Category: Uncategorized

Posted on

Does it Make Sense to Refinance?

Mortgage rates have been dropping (Hallelujah! 🙏)

The question everyone is now wondering: “Should I refinance??”

Refinancing your mortgage and securing a lower interest rate can mean substantial long-term savings.

But deciding whether to refinance your home depends on several factors…

🔖 Here’s how to evaluate if it’s a good time to refinance:

YOUR CURRENT RATE
A general rule of thumb is to refinance your mortgage when interest rates are at least 1% lower than your current rate.

COSTS OF REFINANCING
The cost to refinance your mortgage can range from 2% to 4% of the loan amount. You want to be sure that potential savings will outweigh total closing costs.

YOUR “BREAK-EVEN” POINT
Your break-even point is when you will recoup all the closing costs that come with refinancing your loan. For example, if your closing costs are $5,000 and your monthly savings from refinancing is $200 per month, it would take you 25 months to break even.

YOUR FUTURE PLANS
If you plan to stay in your home for several more years, refinancing could be a smart move, but if there’s a good chance you’ll relocate before reaching your break-even point, it’s worth reconsidering.

DM me for a link to Freddie Mac’s mortgage refinance calculator and I’ll send it over!

Posted on

Want to be home for the Holidays?

POV: you’re popping bubbly and decking the halls in your brand new home.

Think three months isn’t enough time to find your dream home?

The good news: I’ve got a fast-track timeline to help you make the most of the 90 days you’ve got left of 2024.

Here’s the game plan

OCTOBER:

  • Secure a pre-approval letter ASAP. Understanding your budget and buying power will streamline your house hunt.
  • Connect with an agent: A skilled agent will be your advocate and representative to guide you throughout the entire process.
  • Research online listings and attend open houses. This will help you refine your priorities and prepare you to make an offer quickly.

NOVEMBER:

  • Find your perfect match and be ready to pounce on it as soon as it hits the market.
  • Make an offer. Give your highest and best first and ask for a quick closing date.
  • Once your offer is accepted, schedule a thorough inspection the same day so you can uncover any potential issues.

DECEMBER:

  • Close the deal and secure your keys. Pop the bubbly — you’re a holiday homeowner!
  • Lock in reliable movers to ensure a smooth transition into your new space. (I can recommend a great one!)
  • Embrace the holiday spirit but keep decorating and meals simple this year. The best gift you can give yourself is time with loved ones in your new home!

DM for my complimentary value-packed guide. It covers everything you need to know about a speedy buying process.

Questions? Send me a DM – I’m here to be a resource for you!

Posted on

Buying with $0 down-

The chief complaint I hear from first time buyers: "I'm trying to save up for a down payment... but I'm already paying $1,500+ each month on rent!" Sounds like a recipe for frustration and stagnation. But there's a clever new mortgage program that \*actually\* makes homeownership within reach. Meet: United Wholesale Mortgage With UWM's 0% Down Purchase plan, borrows are eligible for $15,000 or 3% of the purchase price towards closing costs (whichever is less). That's $0 added to your monthly mortgage at 0% interest.  Now let's look at a real example: Let's say you're looking at a home with a $300,000 purchase price. You could borrow $9,000 (3% of the purchase price) on a no-interest loan for the down payment. Eyeing a home with a $500,000 price tag? That's where the full $15,000 in support comes into play.  So who qualifies? If you have a minimum credit score of 620, an income that is 80% or less of the Area Median Income (AMI), and are purchasing a primary residence (where you plan to live full-time), you may qualify. Okay, so what's the catch? UWM's down payment assistance is a loan, not a gift. Borrowers must repay it when refinancing or selling the home. While some low-income buyers qualify for a partial grant, most will owe the full amount. Want to connect with a trusted lender who can walk you through your borrowing options? Send me a DM

The chief complaint I hear from first time buyers:

“I’m trying to save up for a down payment… but I’m already paying $1,500+ each month on rent!”

Sounds like a recipe for frustration and stagnation.

But there’s a clever new mortgage program that *actually* makes homeownership within reach.

Meet: United Wholesale Mortgage

With UWM’s 0% Down Purchase plan, borrows are eligible for $15,000 or 3% of the purchase price towards closing costs (whichever is less). That’s $0 added to your monthly mortgage at 0% interest. 

Now let’s look at a real example:

Let’s say you’re looking at a home with a $300,000 purchase price. You could borrow $9,000 (3% of the purchase price) on a no-interest loan for the down payment.

Eyeing a home with a $500,000 price tag? That’s where the full $15,000 in support comes into play. 

So who qualifies?

If you have a minimum credit score of 620, an income that is 80% or less of the Area Median Income (AMI), and are purchasing a primary residence (where you plan to live full-time), you may qualify.

Okay, so what’s the catch?

UWM’s down payment assistance is a loan, not a gift.

Borrowers must repay it when refinancing or selling the home. While some low-income buyers qualify for a partial grant, most will owe the full amount.

Want to connect with a trusted lender who can walk you through your borrowing options? Send me a DM

Posted on

The Truth About Negative Home Equity Headlines

The Truth About Negative Home Equity Headlines Simplifying The Market

Home equity has been a hot topic in real estate news lately. And if you’ve been following along, you may have heard there’s a growing number of homeowners with negative equity. But don’t let those headlines scare you. In truth, the headlines don’t give you all the information you really need to understand what’s happening and at what scale. Let’s break down one of the big equity stories you may be seeing in the news, and what’s actually taking place. That way, you’ll have the context you need to understand the big picture.

Headlines Focus on Short-Term Equity Numbers and Fail To Convey the Long-Term View

One piece of news circulating focuses on the percentage of homes purchased in 2022 that are currently underwater. The term underwater refers to a scenario where the homeowner owes more on the loan than the house is worth. This was a huge issue when the housing market crashed in 2008, but it much less significant today. Media coverage right now is based loosely on a report from Black Knight, Inc. The actual report from that source says this:

“Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, . . .”

Let’s unpack that for a moment and provide the bigger picture. The data-bound report from Black Knight is talking specifically about homes purchased in 2022, but media headlines don’t always mention that timeframe or provide the surrounding context about how unusual of a year 2022 was for the housing market. In 2022, home price appreciation soared, and it reached its max around March-April. Since then, the rate of appreciation has been slowing down. Homeowners who bought their house last year right at the peak or those who paid more than market value in the months that followed are more likely to fall into the category of being marginally underwater. The qualifier marginally is another key piece of the puzzle the media isn’t necessarily including in their coverage. So, what does that mean for those who purchased a home in 2022? It’s important to remember, owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they’re not necessarily providing the full context. Typically speaking, the longer you stay in your home, the more equity you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it’s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.

Bottom Line

As with everything, knowing the context is important. If you have questions about real estate headlines or about how much equity you have in your home, let’s connect.

Posted on

3 Best Practices for Selling Your House This Year

3 Best Practices for Selling Your House This Year Simplifying The MarketA new year brings with it the opportunity for new experiences. If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one.

A great way to ease some of those emotions and ensure you’re feeling confident in your decision is to keep these three best practices in mind.

1. Price Your Home Right

The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you’ll want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”

If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):

3 Best Practices for Selling Your House This Year | Keeping Current Matters

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly

While you may love your decor and how you’ve customized your home over the years, not all buyers will feel the same way about your design. That’s why it’s so important to make sure you focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:

“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. A real estate professional can help you with tips to get your house ready to sell.

Bottom Line

If you’re considering selling your house, reach out to a local real estate professional to help you navigate through the process while prioritizing these best practices.