Millennials, Meet Baby Boomers. Want To Swap?

Millennials, meet Baby Boomers.
Lucky for Millennials, their foray into home ownership coincides with the retirement of their parents’ generation, Baby Boomers.
Three-out-of-four individuals over the age of 65 are homeowners in California as of 2016, according to the U.S. Census. Most of these retirees will want to remain homeowners in retirement, minus the upkeep required by their suburban estates. Some will move out of state to low-cost areas like Arizona, Nevada and even Florida. Others will make the savvy decision to forego their suburban dwellings for low-maintenance condos closer to city centers and services — condos previously inhabited by Millennials, before they went looking for more space in the suburbs.
In some sense, retirees will simply swap housing with Millennials in what will be the Great Convergence. This demographic-fueled wave of home sales is expected to peak around 2020-2021.
Every part of the state is different. Continue to check my blog as I keep close track of housing data and forecast trends in the Bay Area.

Great Loan Program for Veteran Borrowers

VA loans are home mortgages backed by the Department of Veterans Affairs (VA). With a VA loan, eligible service members and veterans can buy a home with little or no down payment, or refinance an existing home to get cash out or a lower monthly payment.

As an approved lender for the VA Home Loan Guarantee Program, I can offer service members, veterans, and eligible surviving spouses favorable terms on all types of home mortgage products. In many cases, I can get vets 100% financing with no mortgage insurance. I recently helped a client a acquire a loan of over $1,000,000.00 with just 10% equity in his home. He will now be able to do some needed home improvements, and take his family on a dream vacation. He is one happy vet!

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.

Remote E-Closing

The future is here with Remote E-Closing.  The days of being bombarded with reams of paper at the closing table are over. Previous e-closings required either some in-person contact or a notary to e-sign closing documents via a shared tablet.

Borrowers will FaceTime with a notary in order to complete the closing live. The process allows for all documents to be signed, including the promissory note and mortgage.  Buyers will never have to leave their home or wet sign a single document for purchase or refinance loans.

This gives borrowers the ability to close a loan whenever they want, whether it’s at 11 a.m. or 9 p.m., this will have an incredible impact on the entire experience,”

The e-closing technology is currently available to brokers in four states: Illinois, Montana, Virginia and Washington.  The expansion will continue into more states throughout this year.  Fannie Mae, Freddie Mac and the CFPB are all supporting these changes.  So this is big news.

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!

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