Friday, October 18, 2019 / by Albert Hernandez
Home prices have been on the rise for a while now and news stories abound with first-time homeowners being priced out of the market. As breaking into the housing market seems daunting today, some people may ask themselves if reaching for the goal of homeownership is truly worth it. The answer is yes! And here are the top 6 reasons why:
Pay Yourself, Not a LandlordOne of the most frustrating parts of renting for many people is the feeling that they could be using their monthly rent costs to invest in their own place rather than giving it away to a landlord. When you buy a home, your monthly mortgage payment is providing you with a place to live as well as investment in a valuable asset.
Freedom to CustomizeAs a homeowner you do not have to answer to anyone when you want to hang pictures, paint, or make renovations. Unless you have HOA rules, the home is yours to do with as you please. There is a lot of freedom that comes from owning a home. ...
Friday, October 11, 2019 / by Albert Hernandez
You are selling your home but have already moved into your next place. You might think that an empty home would sell faster than a currently lived-in one. It’s more convenient for tours and it’s easier for buyers to picture their own things in the home, right? Actually, no.
The truth is that vacant homes stay on the market longer and sell for less than their furnished counterparts. A recent study from Redfin found that homes that were no longer occupied sold for roughly $11,000 less and took six days more to sell than similar occupied homes. The reasons for the disparity include several factors. For one, with no furniture inside, cosmetic problems like carpet stains or wall patches are more apparent. Of course, these types of small issues will not necessarily impede a sale or an inspection but when they are obvious, borrowers may start to form a negative opinion of the property.
Another reason for the lower prices and longer wait times is that empty rooms ...
Friday, October 4, 2019 / by Albert Hernandez
In the homebuying process, if you find yourself in the enviable position of having more cash than needed for a minimum down payment, it may be difficult to know just how much you should put down. A larger down payment can bring plenty of benefits, but is it always best to contribute the biggest down payment possible?
First, remember that every loan program has its own down payment requirements. FHA loans for example require a minimum of 3.5% while jumbo loans will require at least 10%. To get a conventional loan without PMI you’ll need 20%. USDA and VA, by contrast, do not require any down payment at all. Part of your decision will be based on which loan program fits your needs.
The Benefits of Big Down Payments
Lower PaymentsThe higher your down payment, the lower your actual mortgage loan total will be. That will translate into lower, more affordable monthly payments.
Lower Interest RatesWhen you contribute a significant amount of money, the lend ...
Friday, September 27, 2019 / by Albert Hernandez
When there are dramatic swings in the stock market, you may wonder how mortgage interest rates will be affected. What is the relationship between mortgage rates and the stock prices? Do they move together or in opposite directions?
Stocks and Mortgage Rates Both Mimic the Economy
While the stock market is not directly related to mortgage rates, both are based on the basic movement of the economy. When things are going swimmingly, both stock prices and mortgage rates tend to rise. They both generally fall when the economy is faltering. When investors are concerned about national or global financial health, they move their money to safer investment products like bonds. Bonds have guarantees of repayment and interest from government entities, whereas stocks make no promises. It is possible for stock prices to fall to zero, creating a total loss for investors. As more investors flock to bonds and pull out of the riskier stock market, demand for stocks falls ...