Higher Fannie Freddie Loans for 2022

There’s some good news for home buyers looking to get a loan through Fannie Mae and Freddie Mac, for the sixth year in a row, the loan limit will increase for almost all counties in 2022.
The Federal House Finance Agency (FHFA) said conforming loan limits will increase for most from $548,250 to $647,000 in 2022. That is almost a $100,000 increase in one year and reflects the increase in home prices nationwide. In “high-cost” areas with even higher home prices like coastal California and the NYC area the maximums are even higher, the limits will got up to $970,000 in some of those areas.

The limits are based on local real estate prices but as prices went up nearly everywhere the limits almost certainly increased in your county as well – contact us for the specific new loan limits in your county. You can schedule a free consultation and we can access your loan limit based on your individual needs. The new limits take effect on January 1, 2022.

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Happy Thanksgiving 🦃

We are wishing you and your family a joyous, safe and tasty Thanksgiving day 🦃
Spending time with family and loved ones over a delicious meal is one of life’s gifts so please enjoy.
On this Thanksgiving day we are grateful and we are thankful for our relationship with you!

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Buying A Fixer-Upper – Pros and Cons

The housing market tight in many parts of the country and affordability a big issue for a lot of buyers, so buying a fixer-upper is something you might be considering.
We’ve all seen the home make-over shows with amazing before and afters but is it right for you?
Here are a few things to consider:
1. Know Your Limits
How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while
2. Work Out Costs In Advance
Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.
3. Check Permitting Costs and Procedures
Check with local officials to see if the work requires a permit and the permit costs.
4. Be Extra Careful with Structural Issues
If the house requires structural repairs then double check the work and pricing. Hire a structural engineer to do an inspection and if structural work needs to be done make sure your bid discounts this work
5. Include Inspection Contingencies
Make sure you hire professional inspectors and check for hidden issues like mold, piping issues, pest damage etc., if things come up ask for discounts. And if too many red flags come up or the seller won’t properly discount the costs for repair then stand firm and walk away and keep looking!

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Happy Veterans Days

We want to wish everyone a safe and happy Veterans Day. And to especially thank all the veterans (and their families) who served to protect us.

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Cash-Out Refi or HELOC? 🤔

Interest rates are still at historic lows but may not stay this low for long.
With rates low and many owners seeing a rise in their equity, many people are asking about cash out refinancing or getting a home equity line of credit (HELOC).
Here is a quick breakdown of the similarities and differences between the two loan types.
Both allow you to get cash out immediately and in both cases you are borrowing against the equity in your home. The major differences is with a cash out refinance, you are replacing your first loan with a new one and the home equity loan is a second loan to your existing first mortgage and an additional payment. Cash out refinancing generally has a lower interest rate, as it replaces the existing first loan and is seen as less exposure to lenders.
Contact us for a free custom evaluation and we can quickly review your case to see how much cash you qualify for and see what program works best for you!

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Tips For Choosing A Great Neighborhood

Buying the right house for you might be at the top of your list, but the neighborhood is important too. Here are a few tips to consider:
HOA and Property Taxes – these can actually vary widely between one area and the next so make sure to check them and if there is an HOA check the rules in advanced!
Schools – we probably don’t need to mention this – if you have kids or are planning to, then you probably already have this in mind.
Neighbors – this can be a little tricky but it’s a good idea to get a feel for your neighbors. You may want to try an old fashioned hello and ring the doorbell of a neighbor and introduce yourself.
Area Attractions – this can range from grocery stores to parks to restaurants. Think about your lifestyle and what’s nearby (or how long it takes to get to those places)
Future – see what the future plans are for the area is there new development being planned – is it an area where property values will likely go up, etc.
Down Sides – Look into things like traffic, cell phone reception make sure there aren’t any shocks later!

Finally visit the area at different times of the day and during the week and weekend to get a better overall feel for the area.

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Getting a Mortgage If You’re Self-Employed

Being self-employed is great – 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 to try to pay down debts (both business and personal) as well as avoid opening new lines of credit a few months before applying. Don’t Mix Business and Personal Keep your business and personal finances separate. Have separate bank and credit card accounts for your business and personal use. This will help lenders easily see the business income and expenses as well as show you are running your business in a professional manner. Give us a call or contact us from our pre-qual app and we can see what product best fits your needs. You may be a candidate for QM (Qualified Mortgage) or non-QM lender, either way we can review and help you get started!

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5 ways to Cash-out Refinance

If you haven’t heard interest rates are still near record lows. So if you have a mortgage and haven’t refinanced in the last year, there’s a good chance you can refinance into a lower rate (generally a good idea 🙂 and may consider getting cash out, so here are five things to consider. First we will start with the pros…. Low Rates and Lower Rates. As we said rates are low now – like really low. And if you’re considering a HELOC or home equity line of credit, rates on a mortgage refi are often lower. So you can lock in a low rate and have lower payments – sounds good right? Debt Consolidation If you have a lot of high interest debt (i.e. credit cards), you can pay that off and potentially save thousands in interest payments! Cash On Hand We are definitely in uncertain times and you might want a cash cushion to help pay bills and also if you’re income in the near future is uncertain. Or you can use that for home improvements like maybe a new home office or gym (this can often be used as a deduction as well). And Some Cons Don’t Rinse and Repeat Ok we are trying to say don’t get the cash out and repeat the same debt spiral. If you’re cashing out and taking advantage of today’s great rates make sure you take advantage of the opportunity and avoid the temptation to go on an amazon shopping spree and run up the bills again. Closing Costs and PMI Make sure to check your closing costs aren’t more than the new savings! Also if you currently aren’t paying PMI and refi to more than 80% of the home value you may have to start paying PMI! In general if you’ve been considering a cash-out refinance or just want to see if you can lower your monthly payments – contact us today and we’ll give you a run-down of your options and see what best fits your needs!

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5 Reasons Why It’s a Good Time To Buy

We all know the housing market has been on a tear and some people take might want to take a pause, but here are five reasons why it’s a good time to buy!
1. Increases in inventory – one of the reasons housing prices have been surging is a lack of inventory but we are seeing increased inventory nationally over the summer according to national association of Realtors.
2. Price increases maybe moderating – forecasts expect prices to continue to go up but at a more moderate level.
3. Rates are expected to stay low – forecasts for rates to stay low through the end of the year and perhaps into next year
4. Rates are near record lows – we are still at record low interest rates so borrowing has basically never been cheaper.
5. Start building equity – as we forecast home values to continue rising you can start building equity now.
Of course every situation is different and forecasts may change but those are five good reasons. Fill out our quick home buying analysis on our website and we can get you a customized quote to see what best fits your needs.

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Is it worth refinancing for less than half a percent?

Should you refinance for less than half a percent difference on your current loan?
You’ve probably heard that interest rate are at record lows and if you’re current rate is one percent higher than today’s rates then we would usually say refinancing is a no-brainer. But what if you already have a low rate and its less than half a percentage point less than your current rate, should you refinance then?
There are a few key factors to consider.
1. Do have an Adjust Rate (ARM) Mortgage?
Getting into a lower fixed rate mortgage can definitely make sense in this case as you’ll lock in a lower rate, as the ARM rate may rise in the future.
2. Do you have a high loan balance?
If your loan balance is $500,000 a quarter percent difference could mean over $300 dollar less in monthly payments!
3. Do you plan on staying in the house more than a few years?
There will be closing costs to pay when you refinance so in order to get see the savings you’ll generally need to stay in the house for a few years.

Of course when in doubt make sure to contact us, we can crunch the numbers see how much you’ll save and if it makes sense for you!

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