Spurred in part by the opening of the $177 million St. Anthony North Health Campus, plots of vacant land on the north I-25 corridor are quickly being transformed into commercial and retail space. The I-25 and 144th Avenue interchange at the intersection of Broomfield, Westminster and Thornton is seeing millions invested in new construction projects. In fact, Simon Property Group is making plans for a new outlet mall on land it doesn’t even own as other locations are snapped up and built out.
Read article – Denver Post
If you have never owned a home before or it’s been a few years since you have, you’re missing out on some potential credit advantages. A mortgage loan is the largest debt most people carry in their life, and it can have a big impact on your credit score—for better or worse.
It’s difficult to estimate just how much buying a home will affect your score, because it varies by individual situation. At first, some consumers report seeing a small, temporary drop in their credit score due to the hard inquiry a mortgage requires. But, of course, over time as you make your mortgage payments on time and pay down the loan, a mortgage can have a positive impact on your credit.
On the downside, defaulting on a mortgage, going through a foreclosure or short sale, or having a deed in lieu of foreclosure can really tank your credit score. If any one of the scenarios has happened to you, the best thing you can do going forward—beyond keeping your balances low in relationship to credit limits and paying your bills on time without any missed payments—is to give it some time. Taking the time to build a record of regular on-time payments in a variety of loan types can do wonders for your credit. Generally, expect about three years out from the negative credit event to be mortgage-eligible again, which can give you plenty of time to rebuild blemished credit. (If you want to know where you stand creditwise, you can get two of your credit scores for free on Credit.com.)
Showing you can handle the cost of housing
Taking on a mortgage payment for many consumers becomes a true test of what they can afford (this calculator can help you estimate how much house you can afford). This can vary, but lenders typically like to see a potential borrower have at least $15,000 for a down payment to buy a home (if not more), in addition to showing an ability to handle a mortgage payment for the long haul—which is supported by documenting your income and assets.
When you elect to upgrade from renting into homeownership, it is not just a mortgage loan that you are paying. Other home-carrying costs come into play, which affect affordability. First, you will be repaying the loan based on principal and interest, typically for 360 months on a 30-year fixed-rate mortgage, as well as the property taxes, usually based on 1.25% of the price you paid for the home. Additionally, to mitigate hazard liability, fire insurance is required. Lastly, if you are working with less than 20% down, mortgage insurance comes into play, insuring the lender against payment default.
Depending on your financial situation, the cost of housing would work in the following way: principal and interest, taxes and insurance, and in some cases mortgage insurance—known as PITI for short. Home affordability is a big separator between those who rent and those who ultimately can buy. If you have other debt, you need to document you can handle those payments with a mortgage payment, too.
Getting your credit mortgage-ready
Let’s say you can afford a mortgage payment and all your various housing costs, but your credit could use a boost (by the way, even with good credit, anyone could benefit from a potential credit boost brought by a home loan). Whether you see an immediate increase in your score, or see it over time as a result of making your payments on time, a home loan can make you a better credit risk. That can lead to the cost of funds for other forms of credit being lower. Down the road, having better credit can give you the opportunity to refinance and reduce your mortgage interest expense along with removing PMI or making the cost of PMI lower.
This is not to convey that if you rent for whatever reason you will not have a good credit score. In fact, rent is increasingly being considered by credit bureaus for inclusion in your credit report, thus impacting your scores. Rather, the point is that if you own a home, and consistently make a mortgage payment on time, you can reap the credit benefits that stand to remain throughout the duration of your mortgage term.
Recent actions by the Federal Housing Administration to reduce its mortgage insurance premiums is giving its loan volume a major boost, particularly with a “significant uptick in refinancings,” Julian Castro, Department of Housing and Urban Development Secretary, said before the House Financial Services Committee.
Castro said that FHA was on track to also reach its 2 percent statutory capital minimum within two years. FHA is required by law to have at least 2 percent in capital reserves, but was at 0.41 percent as of November last year.
Read more: FHA Lowers Its Mortgage Costs
“With the limited data we have, we believe we are on track,” Castro told lawmakers. He said final numbers would be available in November.
In January, the agency decreased its annual premium by 50 basis points, which has helped to propel loan originations and recapture rates. FHA loan demand also seems to not only be benefiting from the recent premium reduction but also from an improving economy and falling delinquency rates, the National Mortgage News reports.
According to FHA’s latest data, FHA loan endorsements climbed from 50,411 in February to 83,440 in March. A majority of that increase was driven by a spike in refinancings.
Mortgage volume for purchase loans surged 23 percent to 45,571 loans in March compared to a month earlier, according to FHA’s Production Report.
Some critics have said that FHA’s reduction in premiums would delay it from meeting the recapitalization of FHA’s insurance fund. But Castro said the reduction has boosted lending and it will meet the required rate. He also argued that FHA reduced its premiums in order to make loans more affordable; it has not reduced its credit standards.
Sales of properties in Denver’s popular River North neighborhood have amounted to $365 million worth of real estate transactions in the past two years, according to commercial real estate firm Newmark Grubb Knight Frank.
NGKF recently closed on the sale of three warehouse properties totaling 20,000 square feet at 39th and Walnut in RiNo to a local multifamily developer. The buyer paid $3.5 million for the properties, or $175 per square foot.
The sale represents the high level of activity in the area, comprised mainly of industrial buildings and a longtime haven for Denver’s artists who flocked there more than a decade ago in search of cheap real estate.
But RiNo’s popularity has exploded, turning properties there into hot commodities for developers of all kinds.
“The sale of the Walnut property underscores the flourishing activity in RiNo with warehouses rapidly converting to redevelopment sites,” said Russell Gruber, director at NGKF. “In the past two years, sales topped $365 million, representing a total of 130 assets, a remarkable contrast from just a few years ago, where only 50 assets traded for a total of $43 million between 2009 and 2011. In the last 90 days alone, 15 assets have sold for a value of $40 million.”
1. For those not sure which foods grill better than others, try grilling chicken thighs, which have a deeper, richer flavor than breast meat, or pork tenderloin, which can withstand the dry heat of the grill and stay moist. Salmon, tuna and swordfish steaks also grill well because they are thick and crumble less than other types of fish.
2. A grill is not an oven, so don’t walk away from it when it’s on. Organize what you’ll need ahead of time to avoid running back and forth to the kitchen.
3. Before cooking, use tongs to dip paper towels lightly into oil and swipe over the grates. After cooking, always scrape hot grill grates clean with a wire brush so future grilled foods release easily.
4. If the meat or fish sticks to the grill, it’s not ready to be flipped. Let it sit for another minute or two.
5. Use a meat thermometer to ensure safe cooking. Safe internal temperatures for grilled foods are:
- Ground Beef – 160 degrees Fahrenheit
- Medium Steak – 140 degrees Fahrenheit
- Medium Pork – 150 degrees Fahrenheit
- Poultry – 165 degrees Fahrenheit
- Seafood – 145 degrees Fahrenheit
6. For maximum flavor and juiciness, let meat rest 5-10 minutes before cutting or serving.