Author: super_admin

As home prices have risen dramatically the last few years (yes, they are starting to inch down now), many people find their dream house seemingly out of reach. Don’t despair, here are some tips to save a thousands on your home purchase and lower costs. Move Out Of Your Comfort Zone Ok maybe not your comfort zone, but expanding your search area can make a big difference. If you are priced out of your preferred neighborhood, try expanding your search to nearby areas where housing prices can be significantly lower. Credit Check? Check your credit score and see if there are any issues that need to be addressed. Since your credit score has a big impact on getting lower interest rates, if there are fixable issues it can make a…

As we continue to see low inventory in the housing market and high rent prices, many home owners are adding ADUs (which stands for Accessory Dwelling Units). ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for home owners. Home owners typically add ADUs to increase cash flow, as well as looking for their property value to appreciate. Whether ADUs are right for you, depends on a number of factors. ADUs often costs at least $100,000 to build so being in a high rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are. The old real estate adage about location stays true for ADUs as well. If you are…

As the Federal Reserve has indicated lowering inflation is a top priority and raising short term interest rates as its primary tool to do this, we have seen mortgage markets react with higher rates (mortgage rates are not directly tied to the Fed rate, but they often move in the same direction). The 30 year rate moved up to 5.89% this week accord B ing to Freddie Mac. While these rates are higher than pandemic lows, the still fall into the historic “normal” range. While the Fed is taking a strong position against inflation, we are seeing market conditions improve in some areas. As Dawit Kebede, an economist for the Credit Union National Association noted recently, “there are signs that some of the main drivers of inflation are easing, such…

If you are thinking about selling your home and want to maximize your value without taking on major renovations here are some quick and (relatively) easy things you can do. 1. Update the hardware – if you have dated or weathered knobs, mirrors, handles, faucets switching them out with more modern ones can make things look a lot fresher. 2. Paint – this is one of the most obvious ones but a fresh coat of paint (or two) can work wonders. 3. Go Green – adding plants can make things look a lot livelier. 4. Deep clean the bathrooms – if you have grout or stains they can be a big eye sore. 5. Deep clean the outdoors – a power washer can make a huge difference on a dirty…

Today we are going to discuss two common mortgage loan products, and the pros and cons of both: FHA versus Conventional Loans. Many people are familiar with the 20% down, good credit 30 year fixed conventional loan scenario. FHA loans are designed for people who have difficulty qualifying for a conventional loan to buy a house. FHA Loans offer down payments as low as 3.5% and are more lenient on credit scores and past financial issues. Borrowers can qualify for FHA loans with as low as 580 credit scores. One of the downsides of FHA loans are mortgage insurance requirements, if you put down less than 10% you will be required to pay monthly insurance for the duration of the loan, as well paying Upfront Mortgage Insurance Premium. The best…

If you are shopping for a new home and looking for some good market news, there is some in the increase of housing supply. After dealing with monthly price increases and bidding wars, because demand was far higher than supply, we are looking a somewhat more balanced market (but still a seller’s market in most areas). According to the National Association of Realtors the stockpile of homes in months of supply has dropped from a record low of just 1.6 month in January and has slowly ticked up to 3.3 months in July. So while it is still a seller’s market conditions are moving towards more balance – if you are looking, go to our website and fill out our pre-qual analysis to see how much you can qualify for…

A lot of young Americans went to college, studied hard but in addition to getting a diploma, they also graduated with debt. Having loans is not a deal breaker but it will factor into the important debt-to-income (or DTI) ratio, and mortgage underwriters are primarily looking at the numbers so having it be student loan debt isn't different from a car loan in the math. Strategies to get approved with student loan debt Pay it down - this maybe easier said than done but if you have extra money or got a raise then try to pay down the debt Consolidate it - if you can consolidate your debt and lower your monthly payment (even not the overall loan amount) this will help your monthly DTI ratio Co-sign - this…

You don't have to be a news hound to know about inflation these days. You may have also heard about the Federal Reserve aggressively raising its main borrower rate to help combat inflation. As we previously noted, long term mortgage rates are not directly tied to the Fed rate. So while home loan rates have gone up from their historic lows of a year ago, this week rates actually dropped significantly for 30 year mortgages. According to Freddie Mac the 30-year rate fell considerably to 4.99% down from 5.3% last week. The average long-term US mortgage rate fell below 5% for the first time in four months, days after the Federal Reserve jacked up its main borrowing rate in an aggressive effort to get inflation under control. The 30-year rate…

You can lock in a mortgage rate after you’ve made an offer on a house and have a signed purchase agreement. The mortgage rate lock, means that you have a specific mortgage rate “locked in” for a period of time (typically 30 or 60 days). This rate lock means you’ll get that rate even if rates move higher or lower during the time your loan is being processed. Rate locks do expire and can cost a fee (basis points) depending on the rate and period. With today’s rates fluctuating you may want a rate lock but a keen eye on closing dates is important as well. Give us a call or schedule a meeting on our site and we can review your situation and see what best fits your needs!

PMI is private mortgage insurance. If you’re getting a conventional loan and are making of down payment of less than 20% of the purchase price, you generally need to purchase PMI. This insurance is designed to protect the lender in case of default on the loan and it also allows the borrower to buy a house when they can’t afford to make the traditional 20% down payment. PMI is provided by a third party, requirements and rates will be provided before the closing. Once you reach 20% equity in the home – either through mortgage payments or rising home values, the PMI will be terminated. PMI rates are generally between 0.5 percent and 1.8 percent of the original loan amount. According to Freddie Mac, it estimates that most borrowers pay…