Month: February 2023

How to Save for a House in 2023

Posted on by LLCR Staff

Homeownership is an exciting and worthwhile milestone, but it requires strategic planning. If you’re looking to buy your first home, you’ll need to start putting away more money in advance to save up. Learn about the different costs of owning a condo and how to save for a house of your own.

How to Save for a House

The Average Condo Cost in Chicago

How much you save for your future home depends on how much you plan to spend. Before you even begin the saving and planning process, it’s crucial to research and set goals beforehand.

If you are leaning toward a condo, rest assured that these homes may be more affordable than a free-standing home, especially in downtown Chicago. 

At the moment, the average condo in the Windy City runs around $438,000, while the average free-standing home costs $466,000.

Many factors affect the cost of a home, but as you browse other condos on the market, begin to set some price goals. Consider having your “non-negotiable” goal, along with a stretch goal, which could allow you to afford more of your dream home wishlist possibly.

Keep in mind, the average price point of Chicago condos also varies depending on the neighborhood.

Condo Closing Costs

As you figure out exactly how much your ideal home will cost you, you’ll have to also consider condo closing costs. These are the fees charged for obtaining a mortgage.

While your closing costs include expenses beyond your down payment, the down payment will be your most significant fee. A down payment is money that you provide during a real estate transaction and typically is a percentage of the property’s sale price. 

Depending on your loan program, you may be required to put anywhere from 0% to 20% or more down. Veterans and qualifying service members can take advantage of a VA loan with no down payment requirement, as long as the condo is on their approved list. First-time buyers can use an FHA home loan with only 3.5% down required (again, if the condo is approved).

The overall loan amount also factors in. A higher down payment may be required in certain high-cost areas, such as downtown Chicago, since your loan amount may exceed the conforming loan limit. Also, note that putting less than 20% down will result in mortgage insurance — an additional fee added to your monthly payment.

Be prepared to possibly pay for other costs as part of the mortgage process. There may be an application fee, processing fee, origination fee, and underwriting fee.

Additional condo closing costs include homeowners insurance, attorney fees, title fees and title insurance, municipal fees, credit report fees, discount points, and recording fees. Fee amounts will vary depending on where you’re moving, what mortgage company you financed the condo with, the attorney you’re working with, and so on.

Monthly Expense Tracking

As you start to save up, it’s essential to track your spending habits and learn where you may need to cut back.

There are plenty of practical ways to track those expenses every month, so find what method works best for you.

If you don’t want to give much thought to this effort, consider downloading an app, such as Mint, to help. This free and simple-to-use app connects with your bank and automatically categorizes all of your expenses for you. Those spreadsheets fans can create their own from scratch or download free templates online. 

Regardless, you want to make sure there is more coming in than going out. Most experts recommend putting at least 20 percent of your income into savings, but when you have big financial goals, like buying a home, you may want to try to set a bit more aside.

As you look at your regular spending habits, evaluate where you’re doing well and what could change. Maybe you’ll be shocked by how quickly Uber rides cost you and commit to taking public transit more moving forward. Whatever improvement you find you need to make, be sure to hold yourself accountable (or find someone to help you).

Easy Ways to Save Money

Even if your end goal is a stretch, don’t feel overwhelmed. Saving begins with small steps. It’s about learning practical ways to cut back on your everyday purchases.

Many people swear by apps to help them save. There are a handful of free apps out there designed with this intention. Acorns is a fan favorite that makes saving simple. This app keeps the change every time you swipe your linked credit card and then sends that spare money to an investment portfolio for you.

Others rely on coupons to help cut down on costs. If you’re more old school, there are still weekly printed ads, but the online world has also made deal hunting much easier. 

On the topic of online shopping, consider purchasing your must-have items this way. You are less likely to make impulse purchases when you don’t have shiny objects catching your attention every time you walk down an aisle.

As you save, don’t underestimate small sacrifices. Forgoing that regular Starbucks beverage to stick with at-home coffee or choosing to walk home instead of Uber will make a difference on your bank account. Just be patient!

Save Money Online

These days, many of us shop from the comforts of our own homes. As you online shop, it’s still important to be spending-conscious.

Similarly to in-person shopping, it’s essential to shop with tunnel vision. Know what you need, write down what you need, and only buy those items.

Using coupons is just as important online. In fact, it may be even easier to hunt down those deals. Consider downloading the honey web browser extension to ensure the lowest price. It automatically applies eligible coupons to your cart.

Once items are in your cart, let them sit there. Step away from your computer for a bit to help you decide if it’s a must-have purchase or if it was more of an impulse decision.

While online shopping, it may also be worth it to chat with customer service. Ask a few questions about the products you’re considering and see if there are any discounts available.

Save Money on Groceries

For many, too much money is spent on delicious food and dining out. And we don’t blame you— especially with all of the Chicago restaurant options.

However, these expenses can really backtrack those trying to save, especially for a home.

Eating is a necessity, but there are ways to spend more wisely on food. Often the first step involves limiting how often you eat out. Then, it may be deciding to pick the more affordable grocery store. 

Regardless of which store you choose, it’s helpful to prepare before your grocery trips. Make a list of exactly what you need, and hunt for any coupons that may shave a few bucks off your purchase.

As you browse the isles, look down low and go for the generic brands. These options are often identical and always less expensive than those specialty brands.

Taking notes on how to save for a house isn’t too tricky – the hard part is putting those tips into practice. As you save up for your dream home in Chicago, let the Luxury Living Chicago Realty team help you in the process!

Get in Touch With Us

Understanding Mortgage Interest Rates for Your Chicago Condo

Posted on by LLCR Staff

Buying a condo can be an exciting investment, but it can also be overwhelming, especially when it comes to understanding mortgage interest rates. As a first-time buyer, it’s essential to understand what type of loans are available, what interest rates and payment plans are associated with each, and more. Read on for our guide to understanding mortgage interest rates when buying a condo.

Types of Loans

Before we dive into interest rates, let’s take a look at the types of loans available to condo buyers. The most common types of loans are:

  1. Conventional Loans: These are the most common type of loans for condo buyers. Conventional loans are not insured by the federal government, and they typically require a higher credit score and a down payment of at least 5% to 20%.
  2. FHA Loans: FHA loans are government-insured loans that allow buyers to put down as little as 3.5% of the purchase price. These loans are popular among first-time buyers who have lower credit scores and less money for a down payment.
  3. VA Loans: VA loans are for veterans and active-duty military personnel. They are guaranteed by the Department of Veterans Affairs and often have lower interest rates and no down payment requirements.

Mortgage Interest Rates

The interest rate on your mortgage is the amount you will pay to borrow money from the lender. It’s essential to understand how interest rates work and how they can affect your monthly payments and the overall cost of your mortgage.

Interest rates can be fixed or adjustable. A fixed interest rate stays the same throughout the life of the loan, while an adjustable interest rate can change over time.

Fixed Interest Rates

Fixed interest rates are the most common type of interest rate for condo buyers. They provide stability and predictability since your monthly payments will stay the same throughout the life of the loan. Fixed interest rates are typically higher than adjustable rates, but they are a safer option since you know exactly what you will be paying each month.

Adjustable Interest Rates

Adjustable interest rates can be a good option if you plan to sell the condo in the near future or if you expect your income to increase. They typically have lower initial interest rates, but the rate can change over time based on market conditions. This means that your monthly payments could increase or decrease, which can be difficult to budget for.

Payment Plans

When it comes to payment plans, there are two common options: a 15-year or 30-year mortgage.

15-Year Mortgage

A 15-year mortgage is a shorter-term loan that will require higher monthly payments but will save you money on interest over the life of the loan. If you can afford the higher monthly payments, a 15-year mortgage is a great option since you will pay off the loan faster and save money on interest.

30-Year Mortgage

A 30-year mortgage is a longer-term loan that will have lower monthly payments but will cost you more in interest over the life of the loan. If you can’t afford the higher monthly payments of a 15-year mortgage, a 30-year mortgage is a good option. Keep in mind that you will be paying more in interest over the life of the loan, which will increase the overall cost of your mortgage.

What is a Good Interest Rate?

A good interest rate for a condo buyer in Chicago in 2023 will depend on several factors, including your credit score, the type of loan, and the current market conditions. In general, a good interest rate for a conventional, FHA, or VA loan in 2023 would be around 6 to 7%. Keep in mind that interest rates can change daily, so it’s essential to stay up to date on the current market conditions and work with a knowledgeable lender to find the best rate for your specific situation.

When it comes to determining if an interest rate is good or bad, it’s important to look at the overall cost of the mortgage. This includes not only the interest rate but also the fees and closing costs associated with the loan. A lower interest rate may not always be the best option if it comes with higher fees or closing costs.

In addition to the interest rate, it’s important to consider other factors that can affect your monthly payments, such as property taxes, insurance, and homeowner association fees.

Final Thoughts

Understanding mortgage interest rates can be confusing, but it’s an essential part of the condo buying process. By understanding the different types of loans, interest rates, and payment plans available, you can make an informed decision and choose the best option for your situation.

Work with a knowledgeable lender who can guide you through the process and help you find the best rate and loan terms for your specific needs. With the right information and guidance, you can make the condo buying process a smooth and rewarding experience.

Need support during your Chicago condo search? Connect with one of our licensed real estate experts. We are here to help connect you with lenders and other homebuying resources you may need throughout the process. Reach out today!

Get in Touch With Us

5 Small Condo Office Ideas

Posted on by LLCR Staff

Working from home has become increasingly popular in recent years, and the COVID-19 pandemic has accelerated this trend even further. If you live in a small condo and need to set up a home office, you might be wondering how to make the most of your limited space. Don’t worry – with a little creativity, you can create a functional and stylish workspace that fits your needs. In this blog post, we’ll share some small condo office ideas to help you get started.

5 Small Condo Office Ideas

1. Opt for a small desk

When it comes to setting up a home office in a small condo, one of the most important considerations is the size of your desk. While you might be tempted to go for a large, imposing desk, this will only take up valuable space in your already-limited room. Instead, opt for a small desk that can fit comfortably in a corner or against a wall. Look for a desk with built-in storage or drawers to help you stay organized.

2. Make use of vertical space

In a small condo, it’s important to make use of every inch of available space. One way to do this is to take advantage of your vertical space. Consider installing shelves or floating bookcases above your desk to store books, files, and other items. You can also use wall-mounted organizers, such as a bulletin board or a pegboard, to keep your workspace tidy.

3. Choose multifunctional furniture

When space is at a premium, it’s important to choose furniture that serves more than one purpose. For example, you could use a storage ottoman as a seat for your desk, as well as a place to store files and other items. Or, you could invest in a desk that can be folded up and stored away when not in use. Look for furniture that can be easily moved or repurposed as your needs change.

4. Use lighting to create a cozy atmosphere

Lighting can play a big role in making your small condo office feel cozy and inviting. Consider using a mix of natural light and task lighting to create a warm and inviting atmosphere. You could also add some soft, ambient lighting, such as a desk lamp or a string of fairy lights, to create a calming effect.

5. Incorporate plants and art

Finally, don’t forget to add some personal touches to your small condo office. Incorporating plants or artwork can help make the space feel more welcoming and less sterile. Choose plants that are easy to care for, such as succulents or air plants, and hang some of your favorite artwork or photos on the wall to add a personal touch.

Setting up a home office in a small condo can be challenging, but it’s not impossible. By using these small condo office ideas, you can create a functional and stylish workspace that fits your needs and makes the most of your limited space. Remember to choose multifunctional furniture, make use of vertical space, and incorporate personal touches to make your workspace feel like a true reflection of your style and personality.

Ready to find the condo home office space of your dreams? Connect with our team today, we’re here to help!

For more design tips and ideas for your small condo, click the button below!

Small Condo Design Ideas

7 Small Condo Living Room Ideas

Posted on by LLCR Staff

Small condo living rooms can be challenging to decorate, as you want to maximize the space while still creating a comfortable and stylish environment. But don’t worry, there are plenty of small condo living room ideas that can help you make the most of your space.

7 Small Condo Living Room Ideas

  1. Choose a light color scheme. A light color scheme can make a small living room feel more spacious and airy. Consider painting the walls a light shade of white, beige, or pale gray. You can also use light-colored furniture and accessories to create a cohesive look.
  1. Use multifunctional furniture. When dealing with a small living room, every piece of furniture counts. Consider using a sofa bed or a daybed that can double as a guest bed. A storage ottoman can serve as both a coffee table and extra storage. A console table with storage can serve as a media center and a place to store books and magazines.
  1. Hang shelves or built-ins. Shelves and built-ins can provide extra storage and display space without taking up valuable floor space. You can hang shelves on the walls or install built-ins around the TV or fireplace. This will also help to add some depth and character to your living room.
  1. Create a focal point. A focal point can draw the eye and make the space feel more open. Consider using a statement piece of art, a bright accent wall, or a statement rug to create a focal point in your living room. This will help to create a visual interest in the room and make it feel less cramped.
  1. Keep window treatments simple. In a small living room, it’s important to keep window treatments simple. Avoid heavy curtains or window treatments that take up too much space. Instead, opt for simple blinds or sheer curtains that let in natural light and create a more open feel.
  1. Use mirrors. Mirrors can help to create the illusion of a larger space by reflecting light and adding depth to the room. Consider hanging a large mirror on the wall or using mirrored furniture to create a more open and airy feel in your living room.
  1. Don’t overdo it with accessories. When it comes to small condo living room ideas, less is often more. Avoid over-cluttering the space with too many accessories. Instead, choose a few statement pieces that can add personality and style to the room without overwhelming the space.

In conclusion, decorating a small condo living room can be challenging, but it’s definitely doable. With these small condo living room ideas, you can create a comfortable and stylish space that maximizes every inch of your living room.

For more small condo design ideas, click the button below!

Small Condo Design Ideas

Our Complete 2023 Winter Preparation Checklist

Posted on by LLCR Staff

As a homeowner, Chicago winters require preparation, mentally and practically.

Before a harsh winter sets in, use this winter preparation checklist to fully winterize your condo and prepare you and your family to weather any storm.

Make Your Home More Energy Efficient

Decrease your spending and increase your energy efficiency with a few simple steps. Start by completing a quick audit – either by yourself or by hiring a professional. The audit will assess the current state of your home’s efficiency and help identify areas for improvement.

Here’s what you want to look out for:

  1. Locate air leaks. Make sure all windows and doors are properly sealed to keep the heat in and cold out. Also, examine the less obvious spots where air may be getting out. Check for cracks in places like exterior corners, electrical outlets, switch plates, baseboards, vents and fans, and fireplace dampers. If you find any leaks, begin sealing! Depending on the leak, this may involve plugging and caulking holes or weatherstripping.
  2. Check insulation levels. Poor insulation levels can lead to a significant loss of heat through your home’s floor, ceilings, and walls. While this is more common with older properties, it always helps to check and avoid costly projects later. There are a few ways to check these levels non-invasively. Replacing old or inefficient windows can also improve your home’s insulation.
  3. Inspect HVAC systems and equipment. Regular maintenance on your heating and cooling systems can extend the life of your equipment while saving you energy and money. This involves cleaning your air conditioning filters and replacing your furnace filters about once a month during winter months. Upgrading to higher energy-efficient products can also make a big difference.

Prepare Your Patio

If you’re fortunate to have a patio to enjoy during the nice seasons, protecting it during the chilly seasons is important. There are a few easy ways to prep this outdoor space:

  1. Store or cover outdoor furniture.
  2. Remove plants or bring them inside.
  3. Remove leaves or debris from the patio floor.
  4. Add sealant to any stone groundwork.
  5. Periodically check on the area.

Snow Removal

Snow may be easy to admire from the inside, but it can be a real pain when you have to leave home. Make sure you have a snow removal game plan before it falls.

Keep in mind that condo homeowner associations often cover the cost of snow removal for common areas, like parking lots and community amenities. Also, a third party may handle shoveling snow if you have a unit on the first floor. However, make sure you confirm with your HOA.

If you have a unit with a balcony or patio, you will likely be responsible for maintaining this space. Consider investing in a personal shovel before snowfall.

Test Smoke Detectors

With most house fires happening during the winter, testing your smoke detectors before the snowy season hits is an easy way to keep your place safe. Smoke detectors should be tested at least once a month, according to the U.S. Fire Administration (USFA), and batteries should be replaced at least once or twice a year (or whenever you hear an ongoing chirping sound).

Follow these simple instructions to make sure your condo’s smoke detectors are working properly:

  1. Alert anyone in your home (especially children) before you start the test. When active, the detectors make a loud, high-pitched noise.
  2. Station someone else at the furthest point from the alarm in your home to ensure the alarm can be heard throughout the entire house. 
  3. Press and hold the button on the smoke detector. It may take a few seconds to start, but you should soon hear the device making a loud, ear-piercing siren. If the sound is weak or nonexistent, replace your batteries.

Avoid Freezing Pipes

No one wants to deal with frozen pipes in the wintertime, especially the hassle that can ensue. Follow these tips to keep your lines functioning properly:

  1. Pay attention to the weather forecast. Know when temperatures are expected to drop below 32 degrees Fahrenheit. These freezing temps put indoor and outdoor pipes at risk of freezing.
  2. Keep the thermostat above 55 degrees, even if you’re heading out of town. This will help keep your bill down while also protecting your pipes.
  3. Disconnect external hoses or exposed pipes outside your unit. This allows water to drain from the supply line, preventing an overnight freeze from bursting either the faucet or the supply line.
  4. Open cabinets under kitchen or bathroom sinks when temperatures reach freezing, especially those located against an outside wall. It allows warmer air to circulate around the pipe. You can also set a small lamp with an incandescent bulb near the lines. 
  5. Keep faucets dripping during a hard freeze. Running water will help generate some heat, and the open faucets also relieve pressure, so even if some water freezes, it will be less likely to burst the pipe. Make sure to drip both hot and cold water because even water from the hot water heater can free quickly after leaving the heater.

Prepare for a Blizzard

It is highly unlikely you’ll go through a Chicago winter without experiencing a few blizzards. You can proactively prepare for these snow storms to help keep you and your loved ones safe and comfortable when they hit the forecast.

Here are some strategies:

    1. Stay up-to-speed with the forecast. Follow the storm’s progress and be ready to adjust your plans if needed.
    2. Stock up on essentials. Ensure you have enough food, water, and other emergency items you may want on hand if you’re stuck at home for an extended period.
    3. Insulate your home. Double-check that there aren’t any cracks or gaps in your windows and doors.
    4. Prepare your heating system. It’s important that your furnace and chimneys are clean and in good working condition. It may be worth investing in backup heating options, such as a portable heater.

We hope that this winter preparation checklist gives you the steps and confidence to stay safe as the temperatures drop and the external conditions worsen. If you’re looking for a condo this winter, connect with one of our licensed brokers to help you secure your dream home that you can enjoy during any season!

Start Your Search

What You Need to Know About the Changing Mortgage Costs in 2023

Posted on by LLCR Staff

If you’re thinking of getting a new mortgage in 2023, it’s important to know that some things have changed that will affect the cost of your mortgage. These changes are because of updates made to Loan Level Price Adjustments (LLPAs) by Fannie Mae and Freddie Mac, who guarantee most new mortgages.

The Future of Mortgage Costs in 2023

One big change is that it will now be cheaper to have a low credit score. Before, if your score was under 680, you would have to pay a fee equal to 2.75% of the loan balance. Now, if your score is 659 and you’re borrowing 75% of the home’s value, you’ll only have to pay a fee equal to 1.5% of the loan balance. That’s a difference of $3,750 in closing costs on a $300,000 loan.

It’s worth noting that these changes only apply to loans that are guaranteed by the agencies starting May 1st, 2023. This covers most loans in the US, but there are exceptions, such as FHA/VA loans, certain jumbo and specialty products, and non-conforming loans that are not guaranteed by the agencies.

So, what does this mean for potential homeowners in 2023? It’s crucial to be aware of the updates to LLPAs and how they will affect the cost of your mortgage. Additionally, having a good credit score before applying for a mortgage is essential, as this will have a direct impact on the fees and costs you will incur.

In short, the changes to LLPAs from Fannie Mae and Freddie Mac could mean higher costs for those with a low credit score when it comes to getting a mortgage. To avoid these extra fees and costs, it’s important to familiarize yourself with the changes and make sure your credit score is in top form. By doing so, you can increase your chances of securing the mortgage you need to purchase your desired home.

To learn more about what this means for you, contact one of our experienced professionals today! Our team is well-versed in the Chicago condo market and can help answer any questions you have on this topic and more.

Get in Touch With Us

7 Small Condo Kitchen Ideas

Posted on by Lindsay Smith

Small condo kitchens can be a challenge when it comes to designing and decorating, but with the right ideas and strategies, they can also be beautiful, functional, and efficient. Here are some small condo kitchen ideas to inspire your next renovation or remodel.

7 Small Condo Kitchen Ideas

  1. Maximize Storage: Make use of every inch of space by installing smart storage solutions like pull-out pantry shelves, cabinet organizers, and under-cabinet lighting. This will keep your kitchen clutter-free and organized, making the most of your limited space.
  2. Go Vertical: Take advantage of vertical space by adding floating shelves or a tall pantry cabinet. This will give you more storage without sacrificing valuable floor space.
  3. Invest in Multifunctional Furniture: Furniture that serves multiple purposes is a must in small kitchens. Consider adding a kitchen island that can double as a breakfast bar or a dining table that can be tucked away when not in use.
  4. Use Light Colors: Light colors, such as white, cream, or light grey, can make your kitchen appear larger and brighter. Combine light colors with reflective surfaces, such as glass or stainless steel, to maximize light reflection and create a spacious feel.
  5. Get Creative with Lighting: Proper lighting is key in any kitchen, but especially in small kitchens. Consider installing pendant lights over your kitchen island, under-cabinet lights to brighten countertops, and task lighting over your sink or stove.
  6. Consider an Open-Concept Design: An open-concept design can help make your small kitchen feel larger and more connected to the rest of your home. Remove any walls or partitions that separate the kitchen from the living or dining areas to create an open and airy feel.
  7. Keep it Simple: Small kitchens can often benefit from a minimalist design. Stick to a few key pieces of furniture and minimize clutter to keep the space feeling open and spacious.

By incorporating these small condo kitchen ideas, you can transform your cramped kitchen into a beautiful and functional space that meets all of your needs. With a little creativity and the right design choices, you can have a small kitchen that is both stylish and practical.

Looking for more small condo design ideas? Check out our guide below!

Small Condo Design Ideas

How to Make Sure Pipes Don’t Freeze in Your Chicago Condo

Posted on by LLCR Staff

Frozen pipes can pose a huge issue for Chicagoans in the wintertime, especially for those looking to travel during the holiday season. Follow these tips to avoid problems and know how to make sure pipes don’t freeze in your home.

How to Make Sure Pipes Don’t Freeze in Your Chicago Condo

  1. Pay attention to the weather forecast. Know when temperatures are expected to drop below 32 degrees Fahrenheit so you can prepare. These freezing temps put indoor and outdoor pipes at risk of freezing.
  2. Keep the thermostat above 55 degrees at all times. Even if you’re heading out of town, don’t let your condo get below this temperature. This will help keep your bill down while also protecting your pipes.
  3. Disconnect external hoses or exposed pipes outside your unit. This allows water to drain from the supply line, preventing an overnight freeze from bursting either the faucet or the supply line.
  4. Open cabinets under kitchen or bathroom sinks when temperatures reach freezing. This is especially important if the cabinets are located against an outside wall. It will enable warmer air to circulate around the pipe. You can also set a small lamp with an incandescent bulb near the pipes. If you do this, be sure to remove anything flammable from the area.
  5. Keep faucets dripping during a hard freeze. There are a few ways this step can help prevent broken pipes. First, running water will help generate some heat. Although this doesn’t guarantee a pipe won’t freeze, it certainly helps. The open faucets also relieve pressure, which means even if some water freezes, it will be less likely to burst the pipe. Make sure to drip both hot and cold water because even water from the hot water heater can free quickly after leaving the heater. 

When freezing temps hit, the condo association is responsible for shared plumbing that owners and tenants are not responsible for. However, it is on you to take steps to prevent pipes from freezing within your own unit. These precautions can help save you unnecessary time, money, and frustration.

A single frozen pipe can result in a ton of damage and consequent costs — It’s not worth the risk.

Now that you know how to make sure pipes don’t freeze, you can feel confident moving into the chilly months! If you are looking to buy a Chicago condo this winter, reach out to Luxury Living. Our experienced team of brokers would love to help you find your dream place.

For more ways to keep your condo in top shape this winter, click the button below.

Winter Preparation Checklist

Work With Us

Get in touch with Luxury Living's team of experienced licensed real estate brokers and take the first step in buying or selling a home in Chicago.