The loan benefits of living in a Rural Community- Middleton, ID


Hello Middleton,
With the housing market continuing to increase, the influx of people steadily moving into our community, and lower interest rates still in effect you may be thinking it might be the right time for you to jump into this thing called “homeownership.” You may
also be wondering about the best way to purchase a home before the interest rates, and the cost of homes exceeds your ability to buy. One of the many nice things about living in Middleton is that we are considered a rural community.
Because of this, a person can purchase in Middleton or the surrounding smaller towns and take advantage of a zero percent down payment, Rural Development or RD loan from the USDA.
If you haven’t heard of this type of loan, you should ask a local mortgage lender or bank about this loan program. Once you have made contact, the mortgage professional will be able to guide you through the free pre-qualification process and let you know if this loan would be an option for you.
The key features and requirements of a Rural Development (USDA) loan are:
1. You have the option of a 30–year fixed interest rate.
2. You can finance 100% of your home with no down payment required.
3. There is no monthly mortgage insurance.
4. The home must be owner-occupied, not an investment home.
5. There is a small fee as well as an income eligibility cap to qualify.
If purchasing a home is something that you have been considering or if you know someone thinking about buying or selling a home, please call your local real estate agent. If you do not have an agent,
please feel free to contact our real estate team. We can answer your questions and guide you thru the steps you need to take to make the dream of owning a home come true for you. Our real estate team can also recommend several mortgage brokers and see if an RD loan might be the right fit for you!
Have a great month Middleton, and I hope to see all of you around town soon!
Deanna Hancock- CRS, SRS

Kardia Team
Genesis Real Estate Group



Monthly Column in Middleton Gazette

Hello Middleton,

I wanted to take a moment to introduce myself. I am Deanna Hancock, a Realtor who has been practicing real estate in Middleton and the Treasure Valley for the past 17 years. I am an Idaho native and have called Middleton my home since 2001.  I will be writing each month to keep you informed about the real estate market in Middleton and the surrounding areas, as well as to share real estate related information with you. I hope you find my articles interesting and informative.  You may also email me questions to I will do my best to add it to the next issue when possible.

If you have been thinking about selling your home soon, the market wants you!  With inventory at records lows, it is considered a seller’s market with less than two months of inventory currently available in Middleton. Low inventory will keep the prices going up this year.  The total properties for sale in Middleton the first part of March was 73 homes. This statistic includes every home regardless if it is in a community or on acreage.  Middleton has had 53 properties sell since the first of January, and when these stats were pulled in March, there were 68 pending homes.  The average days on the market is 35 so that being said when you are ready to move you might want to know where you are going.  It is a perfect time for those who are moving out of this lovely area but for us that still want to call it home it is a little more difficult!   The new construction market is very strong with much of that being due to the fact people are choosing to build because the options of buying existing homes are so low.  The median price of new construction in Canyon County is $ 236,724.  This price is a 16% change from last month and a 28% increase from the same month last year.

If you are thinking of selling and would like to know what your home is worth, contact a local agent that knows this area and ask them to do a market analysis for you.  The Realtor will pull other homes like yours that have sold in the past six months to see what would be the best price at which to list your home currently.  This process is also the same one an appraiser uses to get the information to assign a value of your home.  Most real estate agents do not charge you for this service, so if you have not looked at your home value for awhile, it may be an excellent time to do so.

Happy Spring and if you just moved to Middleton, Welcome.

Cut Mortgage Insurance

Making additional payments toward the principal of your mortgage will do three things for the homeowner: save interest, build equity and shorten the term on fixed rate mortgages. 36893374_s.jpg

These things should be beneficial enough to justify the extra payments but another huge advantage is available to those who have private mortgage insurance on their loan. Mortgage insurance rates vary but can range from seventy-five to two hundred dollars a month on a $200,000 mortgage.

Lenders are required to automatically terminate mortgage insurance when the principal balance reaches 78% of the original value of the property. It is important for homeowners to monitor their balance because sometimes lenders may inadvertently fail to terminate the coverage.

Mortgage insurance is a necessary but expensive requirement for many people who are limited to a down payment of less than 20%. Eliminating the need for it can save thousands of dollars over time.

The Consumer Financial Protection Bureau, CFPB, issued a compliance bulletin on August 4, 2015.

Lower the Rate & Deduct the Interest

A home can easily be a person’s largest personal asset and it can be a powerful tool to increase financial stability also.

Since most mortgages are amortizing, the loan becomes a forced savings account that reduces the unpaid balance with each payment. The equity could be used to improve a homeowner’s financial position involving other loans.iStock_000006029471Medium-250.jpg

While every homeowner recognizes that they can deduct the interest paid on their mortgage, it is surprising how many don’t know that they can write-off the interest on up to $100,000 of home equity debt assuming there is sufficient equity in the home.

The real advantage to a homeowner is that the money borrowed can be used for any purpose and the interest is still deductible. Homeowners could payoff high-interest rate credit card debt or student loans with a considerably lower rate on a mortgage and deduct the interest on the home-equity debt.

Replacing debt with lower rate loans that have deductible interest can be a strategic decision to financial stability and a debt-free environment. A trusted mortgage professional can help you analyze your individual situation to determine if it would be better to refinance with a cash-out first-mortgage or a dedicated home equity loan.

Things That Kill Your Credit

Some people take their credit for granted and don’t start paying attention to it until they need it. The problem with this is that it could delay if not altogether cause the loan to be denied. iStock_000050117608_250.jpg

The most common issue is not correcting items on your credit report. A large majority of credit reports have errors but not all of them are critical. Since it takes time to remove them, it is a good practice to review your free credit reports from each Experian, TransUnion and Equifax once a year at

Another problem is making late payments. One 30-day late payment could be enough to cause a borrower to pay a higher interest rate or even be denied a loan. Payments have a due date and even when they allow a few days before a late fee kicks in, if it isn’t on-time, it is late.

Maxing out credit cards is another big problem. Ideally, a person wants to have an outstanding balance of no more than 30% of their available credit. As the percentage of available credit decreases, the credit score will go down.

Bad credit can not only keep you from getting the loan you want, it can raise your rates on the insurance you buy. In a study released by the Consumer Federation of America, people with good credit paid less than people with average and poor credit. Their results indicate that some customers with poor credit scores were charged about twice as much as those with excellent scores.

A prudent idea if you are going to be moving to a larger home is to get pre-approved with a trusted mortgage professional before you sell your current home. Occasionally, sellers find out after they’ve sold their home that they can’t qualify for another mortgage.

Checking for Water Leaks

An unexpected, larger-than-normal water bill could lead a person to think that they might have a leak. Before incurring the cost of a plumber, it is fairly easy to run your own test. water meter-250.jpg

Locate your water meter. They’re usually in the front of the house, near the street. In some cases, you might need a meter key to open it; they can be purchased at Lowe’s, Home Depot or other hardware stores.

Step One – Write down the numbers on the meters to get a current reading. Don’t use any water for thirty minutes. If the meter shows water usage during the test period, proceed to step two.

Step Two – Shut off the valves to all of the toilets. If you have a pool with an automatic filler, it has a similar device. Repeat the test again for the same thirty minute period. If the numbers haven’t changed this time, it indicates that the toilets probably need servicing.

If the numbers have changed during step two, it is an indication there may be a leak and it will need to be tracked down. This could be the time to call a plumber or plumbing leak specialist. Your water department may have a consumer help line that can offer suggestions also.

More Home for a Lower Cost of Housing

What if you could live in a larger and possibly newer home for less than you are currently? Would you consider moving? Do you want to hear more?

Interest rates, while they’re expected to go up, actually took a small dip and are still hovering at the 4% or below mark for a 30 year mortgage and almost one percent less for a 15 year term. QUALITY COSTS3.png

Let’s assume that you have a $225,000 mortgage currently at 6% which has a principal and interest payment of $1,348.99. With a 4% rate, you could have a $282,561 mortgage with the same payment. A $57,000 more expensive home could help you get what you need most such as more square footage or a different location or a newer home.

If you’re going to be making that payment for years to come, why not allow lower interest rates to help you get the features you want without having to necessarily pay a higher payment. Taking that logic a little bit further, let’s see how utilities can make a difference too.

A newer home could easily have lower monthly utility costs than your current home due to being more energy efficient. Construction materials, windows, doors, insulation, modern HVAC systems and energy efficient appliances all contribute to lower utility costs. A new home with these advantages could easily save a homeowner up to 25-50% on utilities for the same size home.

The concept is simple: get the most home you can for the amount you spend on the payment and utilities. It will take some investigation and your real estate professional can help.