melloan real estate agents

5 Things You Deserve

At Melloan Real Estate, we believe you are entitled to these five things when choosing a realtor:

1. UNCOMPROMISING INTEGRITY
We get it. Sometimes people are skeptical when it comes to real estate agents. We are, very intentionally, a small company. Each of our agents has a long, productive background in our community. People know us. Ask around and see what they say.

2. RELIABLE SOLUTIONS
Most days someone will ask us, “How’s real estate?” The best answer is, “It’s changing.” We’ve seen plenty of ups and downs. Our ability to adapt to change, while maintaining long-term principles, is vital as we find answers to your real estate questions.

3. THE SIMPLE TRUTH
Our experience and market knowledge are only valuable to you if we tell you the truth. Sometimes that means we have to tell you things you would rather not hear. This may involve unrealistic price expectations or home staging suggestions. But the end result is far better when we have honest communication.

4. REAL-TIME INFORMATION
New listings and accepted contracts mean that the real estate market is changing by the minute. Interest rates go up and down. National websites are nice, but they’re no substitute for local information that is accurate and current.

5. PROMPT RESPONSE
Yes, sometimes we are with other clients, driving, or in a meeting. And just like you, there are also times when we’re at a movie, at church, or spending time with family and friends. But we are available. When you call, text, or email, we will get back with you as soon as we possibly can.

lovely living room

What Do Low Interest Rates Mean to You?

“How’s real estate?” is usually followed by “What are interest rates?” There has been little change since last week when the average for 30 year fixed rate mortgages hit a 10 week low of 3.65% (USA Today). Here are three examples that may help you understand what low rates can mean to you.

Example 1: A person is renting an apartment for $850 per month, plus utilities. To buy a home, this person could budget around $200 per month for taxes and insurance and have $650 per month left to pay the mortgage principal and interest. A $650 payment covers the principal and interest on a loan of $142,000.

Go to our #1 Search Tool and search for homes priced up to $142,000 to see how they compare to your apartment.

Example 2: A homeowner with a growing family gets a promotion and can afford a higher mortgage payment. Every extra $100 that a buyer can pay each month adds almost $22,000 to the home price the buyer can afford.

Check our mortgage calculator to find how much the payments are for different price ranges.

Example 3: If interest rates go up 0.5%, from 3.65% to 4.15%, the principal and interest payment on a $150,000 loan goes up $43 per month.

As you can see, rates are important. Right now they are really low and there are loans that require little or no down payment.

Let us know if you have questions. Send them to: Johnny Melloan — [email protected] — Text: 270-766-9164

picturesque backyard and patio

Reading Interest Rates

The average 30-year fixed rate mortgage fell this week from 3.72% to 3.65%, its lowest point in 10 months. (USA Today, 2-11-2016)

The general wisdom among economists last fall was that mortgage rates would gradually rise as we came to the end of 2015 and the trend would continue in early 2016. Locally, they did edge up a bit at the end of the year. Occasionally 30 year fixed rates hit 4.25%. Most days they were around 4-4.125%. Today, we saw rate sheets from local lenders quoting rates of 3.65%, which matches the national average. These are some of the lowest rates we have seen in years. With new homes coming on the market for the spring selling season and the surprisingly low rates, this may be an unusually good time to talk with a local loan officer. Getting pre-qualified is an important step in preparing to enter the home-buying market.

We want to know what you think. Send your comments or questions to Johnny Melloan — [email protected] — Text: 270-766-9164

How’s Real Estate?

People are always asking me, “How’s real estate?” It doesn’t mean they’re getting ready to buy or sell a home. Many just want to know what impact the market is having on the value of their home or if it’s time to refinance or get a home equity line of credit.

Sometimes they have a friend or family member who is getting ready to buy or sell a home. If asked for advice, and people often ask for real estate advice, they want to be able to pass along information from real estate professionals who have current knowledge and past perspective.

If you want to know “how’s real estate?” you’ve come to a good place. I’ll be making regular posts about real estate news and trends. Your feedback will be important. Send me your questions and thoughts. We’ll do our best to keep it local, accurate, and interesting.