UPDATE: December is here, and homeowners are urged to conduct their annual real estate checkup immediately! This essential review can significantly impact your financial health as you prepare for the new year.
Just announced by real estate expert Duane Duggan, this checkup is critical whether you own a home or are considering your first property. For those without real estate investments, the message is clear: now is the time to start! The earlier you invest, the more potential your property has to generate retirement income.
For current homeowners, the checkup involves several key steps aimed at ensuring your real estate continues to support your financial goals. It’s essential to meet with a Realtor® and get a market analysis. Properties in Boulder have shown long-term appreciation; for example, homes in Baseline Subdivision that sold for under $30,000 in 1978 now start around $750,000 in 2025.
Reviewing your real estate insurance is equally important. With rising building costs since events like the Marshall Fire, ensure your coverage aligns with current replacement costs. Additionally, consider flood insurance, especially after the devastating 2013 floods.
Homeowners should also check their loan balance. If you have a 30-year amortized loan, remember that principal reduction accelerates after about 14 years, which contributes to equity growth. This information is crucial for an accurate picture of your net worth.
Mortgage insurance can also be a focus area. Many homes, especially those bought with low down payments, require Private Mortgage Insurance (PMI). With property values on the rise, it’s worth contacting your lender to see if you can eliminate PMI, which could lower your monthly payments significantly.
Interest rates are another critical factor. Rates were higher in 2024 but have dropped in 2025. If you are five years into a 30-year loan, now is the perfect time to consult with your lender about refinancing options or recasting your loan. Lowering your interest rate could dramatically reduce your monthly payment.
Consider your loan term carefully when refinancing. If starting over on a 30-year loan doesn’t appeal to you, a 15-year loan is another option that could expedite principal reduction, although it comes with higher payments. Some lenders may even allow a recast with a new interest rate.
Meeting with real estate professionals is vital for understanding your equity and exploring options for expansion. If your family has grown, you may need a larger home. You might even consider renting out your current home while using cash from refinancing for a new purchase.
Conducting a home inspection is another important step. Regular inspections can help identify potential issues early, preventing costly repairs down the line. Don’t forget to check your attic; you might be surprised by what you find!
Lastly, explore the option of a home warranty. Coverage for essential systems in your home can provide peace of mind, especially in times of financial uncertainty.
Start your annual real estate checkup today by connecting with your Realtor, lending professional, and home inspector. This proactive approach can safeguard your investments and set you up for success as you head into 2025.
For more insights, reach out to Duane Duggan at [email protected]. Stay informed by following local real estate news with atHome Colorado, your weekly resource for trends and updates in the Boulder area.
