Month: June 2022

In the last few years many people began working remotely and interest in second homes has skyrocketed. Here is a primer for those considering a second home. The first step is where – do you want a vacation home by the beach or mountains, do you want to be near relatives. Do your research and use a local real estate for help with choosing the right area or neighborhood. Second is why – do you want a vacation house, a second residence if you spend a lot of time in an area for work or family or do you want an investment property? You can actually combine these and use a second home for vacations and AirBNB it while you’re not there (of course check local rules regarding this). Third…

There are a lot of benefits to being self-employed - you're your own boss but when it comes to getting a mortgage secured, its a slightly different process than traditional mortgages. It often comes with additional requirements and red tape. Here are some tips to help you get organized and approved if you’re self employed. Apply for a mortgage when your income is up (we know this is easier said than done) but lenders will look at your last two years income most closely, and if you’re income fluctuates its best to apply on an up year. This can help you qualify for a greater loan amount and lower interest rate. Get That DTI lower, your debt-to-income ratio is one of the key factors in getting approved. So you’ll want…

You likely heard the the Federal Reserve Board increased the federal funds rate by three quarters of a percentage point this week, in response to rising inflation (most obviously felt when going to the gas station!). The Fed wants to combat too much liquidity by making borrowing more expensive. As a result mortgage rates have increased from near record lows of the last few years. With higher rates more borrowers are looking into adjustable rate mortgages (ARMs). ARMs were not a favored option with record low rates, but now they are looking more appealing to many borrowers. As we know the Fed is reacting to a number of factors, as mentioned trying to reign in liquidity, as well as global events that were not anticipated (Russia invading Ukraine the primary…

As we've seen an uptick in interest rates, many homebuyers are now looking into adjustable-rate mortgages (ARMs). ARMs were very popular in the early 2000s but with our extremely low rate recent history, very few home buyers were choosing ARMs. Now with higher rates many home buyers are looking into ARMs again. First a brief overview on what ARMs are - unlike your traditional fixed rate mortgage, ARM loans have interest rates that can change. Normally with lower initial interests for a few years that then "adjust" based on the current market rate. So a 3/1 ARM will have a lower fixed rate for three years and then adjust annually after that. A 7/1 ARM is for seven years etc. The primary benefit of ARMs are the lower initial interest…

As we enter beach and pool season - a lot of people ask if a swimming pool will add value to their home (to be clear we are talking about in ground pools here). The answer is it depends. Studies show that it can add 5% or more to the value of your home (but these studies are pre-Covid). If you are in a warmer climate like Texas or Florida, pools can add more value and be more desirable. In fact if your home is in a high-end area where most homes have pools then it can lower your home's value if you do not have one. Of course you have to take into account building and maintenance costs, as well as if your yard has enough space to accommodate…