The Majority of Veterans Are Unaware of a Key VA Loan Benefit
The Majority of Veterans Are Unaware of a Key VA Loan Benefit For more than 79 years, Veterans Affairs (VA) home loans have enabled numerous Veterans to achieve homeownership. However, according to Veterans United, only 3 in 10 Veterans are aware that they may be eligible to purchase a home without a down payment. This is why it’s essential for Veterans—and anyone who supports them—to know about this valuable program. Being informed about these resources can simplify the journey to homeownership and prevent important life goals from being delayed. As Veterans United explains: “The ability to buy with 0% down is the signature advantage of this nearly 80-year-old benefit program. Eligible Veterans can buy as much house as they can afford, all without the need to spend years saving for a down payment.” The Advantages of VA Home Loans VA home loans are specifically crafted to help make homeownership accessible for those who have served our country. According to the Department of Veterans Affairs, these loans offer several benefits: Options for No Down Payment: One of the biggest perks is that many Veterans can buy a home with no down payment at all, making it simpler to get started on your homebuying journey. Limited Closing Costs: With VA loans, there are limits on the types of closing costs Veterans have to pay. This helps keep more money in your pocket when you’re ready to finalize the sale. No Private Mortgage Insurance (PMI): Unlike many other loan types, VA loans don’t require PMI, even with lower down payments. This means lower monthly payments, which adds up to big savings over time. A dedicated team of real estate experts, including a local agent and a trusted lender, is your best resource for understanding the various options and benefits available to help you reach your homebuying goals. Bottom Line Homeownership is a vital part of the American Dream, and VA home loans offer a significant advantage for those who have served our country. Let’s connect to ensure you have all the resources needed to make informed decisions in the housing market.
Why You Need an Agent To Set the Right Asking Price
Why You Need an Agent To Set the Right Asking Price The top challenge for most sellers is determining the right asking price for their home. Without an agent’s guidance, you might set a price that discourages buyers, leading to a lengthy selling process. To ensure your home is priced correctly, let’s connect. Remember, if the price doesn’t attract, it won’t sell.
Renting vs. Buying: The Net Worth Gap You Need To See
Renting vs. Buying: The Net Worth Gap You Need To See Deciding whether to rent or buy a home? One major consideration that could guide your decision is the potential for homeownership to increase your net worth. Every three years, the Federal Reserve Board releases the Survey of Consumer Finances (SCF), which compares the wealth of homeowners and renters—and the gap is substantial. On average, a homeowner's net worth is almost 40 times greater than that of a renter. Take a look at the graph below to see the difference. Why Homeowner Wealth Is So High In the earlier edition of the Survey of Consumer Finances, the average net worth of homeowners was approximately $255,000, compared to just $6,300 for renters—a substantial disparity. In the latest update, this gap has widened further as homeowner wealth has increased. (see graph below): As noted in the SCF report: “. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.” One big reason why homeowner wealth shot up is home equity. Equity is the gap between your home’s market value and the balance on your mortgage. You build equity by paying down your mortgage and when your home’s value rises. In recent years, home prices surged due to a shortage of available homes compared to demand. This imbalance drove prices up, resulting in faster equity growth and greater net worth for homeowners. If you’re still undecided about renting or buying, consider this: while housing inventory has increased this year, supply remains limited in most areas. As a result, experts predict that prices will rise again next year nationwide, though at a more gradual rate. Though it’s not the dramatic appreciation we saw during the pandemic, this trend still suggests potential equity gains if you purchase now. As Ksenia Potapov, Economist at First American, points out: “Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.” However, prices and available inventory differ by region. Rely on a local real estate agent who can provide insights into area-specific trends and explain the financial and lifestyle benefits of homeownership. This valuable information will guide you in making the right decision for your situation. As Bankrate notes: “Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.” Bottom Line If you're uncertain about renting or buying, remember that if the finances align, homeownership can significantly build your wealth over time. And if buying seems beyond reach, let’s connect to explore programs that could help make it a reality.
What To Look For From This Week’s Fed Meeting
What To Look For From This Week’s Fed Meeting You might be hearing a lot about the Federal Reserve (the Fed) and how its actions could affect the housing market at this time. Here’s the reason. The Fed is scheduled to meet again this week to determine the next move regarding the Federal Funds Rate, which is the cost for banks to borrow from each other. While this rate doesn’t directly set mortgage rates, it can influence them. If you’re considering buying or selling a home, you might be curious about the potential impact and when mortgage rates might decrease. Here’s a brief overview of what you need to know to anticipate what’s coming next. The Fed’s decisions are based on three key economic indicators: The Direction of Inflation How Many Jobs the Economy Is Adding The Unemployment Rate Let’s take a look at each one. 1. The Direction of Inflation You've probably observed that the cost of everyday items and services has been rising with each shopping trip. This increase is due to inflation, which the Federal Reserve aims to reduce to its 2% target. Currently, inflation remains above this goal. However, despite some fluctuations, it has been trending downward over the past two years and is now relatively stable, as illustrated in the graph below: The Federal Reserve is expected to reduce the Federal Funds Rate this week to make borrowing more affordable, aiming to stimulate economic growth while keeping inflation in check. 2. How Many Jobs the Economy Is Adding The Federal Reserve is closely monitoring monthly job additions to the economy. They aim for a slight deceleration in job growth before further reducing the Federal Funds Rate. A slowdown in job creation indicates a healthy yet gradually cooling economy, aligning with their objectives. This trend is currently observed, as reported by Reuters: “Any doubts the Federal Reserve will go ahead with an interest-rate cut . . . fell away on Friday after a government report showed U.S. employers added fewer workers in October than in any month since December 2020.” Employers continue to hire, but at a reduced pace, indicating a cooling job market after a period of rapid growth. This slowdown aligns with the Federal Reserve's goal of moderating economic expansion to maintain stability. 3. The Unemployment Rate The unemployment rate indicates the proportion of individuals actively seeking employment but unable to find work. A low unemployment rate suggests that most people are employed, which is positive. However, it can also contribute to higher inflation, as increased employment leads to more spending, potentially driving prices up. Many economists view an unemployment rate below 5% as approaching full employment in practical terms. The latest data shows the unemployment rate at 4.1%. Unemployment this low shows the labor market is still strong even as fewer jobs were added to the economy. That’s the balance the Fed is looking for. What Does This Mean Going Forward? The economy is largely moving in the direction the Fed aims for, which is why many experts predict a likely quarter-point cut in the Federal Funds Rate this week, as indicated by the CME FedWatch Tool. If this prediction holds, it may also open the door for mortgage rates to decrease. However, this won’t happen overnight; it will take time. Keep in mind, the Fed doesn’t set mortgage rates directly. Projections indicate that as long as economic indicators remain favorable and the Fed continues its planned rate reductions through 2025, mortgage rates should gradually decline over the next year. However, any shifts in these factors could lead to changes in the market and influence the Fed’s approach in the coming days and months. Expect some market fluctuations, with mortgage rates adjusting along the way. As Ralph McLaughlin, Senior Economist at Realtor.com, highlights: "The trajectory of rates over the coming months will be largely dependent on three key factors: (1) the performance of the labor market, (2) the outcome of the presidential election, and (3) any possible reemergence of inflationary pressure. While volatility has been the theme of mortgage rates over the past several months, we expect stability to reemerge towards the end of November and into early December." Bottom Line Although the Fed’s actions have an influence, mortgage rates are primarily driven by economic data and market conditions. As we progress through the remainder of 2024 and into 2025, we can anticipate rates to either stabilize or gradually decrease, bringing a bit more predictability to an otherwise volatile market.
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