Bob Shutts
May 2021
714-827-2100 | 562-430-8641

How Does Rent-to-Own Work?
If you want to buy a home, one agreement option available is rent-to-own. Of course, not every homeowner is going to agree to it, and it comes with a set of pros and cons.
      The following is a breakdown of everything you should know about rent-to-own when it comes to buying a house.
      The Basics A rent-to-own purchase has appealing elements, but there are risks.
      Basically, when you enter into this type of contract, you agree that you’ll rent a property for a set period of time before you then gain ownership. The time you rent can be a few months to several years, dependent upon your
Mortgage Rates
U.S. averages as of May 2021:

30 yr. fixed: 2.97%
15 yr. fixed: 2.29%
5/1 yr. adj: 2.83%

individual can own the property, or a company might.
      The contract dictates that the seller will keep a certain amount of money from each
How to understand our market & economic conditions?

I'm here to guide you.

Spring 2021 Real Estate Trends to Look For
     Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?
      Increasing Mortgage Rates It appears, depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, they were holding under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.
      The 30-year fixed-rate mortgage is anticipated to average 3.1% through the spring months, while it was averaging 2.9% during the first quarter of the year, according to Fannie

PMI - It’s Not a Bad Thing
     One of a lender’s main jobs is to evaluate risk. If a lender looks at a loan application, what is the risk in making a home loan? How’s the credit look? Can the borrowers comfortably afford the new monthly payment? Is the property going to be owner-occupied or will it be a rental? How much down payment is involved? All of these questions and more must be answered before a final approval can be issued. Certainly having good credit is a positive as is affordability. Lenders also view rental properties as a higher risk than an owner-occupied home, thus the higher interest rate and additional down payment for a rental. But the down payment can carry considerable weight. The more down payment a borrower comes to the table with, the less risk for the lender.
      It used to be that a minimum down payment could be 20 or 30% or more, depending upon the individual lender. Yet it’s obvious that kept a lot of folks out of a home, especially for first time

Mortgage Rates Continue to Rise
     At the start of April, it was announced mortgage rates in the U.S. have risen for a seventh straight week. The average for a 30-year loan was 3.18%, which was up since last week when it was 3.17%. That was the highest since June, according to Freddie Mac data.
      Rates have gone up from their record low in January, which was 2.65%.
      The increase has meant homes are more expensive for buyers, and that’s coupled with the pressure of competing for a low inventory of properties.
      There have been bidding wars, particularly in certain parts of the country, as people have been moving out of apartments and urban areas, searching for more space during the pandemic.
      The National Association of Realtors reported their index of contracts to buy previously owned homes did go down in February, by the most since April 2020. While much of the real estate boom ended up being fueled by shifts brought about by COVID, April 2020 was a tough month for real estate because country-wide lockdowns were stopping potential

  Daily News and Advice

Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
More Articles
April Real Estate Roundup
Septic or Sewer: What's the Difference?
What To Do When An Appraisal Comes in Low
What to Know About Earnest Money
Pending vs. Contingent: What’s the Difference?

Bob Shutts
714-827-2100 Additional Office #

RE/MAX / Bob Shutts
10791 Los Alamitos Blvd.
Los Alamitos CA 90720

Equal Housing Opportunity

E-mail this Newsletter to a friend