Are Mortgage Rates Back to “Normal”?

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Buying a home, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, low mortgage rates, mortgage, mortgage loan, mortgage rates, real estate, real estate advice, real estate information, Real Estate Team, The best real estate agent in Jacksonville

If you think mortgage rates are at an all-time high, you wouldn’t be alone. According to this NerdWallet article, 61% of Americans think they’re “unprecedented.” And you’re also not alone if you’re still planning on buying a home this year, despite that sentiment, considering 28 million people plan to do so according to their survey!

The thing is, mortgage rates aren’t actually the highest they’ve ever been; not by a long shot. Those low rates buyers were getting over the past few years were historically unusual, and now they’re not just back to “normal”—even below normal—considering data from Freddie Mac shows that 30-year mortgage rates have averaged 7.75% over the last 50 years.

When rates were unusually low, it almost didn’t matter if you weren’t careful about the type of loan or terms you agreed to with a lender. But now that rates have crept up, you want to make sure you not only get the lowest rate you can, but also the best type of loan and terms possible.

So let’s take a look at 5 things you should do to make sure you get the best loan possible in this market, or any other market for that matter:

1. Get Pre-approved Ahead of Time

You should always get pre-approved before you actually start looking at homes you want to buy, but many people don’t. On the most basic level, doing so helps you know that you can actually get a loan, and how much you can afford to spend. That helps you to avoid the wasted time and heartache of finding a house you love, only to find out you can’t actually afford to buy it.

But beyond that, getting pre-approved ahead of time is a good chance to speak to a few mortgage professionals and get a feel for them, which leads to…

2. Find a Mortgage Professional You Trust

As with any profession, not all mortgage professionals are going to provide you with the best advice and service. Some will woo you with what sounds like the best rate, while glossing over other costly terms, or switching the rate on you at the last minute.

Look for one you not only trust is being transparent and honest about the rates and terms they can offer you, but who also takes the time to explain all of your options—even if their rate doesn’t sound as low as others. 

3. Choose the Type of Loan That Is Best for You

The historical rates mentioned above are based upon 30-year, fixed rate loans. Those are probably the “safest” and most predictable loans. But there are other options, like 7 or 15-year adjustable rate loans, which will usually have a lower rate, but may actually cost you more per month due to the shorter term of the loan, and the rate can go up after a number of years at a fixed rate. It could be a great way to save on interest and make more payments toward principal, if you know you’re going to sell or refinance before the rate changes. And who knows, the rates could be lower by then anyway.

Adjustable rate mortgages are just one example of the many different options you may have. If you choose a great mortgage professional to work with, he or she can help you analyze all of the different types of loans available to you, and help you figure out which one makes the most sense for your situation.

4. Don’t Stretch Yourself Financially

Just because you’re pre-approved for a certain amount doesn’t mean you have to (or should) spend every penny you can.

It’s not uncommon to be pre-approved for more than you may actually be comfortable spending per month on a mortgage. While a lender’s calculations should indicate that you can handle the payments on an ongoing basis, only you truly know your lifestyle and spending habits. 

Ask your mortgage professional to give you an accurate estimate of how much per month it will cost you, if you were to spend as much as you’re approved for. (And remember to factor in property taxes and insurance, which will vary from one house to another.) Then think about paying that amount every month. Is it something you’ll be able to comfortably swing? Will it impact the things you like to spend money on weekly, monthly, and yearly? 

You can also ask the mortgage rep to figure out about how much of a loan you should take on based upon a monthly payment you’re comfortable with, and use that as the top amount of your budget, even if it’s lower than what you’re actually approved to spend. And you can even try and spend less than that amount, if you want to really play it safe!

5. Shop and Negotiate for the Best Rate

While the rate isn’t the only or most important thing to consider, you should still shop around to make sure you’re getting the best rate possible. As mentioned above, when speaking with lenders, size up whether they’re being entirely honest and transparent about the rate and terms they’re offering.

If you get a better rate from one lender, see if the lender you trust the most can match it, or even beat it. But even if they can’t, keep in mind that it may be worth taking a slightly higher rate if you trust one lender above others who offer you a better rate.

The Takeaway:

Many people feel like mortgage rates are higher than they’ve ever been, but they’re actually not. In fact, they’re currently lower than the average rate over the past 50 years.

While being careful about the lender and loan you chose to go with didn’t matter as much when rates were unusually low over the past few years, now it pays to go back to basics and make sure you:

• Get pre-approved ahead of time
• Work with a mortgage professional you trust
• Choose the best type of loan for your needs, situation, and qualifications
• Avoid stretching yourself financially
• Shop and negotiate for the best rate you can get

Let’s get started today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

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Avoid These Common Home Buying Regrets

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Buying a home, home buying regrets, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville

Buying a home is a big decision. And for some recent homeowners, that decision has led to some real regrets—aka “buyer’s remorse.”

But what, exactly, is driving that remorse?

A recent article from realtor.com outlined some of the most common regrets recent buyers have experienced after purchasing their homes, including:

• Unexpected repairs. Many recent homeowners completely underestimated the amount of work their home would need, and found themselves dealing with unexpected repairs that proved both stressful and expensive.
• Not considering their life circumstances. While navigating such a competitive market, many buyers felt the pressure to buy as quickly as possible, and didn’t fully consider how the purchase would fit into their present life, or in the future. For example, this left many with regrets about the layout of the home not working for their family, or the cost of renovations eating into their budget. 
• Not listening to their agent. Agents have great insights into how to successfully purchase a home. But many buyers did things their own way, and went on to regret it in the future. For example, one buyer’s agent suggested immediately renovating a kitchen on the home they purchased to increase the home’s value. But the buyer opted not to, and now that the costs of labor and materials have increased, they regret not getting it done when it was in their budget.

Want to avoid these common regrets? Make sure that you work with a qualified real estate agent, and that you heed their advice! Your agent can help you find the right property, and weigh the pros and cons before you make a purchase—which can help you avoid future buyer’s remorse.

Let’s avoid regrets! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

7 Embarrassing Things Real Estate Agents Hate for You to See

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Buying a home, embarrassing, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville

Plenty of people work around others all day long, but real estate agents are pretty much on stage all day, with clients watching and witnessing their every move. 

Inevitably, things happen that agents wish a client weren’t around to see! But if and when they do, it really helps when a client laughs with them, instead of at them! 

For some reason, it seems like there’s a handful of embarrassing things that happen to almost every agent at one point or another. Let’s take a look at 7 of them, to give you some practice laughing with them if it happens on your watch:

1) Getting lost

It was way worse for agents back in the day before GPS was around and had to use actual maps, but getting lost can still be an issue every once in a while. Whether it’s an incorrect address, a lack of satellite service, or simply getting distracted and missing a turn, it’s so embarrassing when clients see you get lost!

There probably isn’t a person in the world who hasn’t gotten lost, so it shouldn’t be thatembarrassing, but agents (and probably a lot of clients) often feel like they need to at least look like they know the location of every house, on every street, in every town they show houses in.

Instead of getting frustrated or quietly judging your agent if he or she gets lost, share a funny story about a time you got lost! You know you have one…

2) Falling

It’s so embarrassing when you trip and fall in front of someone, but it’s even more humiliating when you’re in the middle of showing a house to a client! It’s bound to happen to an agent sooner or later due to a slippery floor, stairs, or a pair of high heels.

If you see your agent take a nosedive, first make sure they’re not truly hurt, and if they’re not, feel free to joke with them by scoring their fall like it was an Olympic dive!

3) Having a stain on their clothes

Considering how often agents have to quickly scoff down a drink or some food in their car between appointments, it’s a miracle they don’t always have a stain on their shirt or pants! While it’d be smart for agents to travel with a spare wardrobe in the trunk, most don’t, and there’s rarely time to head home and change before their next client. So there’s a decent chance your agent will show up to an appointment one day feeling a little self-conscious about their appearance.

You can either try with all your might to never glance at it by maintaining eye contact at all times, or you can make light of it by taking a guess at what type of food or drink caused the stain. (Bonus points if you give them a bib or stain remover as a thank you gift on closing day!)

4) Can’t get into a house 

Unlocking and opening a door doesn’t sound like a tough job description, but you’d be surprised at how often an agent runs into an issue getting into a house they’re trying to show their buyers.
Sometimes the lockbox that holds the key gets jammed, or the key is missing. Other times there’s an issue with an electronic code. Or perhaps the owner locked the deadbolt and there’s only a key for the actual knob. 

Trust that it’s as frustrating for them as it is to you! Also trust that it’s nothing they could have prevented, and not a sign that they don’t know what they’re doing. If it happens, crack a joke about giving them a boost to hop in through a window to break the tension and let them know you understand and aren’t mad.

5) Losing house keys

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Once an agent gets you into a house, they need to make sure they keep track of the keys. Might not sound like a big deal, but most agents have a routine and put the house key in a certain spot every time they show a house in order to not forget it or lose it because it’s certainly happened to them at least once in their career! But no matter how organized they are, every once in a while, they get done showing a house and can’t remember where they left the key to the house. 

If it happens when you’re out with them and you want to make ‘em laugh, hit them with this classic as they frantically look: “Where was the last place you saw them?” 

6) Letting a pet escape

Many houses an agent shows have pets, and your agent is usually given instructions on the listing to make sure not to let the dog or cat get out of the house. Agents take this seriously and do their best to make sure the door is closed once you get in the house, but sometimes a pet is faster or sneakier than an agent can react to. 

It won’t be a laughing matter until and unless the pet is wrangled and back in the house, so look for the pet’s favorite treat to try and help your agent catch it and bring it back inside. Once the escapee is back inside you can laugh all you want and resume the tour of the house! 

7) Walking in on someone

You’ll probably notice that your agent rings the doorbell at least once, maybe twice before entering a house they’re showing. They may even throw in a loud knock, and then holler “Hello…real estate agent!” as you walk in. This is on top of the fact that they’re already set an appointment with the owner, so it shouldn’t be a surprise that they’re there.

But sometimes owners forget, or not everyone in the house was notified that an agent would be coming, and they’re still sleeping, or taking a shower (or something else) in the bathroom, and don’t hear the agent announcing him or herself. Next thing you know, your agent opens a door, you hear a shriek, an apology, and a door quickly slam. 

It may seem like your agent was being a little careless, but rest assured they most likely did as much as they could to avoid walking in on somebody unannounced. 

Give us a call and we will tell you our great stories! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com 904-515-2479

Is Your Seller’s Mortgage Assumable?

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assumable loan, Buying a home, FHA loan, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, mortgage, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, Selling a home, The best real estate agent in Jacksonville, usda loan, va loan

NOVEMBER 30, 2022

By Robert Groves

FHA, VA and USDA loans may be assumable, along with a few conventional loans. If so, buyers who can pay off equity might qualify for a lower interest rate.

HILLSBORO, Ore. – With today’s current interest rates, homebuyers may want to seek out homes for sale that have assumable mortgages. When rates were below 3% earlier this year, some people were delaying buying, waiting to see if house prices would lower. They didn’t fall much, yet interest rates went up substantially, potentially pricing people out of the market.

Finding a home for sale that has an assumable mortgage may be the solution.

Assumable mortgages were popular when rates were higher, some didn’t even require buyers to qualify. Not the same today: Buyers must now qualify through the seller’s lender that has the mortgage on the house.

An assumption allows a buyer to take on the original loan balance, payment and term, taking advantage of the seller’s lower interest rate, which they may have gotten years ago. Assumptions are allowed on FHA, VA, and USDA loans and, in some exceptions, conventional if the mortgage contract has no “due on sale” clause or if the lienholder permits it.

The down payment could be higher as the seller’s equity must be made up, which is the difference between the price of the home minus the loan balance. If the buyer can take over a smaller loan balance at a much lower interest rate, it may be worth it.

Sellers should make sure the assumption is Novation only, where the lender transfers full liability from the seller directly to the buyer, releasing the seller from future responsibility for the mortgage payments.

Copyright © 2022 Forest Grove News Times, all rights reserved. Robert Groves is senior mortgage broker for Minuteman Mortgage.