How do home price reduction and rates affect one another? I have clients who have reported seeing price reductions in the asking prices of homes for sale. This is the first time I have heard of this in years and years. So, are real estate values about to correct? It probably depends on where you live. And of course, as with many of life’s answers, the answer is a matter of degree. Some markets may be in for a large correction, some a small correction, and some markets may still experience price gains.
Are housing values dropping?
I have heard of some home shoppers say they feel home sellers owe it to homebuyers to drop prices just because of the interest rates increase. Read the rest of this entry »
Tags: home price reductions, mortgage rates, mortgage rates spike, rate increase, Real estate values
Posted in Appraisal, Home Buying Process, housing values, mortgage | No Comments »
2023 conforming loan limits have been announced! The Federal Housing Finance Agency (FHFA) sets the loan size limits each year on conventional mortgages that Freddie Mac or Fannie Mae will buy from mortgage lenders. In 2022 the conforming loan limit for a single-family home was $647,800. This year, the conforming loan limit for a single-family home has increased to $726,200, a little over a 12% increase! Read the rest of this entry »
Tags: Fannie Mae, Freddie Mac, loan amount, loan limits, loan size, mortgage limits
Posted in Home Buying Process, housing values, Loan Types, mortgage, Underwriting Rules | No Comments »
Property taxes are a part of the cost of owning a home. When you buy a home you not only have to consider the cost of the monthly mortgage payment, but you also need to consider property taxes, homeowners insurance, any HOA dues, maintenance, and utilities.
Many people wrongly assume property taxes are a fixed cost, and that whatever amount is billed when you first buy the house, is what the amount will be for the life of owning the home. However, property taxes can change quickly after buying a home. Most counties assess property value annually, and adjust the amount due annually. Read the rest of this entry »
Tags: home values, property taxes, real estate taxes, tax write offs
Posted in Appraisal, Home Buying Process, housing values, Loan Process, Local News, mortgage, tax breaks | No Comments »
Potential homebuyers who contact me for a mortgage are now frequently asking if they should wait to buy a home. The implication is that people are now worried that housing values are going to fall, so why buy now? Isn’t it smarter to wait? Maybe, maybe not. It is understandable why everybody is asking the question, “are housing values dropping now?”
Markets are very local. Don’t assume that real estate is going to fall across the board in every community, in every town, in every city across the U.S. Read the rest of this entry »
Tags: house values, Housing market correction, housing values, Real estate values, should I wait to buy
Posted in Appraisal, Home Buying Process, housing values, interest rates, Lifestyle, mortgage, Realtors | No Comments »
A VA cash-out refinance can be used for many reasons. There are a few important things to know about cash-out refinancing to 100% loan-to-value (LTV) when using your VA eligibility.
On a VA cash-out refinance to a 100% LTV the 100% must include the VA funding fee. Read the rest of this entry »
Tags: VA 100% loan to value cash out refinance, VA cash out refinance, VA mortgage
Posted in housing values, Loan Process, Refinance, Underwriting Rules, VA Mortgage | No Comments »
I often have conversations with potential homebuyers in speaking with them about their mortgage financing, where they ask me about whether I think Real Estate is due for a correction. Let’s face it, Real Estate has been going up in value at a striking pace in the last few years. It’s a realistic question to ask if some of that increase is due for a correction to some degree.
Of course, I don’t have the answers. But we can have a discussion to give homebuyers a frame of reference. Read the rest of this entry »
Tags: historical real estate values, real estate, real estate correction, Real estate values
Posted in Home Buying Process, housing values | No Comments »
To rent or to own? If you are planning on moving and are financially stable enough to potentially qualify for a mortgage, there is a lot for you to consider. Buying a home usually requires a down payment plus closing costs; renting also comes with its own fees, but those are generally less than you will need to buy a home. Here, we will explore whether it is cheaper to rent or own a house and the pros and cons of both.
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Posted in Government, Home Buying Process, housing values, Personal, Prepayment, Realtors | No Comments »
If you are buying a home, you will need a mortgage lender to help you fund it. There are many mortgage lenders available, so finding the right one can be difficult sometimes. Here, we will look at how to reach out to mortgage lenders so that you can find the best lender available to help you finance your dream home.
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Posted in As Seen In, Condo, FHA, Government, housing values, mortgage | No Comments »
Many people are very focused on interest rates these days and are wondering where they are headed next and how it may affect their mortgage payment. Interest rates have been historically low for a very long time, and people are starting to fear that they may increase and have an outsized impact on the cost of purchasing a home.
You can see a chart of the long-term history of interest-rates by clicking here. This chart shows that we are definitely near the bottom of where interest-rates have been over a long period of time. On the other hand, if interest-rates start to go up does it have as much of an impact as people think? Read the rest of this entry »
Tags: interest rates, mortgage payment, rates rising
Posted in credit, housing values, interest rates, Loan Process, mortgage, tax breaks | No Comments »
Deciding on how much mortgage you can afford is very complicated with several things to consider. Before you plan to spend the maximum amount you’ve been approved for, consider what you feel comfortable with. And before you treat your home purchase like a zero-sum game consider spending a sufficient amount to buy enough house to keep you happy for a longer period of time, due to the hefty transaction costs of real estate. Read the rest of this entry »
Tags: getting pre-approved, income, mortgage, pre-approval, pre-qualification, qualifying
Posted in credit, housing values, mortgage | No Comments »
