How High-Interest Rates Can Be Overcome

 The better your credit score, the better interest rate you can get when it comes to mortgages. In fact, the first thing a mortgage lender will look at is your credit score. This is now more important than ever in today's housing market.

A High Credit Score Means you Pay your Debts on Time

A mortgage lender wants to know that you will repay your money on time. Those who pay back slowly or do not pay back at all have lower credit scores. Lenders do not want to risk those who pay back slowly.

This doesn't mean that they will not offer you a loan, but it will be at a much higher rate to compensate for the risk. For example, the difference between a 4% rate and a 5% rate on a 100,000 30-year loan is around $59 per month, over the age of the loan that will cost $21,240!

A High Credit Score Means you Have a Good Mix of Credit

A good score also depends on your credit mix. You want to be able to prove that you can handle a variety of debt such as credit card and no installment debt. A mix of both revolving and installment debt shows that you can handle both types of debt. Showing that you can handle both can help you get a lower interest rate.

Why Lenders Base your Interest Rate on your Credit Score

Mortgage lenders will tell you that your credit score is the number one factor in determining your risk of default. If you are approved and have less than stellar credit, you will be charged a much higher interest rate. The lenders will make more money off of you in the event you do default.

Increase your Mortgage Credit Score Before Applying for a Mortgage

If you do have a lower score, then think about improving it before applying for a mortgage. Get your debt under control, have a stable job, and have some money saved before you apply for your mortgage. Improving your credit score is the key to a lower interest rate and with a few simple steps, you can accomplish this.

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Steps To Take When Buying A House

They say buying a house is part of the American dream. Buying a house is one of life's biggest events. When you are ready to take the leap, here are some steps you need to take.

What to Consider Beforehand

Make sure you are ready to become a homeowner because it is not always the best decision for everyone, renting might be the best way to go for some. There are a ton of responsibilities that come along with owning a home such as regular maintenance, inspections, taxes, and more.

Another thing to consider is the timing factor. Look at the mortgage rates and home prices are they rising or staying the same? If the rates are starting to take a leap, then you might want to move quickly. Also, the time of the season can also determine the best time for you to start your search. Spring is typically when listings hit the market. This means that there will be more options for you to choose from. On the downside, it is the most competitive season for buyers.

The last and most important thing is are your finances in good shape. Only set out to purchase a home if you are financially stable. Remember you will need to set aside savings for a down payment and closing costs. If your credit score could be higher, pay off some of your debt to boost your score.

How to Plan Your Budget

Budgeting is essential when it comes to buying a home. Set a time frame of how long it will take you to build up a good down payment. Once you have this timeframe, research Realtors in your area and find the best fit for you. Keep in mind that it takes around a couple of days to a couple of months to find your ideal home, then around 30 - 60 days to complete the transaction from contract to close.

Along with finding a real estate agent, you will need to find a mortgage lender. The best bet is to shop around for the best rates and offers. This will also depend on your credit score. Having an established credit history and a high credit score can allow you to get a better rate on a mortgage.

To check your score, obtain a credit report from Experian, TransUnion, and Equifax. These three credit bureaus allow a free report every 12 months. Lenders typically require a credit score of 620 or higher to be able to obtain a mortgage. If your score is a little iffy, raise it before you apply for a loan.

In order to raise your credit score you will need to pay your bills on time, pay off debt and keep a low balance on your credit cards, and check for any mistakes on your credit report. Lenders want to know they can depend on you to pay you mortgage payment on time.

If you are not able to raise your score or get it over 620, then there are other financing options available. The Federal Housing Administration (FHA) only requires a score of 500 with a 10% down payment or 580 with a 3.5% down payment.

How Much House Can I Afford

When buying a home, you are not just paying the listing price, there are hidden costs. When budgeting, allow for a down payment, closing costs, moving and maintenance costs, as well as an emergency fund for any unplanned maintenance.

You will need to set aside at least 20% of the price of the home for a downpayment on a conventional mortgage. Closing costs are another thing you will need to pay out of pocket which can be between 2% and 5% of the home's purchase price. Remember to always factor in closing costs to your budget! You will also need to pay to move and make any necessary repairs before moving in.

Along with your monthly mortgage payment, you will also have monthly expenses such as utilities, transportation, groceries, entertainment, childcare, credit card debt, savings, etc. A good rule of thumb is for your mortgage payment to be below 28% of your monthly income.

Shopping Around for the Right Everything

When purchasing a house, you not only have to shop around for the right home, but also for a Realtor and a mortgage lender. Doing your due diligence on both can save you time, money, and heartache.

There are many lenders out there who offer different rates and terms. Shop around for the best lender who offers better products. There are several different types of loans with different qualifications. A lender can help you choose the right one for you and also get you pre-approved.

A pre-approval letter can sometimes be the golden ticket for the seller. This tells the seller that you are a serious buyer and you have the finances to back it up. In order to get a pre-approval letter, your lender will need to verify your finances and check your credit score.

A Realtor is your saving grace through the entire process. When choosing a Realtor, it is always good to get referrals. You want to make sure the agent your are considering has a good reputation and experience. It is a good idea to interview several agents to see if they are a match and would work well with you.

Once you have a lender and a Realtor you need to find your home. An agent can help narrow your search by finding a home that fits most of your needs and wants. Your agent should have an extensive amount of knowledge about the neighborhoods you are interested in.

Reaching the Finish Line

Once you have found your home, it is time to make an offer. Your Realtor will advise you on the best approach and will negotiate your contract. Once everything is settled such as contingencies, a home inspection, and disclosures, you are ready to close. Remember your Realtor will help you along the way and make sure you get the best deal.

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The Housing Share of Gross Domestic Product Is Higher in 2022

 For the first quarter of 2022 GDP declined at an annual rate of 1.4% causing the housing share to jump up. In fact, reports show an increase of 16.7%. The residential fixed investment (the more cyclical home building and remodeling component) rose to 4.8% of GDP.

Housing and all activities related to housing give to GDP in a couple of ways. The first is through RFI which stands for residential fixed investment. It is effectively the measure of the home building, multifamily development, and remodeling contributions to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.  The second is the measure of housing services including gross rents (including utilities) paid by renters, and owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units) and utility payments.

The first quarter of 2022 saw an RFI of 4.8% of the economy which came out to be a $1.18 trillion seasonally adjusted annual pace. The housing services made up 11.9% of the economy which was $2.9 trillion on a seasonally adjusted annual basis. That means the total housing's share of GDP was 16.7% for the first quarter of 2022.

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Pontchartrain Beach Could Reopen

 Although Pontchartrain Beach has been closed for several decades, locals still enjoy going to the mile-long sand beach close to the Seabrook Bridge. The Lakefront Management Authority, the current management company of the beach, is seeking bids from companies that would manage the property. They want to find someone who will make the beach safer for swimmers, anglers, and other outdoor patrons.

"What we’re doing now is testing the waters to see what proposals will come in, and what ideas are out there to develop this old beach site," authority Executive Director Louis Capo said.

Pontchartrain Beach was established by the Batt family in 1928 and was originally an amusement park. The amusement park was moved to another location in 1983 and the beach became a swimming hazard. Residents need not worry that anything will be built at the beach.

"Now, it’s not under lease anywhere. But state law requires it can only be used for a beach. You couldn’t put a business there," LMA board member Wilma Heaton said.

The Pontchartrain Beach Foundation would like to lease the beach. The foundation, founded by Guy Williams, the CEO of Gulf Coast Bank & Trust, says his group wants sot clean the beach up and reopen it for swimming, kayaking and other water activities.

"There just aren't many options in our area to get out on the water for free,” Williams said.

"Our focus would be on step one, which is actually getting funding and the renovation that's needed so that the beach can be reopened," Williams said. "If we don't do step one, there will never be a step two."

For whoever ends up winning the bid, the job will be quite a task. There is a lot to do to make the beach area safe for the public. There are still old amusement park structures buried in the beach sand that can cut patrons. The steep drop-off and riprap (a rock material used for shorelines) are unsafe for those swimming underwater.

"We have one responsibility of overseeing the properties within our realms on behalf of the public," Anthony Richard, its chairman said. "We’re trying to get an appreciation on what would be the best use for that particular space that's available that ties into our mission."

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Tips For Brightening Up Your Outdoor Living Space

 Spring is the perfect time to either make updates to your outdoor space or create one. Southern Living Plant Collection gives tips on how to make your space chic and cozy with a pop of color.

Make a Statement!

A good way to do this is to start with flowers. Flowers are the perfect backdrop for an outdoor living space. A great example is bright blue or pink hydrangeas framing a long farmhouse picnic table or porch swing. A perfect setting for a photo.

There's No Such Thing as Too Matchy-Matchy.

You can do a lot with one hue, it is only a myth to not use matching on matching. Just remember to vary the shades of the same color. For example, you can start with blue hydrangeas and add the furniture and accessories in a different shade of the color of the blooms. This makes a modern, monochromatic look.

All White Is All Right.

Most everyone likes the color white, so you can't go wrong with a white-themed outdoor space. A great idea is to go off the Greek Isles look by pairing white cushy ottomans, with a sectional and modern lighting. Top the design off with some white wedding hydrangeas.

Texture, Texture, Texture.

You do not just have to use different shades of a hue but you can also use the same hue with different textures. Take a wicker chair and pair it with a wrought-iron framed table. If you use pillows, take a nubby pillow and place it over a silk pillow for a nice textured look.

Be a Little Bohemian.

What would be included in a Bohemian look? Examples would be patterned rugs, handknit hammocks, fairy lights, and eco-fabrics just to name a few. Adding flowers to you area is a perfect touch to the free-loving, modern hippy-spirited outdoor space.

Create Cute Clusters.

Usually, your outdoor living spaces are intimate so big bulky items are out of the question. Create areas within your outdoor space. Mix both high tables and small side tables throughout the area. Put vases of freshly cut flowers on the tables.

Light It All Up.

Lighting is the key to the perfect ambiance. Your lighting should not be too bright but not be too dim either. A good idea is to use a combination of downlights and spotlights. Downlights will highlight your flower beds and walking paths while spotlights bring attention to exterior architectural features.

Spring is the perfect time to change things up outdoors. Remember these tips to make a perfect place to relax and entertain outdoors this season.

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After Five Years the New Orleans Air Show Comes Back to Belle Chasse

The 2022 New Orleans Air Show came back to the Naval Air Station Joint Reserve Base New Orleans in Belle Chasse after five years. The airshow first began at the Naval Air Station Joint Reserve Base in the 1950s. The pandemic caused the show to cancel in 2020.

The show entertains every generation. One Belle Chasse resident has not been to the show in 20 years. She said that it brought back memories this year when she went to the show.

“I feel like I'm walking in the same footsteps that my dad did,” Hebert said. “It's magical, really. This is Disneyland in my heart.”

“I can't stop smiling,” she said. “I'm probably the biggest nerd.”

The number one favorite attraction was the Blue Angels. Local Theodore Samon said that he specifically came to see the famous Blue Angels.

“Many people only come to see the Blue Angels,” base spokesperson Andrew Thomas said of the U.S. Navy's famed demonstration team. “They are that good.”

Everyone is ready to get out and start going to different events. In the midst of the pandemic, it was nice to get out and enjoy the show.

“It feels like something normal again,” Melisa Gunzburg said.

Patrons come to the naval base but also can see the show from local house parties and picnics on the levee. Boats sit in the canals to watch the show.

“This is all part of their heritage,” Todd Bruemer, the base's commanding officer said.

“People are amazed, excited, and it's nice to give that to people,” base spokesperson Andrew Thomas said. “You're showcasing to the American taxpayer your military but you also get kids out here that say ‘I want to do that.’ It sparks an interest.”

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Plans For A New Subdivision in New Orleans East

 

James Smith of Imperium Estates LLC is a developer which has plans to build a subdivision on 36-acres close to the former Six Flags. The plans include over 116 homes that will be built in several different phases close to the intersection of Interstate 510 and Chef Menteur Highway, just south of the Eastover neighborhood.

“The homes are beautiful,” said Dawn Hebert, chairperson of the East New Orleans Neighborhood Advisory Commission, a group that represents several homeowner and neighborhood associations in the east.

The neighborhood has a few obstacles, including the property's current zoning. The city's master plan has the property zoned for an industrial park. Luckily District E Council member Oliver Thomas is backing the idea of changing the zoning to residential. He feels the master plan does not match the needs of New Orleans East development or the wishes of surrounding residents and landowners.

“I just thought it was appropriate in terms of what they wanted to do to fit to where that community was going,” Thomas said. “I haven’t seen or heard of anyone submitting plans for light industrial development out there.”

Herbert explains that the industrial designation for the area was originally placed in 1970. In five decades there has been zero interest or demand for an industrial park.

“I think it’s outdated zoning because, since Katrina, more homes have been built over there,” said Hebert.

“You don't have a long line of people trying to invest out there,” a neighboring property owner, Robert Charbonnet.

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