Okay, let’s just say you own your home and you want to move: bigger house, smaller house, etc. Let’s also say you don’t have enough money set aside to buy your new place without selling your current home.
As you can imagine, it happens ALL the time. You can sell your house, move to a rental and then look for a new home. You can make an offer on a new home contingent on the sale of your current home. OR, in some cases, you can get a Bridge Loan.
A Bridge Loan can work when you have considerable equity in your home. It is essentially taking some of the equity out of your current home to be a down payment on the home you want to buy. In some cases, it is a great solution. If you have any interest in this, let me know, and I can give you the names of a few lenders that can explain your options so you can decide if this might be a good fit for your situation.
Click here to view this past quarter’s Oregon and Southwest Washington real estate market analysis, provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope this information helps you with making better-informed real estate decisions. Of course, if you have a question about this report or your specific neighborhood, please call or email me.
Good question and does anyone really know for sure? What I can say from observation is: houses are staying on the market a little longer and there are more price reductions and fewer multiple offers. The regional RMLS stats for September in the tri-county area also indicate the market is slowing down. The inventory levels are higher than they were in 2017, and the average time a house stays on the market is longer, but it is still a seller’s market. Even though the interest rates are still really great they are getting higher. All of this makes it a little easier if you’re trying to buy a house and in most cases, it will take longer to sell your house.
As I’m sure you know 2017 brought us new tax laws. If there has ever been a time that you want to talk to your tax consultant preemptively it is now. Of course everyone’s tax situation is different but a couple things that affect real estate are:
- The final tax bill has a limit on deductible mortgage debt of $750,000 for new loans taken out after 12/14/2017.
- The final tax bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. The limit applies for both single and married filers.
Again, be sure talk to your tax preparer so you understand how the changes affect you!!
Matthew Gardner, Windermere’s Chief Economist, recently completed his national housing forecast which details his predictions for the 2018 housing market, and here’s what he has to say:
Wondering what this means for you? Give me a call.
The latest from Matthew Gardner, Windermere’s resident economist… contact me with questions!
For complete details about our market, please CLICK HERE to see the latest Market Action Report from our Regional Multiple Listing Service.
And, as you probably know, the bigger the better! It’s surprising how much your credit score can affect your monthly mortgage payment. If you’re buying a home and have a credit score between 760 and 850 the rate you qualify for could be more than 1.5% less than if your credit score was under 640.
For example: at the higher credit score the interest could be around 4.093% and at the lower score it could be as high as 5.682%. The principal and interest payment on a loan of $300,000 at the lower interest rate would be $1,448 per month. The payment for someone with a credit score of 640 or less would probably be closer to $1,738 per month for principal and interest.
Moral of the story, know your credit score.
If you would like a little more information, click here.
I know I keep saying it but it’s true: if you haven’t refinanced your home, please investigate doing it now. Additionally, the interest rates still make buying a home, rental property or vacation getaway very appealing.
And, I believe that the right lender can vary depending on what you are trying to accomplish. There are new Federal lending laws, TRID, that were put in place in October 2015. These rules and the right lender will have a huge impact on the process of buying a home.
If you are refinancing, the timelines aren’t as critical. If you are considering any of the above, please give me a call. You want the right lender for the job. Call me if you would like a couple suggestions for a lender or if you want to find out the current value of your home.