UPDATE: As December 2025 approaches, homeowners and potential buyers are urged to conduct an immediate real estate checkup to secure their financial future. This essential review focuses on property values, mortgage insurance, and insurance coverage—key elements that can significantly impact your financial health.
Real estate expert Duane Duggan emphasizes that this annual assessment is crucial for maximizing investment potential. For those without property, now is the perfect time to meet with a Realtor® and develop a strategy for your first home purchase, as early investment in real estate can yield substantial retirement income.
If you already own property, a thorough review of your situation is necessary. Start by obtaining a current market analysis from your Realtor®. The Boulder market has demonstrated remarkable long-term appreciation; for example, homes in Baseline Subdivision that sold for under $30,000 in 1978 now start around $750,000 in 2025.
Review Your Real Estate Insurance: Given increased building costs, especially post-Marshall Fire, it’s crucial to align your insurance with current replacement costs. Ensure coverage includes flood insurance or protection against potential sump pump failures, particularly in light of the devastating floods of 2013.
Check Your Loan Balance: Understanding your current mortgage balance is vital. For those with amortized loans, principal reduction accelerates over time; monitoring this can help assess your net worth accurately.
Consider the possibility of removing Private Mortgage Insurance (PMI), which is common for homes bought with low down payments. With rising property values, you may qualify to eliminate PMI, lowering monthly payments. Contact your lender to explore options.
Interest Rates and Refinancing: With interest rates dropping in 2025, it’s time to check your mortgage rate. If you’ve been paying a higher rate for five years, refinancing could significantly reduce your monthly payments. Discuss options with your lender; you may also consider a recast to avoid starting over with a new 30-year term.
If you’re contemplating refinancing, think about the loan term. A 15-year loan can accelerate principal reduction, though it comes with higher monthly payments. Some lenders offer recasting options that allow you to benefit from lower rates without extending your loan term unnecessarily.
Meet Your Professionals: Armed with updated property values and loan balances, schedule meetings with your real estate lending professional and Realtor. This knowledge provides a clearer picture of your equity and potential for expanding your real estate portfolio.
If your family needs more space, explore options to acquire a larger home while simultaneously building your investment portfolio. Alternatively, if you prefer your current home, consider refinancing to access cash for a rental property.
Home Inspections: Regular inspections are vital for maintaining your property’s value. Check for hidden issues, especially in attics or basements, to avoid costly repairs later. A home inspection can also help plan for significant future expenses, like a new roof or furnace.
Home Warranty: Consider obtaining a Home Warranty Policy if you don’t already have one. These policies can alleviate financial strain from unexpected repairs on vital systems like heating and cooling, ensuring your peace of mind.
Start your real estate checkup today! Connect with your Realtor, lending professional, and home inspector to ensure your investments are aligned with your financial goals.
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