We may not be comparing real apples and oranges, but we’re coming pretty close in the home financing industry. And if you’re at all interested in using your home’s equity to access cash, then this comparison is for you.
As we discussed in our last email, there are two common ways to get cash from your home—a Home Equity Line of Credit (HELOC) or a cash-out refinance.
In the current environment, many people want to keep the great interest rate they already have on their home loan, so they automatically choose a HELOC over a refinance. But wait—there’s a big difference that can make the benefits hard to compare at a glance. HELOCs have adjustable interest rates, whereas most home loans are fixed.
Take a look.
If you’re interested in exploring your options more or you have questions about home financing, please reach out. I’ll be happy to help.
Good news! When it comes to documenting income, self-employed borrowers can get back to normal.
What does this mean?
Borrowers who rely on self-employment income may now submit their most recent tax returns, so long as they are no earlier than 2020, in typical scenarios.
How does this help?
Under previous Covid-era rules for certain government-backed loans, self-employed borrowers had to submit recent P&L statements, asset account statements and more. It’s much easier for most to supply tax returns instead.
We may not be comparing real apples and oranges, but we’re coming pretty close in the home financing industry.
And if you’re at all interested in using your home’s equity to access cash, then this comparison is for you.
There are two common ways to get cash from your home—a Home Equity Line of Credit (HELOC) or a cash out refinance.In the current environment, many people want to keep the great interest rate they already have on their home loan, so they automatically choose a HELOC over a refinance. But wait—there’s a big difference that can make the benefits hard to compare at a glance. HELOCs have adjustable interest rates, whereas most home loans are fixed.
Try it out. And if you’re interested in exploring your options more, please let me know. I’ll be happy to help.
Frisco, Texas is a millennial hotspot for owning homes. That’s according to MarketWatch’s editor, Catey Hill. In this age group almost all are first-time home buyers. And that’s not just for Frisco, but for Dallas, Fort Worth and all our surrounding cities where the real estate market is booming. These same home buyers here in the Dallas area are also looking for home mortgage solutions. That’s where Sublime Financial comes in to help clients find the perfect home loan.
According to Hill, just over 35% of people ages 18 to 35 own a home, according to data from the Census Bureau, compared to nearly four in 10 who did just six years ago. That’s a big reason the homeownership rate for all ages hit its lowest level since 1965 last year, and has only ticked up slightly since.
However, in 3 cities in America, the majority of millennials are bucking that trend, according to a study released Tuesday by financial firm SmartAsset. Using Census Bureau data, the firm looked at homeownership rates in households headed by someone under 35 in the 200 largest cities in America.
The 3 cities where more than half of millennials own a home 1. Elk Grove, Calif. 61% 2. Gilbert, Ariz. 57% 3. Frisco, Texas 55% The No. 1 city for under-35 homeownership: Elk Grove, Calif. You’ve probably never heard of it -- for many decades it was a small agricultural city -- but in the past 15 years, its population has grown for two reasons: (i) homes there cost around $350,000, compared to nearly $1 million in San Francisco and (ii) it’s well located, says Asees Singh, a spokesperson for the site. Elk Grove is only about 20 minutes to the state capital of Sacramento, which has a lot of technology jobs, and under two hours to San Francisco. Indeed, millennials who do buy homes are often looking for a combination of affordability and well-paid jobs, among other lifestyle factors, says Cheryl Young, the senior economist at real estate site Trulia.
The other cities in which more than half of millennials own homes: Gilbert, Ariz., and Frisco, Texas. Similar to Elk Grove, millennials like both Gilbert and Frisco because they are short (roughly 45 mintues) drives to major cities with jobs — Phoenix and Dallas, respectively.
For first-time home buyers anywhere in Texas, an FHA loan has a great advantage over conventional loans with less cash needed at closing. An FHA loan is also another option for home buyers with a few blemishes on their credit report.
We help first-time home buyers as well as all other clients who are in the market for a new home or looking to refinance to get a better rate. Contact us now to learn more about how we can help you.
This Refinance Calculator offers a quick way to see what a refinance could mean for you. Simply plug in the numbers for your current and desired loans, and we’ll calculate the difference in your payments. You may be surprised at the big difference even a small interest rate change can make.
Refinancing isn’t just about monthly savings. A lower rate can help you pay your loan off faster or possibly allow you to access cash from your home’s equity with no change in payment at all. There are many options to pursue.
If you have a little extra cash each month from refinancing your home or are experiencing one of those rare life changes that sends additional funds your way, have you considered what to do with the money?
Please don’t be fooled into thinking the amount is too small to make a difference. With time and compound interest on your side, your little bit of savings now could become a much greater amount later.
Check out our easy calculator to see for yourself. It will take less than a minute.
If you have questions or would like a referral to a financial professional, please reach out. I’ll be happy to help.
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