Five Ways To Get The Best Interest Rate

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Free stock photo of black-and-white, man, hurry, reflectionsToday’s real estate market continues to be a busy one, thanks in part to mortgage interest rates that remain near historic lows, allowing buyers to afford more home. Despite this, it’s still important to watch interest rates to ensure you get the best deal.

(If you need recommendations for great local lenders, please let us know!) Here are in-the-know tips to help you get the best rate for your mortgage.

1. ACT FAST
Lock in an interest rate today. There’s no sense pining over rates of yesterday because they are old news and unlikely to return. If you’re nervous your home won’t close in the typical 30 days, pay to extend your rate lock.

2. GRAB A DEAL
Even with slightly higher interest rates, your buying power is still strong. The difference between an interest rate of 4% and 4.5% on a $200,000 30-year mortgage is only $58 more per month.

3. SCALE BACK
If your proposed mortgage payment makes you nervous, step back and think about finding a home with a smaller price tag. You may have to give some on space and/or location but your monthly budget will thank you.

4. ADJUST
If you aren’t sure how long you’ll be living in your next home, consider a hybrid or adjustable-rate mortgage (ARM) that offers an initial fixed lower rate for a specific amount of time (three, five, seven years, etc.) before a single adjustment or annual changes.

5. GOOD SIGNS
Closely examine the area where the home is located. An improving local economy with stable and increasing jobs, vibrant schools and nearby conveniences increases the likelihood that the home will appreciate over time. Besides your home being a great place to live, you might also make a profit when it comes time to sell!

Categories: Uncategorized, wilmington nc real estate

The Secret to My Open House Success

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Free stock photo of house, windows, plants, doorIn today’s real estate environment, more than ever, open houses are an effective open house marketing strategy. But, just to advertise the home in the Sunday paper and post a sign is not enough. An effective marketing campaign for open houses will prove to be a very successful open house and hopefully bring buyers to the table. Read the rest of this entry

Categories: Home Selling, Uncategorized

Mortgage Planning For The New Year

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Free stock photo of eye, macro, human, seeA new year is nearly here. That means it’s time to take a closer look at your mortgage loan.

You might not give much thought to your home loan, other than to pay it on time each month. But remember that your mortgage bill is probably the largest payment that you are responsible for each month. It makes sense to review your loan details to make sure that it is still the best fit for you and your family—and your budget.

Here are our recommendations for possible changes to make to your mortgage loan in 2017:

Time to refinance? Your mortgage interest rate might already be low, but that doesn’t mean that you can’t save potentially hundreds of dollars every month with a refinance. As a general rule, if you can shave a full point off your interest rate, you’ll save enough money each month to make the cost of a refinance worth it.

Call us today to ask whether you might qualify for a lower interest rate. We’d be happy to study your loan to determine whether a refinance might make financial sense for you.

Shorten your loan term? You don’t have to refinance merely to earn a lower interest rate. You can also refinance to reduce the term of your loan. If you are now paying off a 30-year fixed-rate loan, for instance, it might make sense to refinance to a 15-year or 10-year fixed-rate loan.

Yes, shortening your term will usually result in a higher monthly payment. But you’ll also potentially save tens of thousands of dollars in interest during the life of your loan. If you’re ready to reduce the amount of interest you’re paying each month, refinancing to a shorter-term loan could be a smart move. Again, contact us if you’re ready for a shorter-term loan. We can help you determine if this is a wise financial step.

Pay a bit more? Another way to reduce the amount of interest you’ll pay over the life of your mortgage is to pay a bit more each month than is required. Even paying $100 more toward your loan’s principal balance each month can dramatically reduce the amount of interest you’ll pay. Just make sure to indicate that the extra money you are sending in is earmarked to pay down your principal balance. There should be an option for this on your payment stub or your online payment plan.

Categories: Mortgage, new year, refi, Uncategorized

BUY OR WAIT? Check The Answer That’s Right For You | Wilmington NC real estate

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There’s no right or wrong answer when you ask: “Is it the right time to buy a home?” For some, it’s a great time to buy—while for others, the answer is not as clear cut. There are lots of check marks that make buying favorable, but some unknowns as well. We’re here to help you sort out the right answer for you.

Today’s real estate market is affordable for many. Interest rates are still near historic lows, which means your money buys more home than it will when rates rise. With stable employment, a decent down payment and a good credit history, you’re likely to qualify for a mortgage.

The selection of homes available locally is improving because the overall economy has encouraged more owners to sell. Because of this, your odds of finding the right home for you are higher today. Also, homebuyers now have many financing options because lenders offer a variety of loan programs that allow buyers to choose their mortgage term and interest rate to ensure the loan is affordable today—and tomorrow.

Should you buy a home today?
There are many reasons why it might be a good time for you, personally, to buy real estate today. How many reasons can you check off?

☑ I need a tax break.
Paying mortgage interest and real estate taxes may provide you with a sizable deduction on your income taxes. Consult a financial professional to review your tax return and see the impact owning a home (or a larger home) could have on your tax bill.

☑ My household income is likely to grow.
Up for a raise in the not-too-distant future? In line for a promotion? If your career—or your partner’s career—is on an upward trajectory, your growing income will offset any increases in real estate taxes, insurance or interest rate down the road.

☑ I’m ready to put down some roots.
You may feel ready to sink deeper roots in one location and become more vested in our community. If you’re looking to call our area home for five years or more, it may make sense to buy a home or move up to a larger one.

☑ I have been saving for a rainy day.
If you’ve been stashing away money for a down payment for some time, consult a mortgage lender to determine how much home you can comfortably afford to buy (ask us for lender recommendations). Calculate if your savings cushion is enough to cover unexpected maintenance costs or other emergencies after the down payment is paid.

☑ I need a home that will grow with my family.
If the home you can afford today has enough bedrooms to accommodate future children, children who are returning home, elderly family members or a work-at-home situation, it may be the right time for you to buy.

☑ I’ll be receiving some money.
If you are receiving a large legal settlement or a family member has presented you or your partner with a sizable monetary gift or inheritance, you might be able to buy that home you’ve only dreamed of before now.

☑ I follow a budget.
With your finances in order and personal spending in check, you likely have a realistic budget to know how much you can safely spend on housing.

☑ My debt situation is under control.
If you had student loans and they’re nearly paid off, college-age kids that are close to graduation or credit card debt that is near a zero balance, it might be time for you to think about buying a home.

☑ I’m just ready.
If you’re ready to buy a home, it’s time to contact us. We can show you local homes that fit your finances and your family. We can work with you to determine which one meets your needs best. We look forward to hearing from you soon!

Categories: Buy Now or Wait, Wilmington NC homes, Wilmington NC Market Statistics, wilmington nc real estate, Wrightsville Beach NC


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.