Even in a challenging economy you can do plenty to protect your biggest asset

Q.  Given the boom, then the bust in real estate what’s the best way to think about my house: as an investment or just a place to live?

A.  Your home may be your most valuable asset.  But it’s likely to deliver bigger gains in the long run than a diversified portfolio of stocks and bonds.  That was certainly true prior to real estate values taking the hit they have.  Over the past 20 years a period including the headiest days of the housing bubble home prices have averaged gains of just 3.6% a year nationally.  Stocks, despite their recent pummeling, have shown an average gain of 8.4% over the same period.  THE LONG TERM ADVANTAGES – Owning a home however offers other important financial benefits.  There are the tax benefits/breaks: deductions for mortgage interest and property taxes (plus the first $500,000 a couple makes after selling is tax free).  Home ownership is also a stellar savings tool, every mortgage payment forces you to sock more money away, the key reason most homeowners have a higher net worth than renters.  Also note that real estate has been a good hedge against inflation.

 Notes:

• Be realistic about gains.  Expect the value of your home to rise about one to two percentage points over inflation in the long run.
• All real estate is still localized contact your realtor or keep up with trends in your area at Trulia.com and Zillow.com – our contact us so that we can install you on our regular update - a free report that can be customized to your specific neighborhood.
• DON’T overinvest in renovations, assuming you’ll recoup when you sell.  Focus on projects that add functionality and fix problems.

Q.  Does it pay to refinance?

A.  With Mortgage rates near 35 year lows you may be able to cut your payments sharply by refinancing your current loan.  To qualify for the best rates you’ll want to have credit scores or 740 or higher and usually at least 20% equity.  However, even if you have to settle for a higher rate a new loan may save you money (see worksheet below).  Also consider if you’ll live in your current location long enough to offset the closing costs.

Notes:

• Get your credit score from one of the many services like Equifax for $7.95 via annualcreditreport.com
• Shop around for the lowest rates at one of several locations like mortgagemarvel.com
• Run More refinance interest rate options at cnnmoney.com/tools

Or contact us at kelley-rippe@apr.com or call us at (408) 357-8736 and let us help you with the process.

Note:
If you are planning to remain in your home longer than the result in Step 5…it makes sense to refinance now.  Of course we are available to answer your questions at any level to help better your understanding of your home

Q.   Can I still tap into my home equity?

A.   More than a year after credit started getting crunchy lenders are hanging tough about home equity borrowing.  But if you meet their stricter standards, a. a high credit score, b. substantial equity, c. less debt relative to your income (than needed a few years ago) – you should be able to borrow against your house.    NOTE – Be sure to use your line of credit occasionally even it mostly serves as a backup emergency fund.  Dormant lines can be targets for closure.  If your line is cut or frozen, call your lender to see whether the decision is reversible citing your good credit profile.

Note:

• Shop for the best terms; start by calling us or email us for referrals.

Qualifying is tougher (Typical minimums required for a home equity line of credit)

Year    Credit Score    Home Equity    Monthly Debt to Income
2006    620                  0-10%              Under 55%
2009    720                  20-40%            Under 41%

Q.   Is now a good time to trade up?

A.   With home prices down an average of 30% from their peak – trading up now can land you a bigger house at a bargain price.  True you may take a hit selling your place but the amount you’ll save on the higher priced home should more than offset that.  Plus, it should be easier to sell a starter home now doe to a $8,000 federal tax credit for first time home buyers.  Sure you might get an even better deal of you wait, but that concept could be risky.  Best bet: if prices are still falling sharply in your area hold off – if prices are leveling off start shopping.  If you aren’t sure call or email either of us and we’ll provide you with the information you’ll need to determine what is in your best interest.
Note:

• Factor future price drops into your purchase price
• Look into lower priced short sales
• Be aware that the conforming Loan amount is $729,750

Trading Up
Worksheet:

 (Estimate how much home you can handle – assuming a 20% down payment)

(assume a 30 year fixed mortgage at 5% - real estate commission and other closing costs of 10%  source: National Association of Realtors)

Visit us at http://www.kr-re.com/ or call us at (408) 357-8736 for more information.

An Introduction

The Kelley-Rippe Team is headed up by Carol M Kelley and William Rippe, together they represent over 40 years of combined Real Estate experience.  Their respective careers have led them to represent first-time homebuyers and up to top executives of Fortune 500 companies, along with Sellers representing every level of want and need a realtor will see.  They realize that in every real estate transaction a home purchase or sale is likely the one most important investment in each client’s lifetime.  Carol and Bill provide the highest levels of integrity coupled with their award winning service and representation.  Real Estate is a serious business to both Carol and Bill, they take pride in serving their clients with honesty, integrity and courtesy which is why they have earn repeat business as well as referral business from past clients and business associates.  They believe in serving their clients in a straightforward manner providing them with the critical information the client needs to make the vital decision required in all Real Estate transactions.

Carol and Bill united as a team in 2008 and offer real estate expertise few agents can.  In addition to Residential Real Estate, Bill is an expert in land use and together with his Team of professionals has been instrumental in perfecting lot line adjustments, certificates of compliance as well as establishing numerous subdivisions throughout the Santa Clara County.  Few real estate agents will have this acclaim.  

Additionally, one of the more prominent strengths to the Kelley-Rippe Team comes from the strong support group they have as part of their business plan.  The consortium of professionals they have partnered with is unparalleled in the real estate industry and includes yet is not limited to; Attorneys; CPAs; Financial Advisors; Architects; Civil Engineers; Photographers; Plus - Title Companies; Lenders; Inspectors;  Repair Personnel; Insurance Companies/Brokers; Home Warranty Companies; and Contractors.   The Kelley-Rippe Team is able to provide the client with the best very best support service available in the Santa Clara County.  "This Team" and its consortium has the experience you deserve, the knowledge you must - and should demand from any real estate agent.  Our services and the support we receive from our experts is an effort we want to share with you on your real estate transaction(s).

BIO’s

Carol M. Kelley, GRI - Carol has hands-on, day-to-day experience with what is happening in real estate and why.  She has participated in 'hot, cold, and in-between" markets.  More importantly she knows and understands the difference between these markets and how they impact you as a buyer or seller.  Carol's clients have expressed an appreciation for her attention to detail and appreciate her unparalleled professionalism. Carol is an honest, sincere and dedicated real estate professional who has served as; a California Association of Realtors Director and Marketing Chair for the Almaden Marketing area.  She has a Bachelor of Science Degree in Organizational Behavior from the University of San Francisco.

William E. Rippe - Is a fourth generation Los Gatos resident and real estate investor.  He is a graduate of Pepperdine University, Malibu CA with a Bachelor of Science Degree in Management.  His emphasis was on investments and Real Estate.  Bill has earned many real estate awards, and is currently in the “Presidents Club” at Alain Pinel Realtors.  San Jose Magazine has honored Bill as one of the top 5% in sales production, of all Realtors in Santa Clara County for several years running.  Bill is a land expert and has been instrumental in establishing many subdivisions in the area including the Lexington Reservoir Parcels, the 15 lots at the Los Gatos County Club subdivision, the 13 lot subdivision at Shannon & Hicks, three lot subdivision at Mitchell, the five lot subdivision on McKean, the 9 lot subdivision on Uvas, the 20+ lots on La Canada, and the larger parcels Open Space acquired 300+ acres in Saratoga; 700+ acres on Uvas Road.

Together Carol & Bill represent...   

…Old Fashion Professionalism, supported by a consortium of experts all of which are operating in a Technologically Advanced environment.  As your team they represent the best the industry has to offer.  We want to be your realtors for life and believe we have all of the essential pieces to accommodate that requirement.

Welcome to the Kelley Rippe Real Estate Blog

Site is currently under construction. Stay tuned...