Your guide to mortgage interest rate buydowns in 2024

Title insurance is a critical component of the home selling process, yet many homeowners do not fully understand what it is or its value. Simply stated, title insurance protects both buyer and seller from any potential issues with the property’s title. When selling a home, obtaining title insurance offers peace of mind to all parties. Title insurance acts as a safeguard against potential defects in the property’s title. These defects can include liens, unpaid taxes, undisclosed heirs, or simply errors in public records. Without title insurance, a buyer could find these issues haunting them after the close, leading to costly legal issues or financial loss.  One of the primary reasons for buying title insurance is to protect against any claims that arise after the close of the sale and when the seller is long gone. Even if a title search is conducted during the escrow period, title insurance is a way to provide a safety net, with potential missed issues or undeclared claims. Title insurance may seem like another fee that lenders require to charge consumers more, but the fact is it is an essential protection for all parties.

Mortgage interest rates are the lowest they’ve been in years and perhaps you’re wondering if it’s time to refinance your loan. Lenders advertising their refinancing services make it sound as easy as filling out a form and paying less each month. While refinancing does not need to be complicated, here are 5 common mistakes that could cost you thousands of dollars over the course of the loan. Refinancing can be a great experience if you can avoid making these mistakes. 1. Not Shopping Around – Not all loans are structured the same. It’s important to compare your options. Even loans with the same interest rate can have different costs, fees, and terms. 2. Shopping for Too Long – Interest rates change quickly and, in this volatile market, it’s possible to lose a great interest rate by looking for too long. Consider getting three different loan options at the same time and choosing the best option out of those three to work with. 3. Adding Years to Repayment – Interest rates are not the only consideration in deciding to refinance. If you are 7 years into a 30-year loan, restarting the clock with a new 30-year loan can cost you thousands of dollars. Never refinance with a longer term than your current status. 4. Not Considering Your Job Stability – The pandemic has created instability in the job market; consider your employment situation carefully before using precious savings for loan costs. Additionally, if you are moving from a 30-year loan to a 15-year loan, your payment might go up. Make sure you have the income to comfortably pay that increase each month. 5. Assuming Your Credit is Great – Before looking for a refinance, check your credit score and make any adjustments before you get a surprise at closing.  This is a great time to reduce your mortgage interest rate, while rates are low. Consider all the aspects of the refinance offer first and make sure you get the best option to save money.

Once a staple of real estate marketing, open houses are no longer as effective in selling a home as they once were. According to recent data from the National Association of Realtors®, only 7% of homebuyers found their home through an open house. Of those, most had already retained a buyer’s agent and would have seen the home through them regardless. Open houses are one of the most difficult aspects of selling a home. Not only does the home need to be spotless, but the homeowner must leave the premises for most of the day, normally a weekend. In today’s world, most of these open houses are not even held by the listing agent themselves. They realize that these events are not likely to result in a sale, so newer agents hold these open houses in the hope of finding new clients. For the homeowner, there are other risks associated with an open house beyond just wasting time. Even with the best planning, real estate agents cannot monitor every inch of the home. Thieves often use this time to tour the home, either to steal valuables when the agent is not looking, or to scout for future burglaries. It’s easy to imagine a thief pocketing a piece of jewelry or even a financial document while the agent is discussing the open floor plan downstairs. The main point is that open houses are not as important as they used to be in selling a home. In this digital age, most buyers review homes online and then arrange a private tour for those they like. Given this shift, the hassle and risk of an open house may not benefit the homeowner the way it did in the past.

One of the least understood aspects of obtaining a home loan is the difference between the interest rate and the APR (Annual Percentage Rate). At first glance, they sound like the same thing, but while they both impact the cost of the loan, they are two different aspects of the home loan program. Home interest rates, or more commonly referred to as mortgage rates, are the actual cost of borrowing the money needed to buy the home. Lenders use the borrower’s credit score, income, loan amount, and other factors to determine their risk of lending the money. Then, they determine how much interest to charge on the principal loan amount. On the other hand, APR provides an overall picture of the total cost of borrowing. It includes not only the interest rate cost, but also other costs and fees associated with the loan. Items such as origination fees, points, and mortgage insurance are all added to the total interest due over the course of the loan and then compared to the amount borrowed to determine the Annual Percentage Rate. For potential borrowers, the APR allows them to compare the total cost of the loan among all available loans. One might offer a lower interest rate but once the fees and costs are included, it may end up costing more in the long run. Mortgage financing can seem complicated and confusing but by learning the terms and how they affect the loan, borrowers can make informed decisions about what loan program makes sense for their needs.

Selling a home in the best of situations can be stressful; adding in a divorce and selling a home can seem impossible. It’s an emotional time for the whole family and this can cause you to make the wrong decisions in the sales process. In addition to finding the right real estate agent, who understands and can help guide you, here are a few tips for navigating this difficult process. Agree on Clear Objectives Before listing your home, sit down with your partner and define the goals of the sale. Do you want to move quickly? Are you willing to wait to maximize profits? Create a timeline with benchmarks and decision points together and understand how and when to reevaluate the goals. Open Communication Divorce involves complex emotions and selling the family home can certainly add to the stress. Determine ahead of time how, and how often, you will communicate regarding the progress of the sale. If amicable, you may be able to discuss the details together, if not, consider using a mediator to help. Set Realistic Expectations Discuss with your agent the expectations for listing, price, showings, open houses, etc. If one party is still living in the home, it can be especially disruptive to show the home on short notice. Both parties must agree to the parameters, to avoid conflict.  Selling a home during a divorce can be particularly difficult. By working with your agent and your partner, you can minimize the emotional turmoil by planning.

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Navigating the world of home buying can be daunting, especially when it comes to understanding different mortgage options.