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 and we can analyze what best fits your situation.

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 between $30 and $70 each month for every $100,000 borrowed. The key factors in determining the PMI rate are the loan to value ratio. If you put down 5% you are typically going to have a higher PMI rate than if you put down 15%. The other key factor is the borrower’s credit score. There are different types of mortgage insurance and borrowers normally make an annual lump sum payment or pay in monthly installments. Of course we can give you a more detailed explanation of what to expect and your options based on your borrowing needs.

As we enter beach and pool season – many people ask if a swimming pool will add value to their home (to be clear we are talking about in ground pools here). The answer is it depends.

Studies show that it can add 5% or more to the value of your home (but these studies are pre-Covid). If you are in a warmer climate like Texas or Florida, pools can add more value and be more desirable. In fact if your home is in a high-end area where most homes have pools then it can lower your home’s value if you do not have one. Of course you have to take into account building and maintenance costs, as well as if your yard has enough space to accommodate a pool and still have enough area left over. It’s probably a good idea to want a pool for enjoyment rather than just building one to increase resale value. If you want to get more feedback on your property and how it fits in the market feel free to schedule a consultation with us on our website for more details and the latest market conditions.

If you are a first time home buyer and looking for help with your down payment and closing costs, there are actually a number of grant programs both nationally and on the state and local level.
Grants are not loans and not required to be paid back. Qualifying for different grant programs varies, it often requires you to be a first time home buyer and you must live in the residence (not rent it out).
You may also need a minimum credit score as well as fit income criteria.
Give us a call or schedule a consultation on our website and we can see what grants and programs may be available to you.

Looking to buy a home but short on cash? With our national DPA (Down Payment Assistance) program, you could be eligible for a grant of either 2% or 3.5% of the purchase price that can be used toward your down payment. Our DPA program provides a wide variety of eligible borrowers with down payment assistance in the form of a grant equal to 2% or 3.5% of the purchase price on eligible FHA home purchases. Our program can also be used with the FHA 203(b) program or many FHA renovation programs, as well as the FHA OneTime Close Construction-to-Permanent program (excluding 3.5% grant).

Our program has no income limits for any borrower on the loan application who is a current, retired, volunteer, non-paid, or plans to become

No Income Limits for The Following:
➥First-time home buyers
➥Any borrower on the loan application who is a current, retired, volunteer, non-paid, or plans to become:

– First-responder: police officer, firefighter, public safety officer, paramedic, or emergency medical technician (EMT), including volunteers or similar
– Educator
– Medical personnel: nurse, doctor, phlebotomist, or health ambassador, or hospital, American Red Cross worker, or similar
– Civil servant in a federal, state, or local municipality
– Military personnel

Contact us today to learn more and see if you qualify.

You may have heard that in the most recent meeting of the Federal Reserve Board, they voted to increase the federal funds rate by half a percentage point.
While fixed rate mortgages are not directly connected to the Fed’s rate (rather the 10 year Treasury rate, the fed rate is directly tied to short term loans such as credit card borrowing and adjustable rate mortgages) mortgage rates are influenced by the rate as well as other Fed monetary policies.
The Fed is focused on lowering inflation and has indicated there may be more rate increases in the next year, other factors such as the war in the Ukraine affecting oil prices as well as lock downs in China affecting the supply chain will be closely watched.
If you are looking at applying for a mortgage, you may want to lock your rate in, give us a call or apply on our website and we can see what best fits your needs.

Published Date 4/11/2022

Cause and effect: interest rates go up and those holding off on listing their homes sit up and finally pay attention. Fear of missing out (FOMO) regarding getting the prices they want for their homes is now being tempered by the idea that fewer and fewer buyers can afford them as rates continue to rise to curb inflation.

According to Mansionglobal’s Ayce Kelce, more sellers have been listing their homes, providing a breath of fresh air to the U.S. real estate market that has been struggling with low inventory levels since the beginning of the pandemic. “The number of homes listed in the week through Saturday increased by 8% compared to the same time in 2021 after decreasing in the prior four weeks, according to a Realtor.com report published on Thursday,” says Kelce.

She goes on to say that the median price of homes in the U.S. surged 15.3% over the last year, with active inventory down 13%. However, the boost in new listings alongside increasing mortgage rates cooling demand indicate a possible return to a more stable housing market. Reports also project that for the first time in three years, the number of homes for sale could start to grow on a year-over-year basis by this summer.

The best time to list? Realtor’s research says it’s THIS WEEK (April 10-16) based on data indicating surging buyer demand, high home prices, quick sales and less competition from other sellers compared to 2021 numbers. “We are in the stage of the home-buying season when inventory typically starts rising from the year’s low point,” Danielle Hale, Realtor.com chief economist, said in the report.

However, even with ever-growing median listing prices and surging demand, more sellers have been dropping their asking prices — good news for buyers. “Around one in every 10 listings, or roughly 12% homes currently listed, had a price drop during the four weeks ending Sunday, which was up from 9% at the same time in 2021 and the highest share since early December, according to a separate report released by Redfin on Thursday,” says Kelce.

“Price drops are still rare, but the fact that they are becoming more frequent is one clear sign that the housing market is cooling,” Daryl Fairweather, Redfin chief economist, said in the report. “It goes to show that there’s a limit to sellers’ power. There is still way more demand than supply, and buyers are still sweating, but sellers can no longer overprice their home and still expect buyers to clamor at their door.”

With today’s hot real estate market, many people are moving to new areas – sometimes across the country, sometimes across town, either way here are ten things to look for when considering a new neighborhood.
1. Property Taxes – you should look at property taxes and also how much they’ve increased in the last five years and if any increases are planned. It’s a good idea to build this into your budget too.
2. Amenities – check what’s nearby based on your interests, restaurants, groceries stores, houses of worship etc.
3. Future development – it’s a good idea to check and see what future development is planned – it might be a good or bad thing but either way its worth checking.
4. Crime rates – you can check local crime rates online or even contact the local police department to get a better feel.
5. See the area for yourself – its best to hang around the area especially at different times of the day to get a feel for what its really like.
6. Commute times – you probably already thought about this but make sure to check the times during rush hour too.
7. Schools – if you have kids, you already thought about this. But good schools can also be a good sign of a well-kept neighborhood.
8. Housing Values – check the current values and compare them with five and 10 years ago.
9. Walkability and activities – depending on your tastes see what activities are nearby.
10. Personal Fit – everyone has different tastes so try to match the neighborhood with yours – new or old, tight-knit or independent, quiet or bustle, these are individual fits but finding the right one will help you enjoy your home that much more!
And of course reach out to us with questions and if you haven’t gotten pre-qualified yet make sure you do 🙂

Last week the Federal Reserve announced it was raising the Federal Fund rate by a quarter percentage point rate, the first rate increase in three years. You are probably wondering what that actually means for homeowners.

Although not officially connected this normally means mortgage rates go up, and rates have increased recently. The Fed has also indicated that it will increase rates even more in the coming months as inflation is one of their top priorities.

If you are currently on a fixed interest rate mortgage, this won’t affect your rate or your mortgage payments. If you have an ARM variable rate mortgage, then it will be affected and you may want to consider locking into a fixed rate mortgage before rates go higher. If you are under contract on a new loan, you may want to consider locking in your rate to avoid further rate increases. Everyone has a unique situation so feel free to contact so we can see what if any course of action best fits your needs!

There are a lot of mortgage terms that we have heard a lot, but we don’t always 100% know what they mean. Today we’ll explain what home equity really is and how you could use it.
To put it simply home equity is the amount of your house that you own. So for example if you have a mortgage loan balance of $100,000 and your home’s value is $300,000 then you have $200,000 in home equity. You calculate home equity by subtracting your mortgage balance from the appraised value of the home.
Your home equity is an asset and you can use it for things like cash-out refinancing, home equity lines of credit (HELOC) perhaps if you have paid your mortgage off you can also get a reverse mortgage.
If your home value has increased in recent years and are looking to use your equity, use our 60 second analysis on our website to see your options.