Anyone who bought or sold a home in 2021 can tell you how crazy the real estate market was. Homes sold in a manner of minutes and for way more than the sellers were asking. While 2022 shouldn’t see the massive price increases and brutal bidding wars that were the norm last year, buying a home won’t exactly be a walk in the park, either. Here’s what you can expect:
Prices Will Go Up
Home values in some areas are up close to 28% compared to the start of 2021. While we don’t expect the prices to continue to increase at such a rapid pace, we can expect them to be about 7-10% higher by the end of the year.
One reason for the continued rise in home prices is the low supply of homes available brought on possibly by delayed construction or the out-of-control short-term rental market. The bottom line is that there are more buyers than there are homes for sale, which increases prices, making it challenging for many couples and families to find a home to purchase.
Interest Rates Will Go Up Too
We’ve been seeing interest rates slowly creeping upward in recent months, which definitely puts pressure on many home buyers. Typically, when interest rates go up, home values come down ever so slightly to compensate for the increased payment the higher rates will cause. However, this isn’t the case in many states since, again, our demand for housing is so high. It would certainly be advisable to get into a home sooner than later to avoid paying more each month.
The same thing is true if you’ve been thinking of refinancing your mortgage. In looking at the way the market has been moving recently, it is expected that rates are only going to continue to go up. However, if you purchased your home or refinanced a couple of years ago, or perhaps your credit has improved, you might still be able to nab a lower interest rate that can save you money in the long run.
If you want to know what rate you’d qualify for right now and all your options, we’d be happy to do a quick check for you – no pressure, hassle-free. Call us at (888) 311-8339
Increased Loam Limits Will Make It Easier To Get Into High-End Homes
Some good news for buyers is that conforming loan limits have increased. The new loan limits are as follows:
$647,200 for regular one-unit loans (increased from $548,250 in 2021)
$970,800 for one-unit high-balance loans (increased from $822,375 in 2021)
$1,243,050 for two-unit high-balance loans (increased from $1,053,000 in 2021)
This is good news for buyers who were coming up a little short on higher-priced homes. Before this increase, those buyers would need to attempt getting a jumbo loan to finance their homes. The jumbo loan requirements are much more challenging to qualify for and can also come with higher interest rates. However, these higher loan limits may also help bump up home values since there will be more competition at this price point.
Not All Doom And Gloom
Even though it may cost homebuyers more this year, the overall buying process should not be as rough as it was in 2021. We are hopeful that buyers will be able to get into a home without waiving most contingencies or getting into tiresome bidding wars with dozens of other buyers. Buying a home in 2022 is still a good idea. The real estate market is strong, and we don’t expect that to change anytime soon.
Unsure about your current rate or interested in getting a better one? Submit the form below and we’d be happy to answer your questions.
What is your role at Sharp Loan and how long have you been with the company?
My role at Sharp Loan is a Loan Officer Assistant and I have being with this company for a year.
What do you enjoy most about what you do?
Investing time in homeowner to a plan that will help them achieve their short and long term goals. Whether is monthly savings, retirement money, college funds, or paying off debt.
Can you share a memorable experience or story while working?
Helping one of our borrower (Who was left in the dark by previous lender) structure a plan, which helped him clear his debt out to restore his credit. This allowed him to get the best deal in the market. He was grateful that I explained to him the plan and walked him through every step. I believe is very important that borrowers are involve in their process, and help them understand what a refinance really is.
What do you like to do in your free time when you aren’t helping clients realize their home-ownership dreams?
I enjoy spending time with my daughter and wife. Also, I enjoy watching Soccer and Football with cousins and friends(Bolt Up)
What is your ideal vacation spot or favorite restaurant in Orange County?
Ideal Vacation spot is Santorini, Greece, and a whole month in Europe.
Julio Arzate Vazquez Loan Officer Assistant to Rey Reyes NMLS 883074 DRE 01954729
Need help with your home mortgage purchase or refinance? Contact us below to get a quick and hassle-free interest quote!
With mortgage interest rates still low, it remains an ideal time for many homeowners to refinance. One thing to consider however, before jumping on the refinancing bandwagon, is to find out what your refinance break-even point is. This refers to the point at which you are able to recoup the costs of the new loan and you begin saving money.
How long does it take to break-even?
The amount of time it takes to recoup the costs of the loan depends on several factors like your new interest rate. For some individuals it could be a lot quicker than it is for others. It’s important to think about the reason you want to refinance to begin with and how much it will cost. Your goal might be to lower your monthly payment or shorten the term of the loan so that you pay less interest in the long run.
You might want to refinance your home for other reasons like getting rid of mortgage insurance or taking cash-out from the equity that’s accumulated to pay for home renovations or pay down credit card debt. After considering your objectives and calculating how long it will take to break-even, you’ll need to determine whether you are comfortable with the length of time. There is no rule-of-thumb when it comes to refinancing. You just have to make sure that it makes sense for you and that the benefits outweigh the costs.
What are the costs to refinance your mortgage?
Aside from determining how long it will take to break-even, you should also think about how much it will take too. In general, the costs to refinance your mortgage will include and closing costs, such as:
Fees to the bank: These include application fees, as well as any discount points that the bank charges.
Title costs: This includes a title search and insurance.
Other costs such as appraisal costs, fees for a credit report or attorney’s fees.
Charges by the escrow company
Calculate the break-even point on a mortgage refinance
You can now calculate how many months it will take to break even by dividing the total loan costs by the monthly savings.
If the number of months that you’ll pay on your new refinance is a lot more than the number of payments that remained on your original loan, you could be paying a lot of extra interest.
When You Start to Save a Lot of Money
When you refinance to a shorter term, the focus is not so much to have a lower monthly payment but instead, the goal is to save a lot of money in total interest.
Other Factors to Consider
Other questions to ask yourself when considering refinancing are:
How long have you had the loan?
How much have you paid down?
How long do you intend to remain in this home?
The answers to these questions will affect what break-even point will be most comfortable and make sense to you.
If you need some help figuring out your refinance break-even point, use this handy refinance calculator or contact one of our helpful agents to explain it to you in detail.
Para muchos dueños de casas, refinanciar puede proveer varios beneficios potenciales. Una de las principales razones porque la gente refinancia su hipoteca es para bajar la tasa de interés. Si las tasas han bajado desde la última vez que refinanciaste tu casa, quizá debas considerar un refinanciamiento. Otra razón común para el refinanciamiento incluye liquidar un pago global, convirtiendo un préstamo con tasa ajustable en un préstamo con tasa fija, o poder extraer valor en efectivo de tu casa (retiro de efectivo). A veces los dueños sacan efectivo de la casa para hacer remodelaciones, crear un fondo educativo o consolidar una deuda. Las razones exactas de porqué alguien debería refinanciar pueden variar y deben de ser consideradas con cuidado. Sin embargo, elegir el momento correcto para refinanciar puede ser igual de importante. A continuación, cinco razones porque ahora es un buen momento para hacerlo.
Las tarifas pueden estar al alza
La tasa hipotecaria fija promedio de 30 años volvió a subir por encima del 3.0% la semana pasada y puede que continúe subiendo poco a poco. Si estás pensando en refinanciar tu casa, ahora puede ser un buen momento para comenzar el proceso para que pueda congelar las tasas antes de que tengan otra oportunidad de subir.
Las tasas de interés aún son bajas
¡Las tasas aún están bajas! Viendo los históricos de las tasas, refinanciar ahora sigue siendo una oferta inusualmente grande, a pesar de la reciente alza.
No te quedes afuera
Más del 70% de los propietarios de casas aún no han tomado la oportunidad de las tasas bajas durante la pandemia y aún tienen que refinanciar. Eventualmente la oportunidad pasará y no vas a querer estar deseando haber aprovechado la oportunidad para ahorrar dinero.
Disminuye tus mensualidades
Los prestatarios pueden recortar sus pagos mensuales y liberar un poco de sus ingresos destinados para el siguiente año. Esto puede dejarte con más fondos para proyectos para tu casa, ahorros, compensar el aumento potencial de los gastos mensuales debido al aumento de precios de bienes consumibles.
Valores de casa más altos
El mercado de bienes raíces ha visto un aumento histórico en el valor de las casas en meses recientes. Muchos propietarios tienen más capital en sus casas que antes. Esto te aportará una relación préstamo-valor (LVT) más baja, lo cual potencialmente hará más sencilla la aprobación y cualificación para una tasa aún mejor. También puede ayudar si necesitas efectivo.
Si estás pensando en refinanciar tu hipoteca, entonces llámanos para obtener una cotización rápida y sencilla de la tasa de interés y ¡una preaprobación en menos de 5 minutos! O completa el siguiente formulario para comenzar.
¡Habla con alguno de nuestros conocedores agentes y obtén una preaprobación hoy!
For many homeowners, refinancing could provide several potential benefits. One of the primary reasons why people refinance their mortgage is to lower the interest rate. If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan, or being able to extract cash equity from your home (cash out). Sometimes homeowners cash out to make home improvements, to create an education fund, or consolidate debt. The exact reasons why someone should refinance may vary and should be considered carefully. However, choosing the right time to refinance can be equally important. Here are five reasons why now is a good time to refinance.
Rates could be on the rise
The average 30-year fixed mortgage rate rose above 3.0% once again in the past week, and may continue to rise slowly. If you are thinking of refinancing your home, now may be a good time to start the process so that you can lock in rates before they have a chance to rise.
Interest rates are still low
Rates are still low! Looking at where rates have been historically, refinancing now is still an unusually great deal, despite the recent rate rise.
Don’t be left out
Over 70% of homeowners have not taken advantage of the low rates during the pandemic, and still have yet to refinance. The opportunity will eventually pass and you don’t want to find yourself wishing that you had seized the chance to save money.
Lower your monthly payments
Borrowers can cut down their monthly payments and free up more of their income going into the next year. This could leave more funds for home projects, savings, or offsetting the potential increase in monthly expenses due to the rising prices of consumer goods.
Higher home values
The real estate market has seen historic increases in home values in recent months. Many homeowners have more equity in their homes than ever before. This will give you a lower LTV (loan-to-value) ratio, which could potentially make it easier for you to get approved and qualify for an even better rate. It could also help if you are looking to cash-out.
If you are thinking about refinancing your mortgage, then give us a call to get a quick and easy interest rate quote and get pre-approved in less than 5 minutes! Or submit the form below to get started.