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2020 is a Great Year for Real Estate

 

2020 is shaping up to be a very good year for the real estate market in Maricopa County, and here’s why.

The new 2020 conforming ($510,400) and FHA ($314,827 for Mariciopa County) loan limits are easing the financing requirements that we usually face with higher home prices. What does this mean for you? You can get the home you want at a payment that you can afford.

The NAHB (National Association of Home Builders) has released their Housing Market Index, which decreased one point in January to 75. This is still a very strong level and is only one point off a 20-year high.

Rates are still historically low, and it looks like they will stay that way for a while. That great credit score you worked so hard for is paying off (and you deserve it!). A low rate means you can spend more on your dream home, while keeping your payment at an affordable amount.

With higher loan limits and still low rates, 2020 is going to be a great year to buy. Give us a call today at 480-759-1500 to discuss your options!

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.

 

 

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!