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.

If you are considering refinancing before rates go up to pay off other debts like credit cards, here is a quick overview.
The average American has nearly $40,000 in debt not including home loans so today we ask if you consider a cash-out refinance to pay off other debts like credit card debt. Credit card interest rates are normally much higher than mortgage interest rates and if you are carrying high credit card debt while making minimum payments, there is an opportunity to save a lot in monthly credit card payments that are primarily going to pay high interest rates on the debt. First you will need enough equity in your home to get a cash-out refinance.
With real estate values rising many people have seen their home value rise so they may qualify for cash-out. You’ll still need to maintain equity in the home at 80-90% to avoid paying mortgage insurance and you will have to get an appraisal and pay closing costs which will be subtracted from the cash out amount.
Contact us to see if a cashing out to pay off your debt makes sense for you. And remember you’re not actually eliminating the debt you’re just saving on high interest payments so be careful not to start spending again on the credit cards and getting caught in a debt cycle loop.

In today’s market of rising home prices, many people are considering buying a fixer-upper.
We’ve all seen the home make-over shows with amazing before and afters but should you do it?
Here are a few things to consider:
1. Know Your Limits How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while
2. Work Out Costs In Advance Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.
3. Check Permitting Costs and Procedures Check with local officials to see if the work requires a permit and the permit costs.
4. Be Extra Careful with Structural Issues If the house requires structural repairs then double check the work and pricing. Hire a structural engineer to do an inspection and if structural work needs to be done make sure your bid discounts this work
5. Include Inspection Contingencies Make sure you hire professional inspectors and check for hidden issues like mold, piping issues, pest damage etc. And if things come up ask for discounts. And if too many red flags come up or the seller won’t properly discount the costs for repair then you may want walk away and keep looking!

Happy New Year 2022! 🎉
We wish you and your family a peaceful, prosperous, and healthy new year! A New Year and New Beginnings!

The 30 year mortgage is the default standard for home owners, but many ask about 15 year mortgages as well.
You may have noticed rates on a 15 year mortgage are amazingly low. A lower rate is better right? Well its not quite that simple.
Most people of course get a 30 year mortgage. Lets review the pros and cons. The main pros of a 15 year mortgage are the aforementioned lower rate. You are also paying less in interest over the lifetime of the loan. For example a $200,000 mortgage at 15 years with today’s current rates you’d be looking at less than $45,000 in interest. While the same loan at 30 years you’d pay over double that, over $100,000 in interest over the life of the loan. You also have the benefit of paying of the loan free and clear in half the time. Sounds great, why don’t people do it more? Well the kicker is higher monthly payments. Most people are looking for lower payments (especially with higher real estate prices). The above loan for 30 years would have a monthly payment around $850, while the 15 year loan would have a monthly payment of over $1300. That’s a big difference to most people. If you’re already saving comfortably for retirement, college, have savings and little other debt then the 15 year might be the call. But most people are looking for financial flexibility and the much lower monthly payment, hence the popularity of the 30 year term. But either way rates are low and we recommend taking advantage, so fill out the free consultation on our website and we can review your situation and see what program best fits your needs!

Buying the right house for you might be at the top of your list, but the neighborhood is important too. Here are a few tips to consider:
HOA and Property Taxes – these can actually vary widely between one area and the next so make sure to check them and if there is an HOA check the rules in advanced!
Schools – we probably don’t need to mention this – if you have kids or are planning to, then you probably already have this in mind.
Neighbors – this can be a little tricky but it’s a good idea to get a feel for your neighbors. You may want to try an old fashioned hello and ring the doorbell of a neighbor and introduce yourself.
Area Attractions – this can range from grocery stores to parks to restaurants. Think about your lifestyle and what’s nearby (or how long it takes to get to those places)
Future – see what the future plans are for the area is there new development being planned – is it an area where property values will likely go up, etc.
Down Sides – Look into things like traffic, cell phone reception make sure there aren’t any shocks later!

Finally visit the area at different times of the day and during the week and weekend to get a better overall feel for the area.

Being self-employed is great – you’re your own boss but when it comes to getting a mortgage secured, its a slightly different process than traditional mortgages. It often comes with additional requirements and red tape.
Here are some tips to help you get organized and approved if you’re self employed. Apply for a mortgage when your income is up (we know this is easier said than done) but lenders will look at your last two years income most closely, and if you’re income fluctuates its best to apply on an up year. This can help you qualify for a greater loan amount and lower interest rate. Get That DTI lower, your debt-to-income ratio is one of the key factors in getting approved. So you’ll want to try to pay down debts (both business and personal) as well as avoid opening new lines of credit a few months before applying. Don’t Mix Business and Personal Keep your business and personal finances separate. Have separate bank and credit card accounts for your business and personal use. This will help lenders easily see the business income and expenses as well as show you are running your business in a professional manner. Give us a call or contact us from our pre-qual app and we can see what product best fits your needs. You may be a candidate for QM (Qualified Mortgage) or non-QM lender, either way we can review and help you get started!

If you haven’t heard interest rates are still near record lows. So if you have a mortgage and haven’t refinanced in the last year, there’s a good chance you can refinance into a lower rate (generally a good idea 🙂 and may consider getting cash out, so here are five things to consider. First we will start with the pros…. Low Rates and Lower Rates. As we said rates are low now – like really low. And if you’re considering a HELOC or home equity line of credit, rates on a mortgage refi are often lower. So you can lock in a low rate and have lower payments – sounds good right? Debt Consolidation If you have a lot of high interest debt (i.e. credit cards), you can pay that off and potentially save thousands in interest payments! Cash On Hand We are definitely in uncertain times and you might want a cash cushion to help pay bills and also if you’re income in the near future is uncertain. Or you can use that for home improvements like maybe a new home office or gym (this can often be used as a deduction as well). And Some Cons Don’t Rinse and Repeat Ok we are trying to say don’t get the cash out and repeat the same debt spiral. If you’re cashing out and taking advantage of today’s great rates make sure you take advantage of the opportunity and avoid the temptation to go on an amazon shopping spree and run up the bills again. Closing Costs and PMI Make sure to check your closing costs aren’t more than the new savings! Also if you currently aren’t paying PMI and refi to more than 80% of the home value you may have to start paying PMI! In general if you’ve been considering a cash-out refinance or just want to see if you can lower your monthly payments – contact us today and we’ll give you a run-down of your options and see what best fits your needs!

We all know the housing market has been on a tear and some people take might want to take a pause, but here are five reasons why it’s a good time to buy!
1. Increases in inventory – one of the reasons housing prices have been surging is a lack of inventory but we are seeing increased inventory nationally over the summer according to national association of Realtors.
2. Price increases maybe moderating – forecasts expect prices to continue to go up but at a more moderate level.
3. Rates are expected to stay low – forecasts for rates to stay low through the end of the year and perhaps into next year
4. Rates are near record lows – we are still at record low interest rates so borrowing has basically never been cheaper.
5. Start building equity – as we forecast home values to continue rising you can start building equity now.
Of course every situation is different and forecasts may change but those are five good reasons. Fill out our quick home buying analysis on our website and we can get you a customized quote to see what best fits your needs.

Should you refinance for less than half a percent difference on your current loan?
You’ve probably heard that interest rate are at record lows and if you’re current rate is one percent higher than today’s rates then we would usually say refinancing is a no-brainer. But what if you already have a low rate and its less than half a percentage point less than your current rate, should you refinance then?
There are a few key factors to consider.
1. Do have an Adjust Rate (ARM) Mortgage?
Getting into a lower fixed rate mortgage can definitely make sense in this case as you’ll lock in a lower rate, as the ARM rate may rise in the future.
2. Do you have a high loan balance?
If your loan balance is $500,000 a quarter percent difference could mean over $300 dollar less in monthly payments!
3. Do you plan on staying in the house more than a few years?
There will be closing costs to pay when you refinance so in order to get see the savings you’ll generally need to stay in the house for a few years.

Of course when in doubt make sure to contact us, we can crunch the numbers see how much you’ll save and if it makes sense for you!