New Year, New Mortgage Rule

As you may have heard, there are new mortgage regulations heading our way, but how will this impact Black Hills homebuyers, Realtors, and lenders? If you’re in the market for a new home, the next time you head to the bank for a new mortgage loan, the lender may be asking just a few more personal questions. This is all thanks to the new Ability to Repay rule that lenders are now subject to under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under this new rule, lenders are now held accountable for the loans they make, and they must be able to prove that their borrowers can actually repay it. Lenders can even be asked to buy back a loan if they make a mistake. The only way to protect themselves from these buybacks is to now follow a strict set of rules.

Basically it comes down to this, as of January 10, 2014; lenders are now prohibited from making a higher-priced mortgage loan without regard for the home-buyer’sability to repay. The debt-to-income ratio must be 43% or less, and it limits the fee that can be charged by a lender to just 3% of the total amount of the loan. Also, loan terms that are greater than 30 years, interest-only loans, and negative-amortization are no longer available since they do not meet the guidelines of a “qualified mortgage.”

I know that some of this may be confusing, but we are always here to help if you have any questions.

I am a local expert in the Black Hills region and can help you sell your Black Hills home. Call me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience in selling your Black Hills Home. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

Happy New Year from all of us at Integrity Realty!

Your Retirement Home is Waiting for you in the Black Hills

Retirement. For some of us, it’s not that far off. If you are beginning to ponder where you ultimately want to retire, then it’s worth taking a look at Hill City and the surrounding Black Hills communities.  There are many communities in the area that cater to early retirees and finding a vacation home now, that will turn into your retirement oasis, can be a good investment.

Kiplinger recently published an article with the 10 Best Cities for Early Retirement and Sioux Falls came in the top 5 on the list. Some of the things they accounted for were tax-friendliness, household incomes, living costs associated with housing and health care, and like-aged residents to enjoy your retirement with peers around you.

Now that everyone will be flocking to Sioux Falls, your perfect retirement home in the Black Hills is ripe for the picking. Most of the accolades listed making it part of the Top 10 are perks to all of South Dakota; the best place for a small business – due in part to the state’s lack of corporate income tax. South Dakota also levies no individual income tax, good news for retires, across the whole state, as Social Security benefits and other retirement income would not be touched.

Whether you are looking now for a home to retire in and enjoy the good life, or are looking for investment or vacation property that can later be turned into your retirement oasis, check out Hill City and the surrounding Black Hills communities. I would love the opportunity to discuss with you how the Black Hills may be the right choice for you.

Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience!

New Black Hills Rate Increase is an Improvement

Great news for Black Hills homeowners; especially those with multiple residences! The South Dakota Public Utilities Commission has approved a settlement to increase electric rates to 6.4 percent. Ok, so think I’m crazy for calling that “great news?”

In December 2012, Black Hills Power, a subsidiary of Black Hills Corp., filed a request to increase rates by 9.94 percent which was implemented on an interim basis beginning June 16 2013. Since the approved increase is lower, rates billed to customers will be reduced on October 1 and all charges for service between June 16 and September 30 will be recalculated. Homeowners can expect to see bills credited with the refund starting in November, just in time for some holiday saving!

“Our customers depend on safe and reliable electric service,” said Vance Crocker, vice president of operations for Black Hills Power. “Since our last rate filing in 2009, we have invested more than $50 million to extend service to new customers, replace and upgrade our distribution and transmission systems, install advanced metering systems, and ensure environmental compliance.”

The 6.4% increase is expected to be a revenue increase of $8.8 million per year and is the result of an agreement involving Black Hills Power, PUC staff and other parties.

If you are ready to buy a vacation or investment property; or just have questions on if it’s the right choice for you – I’d love to talk with you. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience

Black Hills Revving Up for Sturgis Motorcycle Rally

STURGIS  ~  Biker or not, chances are you’ve heard about the Sturgis Motorcycle Rally; an annual event that brings motorcycle enthusiasts, fans, exhibitors and onlookers to South Dakota.  The hum of the bikes can be heard for miles around the Black Hills area and marks the kickoff to the annual rally which this year is August 5-11 2013.

The city of Sturgis spends upwards of $1 million to host the six-day rally that brings hundreds of thousands of motorcycle enthusiasts to the city and surrounding Black Hills. It’s an experience of a lifetime where locals show you down-home hospitality and hundreds of visiting exhibitors can offer you anything and everything you’d want to dress up the bike or your body … did you know you can get matching tattoos on both your body and bike?

I know motorcycle enthusiasts of all walks and sizes that spend time getting the bikes together, trailers rented, and lodging set months, even years, in advance to ensure smooth travel to Sturgis. The diehards ride all the way to Sturgis while others travel with their bikes in tow to wait till arriving before revving up those engines.

Not a biker? There’s still great fun to be had at the Rally. The entertainment never stops, there’s great food and drink, and you’ll meet some great people from all around the world. The only thing you are required to bring is an open mind! Check out the events schedule to determine which events are a must-see.

If you are coming in for the fun, take some time to realize the beauty of South Dakota and the surrounding communities in and around Sturgis. Now is a great time to find an investment property in Deadwood, vacation home in Spearfish, or even a home in Sturgis itself. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact me, Jim Peterson, at (605) 574-4444 or email me to discuss how I can help you with all your real estate needs. My office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – mine are always open for your convenience! Like me on Facebook for all upcoming events!