Troy Stavros, Author at 865 Real Estate

Troy Stavros

Gables & Gates REALTORS

865-999-0925

FIND OUT IN 15 SECONDS WHAT YOUR HOME COULD SELL FOR…CLICK NOW!

How a Mortgage Works. A Mortgage Process Infographic.

August 10, 2015 By Troy Stavros

Is buying a home new to you? Trying to figure out how a mortgage works? This mortgage process infographic should help spell out the steps you can expect. Have any other questions about the mortgage process or real estate in general? Don’t hesitate to contact me!

Troy Stavros

Gables & Gates REALTORS

865-999-0925

FIND OUT IN 15 SECONDS WHAT YOUR HOME COULD SELL FOR…CLICK NOW!

How Do Today’s Home Costs Compare To Past Decades

July 27, 2015 By Troy Stavros

Sometimes the best way to know whether your current situation is positive, is to look at the history of that situation. So, I decided to take a look at the history of home costs. In other words mortgage rates and payments, over the last few decades. Here’s how it looks:

What does this mean for you?

With interest rates still hovering around 4% it’s a great time to jump in our way back machine and look at where rates were over the last 40 years.
Most economists agree that mortgage rates are projected to rise a full percentage point by this time next year.
The direct impact your mortgage rate makes on your monthly payment is huge!
Now is the time to lock in a low rate!

Troy Stavros

Gables & Gates REALTORS

865-999-0925

FIND OUT IN 15 SECONDS WHAT YOUR HOME COULD SELL FOR…CLICK NOW!

What Is Equity In A Home? How Does It Help Build Wealth?

July 24, 2015 By Troy Stavros

So what is equity in a home, and how does it help build wealth?

Citing a recent survey by Merrill Lynch, over 80% of the people in the United States believe that homeownership is still “an important part of the American Dream”.

One of the biggest reasons it’s seen as so important is that it helps build family wealth. Last week, Freddie Mac posted about the power of home equity. They defined home equity as:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home’s appreciation. In a nutshell, your money is working for you and contributing toward your financial future.”

They then showed through a real life example, where a person bought a home for $150,000 with a down payment of 10%, leaving a loan amount of $135,000. The home buyer obtained a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance). They then showed what would happen after just seven years of making their mortgage payment, assuming that the home appreciated 3% in value every year (the historic national average):

And the beauty of equity is that the “Equity in Home” dollar amount continues to build as long as you own the home. Merrill Lynch also published a report previously this year showing the average equity homeowners have acquired at certain age ranges.

What does this mean for you?

As a typical Amerian family, home equity is vitally important to building wealth. Referring to the first scenario above, Freddie Mac explained:

“Now, if you continued to rent, and made the same payment of $684.03 per month, you’d have zero equity and no means to build it.

Building equity is a critical part of homeownership and can help you create financial stability.”

Troy Stavros

Gables & Gates REALTORS

865-999-0925

FIND OUT IN 15 SECONDS WHAT YOUR HOME COULD SELL FOR…CLICK NOW!

Renting in Knoxville? Stop Paying Your Landlord’s Mortgage!

July 23, 2015 By Troy Stavros

Are you renting in Knoxville? It may be time to stop paying your landlord’s mortgage.

There are lots of folks out there that haven’t bought a home yet because they don’t feel comfortable taking on the commitment of a mortgage. What everyone needs to realize is that, unless you are living with your parents rent free, you are paying a mortgage – you’re either paying your own mortgage or your landlord’s.

The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, Christina Boyle, tells us of yet another benefit of getting a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As a homeowner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. Many people have trouble saving money consistently, so what better way to force savings than in a investment you can live in! As a renter, you guarantee the landlord is the person gaining all the equity.

The illustration below shows the ever widening gap in net worth between homeowners and renters:

What does this mean for you?

Whether you are a first time home buyer or are thinking about buying a vacation home on the beach, owning might make more sense than renting, due to the fact that home values and interest rates are projected to rise.

Troy Stavros

Gables & Gates REALTORS

865-999-0925