We are not done with the refinance talk yet! As more people are trying to make the right decision for themselves and their family as far as if they should refinance or not, we are happy to help answer any questions people may have. Some of you have asked us if you should refinance or if you should pay a bit extra toward your mortgage. For most people, it makes the most sense to refinance since their interest rate will be significantly lower. (If it is not, there is no reason to refinance.) But for some people, it saves more money in the long run by just paying extra toward your mortgage monthly. Your current loan and interest rate play a large part of making the right decision. Your family’s needs also play a role in the decisions as well, along with any financial goals you may have.

If you can lower both your interest rate and your monthly payment, it would be beneficial for you to refinance. When you refinance, do not forget that you still have to pay closing costs and other fees. Do not forget to factor this amount of money into the decision. If you are wanting to use some of your home equity, a cash-out refinance is a great option for you. The money you take out can be used for a variety of things – renovating your home, paying off credit card bills, etc. If you think you are going to stay in your home for a significant amount of time, it would be beneficial to refinance as you will truly be able to reap the rewards of saving money.

Now when looking into making extra payments instead, there are a few things to keep in mind. To start off, by paying extra, you will be lowering your loan and paying off your loan faster. This is a good idea if the potential savings of refinancing is not enough for you to benefit from refinancing. If you think you may sell your home in the near distant future, making extra payments on your mortgage is the way to go. You will likely save money from not having to pay a closing cost and other fees if you were to refinance – and then you turn around shortly after and sell your home.

We would recommend you really figure out your goals with your house for the foreseeable future, along with planning out how much money you would potentially save. This will help you to figure out which decision is best.

We know that there has been a lot of talk lately about refinancing! That is because a lot of you are refinancing or asking questions about refinancing. The housing market is a hot topic right now, as you know – and that includes refinancing! Believe it or not, it is possible to have a no-cost refinance. While this may be a little deceiving, it does not mean you will not have any fees. But it does mean you will not have to pay for the fees up front at the start of the process, but rather, include it into the balance of the loan. There are some lenders who will cover these types of fees but the interest rate may be higher. So in the end, you are still paying these fees.

If you choose to add your closing costs and other costs into your loan, keep in mind that your monthly payments will likely be more. You will also be paying more in interest over time as well. If this is something you are comfortable with and feel okay with doing, it is a great way to not have to pay all of these costs upfront. This option is not for everyone.

Another option is something called lender credit. This means that your lender will pay your closing costs and other fees, however your mortgage rate will be higher. This will obviously cause you to pay more money overall in the long run with a higher rate. However, if you do not plan to have the mortgage long and the home is not your “forever home” this may be a good option for you.

Going with a no-cost refinance depends on the homeowners financial situation and what is best for them in both the short term and long term. We would recommend you take a look at the finances as a whole and how much more money you will have to spend overall.

Most people have not heard of refinancing with an appraisal being done. To be honest, I did not know this was an option until recently! It saves both time and money if you are able to refinance without an appraisal. Keep in mind that not all lenders have this as an option.

Appraisers do play an important role when it comes to purchasing a home. The appraisal is what tells the lender how much the home is valued at so they know if they are making a wise investment or not.

There are a handful of ways you may be able to skip the appraisal from being done. There are a few lenders, like Fannie Mae and Freddie Mac, that have waivers available. These waivers are usually only for applicants that are considered to be a strong applicant. These waivers are pretty uncommon but they do exist. The borrower must have at least 20% equity and the home not valued more than one million. The higher the credit score and amount of income will help an applicant as well.

There is also a program called the Streamline Refinance program. This is a program that is offered by government-backed loans. These types of loans are specifically available to help a homeowner save money by lowering your mortgage rate. While the government may not require an appraisal for these types of loans, it is possible that your lender may still require it.

There are some lenders that offer specific loans that give you the opportunity to obtain an appraisal waiver. While appraisal waivers are not common, there are some situations where it is possible. There are a lot of things you have to do in order to qualify, but if you are able to go through all of the red tape and meet all requirements, it will get you out of having to have an appraisal!

As you can see, although it is not common, it is something that may be possible. Not having to have an appraisal will save time, money, and cause less stress!

Due to the continuing increasing cost of homes this year, some people are reflecting on whether or not it is a wise decision to purchase a home this year. Even though the cost of a home is greatly increased when compared to other years, if you have the financial means to do so, it may be a wise choice especially when you compare it to the cost of renting a home.

If you purchase a home now, you will earn home equity which can benefit you in the future by adding to your net worth. This is one of the advantages of purchasing a home now, especially when compared to renting a home. Another perk of purchasing a home now is that your housing cost will stay the same (for the most part) but if you compare it to renting a home, you do not know how much your rent will increase a year from now. All over the board, rents are increasing significantly. Purchasing a home also gives you some opportunities that renting does not. For example, since you own the home, you can decide how you would like to decorate it and what you would like to do with it. You even have the opportunity to get a roommate if you choose to. This would help offset any costs you acquire along the way.

If you are struggling to see what the right decision is for your family, we would be happy to help you. If you get in touch with us, we can go over your available budget and see what would make the most financial sense for you and your family. Be sure you let us know what your financial goals are as well so we can accurately assess your situation and what the future may look like for you.

We have heard from some of you recently that home inspections are quite intimidating to you. They do not need to be intimidated. If you know what the inspector is looking for, you will likely be a bit more laid back and be more confident about the inspection. The inspection is for the best interest of the buyer of the home. And really, as the seller, you should, in good conscience, want to be sure the house you are selling has no outstanding issues that a new homeowner would have to worry about.

Before the house is sold, the home inspection results may result in a re-negotiation of price or some type of work needing to be done in order for the sale of the home to go through. As the seller, knowing what the inspector is going to look for will put your mind at ease a bit so you know what to expect.

To start with, expect that the inspection should take anywhere from two to four hours. It depends on the size of the home, how many issues come up, etc. You will not get the written report right away – whether something is wrong with it or not. It will take a minimum of a couple of days to get the written report. That does depend on how fast the inspector works.

If you are the buyer, you can actually be there at the time of the inspection. If you have any questions, you can ask the inspector while you’re there.

If you are unsure as to what the inspector will be looking at – they are looking at everything and anything! To name a few, they will be inspecting the heating and cooling system, plumbing, electrical work, the roof, windows, doors, the attic, foundation, structural components, etc. The inspector will not make a mess but they will be very thorough in the process.

When finding the best inspector, we would recommend word of mouth from other people who have used them. If you need any local leads, let us know!

Refinancing has been all the talk again with refinancing rates being less than some homeowners financed rates. However, there are some reasons that refinancing is not a good idea for people. Remember, to each their own and make sure you make the right informed decision for you and your family.

If you have had your current mortgage for a long period of time, you may not benefit from refinancing. This especially holds true if you have had your current mortgage for at least ten years. When you refinance, the payoff period increases (it starts over again) unless you refinance into a shorter loan. For the most part, lower rates are associated with a shorter loan length. So if you choose to decrease the length of your loan, you may wind up saving money. Keep in mind that this would mean your monthly payment would likely be more expensive, so this option may not be one that you can afford.

Another aspect to look at is that when you refinance, your total interest cost may increase. We would recommend you do a cost analysis between what your current mortgage is with your current interest rate and compare it to what your refinanced mortgage may look like. Be sure you look at both your monthly savings and your total, long-term savings. Doing this side by side cost analysis will give you the big picture to show you if it is a financially good idea for you.

What is your credit score like? If your credit score is not sufficient enough for you to qualify for a competitive interest rate, you may not benefit from refinancing at all. If your credit score yields you a good refinance rate, then that is a different story. It would not hurt to at least look into it!

Although this may be common sense, we have to reiterate the fact that it is only a good time to refinance if your savings are more than your cost! Be sure to do your homework and look into everything thoroughly.

No matter which state you live in, there is usually some type of program for a first time home buyer. If you reside in Florida, there are many programs and assistant options available to you! And as with any situation, each situation is a bit different. 

In Florida, there are also some loans that do not quire the typical 20% down payment. Some of these programs require as little as a 3% down payment and a minimum credit score that varies. These loans include but are not limited to: Conventional 97, FHA loan, VA loan, and USDA loan. These options also allow you to use money that was gifted to you or use funds from down payment assistance. 

Florida has what is called the Florida Housing Finance Corporation (also known just as Florida Housing) that helps homeowners find approved lenders. The approved lender will help the homeowner throughout the whole process, along with offering education throughout the way as well. In order to get this type of assistance, you do have to take an education class in order to work with them. The class does not take a long time and you are able to do it online as well. In order to qualify for this type of help you also need to have a minimum credit score of 640. Each county in Florida has a certain limit for the purchase price and income that is set by Florida Housing. Both your home purchase price and income must be less than the limit set forth for each county. Each county has different requirements.

If you are interested in purchasing a home in one of the big cities in Florida, you will find yourself in competition. As you know, the market is hot and very competitive. Do not let that steer you away purchasing a home in one of these big cities…you just have to be strategic about it. There are many resources and education options out there that are available for you! You will not have to go through this without the assistance of others.

It is an exciting time for you if you are thinking about applying for a home loan! And we have good news for you – getting approved for a home loan is a lot less intimidating than you may anticipate.

To start off, we would recommend that you get pre approval from a lender to begin the process. This letter will give you a realistic idea of what you can afford for a home. Having a pre approval letter also gives you an edge in this competitive market. We have discussed the pre approval process before. But to reiterate quickly, it is a fairly easy and quick process. Once you decide on which lender you want to use, you complete an online application. The application should not take more than twenty minutes and will require a variety of documentation that you will need to submit. Since pre approval letters do carry an expiration date on them, you may need to have your letter renewed several times if you do not find a home right away.

The next step in the process is to actually fill out an application once you find a home you wish to purchase. When you are ready, it is wise to apply to a handful of different lenders to make sure you get the lowest mortgage rate available to you. It is possible that you save a great deal of money by simply shopping around. Keep in mind that you do not have to use the lender you obtained a pre approval letter form.

The final step in this process is to obtain a final approval from the underwater. It is in this process that a lender reviews all of the necessary documentation provided, along with performing credit checks, etc. If there are any questions that need to be addressed or more information that may need to be provided, your underwriter will get in touch with you to clear up any concerns or questions they may have.

As you can see, once you break everything down, the process is not as intimidating as you may have initially anticipated!

Last week we went over the three most common ways of real estate investing. The first being purchasing some type of multi family home where you can live there as well. Purchasing a vacation home is a second option to invest in real estate. This is perfect for some people so you have somewhere to vacation! And the third option is purchasing an investment property where you would rent the property out strictly to rent to someone else long term.

Some of the more “hands on” types of people would prefer to purchase a home to flip. What they do is purchase a home that is rundown and needs a lot of work but is for an inexpensive price. With their own abilities, these people can make major improvements on this type of home, sell it, and make a significant profit. Some people who wish to do this will partner up with others who have different abilities in making improvements. This type of situation, however, requires a different type of mortgage – such as a second mortgage or cash-out refinance. There are a few different things to be sure you look at before you make this decision.

Another option is called the “Buy, Rehab, Rent, Refinance, Repeat” method. This method is basically flipping a home and instead of selling it immediately, you rent it out. Not only would you need to be a handy person but you also have to have the ability (and desire) to be a landlord.

A real estate investment trust (REIT) is the sixth option. This option entails investing in a large scale real estate operation. A REIT operates real estate that produces income or other assets that are related. For some, this is the easiest option to invest in real estate as you do not need to deal with any mortgage, repair, or tenants. If this is the route you would like to take, make sure you do your research and look into them completely.

Each person will have a different idea as to what may be the most beneficial for them and their situation and/or the easiest. Before making your final decision, we would recommend you talk to a professional about your options and what would make the most sense for you and your financial situation.

If you have some money saved or you are coming into some extra income, you may be thinking of investing in real estate. There are a great deal of people who have gained a great deal of money from investing in real estate. “Investing in real estate” is a rather arbitrary term as this may mean you plan to purchase a home to flip it or purchase a home to rent out as a vacation home or even just purchasing a home to live in. 

That last remark may catch you off guard as you may think that living in a house is not considered to be an investment, but it is! This is because over time, the home will likely be worth more money and therefore an investment. When you put the least amount of money into the home and can sell it for a great deal, there is your investment!

Some people decide to purchase a multifamily home, whether it be a duplex or have even more units. By purchasing this type of home, there is somewhere for you to live as well. Even if in the beginning the rent you collect just covers your mortgage, as time goes on and rent rises, you will be making a significant income.

Purchasing a vacation home is another investment opportunity idea. When there is no one staying on the property, you have somewhere you can vacation! The income you earn from the rental fee will likely not only pay for the mortgage but should also pay for other fees associated with the home like insurance cost, taxes, and maintenance fees. And again, how nice to have somewhere you can easily vacation to!

Another investment opportunity is strictly an investment property. This means that you rent out the home full time to someone. If you take care of the property yourself without having a property manager, you will save money there. If you can afford the complete cost of the home (without taking out a loan) you will obviously earn even more of an income. And if you have long term tenants, you will not risk having months where income is not earned.

These are the top three and most common ways you invest into real estate!