Blog


Why Do Millennials Choose To Buy?

May 28
6:11
AM
Category | General

Ever wonder why millennials are choosing to buy instead of rent? Well, according to NerdWallet's Millennials & Homebuying Study, the top 5 reasons young renters choose to own are the following:

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”

  • The top reason millennials choose to buy is to have control over their living space, at 93%.

  • Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like or renovate an outdated part of their living space.


For the Week Ending May 24, 2019

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

Last month's Fed meeting minutes show officials are in no hurry to move interest rates up or down, though investors are looking for a rate cut by year's end.
Recent escalation in the trade war with China has helped keep rates low and could cause more slowdown in the global economy, also helpful for low rates.
Consumers seem bullish on the economy, as sentiment reached a 15-year high. However, the reading was taken before recent trade tensions with China.
Existing home sales fell in April, likely due to high prices and tight supply at the low end of the market. Recent rate drops should counter high prices moving forward.
New single-family home size increased roughly 8% at the start of 2019, now an average of 2,551 square feet. Median home size also increased 11% to 2,335.
More baby boomers are choosing to age in place, contributing to low inventory across the country. Almost 52% of boomers say they'll never move.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 

 


Refinancing your mortgage can save you thousands of dollars in interest. It can also reduce your monthly payments substantially. You may be asking yourself, "when should I refinance my mortgage?"

We’ve put together a list of some signs you should refinance your mortgage today!

1. Your rate is higher than current interest rates

Interest rates have been at historic lows. If you closed on your mortgage 5 or more years ago chances are that your interest rate may be higher than the current rates today. This is the number one reason you should refinance your mortgage, to lower the rate. Reach out to a Greenway Loan officer today to find out if you can get a lower rate by refinancing your mortgage loan.

2. You want to lower your monthly payment

Lowering your monthly payment is something that a mortgage refinance can help you achieve. Not only by reducing your interest rate but by stretching the loan payments over a longer term.

3. You want to make home improvements

Cash-out refinances, home equity loans, and HELOC loans allow homeowners to get a loan using the equity in your home. You can learn more about cash-out refinances here.


4. You’re close to retirement

This depends on your individual situation. If you are close to retirement and you still have several years left on your mortgage. Refinancing into a lower rate and payment will allow you to more comfortably afford your mortgage payment each month on a reduced income. If your home is paid off then you may want to consider a reverse mortgage. A reverse mortgage is where you receive monthly payments or a large up-front sum of money using your home’s equity.
 

5. You have an adjustable rate mortgage (ARM)

An adjustable rate mortgage has an initial term with a low fixed rate for a certain number of years. After the initial term the rate increases on an annual basis. Because of the increasing rate you would most likely save money by refinancing into a fixed rate mortgage.
 

6. You have high interest debt to consolidate

If you have a large amount of debt with high interest, you could refinance your mortgage into a lower rate home equity loan or cash-out refinance can save you thousands of dollars in interest. Keep in mind that its not advisable to convert your unsecured debt into debt that is secured by your home. For example, if you come across a financial hardship and you cannot afford to repay the loan your home may be subject to foreclosure.


7.  You just want cash to spend

Maybe you’re not looking to renovate your home and you do not have high interest debt to consolidate. Perhaps your looking to take a vacation or buy a new car. Using the equity in your home to convert it into cash can be an option. A cash-out refi or HELOC loan can give you cash for your equity.


8.  Your credit score has increased since you closed

If your credit score was lower when you got your original mortgage chances are the rate your received is much higher than what you could receive today with a much higher credit score. Remember, you’ll want to increase your credit score before applying to refinance you mortgage. Make sure you’re paying off any credit card balances, too!

Bottom Line

Refinancing your mortgage into a lower rate is often a very good idea. Reach out today to discuss your options! We are happy to help. (908) 489-4658.

 


For the Week Ending May 17, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Trade tensions with China increased this week, causing stocks to fall and bonds to improve. The shift in bond prices helped move mortgage rates down slightly.
After a big jump in March, retail sales declined 0.2% in April as consumers cut back spending on clothes, appliances, and home & garden supplies. 
Jobless claims fell more than expected last week, pointing to sustained labor market strength that should help underpin the economy if growth slows.

 

According to the NAHB monthly index, builder confidence for newly built single-family homes rose in May. It was the highest reading since October 2018.
Housing starts increased more than expected in April. Data suggests declining mortgage rates are providing further support to the housing market.
Home building's future is also looking good, with building permits rising 0.6% in April. Permits had been in decline for the previous 3 months.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Think you need to be at the same job for 2 years in order to qualify for a mortgage?

You do not. Watch this short video by The Mortgage Expert, Erin Carvelli.

 


Additional Resources


Want To Know More About Erin, Her Team and the Mortgage Process?

Check out her All Things Mortgage page!

She's posted tons of useful resources and keeps it updated


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!

 

 

 

 


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