Even though mortgage regulations have changed it appears that the mortgage process has improved on the buyer’s end. A survey was recently conducted that showed 71% of recent home buyers rated their experience as either very good or excellent. This is a 10% increase over the last two years. Many potential home buyers shy away […]
Even though mortgage regulations have changed it appears that the mortgage process has improved on the buyer’s end. A survey was recently conducted that showed 71% of recent home buyers rated their experience as either very good or excellent. This is a 10% increase over the last two years. Many potential home buyers shy away from the idea of purchasing a home due to the daunting process. However, with buyers surveying that they believe the process has been getting easier, this could change the stigma surrounding home buying!
The view change of the buying process may be due in part to buyers being more reliant on their loan officers. According to Mortgage News Daily, “Twice as many consumers in 2015 said their Mortgage Loan Officer was their most valuable resource during the home-buying process.” Loan officers are a buyer’s best asset. A loan officer is a mortgage guru that can guide you through in the ins and outs of purchasing a home. If you work with a knowledgeable loan officer, you’ll have a much smoother loan process.
The great news is that loan programs are making it easier for low income and first time home buyers to purchase. Our 3% down NO PMI loan is one of the best around. No matter if you’re a first time home buyer or a seasoned one, on all primary homes you can put down as low as 3% and save with no mortgage insurance.
Coastlend’s Hometown Hero program gives back to the ones who help us! With low closings costs and your appraisal covered, it allows nurses, fire fighters, first responders, and military personnel to purchase a home without a problem.
Those are just a few of our loan options that have made getting a loan easier! If you’d like more information on Coastlend’s loan programs, our amazing loan officers, or on the loan process, please give us a call at 843-388-5763 or apply now!
If you’re purchasing a $250,000 home using our 5% down NO PMI loan you can save $65/month over the same conventional loan that has monthly PMI. The interest rate on the NO PMI loan is slightly higher but the payment is still less because you avoid paying expensive monthly PMI. In this case the PMI […]
If you’re purchasing a $250,000 home using our 5% down NO PMI loan you can save $65/month over the same conventional loan that has monthly PMI. The interest rate on the NO PMI loan is slightly higher but the payment is still less because you avoid paying expensive monthly PMI. In this case the PMI would be $81/month.
250,000 purchase price with 5% down has a payment of $1181/month
$250,000 purchase price with 5% down has a payment of only $1116/month
The PMI will go away on option one when you have 20% equity but that will take 8 years. After 8 years the monthly PMI goes away and option one’s payment will be $1400 or $53 less than option two however you must consider all the money you saved with the NO PMI loan over the first 8 years to find where the breakeven point is.
The NO PMI loan saved you $6240 over the first 8 years (65x12x8 = 6240). Divide that by the savings you’ll realize after year 8 ($53) to see how many months away the breakeven point is after year 8. 6240/53 = 117 months or 9.75 years. That means it will take a total of 17.75 years to breakeven. The initial 8 years of savings plus the 9.75 years to break even. Based on these figures the NO PMI loan is actually cheaper for the first 17.75 years.
That’s a long time to wait to realize savings. This is why the NO PMI option makes sense. Most people move or refinance within 7 years so chances are you won’t have the loan with PMI long enough to realize the savings. In addition saving $53 in 17.5 years isn’t going to be much when you factor in inflation.
If you have additional questions on our NO PMI options let us know. You can also complete our easy loan application by clicking the link below.
Interest Rates Will Rise. It should come as no surprise that the Fed is gradually raising interest rates. However, this should not scare away buyers. The rate at which the Fed has decided to increase rates will not have a major effect on purchasing. A 30 year fixed rate mortgage will be the least effected […]
- Interest Rates Will Rise. It should come as no surprise that the Fed is gradually raising interest rates. However, this should not scare away buyers. The rate at which the Fed has decided to increase rates will not have a major effect on purchasing. A 30 year fixed rate mortgage will be the least effected by the slow hike. Although rates will rise, worrying should not!
- Home Prices Will Continue to Rise. With the housing market strengthening we will see a rise in home prices. Zillow has projected an average 3.5% increase in home values. Good news is that this increase is not uncommon and it’s sustainable!
- The Struggle For First Time Home Buyers Will Continue. Due to stagnant wages and rising rent prices first time home buyers have not been able to save up enough money for a down payment. Furthermore, rising home prices is another hurdle that has prevented first time home buyers to enter the market. The median age of a first time home buyer has increased to 33, an historical high. However, with programs like Coastlend’s 3% down NO PMI first time home buyers will finally be able to enter the market. Click here to apply now!
- Rent Prices Will Continue to Rise. It’s a well-known fact that it is cheaper to buy than rent. Throughout the past couple of years, there has been a tremendous increase in rent prices. In some markets, rental prices have risen quicker than homes. According to Trulia, it is 36% cheaper to buy than to rent. Furthermore, rent has been projected to rise up to 8% in 2016.
- The Suburbs will become the hot spot. In the past many buyers were looking to purchase in the city. However, as millennials get older and begin to start families they’ve made the move towards the burbs. But, there are some requirements; they prefer public transportation, job opportunities, close proximity to the city, and walkable main streets.
- Smart Homes & Going Green. Our last article discussed the popularity of smart homes. Home buyers have begun taking interest in smart technology. Products such as, smart doorbells and smart thermostats tend to increase home values. Going green has also become a trend in the housing industry. Baby boomers prefer eco-friendly homes that are energy efficient and a healthier indoor environment. This trend has become so popular that up to half of builders and 39% of re-modelers are working on eco-friendly projects.
- Videos will begin to replace photos. Virtual videos may not be new to the real estate industry but it was never a popular feature. Having a virtual tour or video will help your home stand out! These virtual videos allow sellers to highlight the best parts of their home and give buyers a 360 view if they are not able to do a walk through.
- New Construction Homes. Although new construction homes took a big hit during the recession they have made a comeback. With a projected 26% increase in 2016, these homes are becoming more and more popular among home buyers. The ability to choose your finishes and know that you were the only one living in the home is a major plus in the housing industry.
Some of these trends have rolled into 2016 from last year but have become even more prominent. Whether they’re new or old, all 8 of these trends have had an effect on the housing market. The high rent prices have driven renters to purchase a home and move to the suburbs. The need to purchase has risen and therefore so have home prices. These have all contributed to the strong market that we’re currently in! If you have any questions about these trends or getting a loan give Coastlend Mortgage a call, 843-388-5763.