Your REALTOR®:
Kevin Kleifges
January 2021
Real
Helping people find their Dream Homes


Alternative Mortgage Lenders are Changing the Marketplace
Alternative mortgage lenders include online lenders and non-bank lenders. They’re shifting the real estate marketplace and making it much simpler and easier for consumers to get a mortgage. So what should you know?
      There are three main categories that alternative mortgage lenders tend to fall into.
      There are online mortgage lenders, which work to add transparency and efficiency to the home loan process. They simplify and shorten the timeline.
      There are marketplaces that help borrowers as they’re comparing rates and shopping around for mortgages.
      Then, there are non-bank
Mortgage Rates
U.S. averages as of January 2021:


30 yr. fixed: 2.66%
15 yr. fixed: 2.19%
5/1 yr. adj: 2.79%






lenders that tend to market their services to borrowers with less-than-perfect credit.
      Alternative Online Lenders Mortgage originators that serve as
Wondering What Your Home Is Worth?

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Get The Home You Want, Millennials: Smart Strategies For First-Time Homebuyers
     Hey, Millennials. Come on into the real estate market! We really need you to buy some homes so we can keep chugging along. Oh, wait. Prices are rising and so are interest rates, plus inventory is scary low. Hmmm. Well, come on in anyway, wontcha?
      It's not easy to buy a home in a hot market where inventory remains at historic lows - and that covers a lot of areas across the country at a wide range of different price points. But it's especially hard right now for Millennials, who aren't exactly getting a warm welcome from the market that has been begging them to participate.
      "I think it's fair to say this is the most competitive housing market we've seen in recorded history," Danielle Hale, chief economist for



Doing the Refinance Math
     Wondering whether or not to refinance an existing mortgage typically means running some numbers. You can do this on your own but it’s probably better to talk to a loan officer and get some assistance. It really all boils down to how much you’ll save each month compared to what you’re paying now. But there are other considerations.
      First, pay less attention to the change in rate. Old school myths say that it’s a good idea to refinance if current market rates are 1% or 2% lower than what you currently have. But the rate is only a part of it. The other component is the amount being financed. For larger loan amounts, maybe a reduction of only 0.5% makes sense. 
      For smaller loan amounts, 2% may not be enough. Instead, calculate the monthly savings and then divide that amount into the closing costs associated with the mortgage. The result is how many months it will take to ‘recover’ the closing costs in

Buying a Home Right Now: Easy? No. Smart? Yes.

Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime, the real estate industry’s leading showing management technology provider, buyers have started to reappear over the last several weeks. In the latest report, they revealed:

“The March ShowingTime Showing Index® recorded the first nationwide drop in showing traffic in eight months as communities responded to COVID-19. Early April data show signs of an upswing, however.”

Why would people be setting appointments to look at prospective homes when the process of purchasing a home has become more difficult with shelter-in-place orders throughout the country?

Here are three reasons for this uptick in activity:

1. Some people need to move. Whether because of a death in the family, a new birth, divorce, financial hardship, or a job transfer, some families need to make a move as quickly as possible.

2. Real estate agents across the country have become very innovative, utilizing technology that allows purchasers to virtually:

  • View homes
  • Meet with mortgage professionals
  • Consult with their agent throughout the process

All of this can happen within the required safety protocols, so real estate professionals are continuing to help families make important moves.

3. Buyers understand that mortgage rates are a key component when determining their monthly mortgage payments.

Mortgage interest rates are very close to all-time lows and afford today’s purchaser the opportunity to save tens of thousands of dollars over the lifetime of the loan.

Looking closely at the third reason, we can see that there’s a big difference between purchasing a house last year and purchasing one now   

Rates today on average are 3.33% versus 3.94% one year ago.  On a 200K loan, you will save $25,000 over the life of the loan! 50K on a 400K loan not to mention the lower monthly payments!

Bottom Line

Many families have decided not to postpone their plans to purchase a home, even in these difficult times.

If you need to make a move, reach out to me today at 703-346-3783. I am a trusted and experienced real estate advisor that will safely and professionally guide you through the process

 



  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.
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Kevin Kleifges, REALTOR
E-mail: kkleifges@gmail.com
Website: http://www.KevinsProperties.com
703-346-3783
Coldwell Banker
703-346-3783
1900 Baton Drive
Vienna VA 22182


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