New Year, New House

Yep, 2021 is in the past and new year means new goals…if one of your goals is to purchase a home, here’s a few points to start preparing:

1. The down payment – For first time homebuyers, the minimum down payment is 3% of the sales price and 5% for previous homeowners

2. Your credit score – Most loans are going to require a 620 credit score to qualify but FHA loans will allow as low as 580. Ultimately, the better the scores, the better the deal so pay attention to your bills

3. Your debt to income ratio – When qualifying, lenders look at your monthly income vs your monthly out go. If you want to buy your dream house, maybe hold off on buying that yacht til after you close!

That was the short list but there’s much more. Give us a call today to prepare yourself for your new home purchase!

Goodbye 2021!

As we wrap up 2021, we want to quickly reflect on the past year and look at what to expect in 2022. It goes without saying that 2021 was not normal but let’s put some data behind it. According to CoreLogic’s home price index, the average home in the U.S. increased in value by 18% this year marking the biggest increase ever. Man I wish I bought sooner! But this was aided by the shortage of inventory and sustained historically low interest rates. So what are we expecting in 2022? You’re guess is as good as ours… why even try at this point? But here’s what the experts are saying… The housing market is expected to continue its boom with most economists expecting another 5-8% increase in home values. Increased inventory should reduce bidding wars but interest rates could play a big role in 2022. About those interest rates… We don’t know where they’re going but we do know they are historically low right now. Take advantage. Let’s make it a great 2022

The Cost of Borrowing Money

Today we’re going to talk about how to quickly look at your cost of borrowing money. The cost of borrowing money is your finance charges or interest that you pay monthly. You can look it up on your mortgage statement each month or for a quick easy calculation, just multiply your current balance by your rate and divide it by 12 to get a quick ballpark of how much you’re paying in interest that month. For example, if you have a $400,000 mortgage at 3.25% rate, your interest that month would be approximately $1,083. That’s your cost of borrowing that $400,000. Now, let’s say you could drop your rate, conservatively down to 2.625%… that same $400,000 loan would now only cost you $875 in your first month! That saves you over $200 in interest. Now, you have a lot more cash that you can use for investment purposes, to pay off higher interest credit cards, put towards savings or use it to pay the house off even faster and shorten your term. The choice is yours. Don’t miss out. Speak with one of our mortgage professionals and at least run the numbers!

Covid-19 and Mortgage Rates

The financial markets have been active in December to say the least. The stock market has taken a beating this week but mortgage backed securities have been booming and mortgage rates are falling! So let’s be clear, we do not root for turmoil or crisis but there is a little silver lining to the new Omicron concerns – mortgage rates have dropped back down to the lowest point since September and now is a great time to refinance! The financial markets operate in a supply and demand landscape. When the stock market is on a heater – many investors shift their attention to stocks and bond prices fall. But when a crisis hits, investors shift to more stable investments like bonds and prices rise. If you consider the catalyst for historically low rates was the official state of emergency for Covid 19, it helps to make sense of how these markets work. Crisis do not last long and neither will these low interest rates. If you are interested refinancing before the new year, give us a call today to get in before rates go up!

What Impacts Your Mortgage Rates?

We’re gonna talk about what impact your mortgage rate and how you can take advantage. It’s important to understand that the interest rate that lenders will offer you are based off the amount of risk associated with the loan. That’s right. It’s no secret that your credit score plays a role in how much risk a lender takes on, which is why we have a free program to let you know how you could quickly improve your score in just as little as 1 week. Get that credit score right! Save money! Another big factor that impacts your rate is the equity that you have in your home. The more equity you have, the lower the risk. And with real estate values having gone up so much in the recent year, a lot of home owners are eligible to get a better rate and maybe even lower or eliminate any PMI. And of course there are several other factors which is why It’s important to work with a well trained professional that can help you look at all your options. Curious? Give us a call! Have a great weekend!

Cash-Out for Holiday Spending

We are quickly approaching the holiday season! It’s the time for cheer, it’s the time for joy, and its the time for overspending on gifts, dinner, and holiday events! We have the solution this year as rates remain at historic lows to maximize your cash flow during the season of giving! A cash out refinance can help you cover the holiday costs and eliminate the financial stress. We can close in less than 30 days and the money can be in your account before credit card payments are due! And even if you don’t have the equity to take cash out, refinancing to a lower rate can assist in multiple ways. First, you can reduce your mortgage payment by hundreds per month– that’s easy! But in addition to the monthly savings, refinancing also results in a deferred payment so by closing in December, no payment is due in January! Lastly, if you have an escrow account, within 30 days of refinancing, your current lender will send you a check for the full balance of your current escrow account and that money is yours to do WHATEVER you want!

Eliminate PMI with your Down Payment

Just in this week, we have great news for homebuyers looking to buy before the end of the year. This week rocket mortgage, one of our top lenders, announced a change that will help homebuyers keep more money on hand and save on their monthly payments. Many prospective homebuyers look to put 20% down on their home but why is that the “target”? simply stated, if you put 20% down, you don’t have to pay PMI or private mortgage insurance. Well rocket came out and has eliminated PMI for any homeowners who put down 15% on their home through the end of the year. This means a homebuyer can accomplish the same goal as 20% down but keep the extra 5% in the bank. This is big because 5% can be a significant amount of money. Think about it, on a $400,000 home, that’s 20 grand. That’s 20 grand that can go toward home improvements, furnishing your dream home, or even put in reserves for future needs! That’s a lot of money – If you’re buying a home and want to see your options, give us a call today to review!