You probably noticed homes are selling for significantly more now than a year ago.
As a homeowner this is great news, but not-so-good-news if you’re trying to purchase (much less find) your dream home. Homes are disappearing from the market at sonic speed, or at least faster than many would-be home buyers can even compose an offer. The good news is you have options and equity to Design-Build renovate your current home into a dream home. Recently, the Building Trust Blog (BTB) reached out to respected mortgage lender, James Anderson (JA) to get his take on what's happening.
BTB: How much longer can we expect to see these “historically low" rates?
JA: There is not a crystal ball in my office, but it is clear they won’t last forever. Inflation will eventually catch up to the bond markets, and then mortgage rates will follow.
BTB: How frequently do rates change? Are you seeing significant volatility day to day?
JA: Mortgage rates can change at any time. Until a loan is locked, there is no guarantee. Many times they can move up or down several times during the day. Some days are fairly quiet, and we can see stable rates for a week or more, but then it can change on a dime. Typically rates creep DOWN, and shoot UP very quickly.
BTB: With home values on the rise, would you recommend starting a renovation now?
JA: If you like your location/neighborhood but want some better options and functions in the dwelling- renovation is a great option. Yes, now is a great time to add value to your property.
BTB: When it comes to investing in your home, which is the better option a Renovation Loan or Cash Out Refinance? Why?
JA: Both are great options depending on each individual case. The main reason for the renovation loan is to tap into the future equity once the project is complete. The budget and scope of work will also drive the decision for which financial path.
BTB: What makes a mortgage lender elite? Truly beneficial to the client?
JA: Many banks “say” they offer construction and renovation products, but the execution of the product and program is severely lacking. HomeTrust Bank has shown a great track record in the execution and delivery of renovation loans. Our process results in taking care of the client’s needs.
Want to explore funding options for your renovation? Reach out to James at [email protected]