Rent Prices Outrun Mortgage Payments Across the Nation
The debate between renting and owning remains as strong as ever. While home affordability remains a challenge, recent data reveals that potential rate cuts could make homeownership more affordable than renting. Thanks to lower mortgage rates and price reductions by sellers, monthly mortgage payments have significantly dropped. In fact, in 22 of the 50 largest U.S. metro areas, it’s now cheaper to own a home than rent. Nationally, mortgage payments are about $236 less than rent each month!
However, both homeownership and renting come with additional costs. Renters may face rising rent, while homeowners must budget for taxes, insurance, and maintenance. To make the most of this market, start by knowing your budget, checking your credit score, and discussing your options with a trusted mortgage advisor—like me! By doing so, navigating the homebuying process and making informed decisions about the future becomes easier.1
Do Solar Panels Increase Property Values?
Looking for a useful way to lower your utility bills and reduce your carbon footprint? Consider installing solar panels, a trending solution for increasing energy savings and enhancing your home’s market value! According to the National Renewable Energy Laboratory, for every $1 saved on energy bills, your home’s value increases by $20. This means that if you save $700 annually, your property’s value could rise by $14,000!
With the growing demand for energy-efficient homes, solar-powered properties are more popular than ever. To maximize value when selling, it’s best to own the solar system outright or through a loan to benefit from incentives. If you choose to lease, you’ll need to buy out or transfer the lease to the new owner. Regardless, investing in solar panels is a smart, sustainable choice that pays off in more ways than one! Consult with me about taking out a loan for solar to make the most of this opportunity with your home.2
How the Fed Rate Cut Could Help You Manage Debt
Many of us could all benefit from finding ways to lower our monthly expenses. With the latest mortgage rate activity, it’s a perfect time to explore options like debt consolidation or home equity lines, both with potentially lower rates than credit cards:
- Debt Consolidation: Since debt consolidation typically comes in the form of a loan with a lower interest rate, you’ll avoid future interest charges that can keep increasing your balances, making it harder to pay them off.
- Equity-Based Borrowing: If you’re a homeowner, you may want to consider applying for a home equity loan or line of credit (HELOC). With a HELOC, you can borrow as needed and only pay interest on the amount you use, providing flexibility and potential savings compared to higher-interest options.
- Refinancing: Refinancing can provide homeowners with financial relief and increased cash flow by allowing them to tap into home equity to pay off higher-interest debts and make debt management more manageable.
Reach out if you’d like to learn more about any of these options!3
Did You Know?
If you are considering buying a home with a Homeowners Association (HOA), you’ll want to learn as much about it as possible, such as whether HOA membership is mandatory, possible included amenities, monthly fees, and more. In addition to reviewing current rules and regulations, you’ll also want to find out its financial standing. Reviewing notes from recent HOA meetings is also helpful.4
Mortgage-Rate Locks for Vacation Homes Hit New Low
Have you ever thought about entering the market for non-owner and second homes? In August, mortgage-rate locks for these homes dropped by 13%, hitting the lowest level since March 2016. While this might sound like a slowdown, it reflects a market adapting to new buyer behaviors. With a significant 59.2% decrease from pre-pandemic levels, many savvy buyers are opting to pay cash, bypassing the mortgage process to avoid current interest rates.
But that doesn’t mean you need to do the same! In fact, this evolving market brings exciting opportunities for homeowners, including using home equity to purchase a second home. If you’d like, we can discuss how to navigate the vacation home market confidently.5
How Much Can You Save? The Cost of Refinancing a Mortgage
Did you know there are different ways to leverage a mortgage through refinancing? There are two main types of refinancing: a rate-and-term refinance, which helps you get a better interest rate and lower payments, and a cash-out refinance, allowing you to tap into your home’s equity. Now that mortgage rates have dropped, refinancing could save you thousands over the life of your loan.
Although refinancing is generally cheaper than a traditional purchase loan, it still incurs closing fees. However, the long-term financial advantages often outweigh these costs. Fortunately, I specialize in refinances and can break down the overall costs for your unique situation. Whether your goal is to lower your interest rate, adjust your loan terms, or access cash, refinancing can be an excellent tool to help you reach your objectives.6
Sources: 1 forbes.com; 2 architecturaldigest.com; 3 rwmloans.com; 4 rwmloans.com; 5 bizjournals.com; 6 rwmloans.com
