Rochester Real Estate Market Trends – Minnesota

Historical Interest Rates Lower House Payments Just as Much as Price in Rochester, MN - Monday Febru
Here are some numbers to consider when trying to decide whether it's a good time to buy:

At the time of this posting interest rates are hovering just below 5%.

$100,000 over 30 years is a $536.82 payment @ 5% like it is today (or less).

$100,000 over 30 years is a $599.55 payment @ 6% like it is going to be at any normal time, if not much higher. 7% would be historically very good over time!

$200,000 over 30 years is a $1,073 payment @ 5% like it is today (or less).

$200,000 over 30 years is a $1,199 payment @ 6% like it is going to be at any normal time, if not much higher.
$300,000 over 30 years is a $1,610 payment. @ 5% like it is today (or less).

$300,000 over 30 years is a $1,799 payment @ 6% like it is going to be at any normal time, if not much higher. 9% would not be historically uncommon!



For everyone looking to save another 10 grand on their home purchase that's a great idea and we hope you succeed.... But remember that for every point that interest rates go up (and they are at historical lows) your payment will go up to close to another 10% of your purchase price.

We already know prices are low. Are interest rates going any lower? Not likely much, if at all!

News for Rochester, MN - Monday February 15th, 2010 1:32pm

Top Tips to Improve Your Credit

Here are some tips, as reported in Rismedia, that you can share with your friends, which will help them improve their credit ratings. This is good advice for people in Rochester, MN and throughout the United States when looking at buying a home, a car, or just controlling your budget.

Top Tips to Improve your Credit

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus-Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you're struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don't cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It's a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don't apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don't pay someone to wipe away the negative items in your file. If they don't follow through, the damaging items will reappear in two or three months... [ + Read Full Article ]

News for Rochester, MN - Monday November 23rd, 2009 3:17pm
Financing For Qualified Buyers: Different lenders have several different financing options. For example, right now Bank of America has a mortgage warranty free for the first year as one of it's popular plans. In Rochester, MN, Merchant's Bank has a 3.9% home improvement rate on homes purchased that already need to have money and work invested into them. This can be very useful for people buying distressed homes as many of the short-sale and foreclosure properties are commonly in need of some repair. MHFA and FHA have their own interesting plans. Call us for a list of options from different lenders.

News for Rochester, MN - Monday October 12th, 2009 4:06pm
Derrick Guevremont
"The first-time home buyer tax credit, which Congress in February increased to $8,000 from $7,500 and eliminated the repayment requirement, is an incentive you'd expect consumers to be clamoring about. But many practitioners are astounded to learn that buyers in their markets who are prime candidates for the credit aren't even aware of it." NAR

To receive this tax credit we have to close by November 30th... Meaning we'd better hurry up if we're going to find something and get it closed in time! Give us a call to get going right away today!