JANUARY 2021
KNUDSON HOME TEAM Laurie Knudson Realtor New office with new opportunities to serve !
9000 Quantrelle Ave N Otsego, MN. 55330 612-308-8749
MORE GREAT STORIES INSIDE: Cover: Math is Hard? Pg 2 - Why Not Wait Until
the Spring
to Move
Pg 3
- Reasons to Hire a Real
Estate Professional
Pg 5 - What is HO-6 insurance? Pg 6- Get ready for SUPER BOWL
MATH IS HARD?!
BINGO 2/7!!
Contributed by Michael Houg MinnTrust Mortgage, LLCMortgage Loan | OriginatorBranch Manager 612-310-7962 Plymouth, MN 55442 | NMLS ID 400282| Branch NMLS ID 1766078 | Corporate NMLS ID 1481553 michael@minntrust.com www.minntrust.com/michael
Currently in all of mortgage history,
it is the 7th most affordable time to buy of all time – that is
simply because mortgage rates are so low. Did you know rates are currently under 3% right now? That means that for every $100,000 you spend on a home; your monthly payment is only $415.00.
Imagine you buy a home for $100,000.
Say for example you put $10,000 down. That means your
investment is $10,000.
Let’s say your home appreciated in value only a measly 4%
(a lot less than historic trends) –
meaning your home went up in value to $104,000. This means you made $4,000 profit.
A $4,000 profit
on your $10,000 investment, is a 40% rate of return. What other investment vehicle
can you earn a 40% rate of return? A typical money market account will earn less than a return – you can’t even keep up with inflation at that rate.
½%
rate of
KNUDSON HOME TEAM
WHY NOT TO WAIT UNTIL SPRING TO MAKE A MOVE The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.
1. Mortgage Rates Are Historically Low In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:“ Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.” Essentially, it’s less expensive to borrow money for a home loan today than it has been in years past. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a home loan. This is a huge opportunity to capitalize on right now before mortgage rates start to rise. 2. Equity Is Growing According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. In addition, CoreLogic notes the average equity homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season. 3. Home Prices According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more moderate home price growth than last year, but still moving in an upward direction through 2021. Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment. 4. There Are Not Enough Homes for Sale With today’s low inventory of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so homes are selling quickly. Making a move while so many buyers are looking for homes to purchase may mean your house rises to the top of the buyer pool. Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine. Bottom Line- If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect to get you set up for homebuying success in the new year.
KNUDSON HOME TEAM Steps to Choosing your Agent! Choosing the right real estate professional to work with is one of the most important decisions you can make in your home buying or selling process. The right agent can explain current market conditions and break down exactly what they mean for you. If you’re considering buying or selling a home this year, let’s connect so you can work with someone who has the experience to answer all of your questions about pricing, contracts, negotiations, and more.
Click the magazine to read article
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RECENT SALES FROM JANUARY
Congratulations on your beautiful new Maple Grove Townhouse, Cathy!!!
SOLD!
SOLD!
Congratulations on your new home in Minnetonka Dyan & Matt!
SOLD! Contact Laurie if you want to be handed keys to a new home this year!
This little gem of a townhouse in Maple Grove is Kristi Knudson's new residence!
KNUDSON HOME TEAM
What is HO-6? HO-6 TOWNHOUSE &
Candee Haagenson Liberty Mutual Insurance Consultant Auto, Home, Life and Small Business Direct Dial: 612-486-3348 Candace.Haagenson@libertymutual.com
CONDO
Insurance Insurance Coverage for your Condo or Townhome What is HO-6 (condo) insurance? HO-6 insurance (commonly referred to as condo insurance) is a policy specifically created for condo or townhome owners, as it provides protection to the internal structure of your condo or townhome, as well as your personal belongings and liability. What does condo insurance cover? Often called “walls-in� coverage, HO-6 insurance works by filling in the gaps that your condo association may not cover in their insurance plan. By protecting any damage to your internal structure, personal property, liability and additional living expenses, condo insurance offers well-rounded protection against standard home issues such as loss of belongings or damaged walls. Additional coverage options: There are a variety of additional insurance policies you can bundle into your condo insurance plan that offer more in-depth and specialized coverage. When signing up for condo insurance, consider the following add-ons to protect your investment from whatever comes your way. Blanket jewelry coverage: If you have a lot of valuable jewelry, blanket jewelry coverage can help provide extra monetary protection in the event of damage or theft without requiring an itemized list or proof of value. Loss/special assessment coverage: In some circumstances, building owners may encounter an accident or peril that exceeds their policy limit. If this happens, they may require payment from individual owners. Loss or special assessment coverage helps to cover those payments.
KNUDSON HOME TEAM
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