As we’ve seen an uptick in interest rates, many homebuyers are now looking into adjustable-rate mortgages (ARMs). ARMs were very popular in the early 2000s but with our extremely low rate recent history, very few home buyers were choosing ARMs. Now with higher rates many home buyers are looking into ARMs again.
First a brief overview on what ARMs are – unlike your traditional fixed rate mortgage, ARM loans have interest rates that can change. Normally with lower initial interests for a few years that then “adjust” based on the current market rate. So a 3/1 ARM will have a lower fixed rate for three years and then adjust annually after that. A 7/1 ARM is for seven years etc.
The primary benefit of ARMs are the lower initial interest rate and thus lower initial monthly payments. ARMs are attractive if you aren’t planning on living in the house for a long period. ARMs are a popular option on jumbo loans as well. Of course you’ll need to be comfortable with the risk and uncertainty of higher possible rates in the future. If you want to know more about ARMs and your options schedule a consultation on our website.

As we enter beach and pool season – a lot of people ask if a swimming pool will add value to their home (to be clear we are talking about in ground pools here). The answer is it depends.
Studies show that it can add 5% or more to the value of your home (but these studies are pre-Covid). If you are in a warmer climate like Texas or Florida, pools can add more value and be more desirable. In fact if your home is in a high-end area where most homes have pools then it can lower your home’s value if you do not have one. Of course you have to take into account building and maintenance costs, as well as if your yard has enough space to accommodate a pool and still have enough area left over. It’s probably a good idea to want a pool for enjoyment rather than just building one to increase resale value. If you want to get more feedback on your property and how it fits in the market feel free to schedule a consultation with us on our website for more details and the latest market conditions.

If you are a first time home buyer and looking for help with your down payment and closing costs, there are actually a number of grant programs both nationally and on the state and local level.
Grants are not loans and not required to be paid back. Qualifying for different grant programs varies, it often requires you to be a first time home buyer and you must live in the residence (not rent it out).
You may also need a minimum credit score as well as fit income criteria.
Give us a call or schedule a consultation on our website and we can see what grants and programs may be available to you.

If you are ready to purchase a house – you are going to be excited and maybe a little nervous. Here are 5 important things to do on a walkthrough to help lower any anxiety or future surprises.
1. Look For Wet Spots
Check the ceilings for wet spots (rings or circles) and discoloration around windows. They can cause issues down the road and be hard to fix!
2. Check The Wiring
Turn on the switches, dimmers, check the doorbell, garage door, basically check it all. If things are not working right, there could be an overall wiring issue.
3. Inspect the Bathroom
Again look for water damage around toilets, showers and tubs. Also make sure everything is working properly, flush the toilets, check the showers and faucets to make sure the hot water works.
4. Test the hardware
Basically check everything from fans to the washer and dryer. Make sure it all works.
5. Run the heat and AC
You want to make sure the heat and AC are working properly – turn them on and let it run a few minutes.
Finally make a checklist for all the items to be included in the sale and have the owner sign-off or initial it so there’s no confusion or disagreements at closing.

There are a number of factors that affect getting approved for a mortgage the interest rate of the loan. One of the biggest factors in the actual interest rate, is your credit score. The higher the credit score the better in terms of the interest rate and consequently the monthly payments to be made for your mortgage.
A credit score is a number that generally indicates your ability to meet your financial payments. It’s based on your outstanding debt, payment history and other factors. Generally a tri-merge report is ordered with any new mortgage loan and they will use the middle score.
If you aren’t sure of your score, you can order an annual score for free at AnnualCreditReport.com. You can see if there are any errors and we can help with some recommendations to lower your score as well.
If you would like more information, please go to our website to schedule a free consultation.