Category Archives: Refinancing

Interest Rates, North County Housing Market, North County Real Estate, Refinancing, San Diego County Housing Market, San Diego Real Estate

August 2020 North County and San Diego Real Estate Markets

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August 2020 North County and San Diego Real Estate Markets

The August North County and San Diego real estate markets showed strong, year-over median price increases last month. Pent up buyer demand, historically low interest rates and continued inventory shortages are all keeping pressure on home prices, despite the impact of COVID-19.

Those low interest rates are also motivating homeowners to refinance. If you have already refinanced your home, you are lucky to have missed the 0.5 percent “adverse market fee” on all refinances that was just announced by the Federal Housing Finance Agency (FHFA). Freddie Mac said this new fee is going into effect as of September 1 “as a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty.” If you’d like more information about this new refinance fee, please contact me.

North County and San Diego Real Estate August 2020

Year-over, median prices were up 10.3 percent countywide and 11.1 percent in North County. Inventory dropped by about one-half compared to the previous year, and market times were shorter. The number of new listings dropped while pending sales increased in both markets.

See below for this month’s statistics and daily interest rate updates.

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Home Buyers, Home Loans, Homeownership, Interest Rates, Mortgage, Refinancing

Lowest Mortgage Rates in History: What It Means for Homeowners and Buyers

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Lowest Mortgage Rates in History: What It Means for Homeowners and Buyers

In July, the average 30-year fixed-rate mortgage fell below 3% for the first time in history. And while many Americans have rushed to take advantage of this unprecedented opportunity, others question the hype. Are today’s low mortgage rates truly a bargain?

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Home Buyers, Mortgage, Refinancing

Selecting a Lender

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selecting a lenderFinding a mortgage lender for a purchase loan or refinance is not a problem. Selecting someone who will help you find the best loan product for your situation even if it means sending you to another lender, is paramount.

There is a huge advantage to be able to sit across the table from someone you’re doing business with and look them straight in the eye. It’s difficult to make an informed decision based on a website and a phone call.

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Homeownership, Mortgage, Refinancing, Retirement

Reverse Mortgage

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reverse mortgageWith all of the encouragement from celebrity spokespersons like Fred Thompson, Robert Wagner and Henry Winkler, there is a growing awareness of reverse mortgages. The fact is that our population is getting older and more than 25 million homeowners meet the age requirement.

A reverse mortgage will allow homeowners age 62 or older currently living in their home to tap into their equity. The amount available is determined by the borrower’s age, the home’s current value and current interest rates. The loan proceeds can be received in a single, lump-sum or periodic payments. The closing costs can be paid in cash or rolled into the loan amount.

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Amortization, Home Buyers, Home Loans, Interest Rates, Mortgage, Refinancing

Should You Opt for a Fixed-Rate Mortgage?

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Type of Mortgage Acquired

94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history.  Yet, some of them will pay more in interest than necessary based on the time they’ll own the home.

If a person only plans to be in the home a few years, the adjustable-rate can offer significant savings.

Not only is the interest rate on the adjustable-rate lower than the fixed in the initial period, amortization on a lower interest rate amortizes faster than a higher interest rate.

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Home Loans, Homeowners, Homeownership, Housing Market, Interest Rates, Mortgage, Refinancing

Interest Rates – Are They on the Way Up?

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Bureau of Labor Statistics Unemployment Rate 2003 to 2013Interest rates increased about ¼ percent in the last two weeks, Mortgage Market in Review. Is this trend going to continue? There’s no clear answer just yet. The Bureau of Labor Statistics reported a drop in the unemployment rate in November to 7 percent, the lowest it’s been in five years.
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Homeowners, Homeownership, Housing Appreciation, Housing Market, Market Statistics, Mortgage, Refinancing, Rental Properties, tax

Get Regular Check-Ups

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Following his heart surgery in August, after an issue was discovered during his annual physical, President George W. Bush encouraged everyone to get regular check-ups. 

homeowners annual advisory

Another important checkup that should be done on a regular basis and can be just as beneficial for your finances is an annual homeowner advisory. Why would you treat your investment in your home with less care than you treat your car or even your HVAC system?

Consider investigating the following:

  • Know the value of your home by obtaining a list of comparable sales in your immediate area as well as what is currently on the market for sale.
  • Have you compared your assessed value for tax purposes to the fair market value in order to possibly reduce your property taxes?
  • Even if you’ve refinanced in the last two years, can you save money and recapture the cost of refinancing in the time you plan to remain in your home?
  • Have you considered reducing your mortgage debt with low-earning cash reserves that will not be needed in the near future?
  • Have you considered investing in rental homes in good neighborhoods to increase your yields and avoid the volatility of the stock market?
  • Do you need recommendations of repairmen and other service providers from a trusted source who deals with them more frequently than you do?

My goal is to create a lifelong relationship to help you be better homeowners. I want to be your “go to” person whenever you have a real estate question. I want to help you not only when you buy and sell but all of the years in between.

I want to provide good, consumer-based information about homeownership on a regular basis. If it benefits you by helping you be a better homeowner, hopefully, you’ll consider me your real estate professional for life.

Anytime you or your friends need help, please call. Knowing where to get the answer is just as important as knowing the answer. If you’d like information on any of the items I suggested, please let me know.

Home Improvement, Home Loans, Homeowners, Refinancing

Refinancing Again

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We’re constantly bombarded by lenders to refinance our mortgage under a variety of programs. The volume of offers can almost make you numb to the rational consideration.

There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate.

The reality is that if you can refinance for a lower rate and you’ll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven’t been recaptured by monthly savings may need to be added to the costs of the new refinance.

Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lower today than they were in January of 2012 and for the ten years before that.

Refinancing may save you a substantial amount of money, especially if you’re going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.