The Importance of Homeowners Insurance

I would like to discuss homeowners insurance and how it can impact future buyers. Usually insurance is last on the list to be finalized.  Well….It’s not quite as easy to obtain as it used to be.  With California having its annual fire season, accompanied with copious amounts of rains from last winter I am seeing premiums skyrocket.  In some cases, some insurance carriers won’t even write the polices.  If you are a borrower with a high debt to income ratio, adding a higher premium could be detrimental.
Also, worth mentioning is FEMA is in the process of updating their flood maps. This is important because with the record rains, individuals that weren’t previously in a flood zone could find themselves paying more. The lesson is clear. Please take a careful look at your homeowners insurance before buying or selling a house. Make sure you have adequate coverage from a reputable broker.  Call or email me for recommendations.

Coming Soon- Appraisal Waivers

New market update. Changes are coming. Freddie Mac will be implementing appraisal waivers for purchases.  This already exists for refinances.  This will be great way for borrowers to save time and money for the transaction.  And how nice would it be to not grovel with appraisers over value.  Seriously… I’m ready for that.

Also following is Fannie Mae.  They are looking to do the same.

Here’s the best part, if you don’t get an appraisal waiver with Freddie’s LP system you can switch it over to Fannie Mae’s DU and see if you can get the waiver there.  These are big changes for sellers as well as buyers.  It’s now easier then ever to get the financing you need.

3 Ways and 1 Big Reason to Refinance a HELOC

3 Ways and 1 Big Reason to Refinance a HELOC

If you or anyone you know had a Home Equity Line Of Credit or HELOC in the last 10 years then change is imminent.  Most borrowers are unaware of how much their payments will go up.  In some cases, payments have gone up as much as 4.5 times from what they were currently paying.

HELOC’s have two stages. First is the draw period, which usually is about 10 years.  The payments during this period are interest only.

After the draw period ends, the HELOC goes into the amortization period, and you will have to pay principal and interest. With the Fed raising interest rates, these monthly payments are going up.   Don’t get caught off guard.  Between 6 months to 12 months before the end of the draw period, reach out to me for solutions.

There are 3 ways to refinance a HELOC. 1. Refinance the HELOC, and start over with a new HELOC, with it’s own interest-only draw. 2. Pay off the HELOC with a home equity loan, witch has a fixed amount and a fixed rate. Payments remain the same through the life of the loan. 3. Refinance the HELOC and first mortgage into a new primary mortgage. Consider refinancing into a 15- or 20-year mortgage to reduce total interest payments.

Don’t get caught off guard with high payments.  Be proactive and call me today!

  • 925-785-4200