Conventional loan limits are increasing for 2023! According to the Federal Housing Finance Agency, the conforming loan limits will rise from this year’s limit of $647,200 to $726,200 for 2023! (and if you are a buyer in Alaska, Hawaii, Guam, the U.S. Virgin Islands or other high cost areas... that number is $1,089,300!) That means borrowers may be able to afford a higher priced home with a lower down payment! This marks the seventh straight year that the FHFA has increased the conforming loan limits after not increasing them for an entire decade from 2006 to 2016. Give me a call or text if you want to talk about it or think you have someone who may benefit from the increase. I'd love to chat with you!
Realtors, you know it’s coming if you haven’t already done so. A 2/1 buy-down is a benefit all around to the agents, sellers and buyers. This will make the listing more attractive and save the buyer a lot of money the first two years with little cost to the seller.
WASHINGTON—The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage point and signaled additional large increases were likely even though they are raising the risk of recession. Fed officials voted unanimously to lift their benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008. Nearly all of them expect to raise rates to between 4% and 4.5% by the end of this year, according to new projections released Wednesday, which would call for sizable rate increases at policy meetings in November and December. “We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t,” Fed Chairman Jerome Powell said at a news conference after the rate decision. Stock markets tumbled after a volatile trading day. The broad S&P 500 index fell 66 points, or 1.7%, to 3789.93. The yield on the two-year U.S. Treasury note settled around 3.993%, according to Tradeweb, from 3.962% Tuesday, nearly a 15-year high. Just after the Fed’s announcement, it had touched as high as 4.12%. Meanwhile, yields on longer-term Treasurys fell, since higher rates could lead to a sharper economic downturn. Officials projected that rate rises will continue into 2023, with most expecting the fed-funds rate to rest around 4.6% by the end of next year. That was up from 3.8% in their projections this past June. Analysts said they hadn’t expected the Fed to show quite so high an endpoint for the rate. Given how persistently elevated inflation has been, “I wouldn’t be surprised to see them go even higher than what they’ve written down—say, to 5%,” said Ellen Meade, an economist at Duke University who is a former senior adviser at the Fed. The projections showed considerable divergence over what might happen after next year. Around one third of officials expect to hold the fed-funds rate above 4% through 2024, while others anticipate more rate cuts. “There is a message here that rates will stay higher for longer, and this message is really sticking with market participants,” said Blerina Uruci, U.S. economist at T. Rowe Price. Even though the economy isn’t yet showing the full effects of Fed rate increases, “all of this volatility and uncertainty makes it hard for businesses to make plans. There are some benefits to having this hiking of interest rates over and done with sooner,” she said. One year ago, the Fed was signaling rates might stay near zero for another year, and it was purchasing Treasury and mortgage securities to provide additional stimulus. Officials misjudged the strength of the economy’s rebound from the pandemic and how high inflation would rise. They are now raising rates at the most rapid pace since the 1980s and have approved increases at five consecutive policy meetings, starting in March when they lifted the fed-funds rate from near zero. Until June, the Fed hadn’t raised rates by 0.75 point since 1994. Officials made a second such increase in July but signaled more concerns about overdoing rate rises, which, together with investor optimism about how quickly inflation might decline, fueled a market rally. Link to article: https://www.wsj.com/articles/fed-raises-interest-rates-by-0-75-percentage-point-for-third-straight-meeting-11663783397
As of September 7, 2022, we can close conventional loans up to $715,000! Bye bye $647,200; it was nice knowing ya. The official 2023 loan limits won't be announced until later this year, but as a mortgage broker we have lenders who will close higher loan limits NOW! What does this mean?!?! You can avoid JUMBO loans making down payments lower, monthly payments and rates lower, more money on cash out refinances, more loan options for larger purchase prices. Just another reason to pick The Betz Team!!!
Have you heard the news about Bank of America's new "zero down payment, zero closing cost mortgages for first-time home buyers in Black and Hispanic communities nationwide"? Residents in selected Charlotte, Dallas, Detroit, Los Angeles and Miami neighborhoods will be offered the program first. There was quite the buzz aroudn their announcement in the real estate community this week. however, despite the misleading headline implying that only minorities are potentially eligible for this program, anyone regardless of race who qualifies for the loan in these undeserved communities can benefit. Here is the link to the misleading article: https://www.nbcnews.com/business/consumer/bank-america-zero-down-payment-mortgage-first-time-buyers-details-rcna45662 Here is the link to the press release form Bank of America directly: https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html Notice the difference in the spin put on the information? At the end of the day, Community Reinvestment Act (CRA) loans are nothing new and are FANTASTIC for borrowers who fit in that box. Please do not hesitate to reach out to me if I can answer any further questions about this.
Hello, If you're a buyer in today's market, I'm sure you are somewhat discouraged by these higher rates, but this could be the break you need to gain access to the housing market. What I mean is that most buyers have pivoted back to the lender to get " pre-approved" again and are given two choices. The first option they would be given is "If" they plan to stay at their old pre-approval, then additional funds will be needed to accomplish that. If those funds are not available or if it requires liquidation of retirement accounts, Then the second option would be to reduce their pre-approval amount so they can requalify at a smaller amount based on their income and debt. Both of these options are not very good in this competitive market. But, you have another chance to help regain that lost buying power, and it's with a Seller Buy Down and I can help! Here are some of the options I help my buyers regain their buying power with massive additional funds needed to stay in the housing market.
If your goal is to purchase a home this year, you might be looking for any advantage you can get in today’s sellers’ market. While competition is still fierce for homebuyers, there are ways you can win and secure the home of your dreams, even in a hot market. Act Early and Save The earlier you act this year, the more affordable your purchase will be. That’s because experts project mortgage rates will rise as we move deeper into 2022. According to Freddie Mac, the average 30-year fixed-rate mortgage is expected rise by year’s end. Experts forecast home prices will rise as well. That means the longer you wait, the more it will cost you to buy a home. Instead, act early and purchase your home before rates and prices rise further. Not to mention, the sooner you buy, the sooner you can experience the benefits of continued home price appreciation yourself. Once you have your home, you’ll be able to watch its value rise, giving you confidence that your investment is a sound one. Buy Now, Move Later Keep in mind, with high buyer demand like we’re seeing today, you’ll be competing against other potential homebuyers, which means you need to find a way to stand out. One way to accomplish this is to negotiate with sellers and present terms that meet their ideal needs. Danielle Hale, Chief Economist for realtor.com, explains one lever flexible buyers can pull to entice sellers: “For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.” In other words, if you’re eager to purchase a home now before it becomes more costly and you don’t have to move right away, you could extend the date of your closing and provide the seller with the time they need to find their next home. That’s a deal that could benefit both parties and help you stand out from the crowd. Of course, it’s important to work with a real estate professional for expert advice on how to make your best offer. Your trusted advisor knows what’s working in your market and what may appeal to sellers. Bottom Line Experts project home prices and rates will increase in 2022. That means buyers who are ready should act soon and find ways to strengthen their offer to meet sellers’ needs. Reach out to a trusted real estate advisor today to learn how you can win in today’s market.
Hello, If you're a buyer in today's market, I'm sure you are somewhat discouraged by these higher rates, but this could be the break you need to gain access to the housing market. What I mean is that most buyers have pivoted back to the lender to get " pre-approved" again and are given two choices. The first option they would be given is "If" they plan to stay at their old pre-approval, then additional funds will be needed to accomplish that. If those funds are not available or if it requires liquidation of retirement accounts, Then the second option would be to reduce their pre-approval amount so they can requalify at a smaller amount based on their income and debt. Both of these options are not very good in this competitive market. But, you have another chance to help regain that lost buying power, and it's with a Seller Buy Down and I can help! Here are some of the options I help my buyers regain their buying power with massive additional funds needed to stay in the housing market.
Hello, As expected, the Feds increased rates again by .75%, so let's relook at what that means to you and how to protect your family moving forward. So far, the Fed's four hikes in 2022 have increased rates by a combined 2.25 percentage points — which means consumers are now paying an extra $225 in interest on every $10,000 in debt. ......................................... What Moved - Feds move " short term " rates, which would be your credit cards and equity lines of credit. What most think they moved is long-term debt, which are mortgages, which they can't directly unless they buy or sell mortgage-back securities. ......................................... Why They Moved Them - They need to do this to slow down inflation, which means they need to slow down the speed at which the economy is growing. ......................................... How Long Do They Plan To Increase - They will do it as long as inflation in our economy, which I think into Fall or Q3. ......................................... How to protect yourself - This is where we need to think things out and create a plan for you and your family. Because, until now, most consumers have not felt those rate hikes, but with back-to-back .75% rate hikes, your 10k in credit debt increased 150.00 per month in the last 30 days, and that's about to become a problem. ......................................... The videos I have added show you a Two-Step Plan for turning bad debt into good debt. Plus, the second step is to prepare you if we move into a recession.
Buying a home is exciting, but when there’s a gap between the appraised value and your agreed-upon sales price, it can cause problems. You risk losing the home you are interested in and even your earnest money if you aren’t careful. Watch this video to learn how appraisal gap coverage works and how it can benefit you.
Have you ever gotten to the very end of a real estate transaction only to find out from the lender that the seller concessions you worked so hard to negotiate for cannot fully be used because either there was not enough actual closing costs to apply them to or that the amount of seller concessions exceeded what that specific loan program allowed for? If so then want this video to learn how to over come this last second hurdle. Dedicated to your Success, Wade Betz p.s. Book a strategy call with me to discuss at http://www.RealtorStrategyCall.com
Hello, These higher interest rates are impacting buyers' qualifications, if you have not noticed. The higher rates are also beginning the "price reduction" trend, which sellers use to help attract affordable housing for buyers. But, most sellers don't know or can show the actual numbers on how that impacts buyers. This inability to show the numbers and knowledge of how dropping the rates has a more significant impact on a buyer's payment than lowering a sales price could ever have. Price vs. Rate - In this presentation, I wanted to show you, through this side-by-side comparison, how a PRICE DROP amount impacts a potential buyer's payment & qualification, but also how, with the same amount of money, you could triple the positive impact on a potential buyer. Seller Buy Down - The benefits of reducing a buyer rate vs. a list price are numerous, here are just a few of them. Positive Benefits: 1. 3/1 Ratio - A seller could triple savings on a buyer's payment if they applied the same amount of funds they reduced their price. 2. 1/3 Ratio - A seller could apply 1/3 of their potential price drop amount to lower a buyer rate and have the same financial benefits to the buyer. ( keep 2/3 of a possible price drop on their net sheet ) 3. Understanding the limited costs to drop rate, a seller could use a Seller Buy Down on full-price offers and protect their comps in the farms that produce the repeat business. 4. Address our buyer's affordability crisis head one with limited funds to implement a seller buy down vs. costly price reductions Marketing Your Property - Now that you understand how powerful a tool it is to reduce rate vs. price with the Seller Buy Down, then let's market your property with a custom SBD Video from me so that we can spread and help affordability to all buyers. SBD Example - Here is how a seller-provided TWO options to all potential buyers. With a full-price offer, a buyer could take 30k off the sales price OR 30k in a Seller Buy Down to help lower their interest rate.
Welcome to the Keeping Current Matters July Monthly Market Report. This Monthly Market Report is a comprehensive walkthrough of the most up-to-date information regarding the real estate market. We believe every family should feel confident when buying and selling a home. Click here to get started today: https://Get-Started-Today.secure-clix.com
Is refinancing your mortgage to consolidate debt a good idea? If you have lots of high-interest debt, the monthly costs can overwhelm your budget. For some, the best road out of this situation is debt consolidation. Debt consolidation pays off your high-interest debt with one, lower-interest loan to save on interest payments. How debt consolidation works Debt consolidation should make your debt payments more affordable each month. High-interest debt typically comes from unsecured borrowing sources, like credit cards and personal loans. “Unsecured debt” means the lender has no collateral to recoup losses if you default on the debt. (Unlike a mortgage, which is “secured” by your home.) It’s easy to get in over your head with multiple high-interest payments going to various lenders each month, especially when you have a lot of credit card debt. Consolidating your debt by rolling your outstanding loan balances into a lower-interest mortgage can simplify matters and save you a lot of money. What is a debt consolidation refinance? The goal of consolidating debt is to lower your monthly borrowing costs. And if you can roll all your high-interest debt into a low-rate mortgage refinance, it’s one of the best ways to save money on your total debt payments. Even with today’s mortgage rates, you can use a mortgage to pay off credit card balances that are charging you 18% to 25%. Homeowners who want to consolidate debt often use a cash-out refinance. This kind of loan uses your home equity — that’s the part of your home’s value you have already paid off — to generate your “cash out.” You’ll be increasing your mortgage balance to provide the cash. In a perfect world, this creates lower monthly payments compared to your existing debt load. This strategy could leave only one remaining loan to pay off: your mortgage, which should have a low interest rate compared to your credit card accounts. Remember, you still owe the money With any type of debt consolidation loan, the borrower should exercise caution and be disciplined with repayment. That’s especially true with a mortgage or home equity-backed loan, which could put your home at risk if you’re unable to make payments. Borrowers sometimes get into trouble because when debt is consolidated, their prior credit lines are usually freed up. It’s possible to charge those lines to the max and be in debt trouble all over again. Remember, consolidation does not mean your debts have been “wiped out.” They’re just restructured to be more manageable. The real goal is to be debt-free; a refinance or loan is just a means to that end. Your next steps Debt consolidation can be a legitimate road to debt freedom for careful borrowers. Please do not hesitate to reach out to our team to evaluate if a debt consolidation loan is right for you.
Housing prices aren’t guaranteed to drop. For potential buyers wondering if they should wait to see if home prices will drop before buying, these market insights shed some valuable light on why you should consider buying now. And while we can’t predict the future, current data shows the housing market isn’t going to dramatically cool anytime soon. Although prices may stabilize a bit as material shortages and supply chain delays ease, forecasters can’t pinpoint when we’ll see those changes trickle down to the buyer level and impact housing prices. The takeaway? If you’re ready to buy a home, and you’re financially prepared to do so, it’s important to consider the risks of waiting and the potential for housing costs to continue to rise in the coming months.
Did you know that a home owners net worth is 33 times greater than that of a non-homeowner? If you think about that for a second, it really is an astounding fact and one that greatly favors buyers. We know that the decision to stop renting is not always an easy one, there are both lifestyle and financial decisions to consider with both scenarios. Being in the mortgage business we might be a bit biased toward purchasing, but according to our recent survey of national home buyers, 92% said that they believe that owning is a better long-term financial decision then renting. If you find yourself in this scenario, there are several key questions to consider that can help guide your decision. Also, there are numerous misconceptions that should be examined as you might actually be able to purchase a home and not even realize it. 7 Questions To Consider: 1) How long do you plan to live in the city in which you are looking to buy? The length of time you plan to spend in a home is a big factor in deciding whether to rent or buy. While none of us have a crystal ball, if you like the city you live in and your current job situation is favorable then you might consider owning. Depending on the market, 3-5 years in a home is a manageable length of time to appreciate and not take a loss. 2) How much do you currently pay in rent? People often think if their rent is the same as their potential mortgage payment they should consider buying a home. In assessing a home purchase, it is helpful to consider uncommon and unplanned costs. For example, mortgage insurance and taxes are often not factored in by first time home buyers. If you have never purchased a home you might not know to include these. Other unplanned costs are things such as lawn care, utility bills, daily home maintenance and long-term maintenance that for a renter are done by the landlord. 3) What is your annual income and how much debt do you currently have? Often when people are dreaming about their new home they get caught up in the excitement and might overlook not only the unplanned expenses but the impact of already accumulated debt. A good rule of thumb is you want your mortgage payment (including taxes, insurance, and association fees) to be 25% or less of your annual income. Your total debt (mortgage + other debt) should be 40% or less of your income. 4) How much savings do you have as a cushion? While not a necessity, one factor to consider is having a savings cushion not only for a down payment but for unplanned expenses. 5) Do you have pets? If you have pets you might find it more difficult to rent a space that fits your needs. Additionally, pet deposits can quickly add up so this could be a consideration for buying as that money could be spent on the home or the down payment instead of paid to your landlord. 6) Do you have children? If you are starting a family, or have children, owning a home can often be the best route for a variety of reasons. Once again, making an assessment about the mortgage payment, unplanned expenses and your overall financial situation are critical in this situation. 7) Are you a veteran? If you are a veteran, there are numerous loan options that could be available to you that are often low money down, easy to qualify and reasonable interest rates. 4 Advantages of Home Ownership: Now that we have explored the questions to consider and common misconceptions, let’s review the advantages of each. Home ownership has four primary advantages: 1) Homeownership can help build wealth through equity. If you have difficulty saving for long term expenses (college, retirement, etc.), think of owning your home as a long term savings plan. Yes, you still have to pay for interest on your loan, but over time you are actually putting your money into an investment vehicle. You are building valuable equity in your home that will add to your net worth over time. Remember, Every month that you make a mortgage payment, is another month that you’re paying down what you owe on your home. Not only does that decrease the amount that you owe over time, but it also increases the amount of equity (or value) that you have in your home. 2) Tax Benefits of Home Ownership. When you own a home, the tax code usually allows homeowners to deduct their mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment (especially in the early years of owning a home.) 3) Predictable Payments. One of the advantages of owning your own home is that you will typically have more stable monthly mortgage payments year over year. Landlords often increase rent with every lease renewal. While there may be some variation based on taxes or your loan product, it's traditionally more stable than renting. 4) Lifestyle. Homeownership gives privacy and the ability to make your space your own. Creating your own home environment can also be a source of pride and accomplishment. Depending on your circumstances, the value of creating your own lifestyle can be priceless. 3 Advantages of Renting: Renting has three primary advantages: 1) Short-term commitment. One of the advantages of renting is the flexibility and the the ability to make a short term, limited, commitment. Most leases are for 12 months so if your job or lifestyle requires you to relocate you have options. 2) Low Maintenance. Every home is bound to have a maintenance issue or two during your tenure. The nice thing about renting is the burden of repairing and maintaining the property is limited. Additionally, the costs associated with maintenance are not your financial responsibility. 3) No/Low Down-Payment. Unlike purchasing a home, renting usually requires less money upfront. While there are numerous low down payment programs for purchasing a home, is most circumstances the dollar amount required to obtain a rental is less than if you were to purchase. Typically, a rental will require a refundable security deposit, a refundable pet deposit and the first month’s rent in advance. Conclusion: While owning a home has numerous benefits and is often considered the American dream, preparation and readiness are an important part of the equation. After pondering the questions and considering the advantages of owning versus renting you could decide that renting is better in the short-term. If that is the case, you can begin to plan for the future and owning a home. It is never too early in the process to find an expert mortgage broker who can help you through the process of preparing to own while you rent.
Do you see your home as an investment, or as a living expense? There is no right or wrong answer, but clearly defining how you view your home can help you weigh major financial decisions. For many Americans, their home is their single largest asset. So why do so few people calculate their true return on investment after selling? To some, the entire transaction is just a living expense or sunk cost, but if you view your residence as an investment, wouldn't you want to know the ROI? Here are some new ways homeowners can view the true return on investment. This is not intended to reflect each buyer's specific situation, and will likely be most useful for investors who purchased a home with a goal of "trading up" in a few years. Although home ownership can provide significant tax benefits to many Americans, for simplicity, potential tax benefits have been excluded from this calculation. Price appreciation does not equal ROI. The ROI on a home is most commonly viewed as price appreciation – how much you sold it for less how much you paid for it. Sometimes selling costs are taken into account, too. The issue with this approach is that it doesn't include all of the expenses incurred while owning the home, buying the home and preparing to sell it. Conceptually, it can be difficult to determine how to calculate the true ROI on a home – the dwelling itself is a hybrid personal use asset and investment asset. However, ignoring the real cost elements falsely inflates the return on owning real estate and can lead to homeowners to continue over-investing in a property. True return on investment for homeowners. Your home is likely among your largest assets, so it makes sense to know how it performed. To calculate the ROI on your home, consider starting with the most conservative approach. You can always adjust afterward to better fit your personal situation. Here's an example of calculating true ROI on the sale of your primary residence: 1) Add up your acquisition costs. These are the costs incurred when you bought the home – your down payment, attorney fees, closing costs and so on. 2) Add up your total costs of ownership. Breaking it down into subcategories, calculate the total payments made to principal and interest, taxes and insurance, repairs and maintenance, plus other expenses, such as HOA dues or condo fees. 3) Add up your selling costs. Selling costs can be quite significant. Real estate agent fees alone are typically around 5 percent of the sale price. There will be additional expenses in closing costs and even if the sale is exempt from federal capital gains tax, you may still need to pay state and local tax. 4) Find out your loan payoff amount. If you've already sold your home, you have this number. If you're just thinking about selling, you can calculate this using an online amortization schedule or call your bank. Once you have all your numbers, it's time to analyze.
Introducing the nations first National MLS platform, The HomeScout App. Search 100% of the homes on the market, no matter where you live. Everyone’s curious about real estate! Nearly one in three people are looking at homes online every day. Be sure you’re searching with the most accurate and private home search app out there. 1) Find homes near your location, or any location, Nationwide 2) Search like an agent: View 100% of the available listings 3) Save favorite properties, schedule showings, calculate mortgage payments and more 4) Share favorites on social media sites 5) View complete MLS property details including lifestyle categories 6) Access an agent or loan officer with one tap 7) Your contact information is secure, and will not be sold or provided to any third party Go to www.StayOffZillow.com if you woudl like a private search portal without the fear of your information being sold to third parties.
Pros and Cons of Down Payment Assistance Programs: Down payment assistance programs can be a significant advantage for those who are ready to buy a home but don't have enough money saved for a large down payment. But these programs can also have some drawbacks. Pros Explained: Easier to afford a home: The main benefit of down payment assistance is that it helps home-buyers afford homes because they don't have the burden of having to save for a down payment. Saving enough could take many years. May not require repayment: Some down payment programs don't require repayment. Grants can provide money that can help you qualify for a mortgage. You would not have to repay the money if you abided by the terms, such as living in the home for a certain period of time. Cons Explained: Can add financial stress later: Maybe you can afford to buy a home without the assistance, but you could buy a more expensive home with the assistance. Think carefully about the long-term financial impacts of choosing assistance in this case. Many down payment assistance programs require that you repay the funds. Consider your personal budget when you're deciding whether to accept this type of help. May come with residency restrictions: Some down payment assistance programs are structured with pay-back requirements if you sell and move before a certain time, such as 10 years.10 Consider how long you want to live in the property as your primary residence. It may be worthwhile to turn down assistance and find other ways to secure a mortgage if you plan to move during the term. Have strict eligibility requirements: Eligibility requirements for down payment assistance are often tied to your first-time home buyer status, as well as your income, credit score, or the price or location of your home. Check to make sure that the terms of your down payment assistance program won't change as well if your circumstances change before you secure a mortgage. You may no longer qualify for your assistance loan if your income increases during the course of your home purchase. Slower closing process: Every additional step in the loan closing process can create delays that could potentially jeopardize your purchase. Make sure that the benefits of down payment assistance are worth possibly slowing down the closing process, and that everyone involved understands that your down payment assistance could add complexity and take more time. Alternatives to Down Payment Assistance: You can look into a number of alternatives that might help you achieve the down payment you need if down payment assistance isn't the right fit for you. A gift from family members or close friends may be an option. In-kind assistance, such as receiving an inexpensive or free place to live in someone else's home, can help you save for your down payment. You could sell assets like a car, stocks, or other valuable items for cash for your down payment. Setting a specific savings plan can help you reduce your costs and reserve more funds for a down payment. Your plan might include eliminating vacations or eating out. The Bottom Line: Down payment assistance programs offer valuable benefits for first-time home buyers or repeat borrowers who need help affording a down payment. But assistance programs come with specific requirements, so they're not suited for everyone. You might be better off without the assistance if you plan to sell your home quickly or if you can qualify for a low interest rate on your own. Evaluate all your options by considering the eligibility requirements and the long-term impacts. Make sure to watch the video for a full explanation and determine if utilizing a Down Payment Assistance (DPA) program is the right fit for you.
I wanted to get this information together to help my clients purchase these Second Homes again; if you are not aware, these loans took a massive blow from FNMA in January 2022, when they released a recent fee change to these loans. Here is the announcement - https://singlefamily.fanniemae.com/media/30326/display Essentially they have significantly increased the costs associated with purchasing a second home with a conventional loan. But, I want to show you a way we could help reduce the impact of these changes in this market. Dedicated to your success, Wade Betz
Do you to be empowered by making cash offer to make your offer more attractive to the sellers? Do you want a guaranteed 10 DAY closing? Do you want to work with a lender who can craft a strategy to overcome most low appraisals with minimal impact to the monthly payment and cash due at closing of most client? If you answered yes to these questions, then you must watch this presentation on how to make a cash offer. Please refer to the PDF resources included in this presentation for additional information (i.e. Make an Unbeatable Cash Offer, Cash Complete Program FAQ's, Cash Compete Program Agreement Example, Real Producers Spotlight). Dedicated to your Success, Wade Betz
These higher interest rates will impact buyers' qualifications if you have not noticed. The higher rates are also beginning the "price drops " trend, which sellers use to help attract affordable housing for buyers. But, most sellers don't know or can show the actual numbers on how that impacts buyers. This inability to show the numbers and knowledge of how dropping the rates has a more significant impact on a buyer's payment than lowering a sales price could ever have. Price vs. Rate - Did you know, and I can show you through this side-by-side comparison, how a PRICE DROP of 50k has the same benefits as a much smaller SBD to a buyer's payment? So, if that is the case, then we can leave more money on the seller's net sheet vs. taking 50k off of it to address affordability issues with buyers. Seller Buy Down - I wanted to show you how an SBD works and how both the Buyer & Seller can benefit when the SBD + is structured within a purchase transaction. ( videos below ) Marketing Your Property - Now that you understand how powerful a tool it is to reduce rate vs. price with the Seller Buy Down, then let's market your property with a custom SBD Video from me so that we can spread and help affordability to all buyers.
What is debt service coverage ratio in real estate? Debt service coverage ratio – or DSCR – is a metric that measures the borrower’s ability to service or repay the annual debt service compared to the amount of net operating income (NOI) the property generates. DSCR indicates whether or not a property is generating enough income to pay the mortgage. Lenders use the debt service coverage ratio as one measurement to determine the maximum loan amount when a real estate investor is applying for a new loan or refinancing an existing mortgage. The larger the DSCR ratio is, the more net operating income there is available to service the debt. HOW REAL ESTATE INVESTORS USE DSCR Let’s assume an investor is thinking about purchasing a rental property with an asking price of $150,000. Prior to making an offer, the investor connected with a lender partner and learned that the lender will require a DSCR of 1.40. If the property is generating an NOI of $7,500, the investor can use the DSCR formula to calculate the amount of annual debt service the lender will allow, and the down payment needed to purchase the property. The first step is to rearrange the debt service coverage ratio formula to calculate the maximum allowable mortgage payment: DSCR = NOI / Debt Service Debt Service = NOI / DSCR $7,500 NOI / 1.40 DSCR = $5,357 Debt Service (principal and interest) After consulting with the lender, the investor learns a down payment of 30% will be needed to purchase the rental property at the asking price in order to meet the lender’s requirement for a DSCR of 1.40. An investor can utilize the DSCR formula when shopping around in some of the best markets for rental property. For example, assume an investor has set aside $25,000 in capital to be used as a down payment, and the lender requires a debt service coverage ratio of 1.35. The investor can now look for rental homes for sale across the country that meet the investor’s down payment allocation and the lender’s DSCR requirements. Please click here to get started or to grow your investment portfolio: https://conv-hybrid-9478.secure-clix.com/
Do you want to empower your clients by helping them make a cash offer to make their offer more attractive to the sellers? Do you want a guaranteed 10 DAY closing? Do you want to work with a lender who can craft a strategy to overcome most low appraisals with minimal impact to the monthly payment and cash due at closing of most client? If you answered yes to these questions, then you must watch this presentation on how to make a cash offer. Please refer to the PDF resources included in this presentation for additional information (i.e. Make an Unbeatable Cash Offer, Cash Complete Program FAQ's, Cash Compete Program Agreement Example, Real Producers Spotlight). Dedicated to your Success, Wade Betz p.s. Book a strategy call with me to discuss at http://www.RealtorStrategyCall.com
Hello, Have you ever had a VA appraisal come in above the sales price? Have you ever wondered if there was an easy way to turn this into an advantage for a buyer. Please watch this video presentation about how you can use this extra equity to put the buyer in a better position while not affecting the sellers net sale proceeds.
"10/10 service!!!! Wade and his team went above and beyond to make sure we closed on our home. With a few hiccups and hurdles in the last hour they did navigate each step efficiently. I would definitely recommend them to assist with anyone looking to obtain a loan. Thank you 👍🏼"
camellia valenciano
"Wonderful"
cynthia green
"In 2015 Wade and his team helped us get into our first home, fast forward 8 years things have changed and due to a divorce hard decisions had to be made concerning the ownership of the house. From the beginning, even though we’ve never met in person Wade and team has given me solid advice over the phone, through annual check in’s and monthly words of inspiration through emails. But the one thing that has stuck with me and I have begun using it in everyday life is when he recently told me. “I am going to tell you what you NEED to hear, not what you WANT to hear.” Going through a divorce isn’t easy but sometimes you need someone like Wade to guide you and even though this time he was not our broker he will always be there to tell me what I need when it comes to his expertise. This make’s me feel like I am a forever client of his and you can’t go wrong with Wade Betz and team. I move into my new house today and with his words of wisdom I feel like I’m “Winning!” Thank you, Wade and team."
adriana hernandez