because of reduced hours, a job ends or a business closes.
To have both a lower required payment and a shorter term, you might do better with a 15-year loan and then prepay $539.30 each month ($1,954.38 less $1,415.08 = $539.30).
If something goes wrong, you are only obligated to pay the smaller $1,415.08 monthly payment.
Notice that rates for 10-year and 15-year mortgages are close in this example, so there's little disadvantage if you elect the shorter loan term.
If you do elect to go with a 15-year mortgage, be sure to check the lender's Loan Estimate (LE) sheet to assure there's no possibility of a penalty if you prepay the loan in whole or in part.
Look at the middle of the form's first page to see if the financing has any prepayment penalty.
As always, shop around before selecting a lender.