Utah Real Estate Magic May Newsletter

http://kibjensen.housingtrendsenewsletter.com/?Newsletter_ID=272

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Things Have Changed

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The soothsayer in Shakespeare's Julius Caesar issued his famous warning "Beware the Ides of March."   Who knew that in 2020, around the middle of March, the world, as we knew it, would force such dramatic changes on us from the Coronavirus. In America, it has brought our economy to its knees as we sheltered in place for over four months.   During this time, changes have affected our lives and many of those changes could be permanent. Previously, smaller homes were becoming the trend for not only efficiency but upkeep so owners would have more time to do things including travel.   Now, travel is minimal and our world, in some respects, is reduced to our home. For families with children, their home has become a school.   With so many people working from home, it has become our office or store or studio.   If there is more than one working adult in a home, it needs to have space for each party to work.   The home fitness industry is experiencing record s...
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Access "Trapped Equity" without Refinancing

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American homeowners have a record amount of equity in their home.   Many of these homeowners would like to cash out part of that equity but don't want to trade an historically low interest rate for one that is as high as it's been in 20 years. Instead of refinancing their home, an option is to get a fixed-rate second-lien.   This is different than a HELOC, home equity line of credit, which gives you continual access to your equity at a variable rate.   A HELOC has a draw period where you only must pay the interest. A second mortgage is a loan against the equity where the homeowner will receive a lump sum and will make payments to repay the loan and interest over a specified period.   Generally speaking, lenders want the combination of the existing first-lien and the new second-lien not to exceed 75-80% of the home's current value. To calculate how much would be available in a second-lien, subtract the existing unpaid balance on the first-lien from 75-8...
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What's the Difference in Pre-Qualification and Pre-Approval?

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Before looking for a home, you need to know how much you can afford. While you may have a number in your head, the lender has the final say. Securing a pre-approval from a lender helps make the home buying process easier and helps to avoid delays. Many buyers confuse the terms pre-qualification and pre-approval. They mean two different things. In simple terms, a pre-qualification is an estimate of what you can afford. A pre-approval is a conditional approval based on the proof you provide. The pre-qualification is a preliminary step some borrowers take to get a feel for what price home they can afford. Based on your income, assets, and estimated credit score, lenders can estimate what you can afford. It's important to know, there's nothing binding about a pre-qualification. It's simply a starting point.    When you are serious about buying a home, though, you want a pre-approval. Before you shop for a home, meet with a recommended lender to get a pre-approval ...
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