Boulder County Realty Real Estate BlogRecently posted or modified blog posts in the category - Newshttps://www.advancedhomegroup.com/blog/Copyright AdvancedHomeGroup.com2020-12-03T20:19:28-07:00tag:advancedhomegroup.com,2012-09-20:83692021 Conforming Loan Limits Boulder County and Beyond<img src="https://assets.site-static.com/userfiles/1323/image/2021_Conforming_Loan_Limits450x378.png" width="450" height="378" alt="2021 Boulder County Conforming Loan Limits" title="2021 Boulder County Conforming Loan Limits" style="float: right;" class="img_box_right" />The Federal Housing Finance Agency (FHFA) announced on November 24, 2020, that the nation-wide maximum conforming loan limits for 2021 will increase to $548,250 compared to the 2020 limit of $510,400. The loan limit was increased as a direct reflection of the 7.42% increase calculated by the FHFA in their seasonally adjusted housing price index.
In our area specifically, a higher conforming loan limit was established because Boulder County satisfied the regulatory criteria which states that if "115% of the median home value exceeds the nation-wide conforming loan limit" then the limit shall be increased. Accordingly, in these higher-cost areas like Boulder County, the 2021 conforming loan limit is $654,350. See a full summary below.
‘Conforming loans’ refer to loans with origination balances below a specific amount as defined by law. These loans are then eligible for purchase by the two government-sponsored mortgage loan companies, Fannie Mae and Freddie Mac, to maintain liquidity, stability, and affordability in the mortgage market. Loan amounts above the defined limits (set for each county across the nation) are referred to as jumbo loans. Often times, interest rates for loan amounts that are on the cusp of this division fluctuate and an increase in the conforming loan limit may or may not translate to more attractive interest rates.
Conforming loans and Conventional loans are typically used interchangeably by Realtors®, but there are some differences. "Conforming" relates to whether or not the amount of the loan adheres to the limits used by Fannie Mae and Freddie Mac (these corporations purchase mortgage loans). A Conventional loan is not insured by the government but it does adhere to the conforming loan limits so that it can be sold to Fannie and Freddie.
The New Conforming Loan Limits Begin January 1, 2021
2021 Conforming Loan Limits for Boulder and Beyond (<a href="https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx" target="_blank">click for map</a>)
2021 Boulder County Conventional Loan Limit: $654,350<br /><br />2021 Broomfield County Conventional Loan Limit: $596,850<br /><br />
Denver, Broomfield, Arapahoe, Douglas, Adams: $596,850<br /><br />
Larimer County and Weld County: $548,250<br /><br />
<a href="https://www.fhfa.gov/DataTools/Downloads/Documents/Conforming-Loan-Limits/FullCountyLoanLimitList2021_HERA-BASED_FINAL_FLAT.xlsx" target="_blank">Click here</a> to access a spreadsheet of the full list of 2021 maximum loan limits for all counties across the US.
2020-12-03T17:56:00-07:002020-12-03T20:19:28-07:00Kirk Wittigtag:advancedhomegroup.com,2012-09-20:4385Boulder County Receives a Bump in Conforming Loan Limits for 2020<img src="https://assets.site-static.com/userfiles/1323/image/house_made_of_blocks_in_grass.jpg" width="350" height="233" alt="2020 Conforming Loan Limit Boulder Area" title="2020 Conforming Loan Limit Boulder Area" class="img_box_right" />The Federal Housing Finance Agency (FHFA) announced on November 26, 2019, that the nation-wide maximum conforming loan limits for 2020 will increase to $510,400 compared to the 2019 limit of $484,350. The loan limit was increased as a direct reflection of the 5.38% increase calculated by the FHFA in their seasonally adjusted housing price index. ‘Conforming loans’ refer to loans with origination balances below a specific amount as defined by law. These loans are then eligible for purchase by the two government-sponsored mortgage loan companies, Fannie Mae and Freddie Mac, to maintain liquidity, stability, and affordability in the mortgage market. Loans with origination balances above the defined amount are referred to as jumbo loans. Often times, interest rates for loan amounts that are on the cusp of this division fluctuate and an increase in the conforming loan limit may or may not translate to more attractive interest rates.
Conforming Loan Limit is Effective for Dec 2019 Loans
Homebuyers could take advantage of the loan limit increases as early as December of this year. In our area specifically, a higher conforming loan limit was established because Boulder County satisfied the regulatory criteria which states if "115% of the median home value exceeds the nation-wide conforming loan limit" then the limit shall be increased. Accordingly, in these higher cost areas like Boulder County, the 2020 conforming loan limit is $644,000. See a full summary below.
2020 Conforming Loan Limits for Boulder and Beyond (<a href="https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx">click for map</a>)
Boulder County $644,000<br /><br />
Denver, Broomfield, Jefferson, Arapahoe, Douglas, Adams: $575,000<br /><br />
Summit County: $625,000<br /><br />
All other counties in CO: $510,4002019-12-27T14:25:00-07:002020-01-30T21:42:57-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:32321st Ever Net Zero Energy Leasing in Boulder<img src="https://assets.site-static.com/userfiles/1323/image/NZELease.jpg" width="1000" height="667" />
Imagine working in an office-space where your monthly rent costs are dependent on the amount of electricity you consume from plug-type devices, the number of days you choose to drive to work versus take public transportation, and potentially how warm or cool you prefer your working space to be throughout the year. This situation is a reality if you work within the new zero net energy <a href="https://bouldercommons.com/sustainability/" target="_blank" rel="noopener">Boulder Commons development,</a> located just southeast of Valmont and 30th near the Steelyards. Boulder Commons consists of 100,000 square feet of commercial space, a restaurant and coffee shop spaces, and community gathering areas. It was developed by Morgan Creek Ventures and designed to be a<a href="https://www.wbdg.org/resources/net-zero-energy-buildings" target="_blank" rel="noopener">Net Zero Energy</a> (NZE) complex, which means the facility generates all of the energy that its tenants consume. Boulder Commons is outfit with photovoltaic cells for solar power, a responsive HVAC system based on individual units vs entire building, and advanced buildings materials that optimize insulation and reduce energy leakage. The parking garage is outfit with EV charging stations and spaces are allocated for tenants that utilize car shares and carpools. <br /><br />ZNE buildings are growing in popularity across the U.S. increasing 400% over the past five years from 99 total projects in 2012 to over 400 projects in 2017. The majority of these projects are owner-occupied. Tenant-occupied ZNE buildings have lagged in growth primarily due to the absence of lease precedents that create a win-win situation for both the landlord and the tenant. Colorado now has such a precedent as the state’s first NZE lease has been established between Boulder Commons and its first tenant, Rocky Mountain Institute (RMI). RMI is an internationally-recognized, non-profit environmental consultancy with 180 staff and annual operations of $42 million across five offices.<br /><br />When a tenant enters into a NZE-lease agreement, they agree to manage their power consumption to stay within a range that allows the building to provide 100% of the building’s entire energy demand. If the tenant exceeds a pre-defined consumption rate then they are required to pay more in rent to cover the purchase of offsite renewable energy generation through renewable energy certificates (RECs) (i.e. tradeable environmental commodities that represent a certain capacity of renewable energy generated by a source that is traceable, legit, and not previously claimed for its environmental benefits). RMI is an unusual tenant in that it dedicates time and resources towards analyzing how best to structure the lease with Boulder Commons and now provides a <a href="https://rmi.org/news/city-rockies-paves-way-net-zero-energy-leases/" target="_blank" rel="noopener">guide</a> for others to reference moving forward. <br /><br />NZE building development dovetails naturally with Boulder’s progressive climate action policies. In 2007, the city implemented the nation’s first voter-approved tax dedicated to addressing climate change (i.e. Boulder’s Climate Action Plan CAP). The tax is one component of the city’s overarching goal to reduce greenhouse gas emissions 80% of 2005 levels by the year 2050. In order to achieve an 80% reduction by 2050, analysts estimate that city-wide electricity consumption needs to decrease 25% by 2020 and 50% by 2030. The city’s climate action plan also aims to attain 100% renewably-sourced electricity by 2030 with at least 100 megawatts of the generation being provided locally. Expect to see more NZE building development in the years to come across the Front Range.2018-11-13T18:03:00-07:002019-05-01T17:36:09-07:00Kirk Wittigtag:advancedhomegroup.com,2012-09-20:3283Denver Among Top Cities for Women in the Tech Sector<img src="https://assets.site-static.com/userfiles/1323/image/woman-in-front-of-computer.jpg" width="640" height="457" />
According to study conducted by Smart Asset, analysts evaluated 59 U.S. cities and ranked them by value based on gender pay gap, income after housing costs, tech jobs filled by women, and four-year tech employment growth. Click <a href="https://smartasset.com/mortgage/best-cities-women-in-tech-2017" target="_blank">here</a> for the article.Denver was recently ranked #8 among the top 15 cities that provide the best working environment and compensation for women in computer and mathematical occupations. The tech industry in the Denver metro area is strong. The list of leading companies in the industry abound and include: Ball Aerospace, Covidien, Digital Globe, Emerson Micro Motion, Google, IBM, Level 3, Lockheed Martin, Log Rhythm, Northrup Grumman, Oracle, Qualcomm, Rally Software, Siemens, Sierra Nevada, Seagate, and Spectra Logic. 2018-10-02T17:55:00-07:002019-05-03T17:56:41-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3284Colorado Ranks Among Top States for Retirees<img src="https://assets.site-static.com/userfiles/1323/image/elderly-couple-smiling.jpg" width="768" height="1024" />
Colorado recently ranked #17 among the best states in which to enjoy your retired years. Things like low crime-rate, weather, culture & social scene, low taxes, and quality of healthcare balance the relatively high cost of living to help our state shine. Read the article <a href="https://www.bankrate.com/retirement/states-ranked-from-first-to-worst-on-retirement-2/" target="_blank">here</a>. 2018-08-07T17:58:00-07:002019-05-03T17:59:35-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3239Federal Tax Law Changes: Summary for HomeownersWe’ve had a number of buyers and sellers ask us how they will be affected by the tax reforms. As real estate professionals, we are not able to provide clients with tax or investment advice. Thus, the information provided below should not be used for these purposes. Please consult your tax advisor. The following is a summary of information gleaned from various publically available resources.
Congress approved significant tax reforms on December 22, 2017 as part of the Tax Cuts and Jobs Act (TCJA). You can read the full regulation text <a title="TCJS Regulation" href="https://www.congress.gov/bill/115th-congress/house-bill/1/text" target="_blank" rel="noopener">here</a>. The IRS continues to provide clarifying memorandums on aspects of the regulation <a title="IRS Memos and Updates" href="https://www.irs.gov/newsroom/tax-reform" target="_blank" rel="noopener">here</a>. The regulation applies to taxable years between 2018 through 2025 and affects corporate and individual tax structures.
The regulation provides for a reduction in income taxes, doubles the standard deduction, eliminates personal exemptions, limits property tax deductions, caps mortgage interest deductions, and increase the estate tax exemption value. We provide a summary of the changes related to solely to homeownership below. You can find an overview of all of the individual tax reforms that were enacted, related to homeownership and beyond, in this <a href="https://taxfoundation.org/conference-report-tax-cuts-and-jobs-act/" target="_blank" rel="noopener">article</a> and this <a href="https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968" target="_blank" rel="noopener">article</a>.
Key Elements of the Tax Reform Act Related to Homeownership
Standard Deduction: The standard deduction has increased to $12,000 for single filers and $24,000 for joint filers. This equates to a portion of the population no longer needing to itemize deductions.
Deduction of Mortgage Interest: A new limit or cap is placed on the amount of mortgage debt that can be deducted. Interest can now be deducted for up to the first $750,000 of the loan. The previous cap was $1,000,000. This change affects loans issued after December 15, 2017. Note that folks can refinance mortgage debts that existed before Dec 15th and deduct interest on loan amounts up to the previous $1,000,000 cap under the condition that the new loan does not exceed the amount refinanced.
Deduction of Home Equity Loans and Lines of Credit Interest: Interest on these loan instruments can no longer be deducted when funds are utilized for purposes other than home improvement. Previously, any and all interest on home equity loans or lines of credit, up to $100,000 in loan amount, was eligible. The IRS provides clarity on the caveats around the deduction requirements <a href="https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law">here</a>. Basically, if HELOC funds are used to build or substantially improve the home then interest may be deducted.
Taxes (both State and Local): There is now a $10,000 cap on the maximum amount of state and local tax that can be deducted. Filers can claim a combination of property tax plus either income or sales tax (same as before) up to the $10,000 amount (this is the new part).
Estate Tax Exemption: The tax exemption on estate value was doubled in 2018 from previous the value of $5.6 million to $11.2 million and will continue to be adjusted for inflation albeit using the new “chained CPI” or C-CPI rate table.
Moving Expenses: Folks can no longer deduct moving expenses unless they are members of the military.
2018-03-14T18:51:00-07:002019-05-01T18:52:27-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3265Popular Louisville Park to be RenovatedIn July, the Louisville City Council <a href="https://www.louisvilleco.gov/Home/ShowDocument?id=13565" target="_blank" rel="noopener">approved funding</a> for the replacement of the Heritage Park playground. Board members cited the increasing difficulty in sourcing replacement parts for the ageing structure and the fact that it does not meet access requirements per the Americans with Disabilities Act as primary reasons for the renovation. The city selected Designscapes Colorado as the contractor for the job. The budget for the project is not to exceed $280,000. No additional information has been provided on estimated dates for demolition and construction. 2017-08-28T16:23:00-07:002019-05-03T16:24:22-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3310Giving Back<img src="https://assets.site-static.com/userfiles/1323/image/sas-soldier-joyner-with-argo.jpg" width="220" height="145" />
As a Real Estate Broker serving Boulder County, I help folks buy and sell homes on a daily basis. I thought I'd take a moment to step outside of real estate and share what I believe to be a great cause: supporting our troops.
I recently found a local charity that sends small, requested items of value to our active duty troops currently serving overseas. The organization is known as 'Support-A-Soldier' and was founded by Barbara, who's son is serving overseas and had started requesting things like a wrist mounted GPS unit, a pair of smart wool socks and even a larger helmet. Barb was astonished that the military wasn't providing the right items to her son so she started to raise money to send the requested items to her son. Well, her sons friends/fellow soldiers also started requesting gear that would be very useful to them and so Barb went ahead and started Support-A-Soldier to help raise funds to get the requested gear to these soldiers.
<img src="https://assets.site-static.com/userfiles/1323/image/medics-carrying-wounded-soldier.jpg" width="220" height="145" />
Barb has been raising funds for troops in the field for eight years now and has a pile of letters from appreciative soldiers. Her charity has directly helped more than 1,000 soldiers to date.
Boulder County Realty donates money to Support-A-Soldier monthly. This money goes directly toward products requested by soldiers. <br />In working with Boulder County Realty, you are making a direct impact in the lives of soldiers currently serving our Country. We'd love to share more info so please ask for more details.
Here is the Support-A-Soldier site: <a href="https://www.supportasoldier.us/" target="_blank">https://www.supportasoldier.us/</a>
<img src="https://assets.site-static.com/userfiles/1323/image/soldier-and-helicopter.jpg" width="220" height="145" />2017-05-08T13:19:00-07:002019-05-08T13:28:45-07:00Kirk Wittigtag:advancedhomegroup.com,2012-09-20:3285Federal Reserve Increases Interest Rates a Second Time in 3 Months<img src="https://assets.site-static.com/userfiles/1323/image/house_small.jpg" width="271" height="181" />
The Federal Reserve raised its key short-term interest rate today by 0.25% resulting in a new target range of 0.75% to 1%. This was the second time rates have increased in the past three months and the third time rates have increased since December 2015. The central bank indicated that the strengthening job market and rising prices are signs that employment rates and inflation values are nearing ideal target ranges. Accordingly, the economy is showing signs that it does not need the aid of super-low interest rates to spur growth. Two additional rate hikes are expected before the end of 2017.
How Does this Affect You?
Mortgage Rates - Rates increased prior to the official announcement. The 30-year fixed rate is now hovering around 4.375% to 4.5%. Expect mortgage rates to continues to climb this year based on the Fed indicating that they'll likely have two additional rate hikes. They're hinting that they'll be raising rates three more times next year.
Did you know? For every 1% increase in interest rates on a 30 year fixed rate loan, home buyers lose about 10% of their purchasing power. For example; If the interest rate on a 30 year fixed rate loan is 4.5% and you're buying a $1M house, you'd need to down to about a $900k house if the rates went up to 5.5% (in order to maintain the same monthly mortgage payment).
Home Equity - The interest rate on this line of credit is tied to the prime rate which increases in-line with the Federal short-term rate. The rate hike will be reflected in your interest due within 30 days or by the second billing cycle after today's announcement.
Credit Cards - Most creditors increase APR on the first day of the first billing period after the hike. This means you could see the effects of the rate hike reflected in your credit card bill by your next statement.
Auto Loans - Rate on auto loans have been slowly increasing over the past year. Although they typically are slower to reflect Fed rate hikes. Expect to see some degree of interest rate increase in the next 30-90 days. 2017-03-15T18:12:00-07:002019-05-03T18:12:47-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3298Federal Reserve Increases Interest Rates for First Time in 12 Months<img src="https://assets.site-static.com/userfiles/1323/image/credit-card.jpg" width="1280" height="853" />
The Federal Reserve raised its key short-term interest rate by one quarter point from 0.5% to 0.75% on December 14th. This was the first time rates have been increased since December 2015. This affected a prime rate increase from 3.5% to 3.75%. In addition, interest on variable-rate credit cards and home equity lines of credit will increase by 0.25%. This increase is considered to be subtle and a response to economic growth trends over the past year. It's important to note that the Federal Reserve also announced that two or possibly three rate hikes may occur in 2017. Analysts view this directive as an effort by the Feds to keep the economy humming while buffering the effects of the nation's potentially peaking business cycle. See a summary <a href="https://www.bankrate.com/financing/federal-reserve/fed-raises-interest-rates-including-yours/" target="_blank">here</a>.2016-12-21T10:00:00-07:002019-05-08T09:04:24-07:00Lauren Wittigtag:advancedhomegroup.com,2012-09-20:3299Conforming Loan Limits Increase for the First Time in a Decade<img src="https://assets.site-static.com/userfiles/1323/image/house_small.jpg" width="271" height="181" />
Loan limits for conventional conforming mortgages will increase on January 1, 2017. Different loan programs have different loan limits that are mandated by the federal government. These limits or maximum loan amounts vary by county. They are based on a number of parameters including median home price. Double digit appreciation over the past few years in our region as well as others across the nation prompted the Federal Housing Finance Agency (FHFA) to increase the maximum allowable loan amount for conventional conforming loans for the first time since 2006.
The FHFA only recently gained the ability to raise limits based on a trigger provided for in the Housing and Economic Recovery Act of 2008 (HERA), which states that loan limits can only be increased when the average U.S. home price surpasses prices observed in the pre-decline period of Q3 2007. The average home price in the U.S. for Q3 2016 just barely exceeded average pre-decline home prices by 1.7%. See the table below for new loan limits effective 01/01/20017. Boulder County is unique in that our limits are higher than most of the country. Click <a href="https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx" target="_blank">here</a> to view the map.
County
2016 Limit
2017 Limit
Boulder <br /><br />
$474,950
$529,000
Adams <br /><br />
$458,850
$493,350
Arapahoe <br /><br />
$458,850
$493,350
Broomfield <br /><br />
$458,850
$493,350
ClearCreek <br /><br />
$458,850
$493,350
Denver <br /><br />
$458,850
$493,350
Elbert <br /><br />
$458,850
$493,350
Gilpin <br /><br />
$458,850
$493,350
Jefferson <br /><br />
$458,850
$493,350
Park
$458,850
$493,350
<br />The loan limit increase is welcomed because home buyers are currently getting the best interest rates through conventional loans that are conforming with Fannie and Freddie guidelines and will now be able to get a larger loan without having to jump over to jumbo loans. Jumbo loans are characterized as conventional loans that exceed the conforming loan limit and often times require more down payment and higher interest rate.
2016-12-20T10:05:00-07:002019-05-08T09:13:12-07:00Lauren Wittig