4 Reasons Why You Should Look At Refinancing Today

4 Reasons to refi pic

Spring has not sprung in Michigan just yet!

With the weather in a holding pattern and most Michiganders working from home, now is the perfect time to prepare your funds for when the weather breaks. Rather you are planning a trip in the upcoming season, and need to take cash-out or wanting to do a “spring cleaning” on those high-interest credit cards, refinancing your mortgage can put you in a much better financial position.

Here are 4 reasons you should refinance before spring: 

Get rid of unwanted high-interest credit card debt

While having credit cards make purchasing high priced items a breeze, having to pay the monthly minimum on a card with high interest can be daunting. Paying on the interest and not the principle is just band-aiding over the problem and will send you further into debt. That doesn’t have to be you! The good news is that if you refinance right now, you can pay off your credit card completely and go into spring debt-free.

Take Cash-out

Cash is king! With the weather warming up comes the opportunity to take advantage of spring home improvement projects. Don’t use your tax return to fund building a new porch or a patio. Instead, you can simply refinance and take cash out of your home’s equity. Taking cash-out can also be spent on planning a nice spring or summer vacation without the stress of going into debt to do so. 

Lower your monthly mortgage payment 

What is better than not having to use credit cards? Cash! Even with a few weeks left of winter, you can still close on the refinance of your home loan before spring! Lowering your monthly mortgage payment means more cash in your pocket.

Rates are low

You’ve heard us say it for the last several months and its true, RATES ARE STILL HISTORICALLY LOW. Rates are the lowest they have been in a decade. The reason you need to act now is because we don’t know when rates will rise again. The housing market can be very unpredictable… take advantage today and contact one of our mortgage experts to receive a free 5-minute mortgage review.

The Benefits of Purchasing a Home in The Winter

Illustrated Fireworks New Year Social Media

Michigan winters can be brutal! The cold weather and snowy conditions make everyone want to stay inside and cozy up next to a fire. Needless to say, looking for a house isn’t typically on the winter activity list.

Traditionally, spring and summer are the prime times to purchase, but new studies show that winter can be a great time to buy as well.

Here are a few reasons why:

Less Competition

You can bet that there are a lot of people not willing to go house looking in the dead of winter. Use that to your advantage by getting in contact with an agent and taking a few house tours. Fewer people mean less competition for your dream home. The low demand will work in your favor because you don’t have to worry about outbidding anyone.

Motivated Sellers

If there is a home that goes for sale in the winter, more than likely, that seller REALLY wants to sell. This opens the door for negotiations! The seller may be willing to lower the price, discount closing cost, or even offer other incentives like appliances to be included with the home sale.

Motivated Realtors

Everything in the winter months slows down. That means realtors may have less clientele and can give you extra attention around this time of year. They are more willing to go to bat for you and work a little harder to get you the best deal possible!

 

Are you interested in purchasing a new home this winter? Contact our mortgage experts HERE!

New Year’s Resolution: Become A Homeowner!

sparklers

Image source: Marisol Casben

Its that time of year again when everyone is setting their sights on new goals. From being healthier to save money to try new things, January 1st is when we all want to set ourselves up for a successful year.

One major goal many people have is to become a homeowner. This is a huge goal but very attainable. With Hall Financial, we can make it very simple and easy for you to obtain a mortgage.

Here is a step by step list of everything you need to make your homeownership dreams come true:

  1. Obtain preapproval from Hall Financial, you will need:
    1. Two years of W2s
    2. Your most recent pay stub
    3. Two months of bank statements
    4. Copy of driver’s license
    5. Credit Report
  1. Start house shopping
    1. Need a realtor? No problem, Hall Financial has preferred partners.
    2. Find a house. Put an offer in, and get it accepted!
  1. Loan documents
    1. Sign all documents
    2. Obtain homeowner’s insurance and provide to your processor.
  1. Closing
    1. Review closing documents.
    2. Schedule closing with your processor.
    3. Confirm closing date, time, and place with your realtor and processor.
    4. Sign all final documentation.

Enjoy your new home!

Low Rates & Increasing Home Prices

low interest rates

Source: Google

Mortgage Bankers Association is forecasting that we will see a three-year-high in mortgage originations since 2016. In 2016 the industry saw $2 trillion and in 2019 MBA is predicting that we will land around $1.9 trillion.

Since the FED cut rates not once, but twice this year we have seen an increase in refinances. MBA is predicting that 35% of that $1.9 trillion will be attributed to those refinancing; which reflects Fannie Mae’s projection of refinances also being at a three-year-high.

If you are someone who follows along and have been on the fence about refinancing keep in mind that your credit score will affect the rate you get locked in to. The industry has been seeing a wide range of interest rates for credit scores of 620 through 639; anywhere around 1.33% in difference. However, if you can, you can buy down your interest rate.

Not sure what buying an interest rate means? Click here to talk to someone today!

In other news, we have been seeing an increase in home prices. Before, you cringe right now this news is good. With rates remaining low you still have the ability to get more house than you may have planned for and we are seeing an increase in inventory. Right now Detroit is sitting in the top six areas at 4.1% in year-over-year strength.

Mortgage Market Update- 9/12/2019

Mortgage Market Update (1)

Even though summer is coming to a close and purchase season is slowing down. Freddie Mac reported that the average interest rate for a 30-year fixed rate dropped to another 3-year low at 3.49%. And as the unemployment rate remains historically low, this means that homebuyer demand is improving along with affordability.

August brought some significant good news, so take a deep breath and find solace in our current economy. Why? Fannie Mae is also predicting that the economy should continue to support the current refinance activity. How do we know that? August’s refinance volume was 150% higher than it was last year, which is in correlation to the increase in the demand for homes and affordability.

And if you are still thinking about refinancing know that Black Knight is here to tell us that roughly half of the homeowners across the United States are sitting on a combined total of 6.3 trillion dollars in tappable equity. We haven’t seen eligibility this high since the early 2000s.

3% or 20% – What’s Best For Me?

Down Payment

Image source: Google

It is no secret that times have changed since our grandparents and even our parents have purchased homes. So much so, that with new programs and requirements, brokers/lenders have stated, you aren’t required to have the 20% down payment that you heard about growing up.

But now you are thinking… how much should I save for a down payment?

Here’s the good news it doesn’t have to be difficult, and you can do what works best for you and your family. To put it in perspective, if we were still required to put down 20% on a home loan, based on Mr. Cooper’s math, it would take renters nearly seven years to save for a 200K home on an average salary of 56K a year. Seven years!

However, there is a benefit to putting 20% down.

1.     Right away, there is more equity in your home.

2.     Lower monthly payment.

3.     Lower rates.

4.     You aren’t that high of a risk to your lender.

5.     You won’t need mortgage insurance.

6.     Future buying power.

Click here to calculate your ideal mortgage down payment.

 

Mortgage Rates Hit Another 3-year Low

Mortgage Market Update (1)

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage fell to a 3-year low. The 30-year fixed-rate mortgage averaged 3.55% for the week ending August 22, 2019, down from last week’s 3.6%, which is close to 2018’s lowest percentage point. The drop-in mortgage rates benefit not only the housing market but also the economy as a whole. Home purchase demand is up 5% since 2018, and the refinance market has hit a significant surge. Homeowners that have refinanced are seeing close to a $140 of savings per month. The benefits of lower mortgage rates are also helping homeowners gain more equity.

Bills, Bills, Bills

Bills, bills, bills

{Image courtesy of Google}

You toss and you turn as payday approaches and all you can think about is as soon as your paycheck hits… so do your automatic payments. As soon as the money comes in, the money goes out and that’s just the revolving door we watch as working middle-class individuals. However, today’s mortgage market update comes with some positive money saving news!

CoreLogic released it’s latest “Loan Performance Insights Report” and over the last 16-months, the national delinquency rate has been declining. Nationally we are currently sitting at 3.6% which is the lowest it has been in over 20 years.

Core logic pic

{Image courtesy of CoreLogic}

In other national news, two housing bills were passed on Tuesday, July 9th, 2019, to await Senates vote before heading over to Trump’s desk for final approval. The first bill that passed was the “Protect Affordable Mortgages for Veterans Act of 2019”. This law will now allow a 210-day window of time to pass after the loan is established to start on the due date of the initial loan. This will help brokers and lenders remain compliant and allow those who are helping clients refinance know when the 210-day seasoning period starts.

The next bill that passed yesterday was the “Housing Financial Literary Act of 2019”. This bill will specifically help those who are purchasing a home for the first time.

How? You ask?

If the bill is to pass the Senate, those first-time homebuyers who take a pre-ownership counseling course, they will receive a 25-basis-point discount on their mortgage insurance. However, the bill is specific to only FHA loan products. In hopes that this bill passes it would allow first-time homebuyers to take more advantage of their financial futures and opens up more opportunity for those who are on the fence of being able to purchase their first home.

Mortgage Rates Are At A Three-year Low

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Picture source: Google

This week mortgage interest rates have hit historical marks by reaching three-year lows. This significant marker of low rates comes just two months after The Federal Reserve announced rates have fallen and are not anticipated to rise again for the remainder of 2019. Low rates in conjunction with a surplus of home sales, the housing market is expected to continue to improve and show favorable conditions. Not only are the lower rates good news for potential homebuyers that are looking to enter into the market, but also continues to open opportunities to homeowners that are looking to refinance.

Live On Real Estate’s 100th Episode!

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It was a big week here at Hall Financial. Our in-house podcast, “Live On Real Estate” recorded the 100th episode on Wednesday! Hosts Patrick Ali and Chris Puzzuoli sat down with David Hall our owner, CEO, cheerleader, mentor and occasional host from time to time.

Top 3 Quotes from DHALL himself:

  1. Life is short… and I want to WIN!
  2. “If you aren’t embarrassed by your first launch, you launched too late”
  3. Being impatient for results… makes for a great CEO

Here at Hall Financial, we came from humble beginnings. David worked hard in his career. He came to a point where he wanted to take everything, he liked about the companies he has worked for and created a platform (company) for those who wanted to learn and grow in a fast-paced environment. He didn’t want to do what others were doing.

This year one of our major goals is to reach 1000 5-Star reviews by the end of 2019, and eventually reach 10,000! Why? Because we breathe MORE PERSONAL ATTENTION. It is our mission to make sure our clients are well educated and feel comfortable with huge financial transactions. Currently, we are at just over 700 5-star reviews, which puts us well on our way to this year’s goal!

You are in for a treat with this episode, you will hear David be more candid and transparent than you ever have before! Click the radio below to listen to the 100th episode!

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