Making the American Dream Come True for You Buying your first home is exciting. For most people, it’s the fulfillment of a life-long dream — The American Dream — of homeownership. Taking that plunge can feel overwhelming, too. There are so many things to consider, so many choices to make, and far too many unknowns. But, breaking it all down into smaller, more digestible pieces can help take away much of the anxiety that accompanies making such a big commitment. Hiring a real estate agent is the first step for nearly everyone when they’re ready to buy a home. … Continue reading...
Mortgage Rates
Higher Rates Equal Higher Borrowing Costs What a difference a couple of months make. In early January of this year, the 30-year fixed-rate mortgage was hovering near the low 3% level and just above record lows. The lowest on record was seen in January of 2021 at 2.65%. But that was fairy tale land, and those bottom basement numbers could be a thing of the past. However, as we know, anything can happen. The current rate is around 5.0%. Inflation has surged to a point where the Consumer Price Index, a measure of consumer goods and services, is at a 40-year high. That has caused bond prices … Continue reading...
40 Year Loan
The Pros and Cons of the Proposed 40-Year FHA FHA borrowers are one step closer to being able to reduce their monthly payments by modifying their loan term to 40 years. In early April, the Department of Housing and Urban Development (HUD), which oversees the FHA, proposed a rule change to increase the maximum term for loan modifications from 30 to 40 years. The proposal will be open to public comment until May 31, 2022 before moving forward. Forty-year loans wouldn’t be available to new homeowners. The modification is designed to help current FHA borrowers … Continue reading...
Rising Mortgage Rates
How To Approach Rising Mortgage Rates as a Buyer In the last few weeks, the average 30-year fixed mortgage rate from Freddie Mac inched up to 5%. While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that rates will fall, waiting will only cost you more. Mortgage rates are forecast to continue rising in the year ahead. If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even … Continue reading...
Funding Your Home Purchase
If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it. Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the average American will receive a $2,897 tax refund this year. The map below provides a more detailed … Continue reading...
Why You Should Buy Now
As we jump into spring, historically we see an increase in homes available for sale. Coming off the lowest months of inventory to date, this would be welcomed by eager home buyers as interest rates also continue to rise. Beyond the seasonal uptick in listings, there’s a chance we may see a wave of new builds on the horizon as well. Before we take a look at inventory, let’s quickly revisit mortgage rates and home prices. As you know, they both continue to climb, but to what extent? 30-year fixed rates are about 1.5% - 1.75% higher than in January, sitting between … Continue reading...
Advice for Buyers
Buyers: How to Put Your Best Foot Forward Housing prices continue to climb, inventories continue to remain low, demand for housing is intense, and there’s absolutely no relief in sight. It’s a hard time to be a homebuyer right now! Despite that, you can still find a house that you’ll love; it may just take a little extra polish and shine as you head into your home buying adventure. Cash is still king, but you can be more competitive by putting your best foot forward with your offers. Here are our best tips for buyers trying to secure a home in this busy and tight … Continue reading...
Make One Extra Payment on Your Mortgage a Year
When you bought your home, you (hopefully) qualified for a mortgage that you could afford and if you stay on top of it monthly, you’ll own your home free and clear in 30 years (or less, depending on your loan terms.) Making extra payments may not even have crossed your mind, but there are actually plenty of reasons why you might want to scrape together just a little bit more to throw at your mortgage each year. Build Equity Faster If you make the equivalent of just one extra mortgage payment a year, you will increase your ownership share in your house faster. This can be … Continue reading...
Do You Need 20% Down
You likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment? If you think you have to put 20% down, you may have set your goal based on a common misconception. Freddie Mac says: “The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.” Unless specified by your loan type or lender, it’s typically not required to put 20% down. According to the Profile of Home … Continue reading...
Buying a Home, You Need a Plan
How do I begin the home buying process? How do I know if a house is well built? How do I make an offer on a property? What goes into a contract offer? What is an appraisal? What is a contingency? How many days do I have to review condo or HOA documents? How long does it take to move into a house once a contract is accepted? Why should I work with a local lender? … Continue reading...