Now is a Great Time to Refinance

 

 

With mortgage rates still trending low, we’re seeing a huge uptick in refinancing applications – almost 2.5 times more than this same time last year, according to Mortgage Bankers Association. If you bought your home within the last two years and have been considering refinancing, now is a great time and here’s why:

  • Home loan interest rates are still at their lowest point since 2016.
  • Buyers who took on a mortgage over the last year and a half are more likely to have a higher interest rate as 30-year, fixed-rate mortgages offered through 2018 were around 4.54%, according to Freddie Mac.
  • Black Knight estimates that roughly 10 million borrowers could save at least 0.75 percentage points by refinancing

 

Shorter Loan Term

If your current interest rate is around 4.5% or higher, there is a strong possibility that refinancing could help you lower your monthly expenses and shave five years off of your current loan term and keep your monthly payment the same. (See graphic below. Savings based on a $250,000 loan amount.) For those considering refinance as an option, be sure to speak with your mortgage adviser about loan-origination fees as those fees could potentially outweigh the savings.

 

Cash-Out Refinance

Have you been dreaming of a new kitchen or adding square footage to your home, but worried that a new cash out mortgage payment will kill your monthly budget? With today’s rates, not only can you borrow for less, but your new payment is likely to be less than your existing one simply because of the lower interest rate.

Ideally, when it comes to cash out refinancing, we recommend putting that cash toward something that improves your home’s overall value versus spending it on new living room furniture, clothing or a Caribbean vacation. Other great options are to pay down high interest credit card debt or put the extra cash towards your family’s emergency fund in the event of an unforeseen hardship.

 

Whether you’re looking to lower your monthly living expenses, shave time off of your mortgage or do a cash-out refinance for home improvements, we wouldn’t recommend waiting. Speak to your mortgage adviser today and find out if refinancing is the right option for you.

 

 

Why You Need An Appraisal

It’s finally happened — after months of searching, you’ve found your dream home. It’s the perfect size for your growing family, the kitchen was just remodeled and there’s a huge deck for entertaining. And best of all, the seller accepted your offer!

As we near your closing date, your lender will want to verify the home’s value with an appraisal. This might sound nerve-wracking, but don’t worry: Appraisals protect you from overpaying.

Let’s dive into appraisals to demystify the process:

When do you need an appraisal?
If you’re taking out a mortgage to buy a new home, the lender will require an appraisal. The appraiser gives an independent estimate of the property based on recent sales data of similar homes.

When your mortgage amount matches the appraised price of the home, you know that you have a good loan-to-value ratio — and aren’t paying more than you should be.

What does an appraiser look for?
An appraiser will physically measure the home’s square footage and visually inspect the entire property. They’ll note things like:

  • Floor plan functionality and the number of bedrooms and bathrooms
  • Age of the house and its overall appearance
  • Value of any recent updates or remodeling
  • Size of the lot
  • Desirability of the surrounding neighborhood

After comparing all of that against similar nearby homes sold within the last 90 days, the appraiser arrives at your home’s value.

What if it’s valued for less than you expected?
Let’s say you agreed to buy the property for $250,000 but the appraisal came in at $225,000. Your lender won’t approve a loan for more than the appraised price.

If you still want to buy the home, a lower price can be negotiated with the seller or you can challenge the appraisal and pay for a second opinion.

Another option is to walk away. This may not sound ideal, and it will probably be hard to do. But the goal is to get you the right home at the best price.

If an appraisal comes in low, we’ll discuss all the options available to make sure you don’t overpay.

Are you ready to find your dream home? Reach out today to get started.

 

 

Fixing Ugly Isn’t Easy

 

Have you ever dealt with a collection company before?  Would you rather bang your head against the wall?

Recently, our team was called upon to help a client fix an “ugly” situation on their credit report to improve their terms with a home loan refinance.  The collection only totaled $250 but, it had a huge impact because everything else was paid perfectly.  You may wonder why this particular collection had a larger impact on this particular client’s strong credit report vs. someone who notoriously has late payments on their report.  That’s a great question…..however the answer is, “it’s just an ugly reality.”  Believe it or not, if you pay your debt in full but negotiate the wrong type of letter from the creditor, your result in regards to credit improvement could still be costly.  We coached our client on what to say and what documentation they would need with the exact verbiage required to improve their overall credit rating.

The result:  we were able to improve our client’s credit score by 107 points and reduce their monthly mortgage payment by over $100 per month for a one-time $250 payment and a patient phone call.

The long term savings in this situation saved the client thousands!  If you have an ugly credit situation, call us so we can help you! As always thank you for your continued support!  Without your ongoing referrals we would not be where we are today!

 

Great News for Interest Rates | Is Now The Right Time to Buy A Home?

IS NOW THE RIGHT TIME?

Are you thinking about buying a house, but not sure it’s the right time? Trust us, we get it. Buying a home is a huge decision with many factors to take into account, such as neighborhood, school district and the number of bedrooms and bathrooms to name a few. However, the biggest question in most people’s mind is, ‘How much house can I really afford?’ That answer has its own set of factors, with one in particular being the Interest Rate (cue the ominous music). But we have good news. Actually, we have REALLY good news (drumroll)…

THE BIG NEWS

Last month, the Federal Reserve officially announced that there are no plans to raise interest rates in 2019. With the current rates still historically low, and holding steady, there is no reason to wait to begin the search for your dream home (champagne pop and confetti)!

Even better, mortgage rates haven’t been this low since February 2018, almost 14 months ago, and Freddie Mac reports 30-year fixed rates were down to 4.28% in March 2019. This rate was only available a few months ago by taking out a fifteen-year fixed or adjustable rate loan, which for many buyers, is not a very feasible option. Thirty-year fixed loans were close to 5% just this past November and that rate was still considered historically low, so a potential rate in the low 4’s, in our opinion, is definitely worth taking advantage of if you can.

WHAT DOES THIS MEAN FOR YOU?

Firstly, a lower rate equals a lower payment. A lower payment means you could potentially get more home or buy in your dream neighborhood, or have additional funds to decorate your new home.

Bottom line. With current interest rates holding steady and the news from the Federal Reserve, 2019 is definitely the year to consider taking the leap and making that long awaited purchase. It’s an investment that will continue to pay off in dividends for many years to come.

If you have additional questions or would like to learn more about what loan programs would be right for you, give us a call today at 480-759-1500.

We would love to help you turn hope into a home!

Real Estate Video Marketing: You Need It and Here’s Why

Video Marketing is more important than ever for Real Estate Professionals in 2019 and there are several reasons why.  We will start with a few stats and move to the heart and soul of why video is taking over the industry.

-Instagram recently reported 500 million people watch Stories every day.

-YouTube has 2 billion monthly active users.

– LinkedIn is rolling out live video.

-Video marketers get 66% more qualified leads per year.

-Video marketers achieve a 54% increase in brand awareness.

What’s the key take away? Around two-thirds of marketers are using videos for marketing; you can’t afford to be left out. Also, humans retain 58% more information when we are shown HOW to do something.

I would like to share some valuable info from our friends over at Hub Media. They are leaders in the real estate video world and I have seen their success stories first hand.

Most real estate agents are using some variety of video in their business whether that be Facebook live or professional cinematic home tours, but using video is something still relatively new to many agents. Facebook Is the logical place to put your videos when marketing properties for sale but there is a problem: FB is a horrible search engine, it’s hard enough for you to find a post you did on your own page a few weeks ago so imagine how challenging it can be for others to find your best content. Facebook is a place where consumers discover content by accident where as other platforms like Google and YouTube are on purpose.  Real estate agents need to clearly establish their value in the eyes of the consumer by creating high quality, unique and valuable content consumers are searching for online.

 Video is very effective when used properly to educate and inform consumers, market properties for sale, build brands and much more. Whether you are a savvy video pro or just getting your toes wet, there are some videos that are essential for every real estate professional.

 1.The Home Page/About Us Video – Personally connect with potential prospects and customers

2.Tips and How To Videos – Show your expertise and experience without bragging.

3.The Community Video – Most know which community they want to live in. These not only show your expertise on a community but also to help you get found online.

4.Testimonial Videos – These are the 21st century version of the written testimonial and are the ultimate form of social proof which humans are easily influenced by.

5.Cinematic Property Tour Video – This video will help the consumer mentally move in to the property, and because the real estate agent is in the video introducing the property it is priceless face time at the exact moment the consumer cares most about what you have to say!

6.Facebook Live Videos – When it comes to marketing, your product (YOU) needs to be at a place everyone visits frequently. Facebook is where we accidentally discover content. Facebook live videos, when done effectively, can create valuable engagement.

7.Video Email – This shows the personal side of you, bringing consumers closer. Did you know people are 80% more likely to do business with people they can see compared to only speaking on the phone or through email?

Real estate agents are busy and this may seem like a lot to take on, but believe me, it is worth it. Video marketing can change your business, which will change your life. Vacations, retirement? Video will help get you there.  For more information on video marketing, please visit Hub Media’s blog https://hubmediacompany.com/blog/ or reach out to them at 480.223.8113. They would love to help.

Loan Options for those Looking to Downsize

(5 min read)

Over the past decade, Baby Boomers (those born from 1944 to 1964) have been the generation to watch both as consumers and home buyers.  Although a shift is taking place and many industries (including real estate) are beginning to focus on the Millennial generation – their housing needs, preferences and purchasing behavior — the Boomers still represent a significant portion of overall home sellers and buyers in 2019. Why? With their children out of the house, many Boomers are looking to downsize.

While they may be looking to transition into smaller homes, they still expect the same high-end amenities, finishes and offerings that come standard in a larger multifamily residence, and complements their modern, active lifestyle.

In this article, we’re sharing a couple of tips for those Baby Boomers looking to downsize, as well as mortgage options that complement their next forever home.

Reverse Mortgages

Reverse Mortgages hit the scene in 1961 and really gained popularity in 2018. It is a type of loan available to homeowners that are 62 years of age or older and have a high amount of equity built up in their current home. Borrowers are not required to make monthly principal and interest payments to their bank or lender, as they would be required to do with a traditional purchase or refinance mortgage. Instead, their bank or lender pays them in a lump sum(s) or via a line of credit based on their home’s equity.

Why is this a good option for the Modern Boomer? Picture a couple that would love to find a smaller home with less maintenance, etc.  They no longer need to live in the best school district and want a lifestyle that allows them the freedom to travel and be more active. The amount of equity they have in their current home, although high, may not allow them to buy a small house or townhome outright because of their desired area’s higher home values.  A reverse mortgage would allow them the opportunity to purchase the home they want, and still have money left over to travel because they are receiving their equity as additional income vs. rolling it into a traditional purchase.

 

Condos

Many of today’s higher-end condo communities offer a variety of upscale amenities to complement their convenient location and accessibility – making it  a very desirable option for the modern Boomer. However, it has been difficult in the past to acquire a loan on a condo because of factors like community occupancy percentage (how many units are owner occupied versus investment properties) and HOA status – including financial reserves and arrearages. Good news, tools like Freddie Macs Condo Project Advisor now lets the buyer request unit-level exceptions for existing condominium projects early in the loan origination process so condo sales and financing are more streamlined.

There are many finance options available to homebuyers looking to downsize.  If you have questions regarding any of the loan programs mentioned above, be sure to contact a Cardinal Financial expert today at 480-759-1500 and we’ll be happy to assist in finding your client a solution that works best for their lifestyle.

Tips for Choosing the Right Realtor

(2 min read)

Tips For Choosing the Right Realtor

A record number of Americans are gearing up to buy their first homes.  This is a big decision that can bring a lot of questions including the big one. How do I choose the right realtor? We can help with that! Read below for simple tips that will help you find the best real estate agent.  Here’s a hint: the tools you need are actually right in front of you.

 

Ask Around

Just like recommending your favorite local coffee shop, word of mouth recommendations are still the best way to go to begin curating your list. Ask friends and family for realtor references especially if they are recent buyers. It’s important to note that just because a realtor might have been a good fit for someone you know, they still may not be the right one for you.

 

Find Your Neighborhood

Decide on the areas that you are interested in living in and narrow down your potential realtor list based on that.  You can research this online or drive those neighborhoods and take note of the realtors selling homes there. Working with an agent who has experience in successful sales in the area you want to live will put you several steps ahead.

 

Google!

It’s time to find out more about your potential prospects. Do a few Google searches to get to know their online persona.  As a first time home buyer, pick a realtor who is experienced and knowledgeable, but also current and fresh. Does it seem like they know the area you are interested in?  If they have a website, is it modern and up-to-date? Are they active on social media and post regularly? Do they offer relevant content that is helpful and coincides with your vision? A realtor who takes the time to continue learning about the growing market trends is someone you want on your side.

 

Be a Boss

Make a list of real estate questions that are important to you regarding your house hunt.  Ask them to explain the home buying process and add anything that you expect from your realtor (i.e. preferred method of communication, how often you would like updates).  Being honest about your expectations from the beginning will pave the way for a smooth buying experience. Meet your potential realtor for coffee or just give them a quick call. Do you feel that they are genuine in the advice and information they are offering you? Are they approachable and outgoing? Someone who is outgoing is most likely confident and confidence is definitely a characteristic you want when choosing a realtor. At the end of the day, go with your gut. And remember, they work for you.

Buying a first home is a significant milestone. Take your time when selecting who will help you make this major financial and emotional decision. Just don’t forget to have fun and enjoy this time, too! You’re only a first-time home buyer once!

If you need help finding the right realtor for you, call us.  Cardinal Financial AZ has worked closely with hundreds of realtors and will be able to recommend the right fit for you. Call 480-759-1500 or email matt.askland@cardinalfinancial.com to talk about your options!

What’s Keeping You From Buying?

7 Tips for Negotiating Without a Real Estate Agent - myarizonaloan.com

Are you looking to buy a home in 2019 but worried about finding a lender that can work with your situation? Maybe you are self-employed and think you won’t fit into a cookie cutter loan program. Mortgage loans are not one size fits all and Cardinal Financial understands that better than anyone. We have smart solutions for just about any circumstance and are here to help!

Income & The D Word (DEBT)
Many prospective buyers believe that your credit score is a deal breaker when purchasing a home. That is not the case! Your monthly debt to income ratio (aka DTI) is also a significant factor. You get this number by dividing your total monthly debt by your total monthly income before deductions. The DTI golden rule is to keep your debt at less than 50% of your income. And just like a golf score, the lower the better!

The Dreaded FICO Score
A lot of credit cards, car loans, etc can make getting a mortgage more difficult but definitely not impossible! The goal is to keep your balance at less than 50% of your credit limit on each card. Helpful Hint: Don’t open or close any trade lines prior to getting pre-qualified and throughout the entire loan process. A Cardinal Financial Loan Adviser will let you know when it is ok to make any changes to your credit.

Credit History Haunting You
Don’t dwell on the past! Lenders mainly concentrate on your last two years of credit and rental history. So you can breathe easy; no one is digging for a skeleton in your closet!

Down Payment Stress
Good news! There are several sources of down payment assistance. Did you know that you can borrow directly from your 401K? And when you borrow from yourself, it will not affect your credit score. With an FHA loan, all you need as a down payment is 3% from your 401K.

Qualifying for a loan is easier than you think! And when you work with Cardinal Financial, the possibilities are endless. With our experience, knowledge and creativity we have all of the tools to help you find the right loan. So start that 2019 Pinterest Future Home board and pin away!

To learn more or if you are looking for a great lender contact us! We are always available at 480-759-1500.

Looking to Buy A Home? | 3 Tips For Improving Your Credit Score

Congratulations! You have decided to purchase a home. It is a very exciting time; however, it can also be very stressful. You begin questioning if your credit score is in good shape? Will this slowdown or stop the process of buying a home altogether? How can I improve my credit score, fast?

First of all, do not panic! Many consumers are worried about their credit score. Trying to improve one’s credit score is a common concern for a lot of buyers. Check out these tips on how to approach any issues and improve your credit score so when mortgage lenders look at your financials you are in a much better position than you were prior.

3 Tips on How to Improve Your Credit Score

  1. Pay Off or Lower Debt

Paying off debt is one of the quickest ways to improve credit scores. Credit utilization makes up 30% of your credit score. Therefore, try to pay off your balances or keep them predominantly low. With the holidays around the corner, do not foolishly dig yourself in more debt because you are shopping for friends and loved ones. Keep it simple and keep a budget as you have big plans to purchase a home.

  1. Stay Current on All Accounts

Do you have any accounts that have late payments? Catching up on all delinquent accounts and outstanding fees can improve a credit score pretty quickly. Once you take care of those unpaid dues, it is vital that you pay your bills on time. By staying on top of payments, you will continue to increase your credit score.

  1. Plan Accordingly

When you are preparing to buy a home, there are a few things you should and should not do. You should be mindful of any additional large purchases you plan on making. For instance, this is probably not the best time to buy a car. Every event you apply for credit can cause a decrease in your credit score which is not what you want right now.

It is also not an ideal time to open or close any accounts. You may want to shut down an account once you have paid off the balance, but you should ensure that this will not affect your credit score first. Most of the time closing an account will not improve your credit score, and by leaving the account open, you can continue to increase your score by making timely payments.

Want more? We’ve put together a downloadable list of 12 Things Not to Do When Getting Approved For a Home Loan.

With these credit improving tips you should be well on your way to becoming a new homeowner! If you are still seeking further guidance, call us at 480-759-1500 or email matt.askland@cardinalfinancial.com and we’ll be happy to assist you.

Happy house hunting!

3 Housing Options To Consider For Continued Independence As You Age

Independent living is often cited as being good for one’s well-being, so it’s no surprise that aging in place has become so popular. Aging in place is a term used to describe a person living in the residence of their choice, for as long as they are able, as they age. This includes being able to have any services (or other support) they might need over time as their needs change.

Thankfully, many options in today’s housing market make aging in place possible.

Preparing for physical safety and financial security are the most immediate concerns that come to mind as we plan for aging in place. However, convenience and overall well-being should also be considered before deciding where to settle in.

Here are three housing options to weigh as you or your loved ones plan for continued independence.

1. Renovate Your Current Home
Adding front entry ramps, bath bars, sit-in tubs and other safety features may make it physically possible to stay where you are. However, renovation costs can add up quickly, especially if they’re needed all at once.

Home maintenance should also be factored in. Who will manage the upkeep if the property has multiple floors or a large yard?

2. Right-Size to a Manageable Floor Plan
Some may find it easier to purchase a home with barrier-free, universal design rather than deal with the stress of home renovations. Moving closer to family and friends can also help to prevent social isolation or depression.

3. Buy a New Home With Family Members
Floor plans for multigenerational homes are often designed with individual privacy in mind while allowing family to be nearby. Sharing home maintenance costs also minimizes living expenses. And this is an excellent way to help family members enter into homeownership.

Aging in place requires thoughtful preparation. Get in touch with one of our trusted loan advisers today to discuss the option that best fits your long term housing needs.