80 % of 2018 Mortgages Could Save Big With A Refinance...

Interesting blog from Aly J. Yale, Senior Contributor to Forbes, reminding people who took out a loan in 2018 might benefit from a refinance.

According to new data, 80% of mortgages from last year carry an interest rate at least 0.75% higher than today’s prevailing rate (3.49%, according to Freddie Mac).

But 2018-borrowers aren’t the only homeowners who could benefit from today’s low-rate environment. Data from property analytics firm Black Knight shows that pre-2004 mortgagees could also save big. Most of these people could save about 1.75% from their interest rate should they refinance.  

The complete article from Aly Yale can be found on this page from Forbes. The article also shows an interesting table showing how much "tappable equity" exists per state: the amount of money people could use from the equity in their home.  See below:

Click to see larger.

For questions regarding real estate in the Silicon Valley, call or email me!

Francis

My Home Valuation tool

Detailed, local trends etc... 

Current mortgage rates   (low!)

The Psychological Cost of Debt

I found this interesting article centered on the relationship that we have with money - the good, the bad, how we see it and how we relate to it.

The Ascent Staff, from the Motley Fool, conducted a survey of over 1000 Americans to explore the links between happiness, fulfillment, self-esteem and financial distress.

In it, you read that Americans with mortgages have the highest level of life satisfaction compared with those with other forms of debt, such as medical, student loan, or credit card debt.  In other words, mortgages are the happiest type of debt (who knew?...).
also:
72% of people believed that incurring debt could be a good think when done responsibly.
63% of people believed that wealthier people were also happier - it seems obvious, but in fact, not so much in my opinion.

Can money buy happiness? 56% say money could buy happiness "to an extent", while 8% say: "not at all", and 17% say "absolutely yes".
And also:
97% of people with debt believed they would be happier if they didn't have debt - I wonder who are the other 3%  ;-).

Thank you for reading!  Share if you like, and contact me for your real estate questions!

Francis Rolland

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   (low!)

Advantages of a Local Lender

Advantages of a local lender, vs an online or out-of-the-area lender.

If you are considering purchasing a home, it will be to your advantage to work with a local lender.  There are several reasons for choosing a local lender:

- a local lender knows the local market, local conditions, requirements, and limitations better,

- the process is going to be faster, in particular for the appraisal.  Most likely, it will be a local appraiser who will be hired.  An out of the area lender is going to hire their "contacts" in the area, which could be quite a ways away. A local appraiser will know better the neighborhoods and the sales activity, which will result statistically in a more appropriate appraisal,
- very importantly, a local lender will be available to answer questions and concerns about the offer and the buyer, at the time the sellers and the listing agent are reviewing the offer.  This factor alone is of paramount importance, and will make or break a decision in your favor,
- it is usually easier to reach someone who is local and whom your agent knows, and doing business "in person" is still the best for these important steps in your life,
- in any environment, competitive or not, it will be in your favor if the listing agent knows the lender too, and their track record.

BTW, do you know that most people surveyed think that you need a 20% down payment to purchase a home, but that in fact the average down payment is 13% in the US, according to the National Association of Realtors?
If you are thinking of a purchase I can give you names of proven local lenders. This is definitely the first step in your journey and I can help with it.

Thank you for reading,
Francis

My Home Valuation tool
Detailed, local trends etc...
Current mortgage rates   (pretty stable, and low.. )

Buyer beware! lenders need to know everything!

Buyers beware...  When applying for a loan: lenders need to know everything!

1- All funds used for the down payment and closing costs are going to be very carefully scrutinized by the lender:

• you must provide detailed and accurate information to show which accounts the funds are in and where the funds are coming from,
• you must document the source of any funds that have been in your accounts for less than 2 months,
• any changes that occur to your financial condition will need to be explained to the lender,
• changes to your assets, employment, income or credit scores during the escrow could jeopardize your ability to qualify,
• provide complete documents, - all pages!
• provide documents with names, addresses and account numbers.

2- The lender is going to require a letter of explanation and/or support documentation for:

• recent inquiries or derogatory items on your credit report,
• recent deposits, transfers of money etc... in your accounts,
• evidence earnest money deposit has cleared your account.  ... hum, they don't trust much...

3- If you are receiving Gift Funds the lender will require:

• a gift letter signed by you and the gift donor,
• evidence of the donors ability to gift the funds (bank statement),
• evidence of the receipt of the gift funds, in your account.

4- Things not to do during an escrow:

• do not transfer funds between accounts, nor make large deposits into your bank accounts,
• do not buy a car!... or spend large amounts of money on stuff..
• do not change jobs,
• do not close or open credit card accounts.

Yes, it is a real experience, to get a loan nowadays!  ;-)

For lenders referrals, do not hesitate to contact me.

Francis

Silicon Valley Real Estate

Local market trends

useful links