First off, please keep in mind that forbearance does not mean you do not have to pay anything back or that what you owe is completely forgiven. You will have to pay everything back but you may be able to suspend or reduce your mortgage payment for a limited time. There are many different forbearance programs available so please be sure you know the ins and outs of the one you are agreeing to. Also, as soon as you are receiving income again, it is recommended that you reach out to your mortgage company promptly so you can resume making your payments. This will ensure that whatever the terms are to your agreement are met promptly instead of them being prolonged.

Some forbearance programs expect you to pay back the full amount you suspended all at one time while others do not expect that. Other options included the missed payments being spread out over many months or even additional payments being added to the end of your mortgage term.

If you are affected negatively from the virus and are not making any money, you can request forbearance for up to 180 days. (Please note that this is a perk of owning your own home! In most cases, this is not an option if you are renting.) After those 180 days, it is possible for you to can extend it another 180 but you must contact your loan servicer directly.

Also, with the CARES Act, beginning March 18, 2020 your lender is not allowed to foreclose on your home. Again, another perk of owning your own home.

There are certain states that are offering other mortgage relief options. Take a look at your state’s government website to see what might be available to you.

One piece of advice we do wish to share with you is to make sure you have these types of agreements in writing. Do not go by what someone verbally tells you. It is very important that you are clear and have in writing the terms of what you are agreeing to and what will be expected of you.

With most people spend many, many hours at home nowadays, we thought we would share with you some projects that help improve your home and bring you some happiness! If you have kids, they may even be able to help with some of these projects – which would give them something to do! (From what we know about kids in this time, this would certainly be a plus!)

To start with, why don’t you start organizing? Organizing is what most people put off until it absolutely has to be done. Once you get rid of clutter, you will see what a better mood you are in, too. I will admit that my bedroom closet tends to get a little out of control. If yours does too, start there! Then you can hit your kitchen drawers (we all have a junk drawer!), office, linen closets, and laundry room. If it seems to be too much for you, start with one area a day!

An indoor (or outdoor) garden is something that the kids can help you with! You can use all kinds of fun containers, too – like, empty whipping cream containers, etc. The world is your oyster! You could plant herbs, vegetables, fruits, or even flowers! If you start with seeds, this would be a great lesson for the kids.

So this next idea may seem a little simple but it could make the world of difference! Are you ready? Rearrange your furniture! This could be in your bedroom, the kids’ bedrooms, or even the living room. You could always redecorate while you’re at it too! Change out photos in frames, especially if they are old.

If you have an old paint left and you do not want to go to the store, you could also spruce up your paint! This is something that will be great for your home anyway.

Are there any other ideas you have to add to this list?

Like we mentioned last week, anything can happen…especially while things are changing at such a rapid pace. Anything is possible! At this moment in time, it is hard to tell if there will be a housing crisis or not. There are many people who say that it is likely that the housing market is affected negatively due to the virus and the economic downfall.

What has already happened are listing prices decreasing and some listings taken off the market all together. Not as many applications are also being done as well – especially in major cities. We also discussed last week that amount of mortgages that have gone into forbearance – it has increased by 1,000%! The less people are working, the more this will likely happen.

Some real estate agents have claimed that this is similar to what went on in the early 2000s. What we are currently facing has to do with the fact that most homeowners are not making the kind of money they were. If it is temporary and there is an end in sight, things will get better. But we are still at a point where no one knows what the future is going to bring. The inability to pay is different than what happened in the early 2000s. That had to do with issues with financing.

Since we are based out of Florida, we wanted to make mention that half of the fifty of the most vulnerable counties are located in Florida and New Jersey. Ten of these counties are located in central and north Florida. Flagler County is actually included on this list. It is possible that these are potential foreclosure hotspots.

While there is nothing that can really be done at the moment it is good to be aware of what is going on around you. (Or potentially going on around you.) Lets hope that if it gets bad in our county that somehow things will be able to bounce back quickly!

It may be a little too early to give a solid number at the moment but it is estimated that anywhere between two million and 12.5 million homeowners may be requesting a forbearance on their mortgage due to the virus. If you are out of a job and this might be something you want to consider, we suggest you call your mortgage provider or loan servicer right away to find out what the details are and if there is some sort of deadline.

Initially, the number of home loans in forbearance was at 0.25%. It is now up to 2.66%. That is a pretty significant difference…in just one month! That means it increased by 964%! That is pretty wild and unheard of.

If you do need forbearance, be patient! When you make the phone call, your hold time is going to be much higher than normal. About a month ago, hold time was about two minutes. It is estimated now that hold time is almost eighteen minutes. In the beginning of March, about 5% of people hung up without getting help. That number has now increased to 25%. So we want to remind you to be patient and be nice to whoever is on the other side of the phone. They are trying to help you and it is not their fault…call volume has drastically increased.

As time goes on and money becomes even more of an issue, with so many people not working, it is estimated that these numbers will all increase as well. It is to be expected in the economic climate we are currently in.

If you feel like you will need to call with this request, we recommend that you take notes and ask a lot of questions. We want you to understand everything that will be required of you when you are out of it and what it all means.

We have mentioned it in the past, but whether you realize it or not, owning a home is not only something to be proud of, but it is also an incredible asset. But keeping up with your house (up-keep wise) you will not only retain the value of the home, but also likely to help avoid expensive repairs. Also, by keeping up with it, someone may want to purchase your home even if it isn’t on the market – just because of curb appeal.

Consider having routine maintenance done in your home – like on your air conditioning unit, plumbing, etc. Keep up with your kitchen appliances as well! Faulty appliances, electrical issues, and plumbing issues reduce the value of your home.

Having a fresh coat of paint on your home boosts curb appeal big time! Even though your house is aging, a fresh coat of paint can help retain the value of your home. Certain colors can even help make your home look more welcoming as well.

Keeping your outdoor looking nice will say a lot to people with how the inside will look. If you have an unkempt, overgrown lawn, most people will assume that the inside of your home is a mess. A fresh coat of paint on the exterior will also help a lot! Keeping the outside maintained does not have to be too much work, either. Especially if you keep up on it!

Keeping your indoor clean will also retain the value of your home. Hard to reach places collect dirt, too. Don’t forget that! Those who go inside your home will take note of it, too.

By keeping up with your home, the value of your home will be increased. It does not have to be too completed – especially if you keep up with it from time to time.

While we are not in the “business” to talk about stocks, as we are not a stockbroker by any nature, we wanted to at least mention it as there is a lot of chatter about it right now. Do not take our advice or our counsel by any means. We just wanted to give you something to think about. Because of everything that has been going on lately, there are a great number of stocks that are incredibly cheap. There are even some people who are suggesting you refinance your mortgage and use the profit to purchase stocks. (Again, we are not recommended you do that. We are making you aware of what the chatter currently is.)

As the days go by, the market continues to drop. These are unprecedented times where many things are happening that have never happened before. For example, no sports games, concerts, movies, etc. are currently happening. With all of this happening, there will be economic consequences for all of these events. The exact consequences we do not know yet. Since there is so much unknown, we do not feel comfortable telling you what to do with your money.

What is actually going to happen (and stick) may wind up taking a long time. There is no timestamp on this. No one knows when the end is. The reason that is important is because it means that there may still be fluctuations with what goes on in the stock market.

Whatever you decide, please look at both sides of it and make sure you are making the best educated decision for your family. Do not take anyone at face value in what they say or suggest to you. Do your own research and ask a lot of questions!

After our blog post last week, we received a lot of questions regarding refinancing. As we reminded you last week, there are so many factors to take into consideration. This is because every situation is different – including a homeowners future plans, financial situation, etc. Unfortunately there is no rulebook available out there to help you with your decision. You have to truly figure out what works best for you and our family. We will give you some ideas to take into consideration, though.

To start, will the new mortgage rate be decreased by at least 2%? This is a very conservation way to think but you would save a significant amount of money. There are possibilities that you will save a lot of money by even just a 1% lower rate. You really need to do the math and figure out what the savings would be. For example, if your loan is $500,000 and the rate is 1% lower, you will be saving more money from someone who has a $150,000 loan. The decrease may be beneficial for the person with the $150,000 loan as we do not know their financial situation. But we wanted to clearly point out how different every situation is and how 1% to one person can be different from one person to another.

We also want to remind you to read the fine print! There may be fees, especially for smaller loans, in closing cost that may outweigh what you will potentially save. If that is the case, there is no logical reason to refinance.

Something else to consider is the term of the loan. This does wind up boiling down to how much of a savings you would ultimately receive from it. If your mortgage as originally a thirty-year and you are looking to refinance to a ten year, how much of savings will you be making?

We hope that these specific examples have reminded you of how important it is to look at each situation on a case-by-case basis. If you would like to discuss your specific case with us, we would be happy to.

We have been getting a lot of calls recently asking if it is the time to refinance. There is a lot of uncertainty in the air right now with what is going on and what the future actually holds for everyone – even the mortgage industry. Currently, mortgage rates are decreasing and they recently hit a new all-time low. The last time they were this low was eight years ago…another election year. There is also a lot of uncertainty because of the virus, of course. The stock market has been making some crazy moves, too!

No one knows what is going on and no one can predict what will happen, either.

So even though mortgage rates are record breaking low right now in this moment, it does not mean it hast stopped decreasing. There are many factors that go into it and many possibilities.

With so much uncertainty in the world right now, we do not feel comfortable giving a direct “yes” or “no” – as far as if the time is right or not. What we do feel comfortable doing is making sure that you are aware that there are many pieces of the puzzle. Beware of companies or individuals who may be forceful in making you feel a particular way about refinancing or even getting a mortgage on a new home in these uncertain times. There may be some sort of ulterior motive for them.

If you would like to discuss your options with us further, please be sure to give us a call. We would be more than happy to chat and give you guidance.

Everyone wants things done fast nowadays. After all, it’s the era of Amazon Prime. There are many advertisements that talk about how quickly you could get approved for a mortgage or closing on a mortgage. But lets think about it…is faster always better? As a society, we are definitely less patient than ever before. Think about it. If you don’t get your Amazon Prime shipment in two days, are you okay with that? I bet you have some sort of issue with it!

But a mortgage is something that should take some thought. You are not buying a new pair of sneakers from Amazon. You are committing to the next fifteen or thirty years of your life.

There really is no benefit to closing on your mortgage in a speedier manner – or even being approved. There may be some fine print, too, where you find yourself paying more. And you may not even be guaranteed the closing date is as soon as you want it as it is out of the hands of most people.

Instead of choosing a mortgage that is fast, choose a mortgage that has the right interest rate for you, the least amount of closing costs, and the best terms. Buying a house is a big decision. We urge you not to make your decision on what is the quickest and advertised as the easiest! We know that if you are on the hunt for a new home, moving in is important to you. But we are talking about your future here – not just living in a beautiful home.

If a residential mortgage loan is not insured or guaranteed by the federal government, it is known as a conventional mortgage. The word “conventional” means normal – which indicates that it is a common/typical loan. The majority of Americans have a conventional mortgage. The number of government mortgages is much less.

Conventional mortgages include all different types and different term lengths as well, etc. Keep in mind that a conventional mortgage is not a conforming one. Conforming mortgages are conventional but not all conventional mortgages are conforming. If you are interested in the details and specifics as to why this is the way it is, give us a call and we would be happy to explain it to you further.

Since conventional loans are not governed by any one entity, especially the government, there is not a limit on the maximum amount the loan is. Any private entity can loan has much as they want. Private entities can also require as much of a down payment as they want and require whatever credit score they want us well. They do require a minimum credit score of 620, though. Most conventional loans usually require a bigger down payment than other loans, as well. Since the government doesn’t back them, though, they do offer more flexibility.

Most lenders do give you the ability to choose from a conventional or government loan. If you have average or above average credit, you will have your options in the kind of loan you qualify for.