Real Estate is Basic Economics

The bidding wars are finally slowing down, but it’s important to understand why and look for opportunities among the noise…It’s no secret that rates are going up and home prices are higher and these factors cause hesitation among buyers. So fear is a very real factor in this equation. But rents are also going up, so look at the fundamental economics in your local market to gauge expected appreciation. Real estate boils down to economics. The major factors that influence home prices are income and population changes. While consumer sentiment also drives demand, the basic economic factors reign supreme in the long-run. In simpler terms: If population and incomes are rising in your market and they’re met with a limited amount of “homes available for sale”, then prices can be expected to go up. On the flip side, if the population is declining and jobs are moving out of your market, home prices could stay flat or potentially decline. Be ready to jump on opportunities when others are not willing!

Short Term Rentals as Investments

Easily the most popular real estate investing strategy lately has been short term rentals like AirBnB and VRBO. Many investors have been adding properties to their portfolios and are looking for unique financing to maximize returns. We have recently partnered up with a new lender that does just that. It works for short or long term investment properties but the loan programs allow buyers to qualify for financing based on the expected rental income of the new property. This means no employment verification, minimal documentation, and quick closings. The lender will look at the market rent for the property based on an appraisers guidance and it simply needs to cover the monthly payment. These programs only require a 20% down payment and even offers interest only programs on a fixed rate to keep payments low and maximize cashflow. If you’re interested in investing in real estate, this may be the program you’ve been waiting for. Give us a call and our mortgage pros can show you how to maximize your investment.

Run the Numbers

Alright it is Friday and we are back! So rates have been going up and people are still flooding the market to buy homes before they get “too high”… but there’s still a ton of potential buyers wondering whether to buy now or wait. We just want to give this a little perspective – If you’re worried about interest rates, remember that every penny you pay in rent is essentially interest. You’re just helping someone else pay their interest rate and contributing to their equity in the property. It’s important to run the numbers.. If you spend $2,000 a month on a rent payment, chances are you can buy a home and keep your payments close to the same. Yes, a portion goes toward interest but a portion also goes toward equity. If you’re going to spend money to live somewhere anyway, you might as well have something to show for it in the end. So don’t wait. Go get your home. Make it yours! When rates go down, you can always do a no-cost refi and get a new loan later. Let us help you run the numbers. It’s not that scary, give us a call today!

Rates on Upward Trend

It is no secret that mortgage rates have been on an upward trend this year. To buyers, they’re weary of higher payments but we’d like to clear up some uncertainty that can save you hundreds per month. Adjustable rate mortgages or ARM’s are still an option to keep your payments in check while giving you security in your home. ARM’s are 30 year loan programs with advantageous fixed rates for the initial period of 5,7, or 10 years and then the rate fluctuates with the market thereafter. The average life of a loan is less than 5 years, especially for first time home buyers. In this instance, buyers can likely save half to a whole percent on their interest rate and never face the risk of the rate changing. On a $400k loan, that’s over $2k per year. ARMs were heavily criticized during the housing crisis and rightfully so. However, the programs didn’t harm anyone, the shady practices by lenders did. When the terms are understood, homeowners can save thousands per year without sacrificing peace of mind. Check out your options and save!

Cash-Out ReFi for Home Projects

Home buying season should be upon us but inventory is still well below normal. So if you’re not selling, let us show you how to turn your current house into your dream home. Home equity is at an all time high right now and many homeowners have the ability to get cash out for home improvements. Instead of pulling money out of savings, a cash out refinance will allow you access funds from your equity so your home will be paying for itself! The funds go directly to you and you can choose whatever contractors, appliances, and finishes you want. If you’re gonna stick around in it, you may as well love it. New Kitchen, bathroom upgrades, knock down some walls. Hell go all in with a new pool. Its your choice! Personal loans are high interest and even higher payments. Using your home could save you money! Not to mention, whenever the proceeds from a cash out refi go toward home improvements, all the interest is tax deductible at the end of the year!

3 Steps to Improve Your Credit Score

As we head into the homebuying season, it’s important to note that your credit scores play a huge role in getting you the best deal on a home. Here’s a few quick tips to improve your scores besides making your payments on time:

1. Avoid unnecessary credit cards – Don’t fall for the small discount at the register by opening a store account. Your credit is worth way more than that 10% discount and could cost you dearly on a 30 year mortgage
2. Don’t let anything slip through the cracks – too often we see small bills like a medical co-pay get sent to collections and a collection can cost your credit up to 80 points on your score
3. Lastly – keep your credit utilization low – you’ll want to keep your credit card balances below 30% of the credit limit. Anything higher can ding your scores significantly

Improving your credit will improve the terms of your loan. Don’t take it lightly!

Using the Equity in Your Home

With home prices jumping up, Market Watch just reported that untapped home equity has hit a record high in the last 2 weeks If you have a bunch of equity just sitting there in your home, it’s the same thing as having a pile of cash just sitting under your mattress… very old school… Here are some ways you can put your equity to work for you.

#1. Pay off higher interest debts. Consolidating debts can free up more cash every month and allow you to take those savings and invest them or pay your house off even faster.

#2. Buy more investments. Build more wealth. From investment properties to stocks, crypto, NFT’s… whatever your poison is, if you can borrow money for cheap and make a higher rate of return, don’t let it sit.

#3. Invest in Home improvements and additions that will increase your property value. If a $30,000 renovation can increase your value by $50k, why wouldn’t you put that equity to work.

Talk to a professional and get some advice. It takes 2 minutes to pull up loan options. Don’t wait!!!

Save Money Regardless of Rate

Let’s address the interest rates and how to save money regardless of the rates. With all the positive economic news , the last couple months have seen rates tick up quickly. You know what else has ticked up quickly: credit card debt. The US has added an estimated $17 Billion in credit card debt in the past 6 months. So rates on mortgages are now in the 3’s but rates on credit cards are in the teens. A client this week came to us with over a dozen credit cards that totaled $2600 in monthly payments. She currently has a 2.99% interest rate on her mortgage and was hesitant to refinance to a higher rate. Through a cash out refinance, we were able to save our client $2030 per month with an interest rate over 4%. You think she cares about the rate? She’s saving $25,000 per year and her gameplan is to apply that savings back toward principal to pay her house off 7 years faster than she would have with old loan. It’s not about the percents, its about the dollars and cents!

Ayudando a la comunidad latina a comprar casas

Para comprar una casa, la mayoria de personas piensan que se necesita tener 20% de deposito inicial que puede salir muy caro, pero eso no es el caso. Nosotros somos una compania de hipoteca que trabaja con 10 diferentes prestamistas para ayudar a nuestros clientes tener mas opciones cuando quiren refinanciar or comprar una casa.

Si es su primera vez comprando casa, nosotros temenos programas que requieren solamente el 3% deposito inicial. Para darles un ejemplo, una casa do $300,000 solo require un deposito do $9,000! Y si has sido dueno de casa en los ultimos 3 anos, tambien temenos programas que solo requiren el 3.5% or 5% de deposito para comprar. Para darle otro ejemplo, 5% de $300,000 es solamente $15,000 de deposito.

Si quiere comprar casa este ano, no gaste mas tiempo. Tenemos agentes que hablan espanol que estan listos para ayudar!

Tips for an Accepted Offer

The real estate market has done the unthinkable – It’s gotten even harder! Multiple offers remain the norm with an estimated 60% of all offers turning to a bidding war! So here are a few tips to help you get your offer accepted:

1. Get pre-approved before you offer – Sellers are also typically buyers and they need certainty that their home will sell so they can buy their next home. A full pre-approval is the closest thing to a cash offer!

2. Find a great realtor – You need someone on your side of the negotiating table. An experienced realtor will not only work to find your dream house, they will work to ensure you get your dream house!

3. Show intent with your earnest money – Again, sellers want to know you’re serious. The earnest money deposit is put down at the time of the offer as skin in the game. Money talks and a larger deposit can be the certainty sellers want

These are just a few quick tips but there’s so much more. Give us a call today!