Blogtastic Articles!

Dec. 6, 2019

December - By the Numbers

 

Knowing what's happening in the real estate market is key to making your home search a successful one. Let's connect to determine how low mortgage rates and more can drive your process forward.

Posted in Real Estate Tips
Nov. 26, 2019

Rent or Buy, Either Way You're Paying a Mortgage

If you’re ready to put your housing costs to work for you, maybe it’s time to become a homeowner. Let’s connect to determine if moving from renting to buying is right for you.

Nov. 21, 2019

Time Travel via Interest Rates

  • With interest rates around 3.66%, now is a great time to look back at where they’ve been over the past few decades. Comparatively, they’re pretty low!

  • According to Freddie Macrates are projected to increase to 3.9% by this time next year.

  • The impact your interest rate has on your monthly mortgage payment is significant. An increase of just $20 dollars in your monthly payment can add up to $240 per year and $7,200 over the life of your loan.

  • Maybe it’s time to lock in now, while rates are still historically low.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy!

Click here to get started!

Posted in Mortgage Rates
March 29, 2018

Buyer Real Estate Market Frustration and How to Get Your Offer Accepted! [VIDEO]

The plan WAS to discuss the new tax laws taking effect, but went off on a severe tangent. We vent some frustration at buyers having significant difficulty getting their offers accepted. However, we discuss several different ways to help ensure that you DO get your offer ACCEPTED.

Maureen Torretto, Loan Consultant with iMortgage.
Email: MTorretto@loandepot.com
Phone: 925-577-8706

Michael Koenig, Real Estate Broker
Email: SFBayRealtor@gmail.com
Phone: 510-681-3499

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy!

Click here to get started!

Feb. 5, 2018

Whether You Rent or Buy, Either Way You're Paying a Mortgage!

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac,explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Click here to get started!

Jan. 24, 2018

Thinking about Solar Panels for your Home?

We live in sunny California, so why not?

Here's a great place to start!

(This link takes you to Google Project Sunroof)

Posted in Real Estate Tips
Jan. 23, 2018

Home Purchasing Power: The Trend is NOT your Friend!

Much has been said about the rising prices of real estate in the Bay Area. But this is only half of the story.

Here's the other half:Home Purchase Power - How Much House at $2,500 a month

This chart is quite a bit different from your typical 'interest rate' graph.

The key idea behind this chart, is to keep you monthly payment the same, regardless of what happens with to the interest rate. 

Example 1: a monthly payment of $2,500 at a 6.5% interest rate, buys a loan of $396,000.
Example 2: a monthly payment of $2,500 at a 3.2% interest rate, buys a loan of $578,000.
Example 3: a monthly payment of $2,500 at a 3.95% interest rate, buys a loan of $525,000.
Example 4: a monthly payment of $2,500 at a 4.95% interest rate, buys a loan of $470,000.

Never under estimate the power of leveraged money! A change in interest rate of 1 point, changes your corresponding qualification amount by 10%!!

Let's look at the numbers another way:Effect of Home Appreciation AND rising interest rates on your monthly mortgage payment

The basic premise behind this scenario is that real estate prices are expected to rise about 4.7% and interest rates rising also to 4.6% by the end of the year. What this chart illustrates, is that the exact same purchase now versus the end of the year, will end up costing you $30,550 more, which equates to $405 MORE per month! The very same house!

What does all of this mean?

Buy your new home before it gets even more expensive!

Everyone's situation is unique. Therefore, I'll be happy to sit down with you and explain how this works for your particular circumstance. Call me at (510) 681-3499 or just click here to send a message to me. It's important to wrap your head around these concepts. Are these trends foolproof? Nope. But they are realistic. The fear, is that interest rates will rise even higher that these projections.

 

Disclaimer: This chart and the numbers used are rough estimates but are based on current values and realistic projections by economists. It is VITAL that you contact a lender to get personally pre-approved. Everyone has a different credit profile and your actual interest rate and payments will differ. I'll be happy to recommend one to you. Contact me

 

Dec. 13, 2017

What is the Cost of Waiting Until Next Year to Buy?

We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

Mortgage Payment Difference 2017-2018

Bottom Line

If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan. Contact me to get started!

Nov. 23, 2017

Happy Thanksgiving!

Posted in Holidays
Nov. 21, 2017

Getting Your Home Sold - Access is Important!

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process, and they have asked you what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.

2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.

3. Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.

4. By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.

5. Limited Access (example: the home is only available on Mondays or Tuesdays at 2pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.

In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

 

If you are considering the sale of your home then Contact me to get started!

Want to know how much your home is worth? Click Here!

Posted in Selling A Home