Sales Trends for April 2020

Here’s some good information regarding sales trends for Shasta County; stats are from April 2020


Posted on May 22, 2020 at 6:59 pm
Wayne Martin | Posted in Uncategorized |

Sales Trends for March 2020

Here’s some good information regarding sales trends for Shasta County; stats are from March 2020


Posted on April 28, 2020 at 6:28 pm
Wayne Martin | Posted in Uncategorized |

Sales Trends for February 2020

Here’s some good information regarding sales trends for Shasta County; stats are from February 2020


Posted on March 24, 2020 at 7:10 pm
Wayne Martin | Posted in Uncategorized |

Sales Trends for January 2020

Here’s some good information regarding sales trends for Shasta County; stats are from January 2020


Posted on February 26, 2020 at 5:53 pm
Wayne Martin | Posted in Uncategorized |

Sales Trends for December 2019

Here’s some good information regarding sales trends for Shasta County; stats are from December 2019


Posted on January 23, 2020 at 12:00 am
Wayne Martin | Posted in Uncategorized |

Sales Trends for November 2019

Here’s some good information regarding sales trends for Shasta County; stats are from November 2019


Posted on December 20, 2019 at 12:00 am
Wayne Martin | Posted in Uncategorized |

Sales Trends for October 2019

Here’s some good information regarding sales trends for Shasta County; stats are from October 2019

 


Posted on November 21, 2019 at 12:00 am
Wayne Martin | Posted in Uncategorized |

Sales Trends for September 2019

Here’s some good information regarding sales trends for Shasta County; stats are from September 2019


Posted on October 21, 2019 at 12:00 am
Wayne Martin | Posted in Uncategorized |

Why Is So Much Paperwork Required to Get a Mortgage?

Why Is So Much Paperwork Required to Get a Mortgage? | MyKCM

When buying a home today, why is there so much paperwork mandated by the lenders for a mortgage loan application? It seems like they need to know everything about you. Furthermore, it requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any other time in history.

1. The government has set new guidelines that now demand that the bank proves beyond any doubt that you are indeed capable of paying the mortgage.

During the run-up to the housing crisis, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.

2. The banks don’t want to be in the real estate business.

Over the last several years, banks were forced to take on the responsibility of liquidating millions of foreclosures and negotiating an additional million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they have to double (maybe even triple) check everything on the application.

However, there is some good news in this situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a low mortgage interest rate.

The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process, but also paid a higher interest rate (the average 30-year fixed rate mortgage was 8.12% in the 1990s and 6.29% in the 2000s).

If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.


Posted on October 4, 2019 at 12:14 am
Wayne Martin | Posted in Uncategorized |

What You Need to Know About Private Mortgage Insurance (PMI)

What You Need to Know About Private Mortgage Insurance (PMI) | MyKCM

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:What You Need to Know About Private Mortgage Insurance (PMI) | MyKCMThe larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.


Posted on September 30, 2019 at 12:14 am
Wayne Martin | Posted in Uncategorized |