Don’t Wait for a Lower Mortgage Rate – It Could Cost You

Don’t Wait for a Lower Mortgage Rate - It Could Cost You | MyKCM

Today’s housing market is truly one for the record books. Over the past year, we’ve seen the lowest mortgage rates in history. And while those rates seemed to bottom out in January of this year, the golden window of opportunity for buyers isn’t over just yet. If you’re one of the buyers who worry they’ve missed out, rest assured today’s mortgage rates are still worth taking advantage of.

Even today, our mortgage rates are below what they’ve been in recent decades. So, while you may not be able to lock in the rate your friend got recently, you’re still in a great position to secure a rate well below what your parents and even grandparents got in years past. The key will be acting sooner rather than later.

Don’t Wait for a Lower Mortgage Rate - It Could Cost You | MyKCM
Don’t Wait for a Lower Mortgage Rate - It Could Cost You | MyKCM

In late September, mortgage rates ticked above 3% for the first time in months. And according to experts throughout the industry, mortgage rates are projected to continue rising in the months ahead. Here’s where experts say rates are headed:While a projected half percentage point increase may not seem substantial, it does have an impact when you’re buying a home. When rates rise even slightly, it affects how much you’ll pay month-to-month on your home loan. The chart below shows how it works:In this example, if rates rise to 3.55%, you’ll pay an extra $100 each month on your monthly mortgage payment if you purchase a home around this time next year. That extra money can really add up over the life of a 15 or 30-year loan.

Clearly, today’s mortgage rates are worth taking advantage of before they climb further. The rates we’re seeing right now give you a unique opportunity to afford more home for your money while keeping your monthly payment down.

Bottom Line

Waiting for a lower mortgage rate could cost you. Experts project rates will continue to rise in the months ahead. Let’s connect so you can seize this opportunity before they increase further.

What To Expect as Appraisal Gaps Grow

What To Expect as Appraisal Gaps Grow | MyKCM

In today’s real estate market, low inventory and high demand are driving up home prices. As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogicelaborates:

“The frequency of buyers being willing to pay more than the market data supports is increasing.”

While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the appraisal for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.

According to recent data from CoreLogic19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.

What To Expect as Appraisal Gaps Grow | MyKCM

The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year.If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.

In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.

Bottom Line

Whether you’re buying or selling, let’s connect so you have an ally throughout the process to help you navigate the unexpected, including appraisal gaps.

Custom French country home hits the market!

Welcome to 3185 Saint James Court in Oakland Twp.

Superbly appointed French country custom home built by Moceri & designed by Tringali (Alexis floor plan) on premium wooded cul de sac lot (.64 acres) backing to conservation area for privacy. Elegant interior finishes such as oversize crown moldings, casings & trim, coffered ceilings, solid wood doors, Weathershield windows, beautiful French doors w phantom screens off Great Rm onto porch & patio allowing interior exterior entertaining, premium lighting, plumbing fixtures & cabinetry t o, high end appliances, hardwood & slate on 1st floor. Huge phenomenal chef’s kitchen w abundant storage. Luxurious Master Suite w sitting room, 2 entrances to covered porch, dressing room, oversize walk in California closet & stunning marble bath. Finished daylight LL w bar, family rm w FP, billiard room, office (could be 5th bedroom) & unfinished storage space. French influenced landscaping includes perennial gardens, pathways, pergola, elevated pond, paver patios & covered porch on 1st & 2nd floors.

Contact Lynn Baker & Deby Gannes for more details.