May 3, 2022 | Real Estate
As interest rates fluctuate, you might think about refinancing your mortgage. This is the cost of taking out a new home loan to replace the one you currently have. If you get a significantly lower interest rate, you could save tens of thousands of dollars over the life of the mortgage. On the other hand, you need to think about potential expenses you might incur during the refinancing process. Because you are taking out another home loan, you may need to pay closing costs a second time. What are some of the most common expenses you might have to pay?
The Mortgage Application Fee
One of the most common expenses is the mortgage application fee. Essentially, this is a fee that the lender will charge for opening up a new application on your behalf. The fee can vary significantly depending on the lender you use, but it is usually a few hundred dollars.
A Home Appraisal
When you took out your first mortgage, the lender probably required you to get your home appraised. The lender wants to make sure they are not financing a home that is not worth as much as its price tag. You still need to get your home appraised again if you decide to refinance your mortgage. The lender wants to make sure they understand how much the house is worth before they give you a loan for it. A typical home appraisal is also a few hundred dollars.
Title Search And Title Insurance
The lender might also require a title search and title insurance. This is important for making sure you protect yourself in the event someone else still holds the title to your house. A title search is usually a few hundred dollars, and title insurance could be $1,000 or more.
Loan Origination Fee
Most lenders charge a loan origination fee that is approximately one percent of the value of the loan. Again, this can vary from lender to lender as well.
Understand These Fees
There are lots of potential fees that a lender might tack on. Fortunately, you do not necessarily need to pay for all of them. Always ask the lender whether they might be willing to waive some of these fees to make the cost less expensive.
May 3, 2022 | Real Estate
As interest rates fluctuate, you might think about refinancing your mortgage. This is the cost of taking out a new home loan to replace the one you currently have. If you get a significantly lower interest rate, you could save tens of thousands of dollars over the life of the mortgage. On the other hand, you need to think about potential expenses you might incur during the refinancing process. Because you are taking out another home loan, you may need to pay closing costs a second time. What are some of the most common expenses you might have to pay?
The Mortgage Application Fee
One of the most common expenses is the mortgage application fee. Essentially, this is a fee that the lender will charge for opening up a new application on your behalf. The fee can vary significantly depending on the lender you use, but it is usually a few hundred dollars.
A Home Appraisal
When you took out your first mortgage, the lender probably required you to get your home appraised. The lender wants to make sure they are not financing a home that is not worth as much as its price tag. You still need to get your home appraised again if you decide to refinance your mortgage. The lender wants to make sure they understand how much the house is worth before they give you a loan for it. A typical home appraisal is also a few hundred dollars.
Title Search And Title Insurance
The lender might also require a title search and title insurance. This is important for making sure you protect yourself in the event someone else still holds the title to your house. A title search is usually a few hundred dollars, and title insurance could be $1,000 or more.
Loan Origination Fee
Most lenders charge a loan origination fee that is approximately one percent of the value of the loan. Again, this can vary from lender to lender as well.
Understand These Fees
There are lots of potential fees that a lender might tack on. Fortunately, you do not necessarily need to pay for all of them. Always ask the lender whether they might be willing to waive some of these fees to make the cost less expensive.
May 2, 2022 | Financial Reports
Last week’s economic reporting included readings from S&P Case-Shiller Home Price Indices, the Federal Housing Finance Agency House Price Index, and the Commerce Department on sales of new homes. Weekly readings on mortgage rates and jobless claims were also reported.
S&P Case-Shiller, FHFA Report Near-Record Home Price Growth
February home prices continued their rapid growth, but analysts hinted at a coming slowdown in-home price growth as would-be buyers were faced with rising mortgage rates and affordability concerns. S&P Case-Shiller’s National Home Price Index reported year-over-year home price growth of 19.80 percent as compared to January’s national home price growth rate of 19.10 percent. The 20-City Home Price Index reported the top three cities for year-over-year home price growth were Phoenix, Arizona with 32.90 percent growth, Tampa, Florida reported 32.60 percent growth in home prices, and Miami, Florida reported year-over-year home price growth of 29.70 percent. All cities reported in the 20-City Home Price Index had double-digit growth in February and the pace of home price growth was faster for all 20 cities than in January.
In related news, the Federal Housing Finance Administration reported that home prices for homes owned by Fannie Mae and Freddie Mac rose by 19.40 percent year-over-year and were 2.10 percent higher month-to-month.
Pending home sales were lower in March by -1.20 percent, as compared to the expected reading of -1,80 percent and February’s reading of -4.00 percent. Rising inflation and home prices created affordability concerns for first-time and moderate-income homebuyers.
Mortgage Rates Mixed, Jobless Claims Fall
Freddie Mac reported a lower average rate for 30-year fixed-rate mortgages dropped by one basis point to 5.10 percent; rates for 15-year fixed-rate mortgages averaged 4.40 percent and were two basis points higher. Rates for 5/1 adjustable rate mortgages averaged 3.78 percent and three basis points higher. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.90 percent for 15-year fixed-rate mortgages. Points for 5/1 adjustable rate mortgages averaged 0.30 percent.
New jobless claims fell last week with 180,000 initial claims filed as compared to 185,000 first-time claims filed in the previous week. Continuing jobless claims held steady with 1.41 million ongoing claims filed and matched the prior week’s reading.
The University of Michigan’s Consumer Sentiment Index fell by one-half point in April with an index reading of 65.2. The expected reading of 65.7 matched the March reading. Concerns over rising inflation, fuel prices, and the war in Ukraine contributed to lower consumer sentiment.
What’s Ahead
This week’s scheduled economic news includes readings on public and private-sector jobs growth, the national unemployment rate, and a news conference by Fed Chair Jerome Powell. Weekly readings on mortgage rates and jobless claims will also be published.
Apr 29, 2022 | Real Estate
The search for a house can be stressful and filled with lots of jargon that can make it difficult for someone new to the real estate world to figure out what is going on. One of the most common terms that people might see on the MLS is “sale pending.” What does this mean, and how should people interpret this?
An Overview Of Sale Pending
If a listing says that it is “sale pending,” it means that the buyer and the seller are under contract. While the deal is not yet set in stone, it means that the seller has accepted an offer, and there is a contract in place for the sale of the house. There might also be some contingencies to meet before the sale is finalized.
Making An Offer On A Sale Pending House
This is something that someone can certainly do, but it might not be worth the time of the prospective buyer. If a higher offer comes in, the seller is still contractually obligated to honor the original offer. Buyers that want to make a backup offer should talk to a real estate professional to make sure they submit an offer properly.
Why A House May Come Back On The Market
There are a few reasons why a house might come back on the market after being listed as pending. Sometimes, the home inspection doesn’t come back favorably, and the buyer might elect to withdraw the offer to find a house with fewer problems. Or, the buyer might have had a hard time finding financing, and cannot buy the house without a home loan. The seller might also be trying to force a short sale, which the bank might not approve, thus canceling the transaction.
Pending Versus Contingent: What This Means
Pending and contingent are similar terms, but they are not the same things. If a listing has gone “contingent,” it means that an agreement is in place but the buyer has to meet a number of contingencies before the sale can be finalized. If a sale is listed as pending, it means that all of the contingencies have been met and the sale is likely to close. Buyers may want to reach out to the seller agent for clarification if they are confused.
Apr 28, 2022 | Home Seller Tips
Owning a home is an investment, and it is important for people to treat it as such. Some homeowners are looking for improvements they can make to their house that might improve its resale value. There are a number of home improvements that seller should consider making in 2022 if they want to maintain or increase the value of their home.
Add A Stone Veneer
One of the top home improvements homeowners might want to make is to add a stone veneer. It can be expensive to replace the siding of a house with a stone veneer, but this is an improvement that can add significant value to the house over time. Furthermore, homeowners might expect the cost of the veneer to recoup almost all of its value when they go to sell the house.
Update And Remodel The Kitchen
Another upgrade that homeowners should consider is remodeling the kitchen. Styles change over time, and the needs of homeowners can change over time as well. Remodeling the kitchen can be both a stylistic upgrade as well as a functional one. People spend a lot of time in the kitchen, and a prospective buyer might be willing to pay a lot of money for a kitchen that has been upgraded and remodeled. The cost of the project could pay for almost all of itself by increasing the value of the home.
Replace And Upgrade The Windows
Consider replacing and upgrading the windows to boost the value of the house. A lot of people are tired of spending a lot of money on utilities, and one of the ways to save money on utility bills is to invest in energy-efficient windows. This can improve the insulation of the house and reduce the load on the HVAC system. Buyers might like these utility savings, and they could be willing to pay more for the house, covering the cost of the windows in the process.
Invest In A House With These Improvements
These are just a few of the many home upgrades that homeowners should consider making. There are plenty of ways to not only improve or remodel the house but also increase its value. Work with a professional to get the most out of these improvements.
