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How To Navigate the Housing Market Amid Rising Rates

As a result of the pandemic, interest rates bottomed out in recent years to the lowest ever witnessed in the history of the United States. A record number of borrowers happily took advantage of interest rates in the 2-3% range. But in 2022, we’ve seen a significant surge in interest rates largely due to the Federal Reserve’s attempts to combat inflation. For those who are in the market to buy a home, what actions can be taken to adapt to this new environment?

Do Your Homework

Educate yourself about the homebuying…

A Lag In Real Estate Development Is Affecting Millennials Today

As many older millennials are looking to settle down, buy a home and start a family, the rising cost of real estate is pricing many out of the market all together. Egged on by low interest rates, the real estate market has boomed over the last two years, with housing prices up 20-30% since the pandemic began, making buying a home less affordable than ever. Millennials in particular face unique challenges when searching for a home.

Saddled with student loans, a recent study showed that 36% of US millennials say such debt is…

FHA or Conventional Mortgage – Which is Better for You?

There is a lot to consider when buying a home. One question I often hear is how to choose between an FHA or conventional mortgage. To better understand which loan would be best suited for someone, it is helpful to review a few factors that go into the different types of loans that are offered.

Credit Score:
Whereas FannieMae and FreddieMac (Fannie and Freddie), the two conventional lenders, have risk-based adjustments due to credit score, and more specifically on transaction type, FHA is more lenient when it comes…

8 Negotiating Techniques When House Hunting

“Buyer beware” is an expression most of us are familiar with and this adage applies to any would-be home purchaser in today’s “seller’s” market. As a buyer during the current environment of high-demand and low-inventory, it’s important to consider the negotiating options available to you when house-hunting. Here are eight tips to keep in mind when making an offer.

Know thyself. Before you venture into what will easily be the largest financial obligation and purchase of your life, it’s vital to understand your personal economics. You must establish a realistic budget. This will help manage expectations when looking for your…

Four Reasons to Stay Local for Your Home Loan

I am often asked why to use a local bank instead of one of the larger national lenders. Well, there are several reasons:

  • Flexibility. The biggest reason to go with a local bank for your home loan is the increased ability to close loans due to the flexibility of its portfolio. The large national lenders tend to only follow the guidelines from Fannie Mae and Freddie Mac because the loans they complete are done with the intension of selling the investment and risk in the loan to one of those agencies. While most local banks also do…

Home Equity Financing 101

Thinking of consolidating debt? Need to fund a college education? Entertaining a home improvement project? Looking to finance a “bucket list” vacation? If you are a homeowner, the financial resource may literally be all around you – home equity financing allows the applicant to borrow against the equity of their home by using the house as collateral to obtain a home equity loan or line of credit.

What’s the Difference? HELOAN vs. HELOC
While a home equity loan and line of credit are both useful, they are also very different. A home equity loan (HELOAN) is a fixed-rate product with a…

Is the Wild Real Estate Ride Ending?

We’ve all heard, or maybe even experienced first-hand, the stories about someone who sold their home during the recent real estate boom. A friend or neighbor saying, “My house sold before a sign was even put in the ground. We received two dozen offers and sold our home for well over the asking price!”

As the old adage goes, all good things must come to an end. The question is, has that moment arrived or are we experiencing a seasonal drop in the residential real estate market? From the media, which had previously reported on the unprecedented housing boom, come…

How Mortgage Interest Rates Affect the Affordability of Buying a Home

Something we don’t hear much about in the news or even in general conversation among real estate professionals is the “housing affordability index.” Published by the National Association of Realtors, this is a measure of how much home a typical family can afford in the United States. This article is not speaking to that actual index but will discuss how mortgage interest rates can affect the affordability of housing to the average person. While housing prices fluctuate, I am strictly speaking to how rates affect your payment.

In 2003, we saw mortgage interest rates drop below 6% on average…

Post-Pandemic Real Estate Trends

It has been more than a year since our country was shocked and caught off-guard when the CDC requested a nationwide quarantine for two weeks in an effort “to slow the spread” of a potentially killer virus. We had no idea of the unprecedented challenges and loss of life that would follow. The COVID-19 pandemic has had a significant impact including on real estate trends.

Space in the Suburbs
During quarantine, a new way of life emerged for many Americans and there were a variety of responses to the unprecedented challenges – panic selling, irrational buying, jittery markets, remote work. One…

What to Expect from the Housing Market in 2021

Following a record year for the mortgage industry in 2020 with historically low interest rates, what can we expect in 2021? What is the potential impact of the new political administration and changing economic environment?

Mortgage interest rates truly have nowhere to go but up. While a rise in interest rates is inevitable, it should not be dramatic or prohibitive to refinances and home purchases. The Federal Reserve has indicated that it will continue to accommodate the U.S. economy as we recover from the pandemic though probably not as aggressively as was done during 2020. There will be slightly higher…

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