What the 2018 housing market will bring

What the 2018 housing market will bring ~

Because the tax bill was passed after the real estate entities put out their 2018 forecasts, their projections below don’t include what impact, if any, several provisions in the bill — such as the caps on the mortgage interest and property tax deductions — will have on the market. Some experts are anticipating prices won’t rise nearly as fast because of the new law. Others say it will help first-time home buyers enter the market.

Here is a brief roundup of their forecasts and what they expect the major trends to be in the coming year:

National Association of Realtors  predicts home prices will rise about 5 percent in 2018. “Low supply is pushing prices higher. The Good news is Home prices are predicted to continue to improve.

The biggest impediment to sales is the shortage of supply in relation to overall demand. The lagging pace of new-home construction in recent years is further creating a logjam in housing turnover. “The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period has been only 15 percent.

The National Association of Realtors anticipate that mortgage rates will gradually climb with the 30-year fixed-rate average reaching 4.5 percent by the end of 2018.

Entry-level homes will continue to see price gains because of the large number of buyers and limited number of homes for sale. With few houses on the market, homes will sell faster than ever.

Home prices will continue to rise but at a more modest pace. Zillow company surveyed 100 economists and housing experts who projected prices to increase 4.1 percent in 2018.

Mortgage Bankers Association predicts mortgage rates will slightly increase in the coming year “As far as rates are concerned, 10-year Treasury yields are forecast to increase in 2018, The MBA estimate that mortgage rates will reach the 5.0 percent level by the middle of 2018, but rising only slightly beyond that to average 5.3 percent in 2020.”

Mortgage applications will be fueled by purchases rather than refinances in the coming years.

“Our forecast for 2018 is that we will see continued growth in the Housing Market.

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Thank you for reading!

 

Bob Idakaar GRI

973-713-2377

WWW.BOBSHOMES.NET

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Refinancing Your Home? Things You Might Not Think of ….

Are you planning to refinance your home? If you’re interested in lowering your mortgage payments, decreasing your interest rate or more, chances are you’ve probably thought about whether or not you should refi your mortgage. Refinancing Your Home

When you’re ready to learn more about preparing for a new mortgage, here are six things you might not think of when refinancing your home.

  1. You’ll have to get an appraisal. You’ll have to get an appraisal when refinancing your home, so keep your house’s value and your savings in mind when determining whether or not you should pursue smaller monthly mortgage payments or a lower interest rate.
  2. You’ll need to pay closing costs. You’ll need to pay closing costs a second time when refinancing your home, so make sure you have an adequate amount of money saved to pay these upfront fees and any other costs associated with a mortgage refi.
  3. You’ll have to think about the interest rate. Are rates higher than they were when you first financed? Are they lower? Even a small difference can mean a lot of money over time. Take into account the full picture: the number of months you’ll be paying the new mortgage and the rate you’ll be paying compared with your current timeline and rate.
  4. You’ll need to get your credit checked. The bank is going to want to check your credit score when you’re refinancing your home, so keep in mind that you won’t be able to negotiate a better deal if your credit score is lower than it was when you were first approved for a mortgage.
  5. You’ll have to go through the same process. To a certain extent, it’s like buying a house all over again, so think back to when you bought your house and make up your mind about whether or not you can dedicate enough time to the effort.
  6. You’ll need to live in your house a long time. Refinancing may not be worth it if you’re planning to move in the near future. Figure out how long you plan to live in your current place and how much your closing costs will be before making the refi decision.

These six things you might not think of when refinancing your home are important to take into account before you start shopping around for a new mortgage. Because a refi can lead to a number of benefits and costs down the road depending on the outcome, you’ll need to prepare for every scenario before making a commitment.

We’re here to help, so if you think refinancing might be right for you, we can help you decide what your next steps should be.

– To view the entire BobsHomes July Newsletter, click here.

Title Insurance When Refinancing Your Loan

Lower interest rates have motivated you to refinance your home loan. The lower rate may save you a tremendous amount of money over the life of the loan, but you should also expect to pay the lender the typical closing costs associated with any new loan, including service fees, points, title insurance protection and other expenses.

Why do I need to purchase a new title insurance policy on a refinanced loan?

To the lender, a refinance loan is no different than any other home loan. So, your lender will want to insure that their new loan is protected by title insurance, just as the original lender required. Therefore, when you refinance you are buying a title policy to protect your lender.

Why does a Lender need title insurance?

Most lenders generate loans and then immediately sell those loans to secondary market investors, such as FannieMae.

FannieMae, in order to protect its security interest in the loan, requires title insurance coverage. Even those lenders who keep original loans in their portfolio are wise to get a lenders policy to protect their investment against title related defects.

When I purchased my home, didn’t I also buy a lender’s policy?

Perhaps. Who pays for the lender’s policy on a purchase loan varies regionally and by the terms of individual contracts.

However, even if you did buy a lender’s policy when you purchased your home, the lender’s policy remains in force only during the life of the loan that was insured. If you refinance, the old loan is paid off (the “life” of the loan expires) and a new loan is issued for which the lender will require a new title insurance policy.

What about my original title insurance policy?

When you bought your home, you purchased a Homeowners title policy. The Homeowners’ policy stays in force as long as you or your heirs own the home. When you refinance, your lender will often require that you purchase a new lender’s policy to protect their new security interest in the property. Thus, you are buying a policy to protect your lender, not a new Homeowner’s policy.

What could possibly have happened since I purchased my home which warrants a new lender’s policy?

Since the time that the original loan was made, you may have taken out a second trust deed on the house or had mechanic’s liens, child support liens or legal judgments recorded against you – events that could result in serious financial losses to an unprotected lender. Regardless if it has been only 6 months or less since you purchased or refinanced your home, a myriad of title defects could have occurred. While you may not have any title defects, many Homeowners do. The only way for a lender to adequately protect itself is to get a new lender’s policy each time you purchase or refinance your home.

Are there any discounts available for title insurance on a refinance transaction?

Yes. Title companies offer a refinance transaction discount or a short-term rate. Discounts may also be available if you use the same lender for your refinance loan and your original loan. Be sure to ask your title company how they can save you money.

Article by CLTA