There's a term in residential real estate to describe Buyers who are ready to go: Ready, Willing, and Able. These people have their ducks in a row, are qualified financially (both literally qualified with lender, and figuratively qualified, meaning they have assets and employment to support a purchase without having to do anything else). Their intention is to purchase a property Continue Reading
Mortgage
Handcuffed to Your House
June 16, 2023 There's a phenomenon known as "Golden Handcuffs" being mentioned for a large part of the reason why inventory levels in Denver are very very low. The concept is that due to people having low mortgage rates, they will not sell. This is partly true, but there is more nuance to the issue at hand. The fact of the matter is that the vast majority of people with Continue Reading
Marry the House, Date the Rate
April 21, 2023 It's been just over a year since Mortgage rates spiked up significantly, from all-time lows of around 3% to where they currently are in the high 6%'s (average rates always assumes 30 year fixed rate mortgage, excellent credit). As you can imagine, this has been a damper on demand since many people cannot afford to buy now at these rates and prices. The market Continue Reading
The Market is Anything But Stable Right Now
March 29, 2023 I was recently looking at the latest DMAR (Denver Metro Association of Realtors) Market Trends report (DMAR_MarketTrendsReport_March2023_020323X) for March 2023, which would include data up through the end of February. The interesting thing about data is that its presentation to the public can be spun (or manipulated) by being presented in a certain way, for instance, Continue Reading
Mortgage Application Index Portends Stormy Future
March 8, 2023 Mortgage rates have moved quickly from ~6% to ~7% over the past 30 days: Mortgage Rates Head Back Over 7% After Powell Testimony 30 Yr. Fixed: 7.03% (+0.04% ▲) | 15 Yr. Fixed: 6.48% (+0.03% ▲) | https://t.co/hpyoRNAipg — Mortgage News Daily (@mortgagenewsmnd) March 7, 2023 As would make sense, new mortgage applications are down a staggering 42.3% year over year. Continue Reading
Will Mortgage Rates Disrupt Market?
Mortgage Rates at 4 year Highs Mortgage Interest Rates hit 4 Year highs this week, and the feeling is that they will continue to trend higher. Today, 2/14/18, according to Mortgage News Daily, the average execution for a 30 year fixed rate, conforming mortgage (<$529,000 in the 5 county metro area) for a top tier credit scenario is 4.57%. With the federal reserve expected Continue Reading
Minimalism and Home Ownership
Have you ever listened to the podcast The Minimalists? I am a huge fan of the Minimalists and their views on most things. Minimalism is really just a state of mind and can be applied to so many facets of one's life. It doesn't have to encompass living like a monk with zero possessions, or not driving a car, or only eating a vegan diet, it can mean many different things to Continue Reading
Leverage and Real Estate
Leverage is a very powerful concept and tool in Real Estate, and makes Real property one of the best, if not best, places to invest your money. The concept of leverage is relatively simple: You use other peoples' money to control an asset that appreciates in value. You bring some equity to the purchase (20% is the magic number) and then the bank brings the remaining 80%. Continue Reading
Struggling for that Down Payment?
Millennials are not buying homes at anywhere near the rate of previous generations, at the same point in their lives (i.e. Millennials in their 20's vs Boomers in their 20's, or even Gen X in their 20's for instance). Some of this might be changing preferences. Renting is easy and it gives you total flexibility. Move to a different neighborhood or city every year if you Continue Reading
Understanding Mortgage Estimates
The first step in buying a home is contacting a mortgage professional, who will ask you to fill out a mortgage application. This is the initial step and all that is required for a pre-qualification. For instance, you will provide information about your job, your other debt obligations like automobiles and student loans, and the lender will pull a hard credit check. From there Continue Reading
