July 15, 2022
Lowest Rate Not Always Better!
Everyone wants the lowest rate but today more than ever, the lowest rate doesn’t always save you the most money.
Rates are the highest they’ve been in like 12 years! The key to saving money today is looking at this as a short term 2-step process and using lender credits to eliminate closing costs.
Lenders have access to a whole rate sheet and for this example, let’s say 4.5% is the par or “going” rate. If you want to get a “more attractive” rate like 4.25, you’ll have to pay extra costs or “points” which will be thousands of dollars. But on the flip side, if you take a higher rate like 4.75, the lender will actually pay you money which goes toward closing costs.
Lets say buying down the rate saves you $50 a month but costs you $3k extra upfront. This would take you 5 years to recoup that cost. If you refi or sell within that time, you lose money. Now taking the higher rate, you will pay an extra $50 per month but the plan would be to do a zero cost refi within a year or two saving you thousands.
It’s not about the percents, it’s about the dollars and cents!
July 8, 2022
90-Day Rate Locks
Now that bidding wars are slowing down and more homebuyers are able to get their offers accepted, the big thing that clients are battling with are the rates going up while they look for a home. We now have a solution for that!
We just recently got access to a program that allows our clients to lock today’s interest rates upfront and then shop for a home!!! That means that once you lock in today’s rates, you have up to 90 days to find a and close on your new home.
This way if it takes you 30-45 days to find a home and the rates went up, you don’t have to lock in the higher rates because you locked them in upfront… but if the rates come down by the time you find a home, we can just switch you to one of our other 10 lenders and you can take advantage of the lower rates at that future time. It’s a win-win.
If you’re in the market to buy a home, PrimeLine has you covered.
July 1, 2022
Home Inventory Increasing
Some promising news just dropped today as Realtor.com announced that active listings for homes jumped almost 20% in June nationwide. When more homeowners are looking to sell, opportunities present themselves!
Also, Important note: mortgage rates dipped this week so strike while the iron is hot. But regardless of what happens to rates, more inventory should minimize bidding wars and shift us away from a seller’s market to more of an even playing field as sellers fear missing out on the peak of the real estate market and try to cash in to then upgrade their homes.
Remember that rates will continue to fluctuate, so if you buy when inventory rises, you can negotiate a better deal and when rates drop, you can refi to lower your rate and payment. And you guessed it, you can then apply that savings towards extra principal every month to pay the house off faster.
June 24, 2022
Real Estate as an Investment
We’re going to bring it back to basics today and talk real estate as an investment. Many people seek to buy real estate as a home but it’s important to understand the investment value as well.
It’s a volatile market with many blue chip stocks down 20-30% on the year, crypto tanking, and most investments struggling to break even. The same cannot be said for real estate where almost every market in America continues to see above average gains.
Think about it this way, real estate enables you to use leverage to multiply your gains. If you put 25k into a stock and that stock goes up by 10%, you’ve earned yourself a dandy $2500 bucks. But in real estate, let’s say you put 5% down on a 500,000 house, that’s a $25k investment. Then let’s say that home appreciates by 10%, well you just earned a cool 50 G’s with a 200% return on your investment.
Yes, there is a monthly payment but you’re going to pay to live regardless, may as well pay your own mortgage, not someone else’s. Give us a call to get the best return on your home purchase.
June 17, 2022
What the Rate Hike Means For You
We are coming in hot today with a reaction to the FED’s unprecedented 75 basis point rate hike and what that means for you!
First up is housing and as you can imagine, the surge in interest rates to nearly 6% will reduce the number of buyers in the market and free up more inventory. More inventory is less competition and less competition means prices stabilizing. If you’ve been looking to buy a home, this may be your opportunity. You may pay a higher rate now but chances are you can refi down in a year or two.
The second piece is debt, specifically bad debt. Rates on credit cards and revolving lines are jacking up just as fast and these interest payments are on the brink of 20% in many cases. With consumer debt rising to keep up with inflation, now is the time to pay off high interest credit cards and personal loans. Home equity remains at all time highs, take the opportunity to pay down bad debts with a cash out refinance. Again, you may pay a higher rate now but chances are you can refi down in a year or two.
June 10, 2022
Using Lender Credits
We have a quick money saving tip today that could save you thousands on your mortgage in this rate environment. Rates are at their highest since 2009, However, the key to winning right now is using lender credits to save on closing costs.
Why is that? You buy a house to buy a home. You refinance to get cash out to pay off debts. You are getting a loan to achieve something else, you’re not buying a loan and you probably wouldn’t buy it when it’s the most expensive in 10 years.
So the trick is this, lenders have access to a whole rate sheet. You can choose a lower rate but you have to pay additional upfront costs, or “points” for it. Or, this is key, you can take a higher rate and the lender will actually give you credits that pay for your closing costs.
You may pay an extra $30-$40 per month but the intention is to refinance when rates come back down. Given the economic uncertainty right now, you can bet that will happen in the next 12-18 months. So $30 over 12 months is $360 but if you save 2, 3, 4 thousand dollars on costs, that’s ROI!
June 3, 2022
Pre-Approval Letters to Stand-Out
Realtors and Home buyers, if you’re looking for ways to give yourself more leverage when submitting an offer on a home, this one’s for you!!!
Submitting an offer with a pre-approval letter is standard procedure these days. Most sellers won’t even consider an offer without one but what does that letter actually mean? In most cases, it means you applied for a loan, the loan officer pulled your credit, and they asked for a paystub or two.
This gives the seller some indication that you’re a qualified buyer but what if you could give the seller full certainty! That’s where a Verified Approval Letter comes in. This means your practically approved for the financing prior to even making the offer pending just appraisals and inspections. It’s like approaching the table with a cash offer!
To get a Verified Approval, we collect all documents and underwrite the loan upfront to give all parties the certainty they need to make and accept an offer. Preparation is key in this market, give us a call to get started today.
May 27, 2022
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!
May 20, 2022
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.
March 25, 2022
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!
March 11, 2022
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!
Give us a call today to see what your options are.
February 25, 2022
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:
- 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
- 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
- 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!
February 18, 2022
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!!!
February 4, 2022
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!
January 28, 2022
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!
January 21, 2022
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!
January 14, 2022
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!
December 24, 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
December 10, 2021
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!
December 3, 2021
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!
November 19, 2021
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!
November 12, 2021
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!
November 5, 2021
PMI Eliminated for 15% Down
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!