10 Websites to Determine Your Home Value

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There are a number of online tools to determine your home’s value. This can be great information, even during a less than wonderful housing market. The most recognized among these is Zillow.com, but there are also several alternatives online that may offer a more accurate value than Zillow.

1.) Zillow.com. This is the most recognized home value online estimator out there. It has a relative easy user interface and is fairly accurate on its estimates.

2.) Real Estate ABC is a good alternative to Zillow, and in some cases provides an even better home value estimate. One unique feature is that it offers a list of possibly comparable homes for you to select from to be included in the valuation. The thought behind this feature is the fact you know what homes in your neighborhood are comparable to your own.

3.) Eppraisal This site provides home values as well as demographic data about the neighborhood, including education, finances, and employment of the home it is appraising.

4.) Reply has a simple user interface and provides a confidence rating for each appraisal it provides, based on the factors to generate the appraisal. These are based on features from comparable homes.

5.) Yahoo! Most people don’t realize that the popular search engine also has a good home value appraisal component to its website. It generates its home values by using Zillow, Eppraisal and Reply. This makes is easy to see and compare the 3 different appraisals of your home.

6.) HomeGain provides both market and census data in addition to the home value it offers.

7.) CyberHomes is very similar to many of the other home appraisal websites already listed. The values it provides are relatively accurate.

8.) Property Shark’s is not one of the best home value tools out there. The database is very limited.

9.) HouseFront is another alternative with what appears to be reasonably accurate home values.

10.) Rentometer doesn’t provide the actual value of the home, instead it provides the estimated rent you would pay if you were to rent the home. This can be valuable information to have, as it can contrast with other sites how much you would actually be investing in a new home, rather than just spending it on rent each month that offers no return on your investment.

In addition to the above free options to appraise your home, there are also many websites that charge a fee for the information or require you to enter your personal information so a local real estate agent can contact you.

Keeping an eye on the value of your home can be important, even during these tougher economic times. There are still fluctuations in the market but there still remain certain times that are better selling times than others.

Why Do Mortgage Rates Fluctuate?

Have you ever wondered why mortgage rates change from time to time? You check one day and get one rate and check the next and get a slightly different rate. Mortgage companies and borrowers are subject to potential daily and even hourly shifts in the market. Mortgage rates fluctuate on the simple principal of supply and demand. So why does this happen?

Interest Rates

Interest rates have a dramatic impact on mortgage rates. The higher the interest rate on a home loan, the higher the monthly payments will be. This is why it’s important for home buyers to be certain that their mortgage broker is working with them to receive the lowest interest rate possible on their loan.
In addition, adjustable interest rates can have a devastating effect on one’s mortgage payments. While the interest rate and monthly payments may initially be low, once the interest rate begins to increase, the monthly payments will as well. This can leave homeowners overwhelmed and unable to make their monthly mortgage payments.

Inflation

A major factor that influences mortgage interest rates is inflation. A higher inflation rates is often related to a growing economy. When the economy grows, the Federal Reserve increases the interest rates to slow down the economy and reduce inflation. Inflation is seen during an upward price change of goods and services. In a strong economy, there is higher demand for them, so producers of the goods and services people want, can raise prices. A stronger economy therefore results in increased mortgage rates.

Changes in Treasury Bonds

In order for the nation to pay its debt, the U.S. federal government will sell notes called treasury bonds. They will sell these in an auction style, thus the going rates of treasury bonds largely depend on supply and demand. Treasury bonds are a popular investment choice since the U.S. Government guarantees it. On the downside, the returns of this type of investment are also very low.

Treasury bonds directly affect mortgage rates since investors usually invest their money in a fixed rate treasury bond, and lend you money on a slightly higher rate. The investor’s profit comes from the difference between treasury bond rates and the interest rate they’re giving to you. If the treasury bond rates are higher, they offer you a higher mortgage rate and vice versa.

Economic Conditions

Even in the worst of times, the federal government is still highly unlikely to even consider defaulting on its loans. However, when the economy is in a depression, individuals are at a much greater risk to lose a job and not be able to repay their mortgage. As a result, the mortgage rates will rise much more than the price of other securities because the risk involved in a mortgage has increased.

In addition, interest rates are what controls money flow in the economy. Higher interest rates may curb inflation, but they also slow the economy. Lower interest rates tend to stimulate the economy, but could eventually lead to inflation. There is a delicate balance between decreasing interest rates to stimulate the economy and increasing them to prevent inflation.

There are a number of factors that go into mortgage rates. Each of them plays their own part in the raising or lowering of the rates. Watching, as an informed consumer, and acting at a time when the rates are lowest, is the best way to make a good, informed decision.

Investing During Tough Economic Times

The recent economic issues our country has faced have left many scratching their heads about whether or not investing their money is the right thing to do. Or, should it just be buried away somewhere until the financial storm blows over?

Here are a few things to consider when investing during hard economic times. And, you will note that there are still ways to invest smartly, just remember research and a thorough understanding of what you are getting yourself into is now more important than ever.

A Look at the Past for Hope in the Future

It is easy to get so focused on what is happening today with the economy and forget many of the financial storms the US economy has weathered, even in the last 100 years.

For a review, here is what our economy has pulled through and become much stronger as a result in the last 100 years:

• Great Depression of the 1930’s
• World War I & World War II
• Rapid inflation of the 1980’s

Despite all of these incredible challenges of the 20th century, the standard of living dramatically increased for Americans during this same time span. Also, the DOW Jones Industrial, the most widely followed stock market index in the world, rose from 66 to 11,497 during this same time span. It was actually during the tough economic times the great fortunes were made.

Recessions Provide a Time to Invest Inexpensively

Many experts say a recession can be the best time possible to begin investing because asset prices are at rock bottom lows. You can buy stocks, bonds, mutual funds, real estate, or other types of investments for pennies on the dollar from what you could just a few years back. Many investors are forced to dump their assets. This allows you, the new investor, to pick up some great deals you might not be able to afford during normal economic times.

As with any type of investing, this takes courage. Many times your portfolio will fall even lower after the investment is made. To avoid a financial disaster, experts recommend you go into the market through a “dollar cost averaging,” a technique designed to reduce market risk, and not put all of your money in at once.

Build a Healthy Overall Portfolio

It is more important than ever to build a strong overall portfolio to maximize your gains and minimize your risks. This can take years and should be done with ample research.

Although volumes could be written about this, to get your portfolio as healthy and diverse as possible you should follow these basic steps:

• Contribute the maximum amount to your employer’s 401k
• Pay off (or greatly reduce ) your high interest debts
• Fund a ROTH IRA

• Buy a home
• Build a 6 month emergency fund
• Pursue several investment options (stocks, bonds, mutual funds, CDs, etc)
• Invest in yourself (education, develop skills, start a new business)
• Save for your child’s education.

Stay the Course

Ask any boat captain and they will tell you they’ve had to weather many a storm. The best they can do is just to head in the direction they want to go and wait for the storm to die down. The same is true when it comes to investing. When you have a plan in place, follow it.

If you already have a plan in place for your investments from several years back, continue to follow it. Wealth is not built in a day. If you are just now beginning to invest, don’t let any financial woes our country is experiencing deter you from your goals. Start with a good plan in place and know the great economic times of the past will eventually return and we will be financially stronger as a result of the hard times.