When Big Banks Can’t Compete—Or Just Don’t Want To

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The housing market in 2023 has been a challenge for buyers, banks and brokers. According to a recent Yahoo Finance article, housing prices have reached unprecedented levels, while a report from The Hill highlights a concerning trend: big banks are increasingly bailing on small mortgages, driving potential homebuyers to alternative—and often riskier—financing options. In this complex and sometimes daunting market, the role of an independent mortgage broker has never been more critical. Here’s why.

More Options, More Opportunities

Unlike banks or other direct lenders, independent mortgage brokers have access to a wide range of loan products and lenders, including non-traditional financing options that big banks don’t typically offer. This broad scope is invaluable at a time when banks are backing away from smaller mortgages, as The Hill reports. When traditional financing avenues are closing their doors, a broker can keep them open, helping buyers explore an extensive pool of potential mortgage solutions.

Navigating Market Complexity

The housing market in 2023 is not just about high prices; it’s also about rapidly changing conditions, complex rules, and often opaque lending practices. An independent mortgage broker can act as a guide through this maze. They are familiar with the ins and outs of the market and can provide clarity and advice based on years of experience and specialized knowledge. In other words, a broker can help homebuyers understand the terrain and make informed decisions.

Tailored Mortgage Solutions

In a housing market marked by high prices and challenging financing conditions, there’s no one-size-fits-all mortgage solution. Here’s where an independent broker shines. They can take the time to understand a buyer’s unique financial situation and goals, and then tailor a mortgage solution to match. Whether it’s securing a competitive interest rate, finding a lender comfortable with a smaller mortgage, or navigating the nuances of alternative financing options, a broker can provide a personalized solution that a big bank might not offer.

Competitive Advantage

Your mortgage broker’s relationships with various lenders can lead to faster turnaround times, providing a significant advantage in the race to secure a home. They provide more options, guide buyers through market complexities, offer tailored solutions, and provide a distinct competitive advantage.

As the housing market continues to shift and evolve, independent mortgage brokers may not just be a good option—they might be your best one.

Let’s Talk

I am dedicated to finding you a mortgage that fits your budget and works for your unique situation. Call me at 617-965-1236 to get started.

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Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

It’s Almost August!

We hope you’ve been enjoying your summer. As we head into the eighth month of 2023, here is some trivia you might not know about August:

  1. The month of August was named in honor of Augustus Caesar, the first emperor of Rome. It was originally named Sextilis because it was the sixth month in the original ten-month Roman calendar.
  2. The month of August used to be 30 days long. However, it was said that Augustus Caesar added an extra day to the month to match the length of July, which was named after Julius Caesar. So competitive!
  3. The birthstones for August are the peridot and the sardonyx. The peridot symbolizes strength and the sardonyx represents courage and happiness. The flowers for August are the gladiolus and the poppy.

World Records: On August 12, 2012, Usain Bolt set the record for the fastest 100-meter dash at 9.63 seconds in the London Olympics.

Space Exploration: The Mars Rover Curiosity landed on Mars on August 6, 2012, starting a mission that has lasted for many years and has greatly increased our knowledge of the Red Planet.

Home Improver: Do You Really Need Gutters?

Gutters serve several important purposes in a home, and while they might not be absolutely necessary in every situation, they are generally recommended for most homes. Here are a few reasons why:

  • Close up of gutters along a residential rooflinePreventing Water Damage: Gutters direct rainwater away from your home’s foundation, siding, and landscaping, preventing erosion and water damage. Without gutters, water can pool around your home and potentially leak into your basement or crawl space, causing significant damage over time.
  • Protecting the Roof: By directing rainwater off the roof and away from the house, gutters help prevent potential damage to the roof itself. If water accumulates on the roof, it can lead to leaks or even structural damage.
  • Preventing Soil Erosion: Without gutters, the impact of rainwater falling directly from the roof can erode the soil around your house. This can lead to landscape damage and may potentially disrupt your home’s foundation.
  • Protecting the Siding: When rainwater drips down the side of a house, it can cause damage to the siding, paint, or any other exterior surface. Gutters prevent this by channeling the water safely away.
  • Preventing Mold: Water infiltration into your home can lead to mold growth, which is a significant health concern. By keeping water away from your home’s foundation and preventing leaks, gutters can help minimize the risk of mold.

However, there are some exceptions. In arid climates where rainfall is minimal, gutters may not be as necessary. That is not the case in New England, so installing a gutter system is probably necessary. Here’s the exception: certain architectural styles or building codes may not require gutters.

If you’re unsure whether your home needs gutters, it would be best to consult with a local home improvement professional or building inspector who can assess your specific situation.

Animal Spirits and Buying Decisions

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As a mortgage broker working with people of diverse backgrounds, I understand the importance of cultural influences that are often factored into making financial decisions, such as buying or refinancing a home.

The book Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism sheds light on the role of psychology in economics and how it can affect the housing market. Initially, I thought this was related to the Chinese Zodiac animals, but in fact, the “animal spirits” concept was developed by legendary British economist and philosopher John Maynard Keynes (1883-1946). He used these to describe the psychological forces that tell us why the economy does not behave in the manner predicted by classical economics — “a system of thought that expects economic actors to behave as unemotional beings.” As we all know when it comes to real estate, it’s impossible to be 100% objective when making the largest purchasing decision of your life.

The five animal spirits identified in the book are confidence, fairness, corruption and bad faith, money illusion, and stories.

Confidence is essential in the housing market, as it promotes growth and stability.

Fairness is another animal spirit that can impact the housing market. Buyers and sellers want to feel that they are being treated fairly, which means being transparent about fees, rates, and other costs associated with the mortgage process.

Corruption and bad faith can erode confidence in the housing market. In the mortgage business, it is crucial to act with integrity and provide clients with honest and accurate information to avoid any doubt about the market’s fairness.

Money illusion is the belief that the nominal value of money is more important than its real value. This is why I inform my clients on the total cost of the mortgage, including interest and fees, to help them avoid falling prey to money illusion.

Stories are narratives that people use to make sense of the world around them. In the housing market, stories can shape buyers’ perceptions of the market and influence their decision-making. I love helping clients separate fact from fiction and provide them with accurate information about the state of the housing market and how I can help them make the best financial decisions.

OK, that’s very cool, but you wanted something related to Chinese Zodiac animals, didn’t you? Well, 2023 is the year of the rabbit. According to this article:

“In terms of property, the Year of the Rabbit is expected to bring favorable conditions for buying or selling real estate. This can be a good time to invest in property, whether it’s a new home or a rental property, as the market is likely to be stable and prices may be more favorable. It’s also a good time to renovate or improve existing property, as this can lead to an increase in value.”

In addition to these animal spirits, cultural influences such as Feng Shui can also impact buying or refinancing a home. In Chinese culture, certain numbers are considered lucky or unlucky, and a buyer may be hesitant to purchase a home with an unlucky address number, even if it is otherwise perfect for their needs. Similarly, Feng Shui principles may influence a buyer’s decision to purchase a home based on its location and orientation to the sun.

It is important for me to be aware of cultural influences that may impact a buyer’s decision and be respectful of their beliefs and customs. By considering both the animal spirits and cultural influences, I help clients make informed decisions that support their financial goals.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Woman’s History Month

We’re almost in March and hopefully moving closer to spring (the sooner the better)!

Here are some things about March you might not know:

  1. March is National Nutrition Month in the United States, which focuses on educating people about healthy eating habits.
  2. March is also National Women’s History Month. International Women’s Day is celebrated on March 8th.
  3. Notable people born in March include Dr. Seuss (March 2); Michelangelo (March 6); Albert Einstein (March 14); and Bruce Willis (March 19).
  4. In real estate, March is often considered the beginning of the spring buying season in many parts of the world, including the United States.
  5. March 20th is the vernal equinox, also known as the first day of spring in the Northern Hemisphere.

Home Improver: Getting Rid of Burnt Popcorn Smell

Picture it: You’re getting ready to watch the latest episode of The Last of Us and you’re making some microwave popcorn just as the show is starting. You forget to stop the timer and now your smoke alarm is screaming and your entire house reeks of lingering burnt popcorn smell. How do you get rid of it?

First, get the smell out of the microwave itself: Fill a bowl with 1/2 cup water and 1 tablespoon white vinegar.

Microwave it for 4-5 minutes and leave it with the door shut for 10-15 minutes. The steam will loosen anything stuck to the walls. Vinegar absorbs odors, even stubborn ones like burnt popcorn smell. After the waiting period, remove the bowl and wipe the inside of the microwave down with a paper towel. Repeat if necessary.

Next: Go citrus to neutralize odors. Put lemon slices or oranges and your favorite fragrant spices in a pot of 1 1/2 cups of water.

Bring the water to boil with several chopped lemons or orange peels. Let it steep for approximately half an hour to saturate the surrounding air and remove the foul odors.

Is Your Mortgage a Mole or Melanoma?

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Millennials (and now GenZ) homebuyers often make decisions about their finances through online research, even when it comes to buying a home. But relying solely on online research to educate yourself about mortgages can be risky. It’s like using WebMD to diagnose yourself without seeing your doctor.

Online research can be overwhelming and often confusing. There is a lot of conflicting information available, and it can be difficult to separate the credible sources from the unreliable ones. You may think you’re qualified by your own research and calculations, but you still may have your application rejected due to some detail you overlooked. Also, it’s very easy to overestimate your income and not properly factor in your debt-to-income ratio, even when using a mortgage calculator. So many things can go wrong in this process, especially if you’ve never been through it before. Think about it: this is going to be the biggest purchase you’ve ever made in your life, along with the longest financial commitment. Does that sound like something you can easily accomplish on your phone?

Here are a few more things to keep in mind:

Online calculators and mortgage rate comparisons can only provide an estimate and do not take into account the unique financial situation of each individual. This can lead to a situation where you might think you have found the perfect mortgage option, only to find out later that it’s not the best fit for you. Sometimes it can be so stressful and overwhelming — especially for first-time homebuyers — that they just go with whatever their bank has to offer. Don’t fall into that trap!

Additionally, online research cannot replace the expertise and experience of a mortgage professional —someone with the knowledge and experience to guide you through the process and can answer specific questions, advise on the best options, and help you find the best mortgage rates.

Going back to our WebMD analogy, a rash on the skin might not be the deadly illness you thought it was, but your doctor will be able to tell the difference between a simple rash and a serious disease (you know we always assume the worst with WebMD). Similarly, a mortgage professional will be able to tell the difference between a good deal and a mistake. I help clients avoid the pitfalls of predatory lending and steer you clear of options that might seem too good to be true.

Some big banks may push you towards products and options that are more profitable for them, rather than what’s best for you. As an independent mortgage broker I always put your needs and interests first. I am never beholden to any one lender and can provide you with a range of options that are in line with your specific needs.

Don’t take the risk of self-diagnosing your mortgage needs. It’ll make you sick. Let’s set up a meeting to get you the mortgage that works best for you.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

February Facts

February is a month known for its icy weather, Valentine’s Day and Presidents Day. But did you know these fantastic February facts?

  1. The name “February” comes from the Latin word “februarius” which means “to purify.”
  2. February is the only month in the year that can pass without a full moon.
  3. The birthstone for February is amethyst, a violet variety of quartz often used in jewelry.
  4. February is Black History Month, celebrating the contributions of Black Americans to our nation’s history.
  5. February is also National Heart Month, a time to raise awareness about heart disease and promote healthy habits.
  6. The first Groundhog Day was celebrated on February 2nd, 1887 in Punxsutawney, Pennsylvania.
  7. The first National Flag Day was celebrated on February 15th, 1894.
  8. Super Bowl LVII takes place on Sunday, February 12 this year at State Farm Stadium, home of the Arizona Cardinals.

Home Improver: Benefits of a Heated Driveway

Heated driveways may seem like a luxury item, but more and more families have these helpful snow and ice melters installed as a safety measure — not just for slip-and-falls but for the stress on the cardio-vascular system from shoveling heavy snow. Here are more benefits of this time-saving system.

  1. Convenience: during colder months: No more shoveling or snow blowing to clear a path to your garage or front door. The heat from the driveway melts snow and ice as soon as it falls, keeping your driveway clear and safe to walk on.
  2. Increased property value: A heated driveway is a luxury feature that can set your home apart from others on the market, making it more attractive to potential buyers. It also increases the overall curb appeal of your home.
  3. Energy efficiency: Electric heated driveways are typically more energy-efficient than gas-powered systems and can be controlled by a thermostat, allowing you to set the temperature to your desired level.
  4. Low maintenance: The heating elements are buried beneath the surface and do not require any regular maintenance. Additionally, the heating elements are protected from the elements and are not affected by snow and ice, ensuring a long lifespan.
  5. Environmentally friendly: By reducing the need for snow removal, a heated driveway can help to reduce the amount of pollutants and emissions caused by gas-powered snow removal equipment.

Learn more about heated driveways here.

The ’80s Are Back — But Comparatively, Mortgage Rates Are Still Totally Rad!

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Have you noticed the fashion trends of the 1980s are finding their way back to department store racks and online shopping sites? ’80s fashion has seen a recent resurgence, perhaps due to current pop culture hits like Stranger Things and retro fashion videos on TikTok.

You may be hoping that mortgage rates won’t see the absurd highs of the ’80s. Although the average for that decade was 12.7%, rates in the ’80s topped out at 18.45%. Yikes!

One thing to note is that although the 18% rate is unthinkable now, home prices were considerably lower back then. With today’s rates higher than recent years, we’re also seeing lower asking prices by sellers. Gone are the insane bidding wars that raised prices by tens of thousands during the pandemic. The market tends to self-correct whenever possible.

The other concern is for sellers and real estate agents to be realistic about their pricing. We recently saw a home sale where they needed to adjust down considerably either due to poor market research or homeowners trying to bring in maximum dollars. Case in point, a home that recently sold:

  • Oct 1: listed at $1.2 Million
  • October 20: dropped to $999K
  • November 1: dropped again to $950K
  • November 15: accepted offer of $850K

Real estate agents have a responsibility to educate their buyers and sellers on how to set proper pricing. Most are educated and aware of up-to-the-minute changes. The example above shows a home that was not correctly priced and it may have cost the seller several thousand dollars because of it.

Remember to choose wisely when selecting your real estate agent. If you need a recommendation, just ask!

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Top Selling Songs and Top Grossing Movies of the 1980s By Year

1980
Song: Call Me by Blondie
Movie: Star Wars: The Empire Strikes Back

1981
Song: Bette Davis Eyes by Kim Carnes
Movie: Raiders of the Lost Ark

1982
Song: Physical by Olivia Newton-John
Movie: E.T.

1983
Song: Every Breath You Take by the Police
Movie: Star Wars: Return of the Jedi

1984
Song: When Doves Cry by Prince
Movie: Indiana Jones & the Temple of Doom

1985
Song: Careless Whisper by Wham! featuring George Michael
Movie: Back to the Future

1986
Song: That’s What Friends Are For by Dionne & Friends
Movie: Top Gun

1987
Song: Walk Like an Egyptian by The Bangles
Movie: Fatal Attraction

1988
Song: Faith by George Michael
Movie: Rain Man

1989
Song: Look Away by Chicago
Movie: Indiana Jones & the Last Crusade

BONUS!
Top Album: Thriller by Michael Jackson
Bestselling novel: Clear and Present Danger by Tom Clancy
Top TV Show: Dallas

Home Improver: ’80s Decor Is Trending

Floral wallpaper, pastel sofas, lucite chairs and more are back in style as 1980s home decor trends have returned. Call it Miami Vice Revisited or Golden Girls Chic, these ’80s decor trends are making a big comeback to homes across the US.

  1. Return of Pastels. We’re seeing more of this trend on sofas than anywhere else in the home. Light blue or green sofas with pink or blue solid, patterned or striped accent pillows.
  2. Chintz and Floral Patterns. French-inspired decor and aesthetics are trending on social media. Chintz is a delicate, floral-printed cotton that is primarily used for curtains and upholstery. Wallpaper with big earthy, leafy prints is also on the rise.
  3. Brass is Back. Some would argue that brass never went out of style, but most bathrooms since the ’90s have favored brushed chrome or darker colors.
  4. Lucite Accents. Remember lucite? it’s a thick, clear plastic used in furniture and accessories. It adds a clean, modern look to rooms and is commonly found on barstool seats, lamps, and shelving units.
  5. Wicker Lives! Most of us got rid of all traces of wicker by the ’90s. But wicker is the oldest furniture making method in history, so you had to expect it to make a comeback.

4 Big Myths About Reverse Mortgages

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If you’re one of many people who are skeptical of reverse mortgages, you’re not alone. Even though the first reverse mortgages were approved in 1961, they didn’t gain popularity until the late 1980s. Rumors abounded about how this was a risky financial decision, but we know now that a reverse mortgage can be a helpful solution for the right homeowner.

Let’s debunk the top 4 myths about reverse mortgages.

Myth No. 1: As soon as I sign the papers, the bank owns my home. The deed remains with you. The home is still yours, as long as you continue to pay your property taxes and homeowner’s insurance.

Myth No. 2: If you die, your family has no rights to the home. Your heirs have the option to make arrangements to repay the loan and buy the home if they wish to keep it in the family.

Myth No. 3: I can’t sell my home. You are allowed to change your mind and sell your home whenever you want if you would like to relocate.

Myth No. 4: I won’t qualify because I still have an existing mortgage on the house. If you have built up equity in your home, you may still qualify. The proceeds of the reverse mortgage must first be used to pay off the remaining balance. One very common reason to get a reverse mortgage is to pay off an existing mortgage without dealing with monthly mortgage payments.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Fall Is Here!

Leaves are falling and sweater weather is finally here!

Here are some fall facts to get you in the mood for our coziest season.

  1. What’s It Called?
    We Americans typically refer to this time of year as “fall,” while the British use the word “autumn.” Both terms date back to the 16th century but before that it was called “harvest” because of the harvest moon.
  2. Changing Colors, Sort Of.
    The yellow and orange colors you see already exist in leaves but are overwhelmed by the abundance of green from chlorophyll. Chlorophyll starts to decrease as the sun weakens when the days grow shorter.
  3. Pumpkin Spice Tastes Nothing Like Pumpkin.
    There isn’t even any real pumpkin in it. It’s really a mix of cinnamon, cloves, ginger, and nutmeg. Think of it more as a fall vibe than a pumpkin flavor.

Home Improver: Keeping Your Pets a Secret to Guests

There’s nothing worse than entering someone’s home and knowing exactly which pets they own before you even see them. Pet odor is not the first thing you want your guests to notice the second they walk through the door.

So what can you do to control pet odors so your guests are actually surprised when your pet pops in to say hello?

  • Sweep & Vacuum Hair and Dander. This may seem obvious and it may be something you do often, but to truly control odor, you have to find all the hiding spots for pet hair. This includes under couch cushions, below and inside drapery, under blankets and beds.
  • Use Baking Soda. Nothing neutralizes pet odor like baking soda. Use it in your carpet, on area rugs, and in your dog and cat beds. Let it sit for a few minutes before vacuuming.
  • Buy Nature’s Miracle. Have a puppy, kitten, or elderly pet. Accidents happen. Nature’s Miracle has a full line of pet products that remove, neutralize, and clean up messes and odors. No, they didn’t pay us to promote them, but we have the experience of using them and they are really effective.

Second Mortgage vs. HELOC: What’s the Difference?

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When choosing the loan that’s right for you, it’s important to understand the differences between a second mortgage and a home equity line of credit (HELOC).

But before we jump into differences, let’s look at what each option has in common:

HELOCs are often thought of as a type of second mortgage because both borrow from the equity you’ve built in your home. Both loans come from the bank that provides your original mortgage and both use your existing home as collateral.

OK, now for the differences:

The most obvious “pro” in favor of a second mortgage is a fixed rate that is locked in for the life of the loan. With this comes the peace of mind knowing years in advance how much you’ll be paying monthly. Conversely, HELOCs come with variable rates which can prove costly, even if you are approved for the HELOC at a low rate. Your rate may increase because of decisions made by the Federal Reserve. It could go down as well, though this has not been the case this past year — along with the fact that rates are still historically low.

So why would I want a home equity line of credit? The main benefit is that you can use the funds as you need them. A second mortgage loan is paid to you in a lump sum at the start of the loan. A HELOC can make money available to you only when you need it. If you need less than you thought, your monthly payment will be smaller.

Just be careful: you could easily make impulse-buy decisions over the years on home improvement projects that, little-by-little, could max out the full amount of the line of credit.

Typically, a second mortgage is used to purchase a second home or to make large-scale home improvements on the original home. In addition, second mortgages can help the homeowner with debt consolidation from high interest auto loans, credit cards, life events and medical bills.

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If you’d like to chat about mortgage options, please call me at 617-965-1236. If you’re planning to buy this year, let’s talk soon. I look forward to speaking with you.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

National Peach Month

We know Justin Bieber gets his peaches out in Georgia, but did you know that August is National Peach Month?

In 1982, Ronald Reagan choose the peach to represent adding more nutritious fruits into the American diet. Because peaches are a summer fruit, he chose August as the month to celebrate them.

So what are the nutritional benefits of peaches?

  1. They’re packed with nutrients and antioxidants.
  2. They help contribute to healthy digestion.
  3. They contain compounds that help lower cholesterol and blood pressure.
  4. Peach skin and flesh are rich in carotenoids and caffeic acid — two types of antioxidants with anti-cancer properties.
  5. They may reduce allergy symptoms. In addition to eating peaches, Test-tube studies report that peach extracts may be effective as well and limit the inflammation commonly seen in allergic reactions.

Home Improver: Do Air Purifiers Really Work?

Let’s face it: there’s a lot of dust, odors, and toxins that we breathe in throughout the various rooms in our homes. What’s the easiest way to minimize the negative effects in the air we breathe? Get an air purifier.

These room refreshers have come a long way in recent years and they are reasonably priced for what they do. When used properly they can reduce household odors as well as common allergens that make you sick.

If you suffer from allergies, an air purifier can help mitigate symptoms, but don’t expect 100% relief. For those concerned about Covid-19, the CDC says: “Ventilation systems can be supplemented with portable high efficiency particulate air (HEPA) cleaners to reduce the number of infectious particles in the air and provide enhanced protection from transmission between persons.”

One of the most popular and highly rated air purifiers is this one from Conway, (shown above) for just $200. One thing to remember before you buy: Will the air purifier you choose cover the size of your large room?

Proper Use of Interrobangs and Mortgage Brokers

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Have you ever written a question in a text or email with such excitement you weren’t sure if you should punctuate it with a question mark or an exclamation point?

For example: Did you see the World Series last night?!
or
Did you hear who’s running for governor?!
or
Can you believe he baked that cake by himself?!

The combined use of question mark and exclamation point is seen frequently. But did you know that in 1962, American ad man, Martin Spekter, created a hybrid of those two marks and called it the interrobang? It looks like this:

Wouldn’t it be useful to have this punctuation mark at your disposal? And now that you know how to properly use it, your life just got a little easier, didn’t it?

Mortgage brokers are a lot like interrobangs. Most people don’t always see the benefit and some have no idea of how they work. Also, mortgage brokers work in two capacities. First, we act like a financial coach, understanding the macro view of your finances. Next we act like detectives, drilling down to a micro view that finds you a mortgage that makes the most sense, saves you money or creates a better cash flow.

The dedication of a highly qualified mortgage professional can be the difference between buying a home you can afford and taking on too much debt. Using a mortgage broker for the first time will open your eyes to all the options, suggestions, and caveats that come with the largest asset you may ever own. Can you imagine how much money and stress you’d save?!

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Happy Halloween, friends!

It may be snowing, and we may have had the strangest year ever, but before the major holidays we pay tribute all things spooky.

Here are some Halloween trivia tidbits to talk about while you’re eating candy corn and sitting six feet apart.

  1. Not only is Halloween happening on a Saturday, but it’s also a full moon.
  2. In fact, it’s a blue moon, which means it’s the second full moon of the month, which only occurs once every 2.7 years (aka “once in a blue moon”).
  3. Which country had the first Halloween? Ireland.
  4. The word “bonfire” combines which two words? “Bone” and “Fire.” Spoooooky!
  5. Before pumpkins became the standard, the original jack-o-lanterns were made from which vegetable? Turnips.
  6. From which region of the world did pumpkins originate? Central America.

Halloween Home Improver: White Vinegar: Let’s Make Some Slime for Halloween!

Oh, boy. You did it again, didn’t you? You planned the perfect kids’ Halloween party and you forgot to buy the slime. And now it’s too late to hit up Party City because they’ve sold all their slime for the season.

No worries, we’ve got your back with a homemade slime recipe that’s easy and fun. Perfect ghoulish fun for the kiddos.
You’ll need:

  • 1 6-oz bottle of white liquid all-purpose glue
  • 1/2 teaspoon baking soda
  • 1½ tablespoon buffered or multipurpose contact lens solution
  • A few drops of liquid food coloring to give your slime color
  • 2 tbsp up to 1/2 cup warm water to make your slime stretchier and oozier.

Pour the glue into a bowl. In a separate small bowl or measuring cup, add the baking soda, contact lens solution and food coloring, if you are using it. Combine the baking soda solution with the glue and mix with a spoon or with your hands. The slime will feel sticky at first, but will get less so with additional kneading. Adjust the texture to your preference by adding a pinch more baking soda for firmer slime and a bit more water for oozier slime – we suggest oozier slime. It’s Halloween after all! (Recipe Source: Arm & Hammer)

 

Is Zillow the Uber of Real Estate?

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There’s no question that Zillow.com has evolved from a real estate curiosity to a major player in the industry. While some may think of it as a starting point for future homebuyers or simply an entertaining way for house-hunters to kill some time online, Zillow is emerging as a force that could disrupt the entire real estate process. In fact, it already has.

If you’re wondering if Zillow will eventually displace real estate agents, I suppose it’s possible, though highly unlikely — and it would be years away if Zillow were to consider such a pivot.

The more likely lasting scenario is their current model, which uses real estate agents the way Uber uses vetted drivers to close business for them.

Here’s how it works: Zillow sells leads to agents backed by large real estate brokers like Keller Williams, Re/Max and Coldwell Banker. Users sign up and explore locales where they want to buy. Zillow provides their “Zestimate,” which is sometimes less of an estimate and more of a guesstimate. Eventually, Zillow will suggest one of their recommended agents to work with the homebuyer, gather as much accurate data as they can and seal the deal. So the agent gets paid, but so does the broker and now Zillow gets their cut.

Now, whether these agents are any good at selling is no guarantee. The agents Zillow recommends are the ones paying thousands of dollars a year for leads. They are not necessarily the cream of the crop, though some are. Bottom line: it’s a crapshoot.

And that’s the risk you take when starting with software rather than a human. Real estate is almost always an emotional purchase and you need a sentient human to make it all work. Zillow knows that and that’s why they invest in human capital to power their sales engine. At least for now.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

Credit Card Debt is Up Again. Now What?

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When the bottom dropped out of the market in 2009, people became more careful about spending and accumulating debt. But once the economy started improving, consumers felt more comfortable about spending. Now, eight years later, we are seeing a return to our less careful days of money management. In fact, we’re setting new records of debt.

In June, Americans officially logged their highest collective debt in history. Of the $1.021 trillion in outstanding revolving credit, $1 trillion of it is credit card debt. This tops the previous record of $1.020 trillion, back in the carefree spending days of April, 2008.

Yikes! What does it all mean in the world of mortgages?

For one thing, it could effect your ability to secure your mortgage. According to a recent report, credit card delinquency is up to 4.4% and may be trending toward the 8% or more reached during the recession.

This is a wake-up call to consumers and specifically homebuyers. With more access to credit cards, people are spending money they don’t have and paying a major price for it, both literally and figuratively.

When I work with homebuyers, I look for three things: Credit, Cash and Capacity. Let’s start with credit. Lower credit scores, combined with the loan-to-value ratio, can affect the interest rate that you’d be eligible for. If your credit is not stellar, buying a home is not impossible, and this is where working with me can make a big difference in your homebuying experience.

When it comes to cash, I encourage buyers to make sure they have a cushion beyond the purchase to replace and/or upgrade parts of their home, whether it’s the air conditioning, a new bathroom or an unexpected but necessary home improvement project.

Finally, and perhaps most important, is capacity. Have you developed a saving discipline over time that prepares you to take on your largest debt? For new homebuyers, I look at their bill-paying history from the bottom up. Starting with small monthly debts like rent and utilities; followed by credit cards and auto loans. If you’re having trouble making these monthly payments, I may advise you that now may not be the best time to buy. I feel it’s my responsibility to guide you in the right direction. If I see potential problems with making your monthly mortgage payment, I’ll let you know.

So what can you do if you’re concerned about taking on the debt of a mortgage? Pre-planning is the key. People don’t always jump right into parenthood. They start to learn to nurture at a young age. First a goldfish, then a cat, then a dog, then a baby. The same is true with homebuying. Take the time to pay down your debt and bring up your credit score. Make all your payments early or on time every month. These actions will put you in a more responsibly deserving place to take on debt you can comfortably control and pay off in a timely manner.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.

When is an ARM Better Than a Fixed?

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The world of mortgages has a short menu. Will it be an Adjustable Rate Mortgage (ARM) or a Fixed Rate Mortgage? You’ll often hear people say that a fixed-rate mortgage is always the best move
— that’s not necessarily the truth. Homebuyers sometimes have unique circumstances that allow them to take advantage of the initial lower rate of an ARM.

First, let’s distinguish between the two. The interest rate of a fixed-rate mortgage never changes. An adjustable-rate mortgage, on the other hand, resets its interest rate at pre-specified times. For example, a “7/1 ARM” indicates the interest rate is locked in for the first seven years and adjusts annually after year seven. Because rates have been lower in recent times, homeowners generally opt for a 30-year fixed-rate mortgage to lock in that low rate for the life of the loan.

So when might it make more sense to go with an ARM? Here are a few scenarios:
Changing Cities, Changing Jobs. If you think you’ll be moving within a short time frame but prefer not to rent, an ARM is option that could work very well. For example, a student who’s doing a medical residency may wind up practicing in another state after she graduates. Because she’s uncertain where she’ll land after graduation, an ARM may be the better choice for a few years.
Investment Property. If you’re buying an investment property but only plan to hold onto it for a limited period, why not take the lower rate?
Salary Bump. If your budget is stretched now, but you’re confident your salary will increase in the next 5-7 years, you could start with an ARM and then refinance your mortgage before the rate goes up.
First-time Homebuyers. In cases where financing a 30-year fixed is not a viable option, first-time homebuyers may choose an ARM and either sell or refinance later.
While ARMs usually have caps in place for rate increases, there are usually no caps or limits to how much the first adjustment after the reset point will be. If you wind up staying beyond the first interval of your ARM, you could face a larger rate increase than you can afford. This is why we only recommend ARMs for the short term, even though it’s entirely possible the rate could adjust down.

Ready to buy a new home or refinance the one you own? Please get in touch and I’ll be happy to answer your questions and help guide you through the process. I look forward to speaking with you.