Foreclosures a Near Non-Event
A year-end report on 2019 found that foreclosure filings were down 21% from 2018 and down 83% from its peak in 2010. In the same period, bank repossessions are down 86%. Lender repossessions are down 37% and 86% from 2018 and 2010 respectively. These low numbers are likely due to the strong economy allowing borrowers to make their mortgage payments without lapse. After the Dodd-Frank Act was passed in 2010, lending standards were at an all time high. In the years since 2010, the rules and regulations have slightly laxed leading to what would be believed to be a higher percentage of foreclosures. In reality foreclosure rates are at a recent historic low. With the decline in foreclosure inventory and interest in the amount of inventory going up, now remains a good time for sellers with less than ideal property to find a buyer. Low mortgage rates allow more first time home buyers to enter their local markets and compete for the already low inventory causing some distressed elements to be overlooked. ...How Much Can Good Credit Save You on Your Mortgage?
It’s well known that good credit can save you money and help you get a lower mortgage rate. But just how much money can you save? It’s estimated that over the life of a mortgage loan the average interest paid for a borrower with fair credit is $260,000. It’s also estimated that those with a very good credit score will pay closer to $220,000 over the life of a loan. That nearly $40,000 difference is a direct result of having a higher credit score and inversely, a lower mortgage rate. Monitoring your credit can help you secure a low mortgage rate and save tens of thousands when buying your...Fannie Mae and Freddie Mac Loan Limit Rises 5.38%
With this year’s rise, the loan limit has increased for the fourth year in a row after ten years of stagnation between 2006-2016. Despite no movement in the ten year period prior, the loan limit has risen $93,400 since 2016. In 2016, the FHFA increased the conforming loan limits from $417,000 to $424,100. Then, the following year, the FHFA increased the loan limits from $424,100 to $453,100 starting in 2018. The year after that, the FHFA increased the loan limit from $453,100 to $484,350 for 2019. Mortgages originated in 2020 will have a limit of $510,400. Year-over-year this marks the 3rd highest raise since 2016. 2016-2017: 1.70% increase ; 2017-2018: 6.84% increase ; 2018-2019: 6.90% increase ; 2019-2020: 5.38% increase...Five Big Financial Reasons to Own Your Home
There are many reasons why consumers decide to buy their own home instead of renting. Of course many factors such as housing market, whether you have a high or low interest rate, and personal timing go into account, but below are a few financial positives of being a home owner. Owning your home forces you to save. Paying your mortgage and building equity in your home forces you to save money. Owning your home allows you to save on taxes. If you own your home, your monthly housing expenses are locked in through a consistent monthly payment based on your interest rate. If you were to rent, depending on your agreement your payment could be raised by a landlord. In most parts of the country renting is more costly than owning your own home. Getting a low interest rate allows your mortgage payments to cost less than what some landlords would be charging. Local real estate markets in Lee County and Collier County are part of this trend. This is the only investment you can make financially that will have increased personal connection. What other investment will you make that you will live inside of other than your primary residence? Building equity in your home while creating life long memories doubles the...Florida Home Value Rise Beats National Average
According to Zillow, the rate in price increase among Florida homes will beat the nation’s average over the next year. Home values in Florida are up 4.64% this year with an expected increase of 4.09% next year. Nationally, Zillow expects the value of homes to rise 2.2% over the next 12 months. Low interest rates are causing the local real estate market to heat up substantially. Understanding the affect of increasing home prices and low mortgage rates will allow informed investors to make sound decisions in this hot housing...Connect With Us
