​With interest rates around 3.66%, now is a great time to look back at where they’ve been over the past few decades.  Comparatively, they’re pretty low!   According to Freddie Mac, rates are projected to increase to 3.9% by this time next year.  The impact your interest rate has on your monthly mortgage payment is significant.  An increase of just $20 dollars in your monthly payment can add up to $240 per year and $7,200 over the life of your loan.  Maybe it’s time to lock in now, while rates are still historically low.  If you’re thinking of buying a home, let’s get together to make your dream a reality.  #Homeownership #Buyer #InterestRates #Mortgate #RealEstate #Florida #Orlando #KTSellsFlorida

Today, on Veterans Day, we salute those who have served our country in war or peace, and we thank them for their sacrifice.

This year marks the 75th anniversary of VA Home Loan Benefit offerings through the Servicemen’s Readjustment Act, also known as the GI Bill.  Since 1944, this law has created opportunities for those who have served our country, ranging from vocational training to home loans.

​Facts About VA Home Loans:

• Nearly 24 million home loans have been guaranteed by the Veterans Administration.
• Nearly 82% of VA home loans are made with no down payment.
• The VA also provides grants to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs. Last year the VA provided 2,000 grants totaling $104 million.

Benefits of a VA Home Loan:

1. No down payment
2. No Private Mortgage Insurance*
3. Lower credit score requirements
4. Limitation on closing costs
5. Lower average interest rates

*More information on VA Home Loan Fees

Bottom Line:  The best thing you can do today to celebrate Veterans Day is to share this information with those who can benefit from these opportunities.  For more information, or to find out how to qualify to use a VA Home Loan Benefit, let’s get together to navigate through the process.  Thank you for your service!

The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today.

It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation:  mortgage interest rates.

Mortgage interest rates have fallen by more than a full percentage point from this time last year.  Today’s rate is 3.75%; it was 4.86% at this time last year.  This has dramatically increased a purchaser’s ability to afford a home.

Here are three reports validating that purchasing a home is in fact more affordable today than it was a year ago:

CoreLogic’s Typical Mortgage Payment
“Falling mortgage rates and slower home-price growth mean that many buyers this year are committing to lower mortgage payments than they would have faced for the same home last year. After rising at a double-digit annual pace in 2018, the principal-and-interest payment on the nation’s median-priced home – what we call the “typical mortgage payment”– fell year-over-year again.”  

The National Association of Realtors’ Affordability Index
“At the national level, housing affordability is up from last month and up from a year ago…All four regions saw an increase in affordability from a year ago…Payment as a percentage of income was down from a year ago.”

First American’s Real House Price Index (RHPI)
“In 2019, the dynamic duo of lower mortgage rates and rising incomes overcame the negative impact of rising house price appreciation on affordability. Indeed, affordability reached its highest point since January 2018. Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”
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Bottom Line:  Though the price of homes may still be rising, the cost of purchasing a home is actually falling. If you’re thinking of buying your first home or moving up to your dream home, let’s connect so you can better understand the difference between the two.