The following three trends are taking place in the real estate market now. Understanding how they play into home decisions can help you:
Make educated choices about priority features in a new home
Determine how to list/market your current home for sale
Select upgrades and remodeling projects that may mean a greater return on investment down the line
There is a huge trend in extended families phenomena
Larger Extended Families = A Greater Need for Space
Families are growing. From multi-generational households to pets, the need for living space has increased in the last decade.
According to Generations United, one in four Americans, or 26% of the population, live in a multi-generational household. This number has grown dramatically over the last decade – almost quadrupling between the organization's 2011 and 2021 surveys. A multi-generational household, by definition, includes at least three generations. This could be a combination of grandparents, aunts and uncles, parents, children, etc. With a variety of individuals living under one roof, space is at a premium.
The number one reason sellers sold during the pandemic was to gain additional space, according to the National Association of Realtors. The pandemic served as one impetus for individuals to move into multi-generational households. By moving in together, families could take care of aging loved ones, pool their money and save on costs, and provide grown children who moved back home with more space.
If your rates are below the current market rate and you thought you couldn’t refinance – think again. There are several reasons to refinance. In some cases, even if you get rates higher than your current rates you could still end up saving a ton of cash.
Move to a Shorter Term: Why moving from a 30 Year Fixed to a 15 Year Fixed could be one of the best financial decision. if you have a rate that is below the current market rates, say 3.75% – moving to a 15 Year Fixed can save you hundreds of thousands of dollars.
Of course the larger the loan amount, the more the savings. But even on a relatively smaller loan amount, you can save a bunch load of money by moving into a 15 Year Fixed from a 30 Year Fixed. Alternatively, you can move to a 20 Year Fixed or a 25 Year Fixed mortgage.
Two caveats being – You should qualify and you should be comfortable with a higher payment.
When seeking a loan, one of the most important factors taken into consideration is your credit score. Many things can affect your credit score, including your credit history, the amount you owe, and your mix of credit.
Credit inquiries are a point of confusion for many borrowers. There are both hard and soft credit inquiries. Credit inquiries have the potential to affect credit score, so it is wise for borrowers to understand the differences between the two types of inquiries. Credit scores are a key part in how lenders determine credit worthiness and the cost of a loan for the borrower.
If you’ve ever questioned opening a new credit card account because of the inquiry to your credit, or wondered how your credit score would affect your home mortgage loan.
One of the oldest and most commonly-used credit score brands is FICO. According to FICO “A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay the loan, and how much it will cost (the interest rate).
What does this mean for you? In essence, your chance of getting a loan that fits your needs is reliant on your credit score – a higher score shows that you handle credit well, which can improve the terms of your loan. Scores typically range between 300 and 850.