Email ElizabethWhy Don’t I Have the Best Rate?
Why don’t I have the best rate? An amazing blog below from our team preferred lender, Dan Tharp. Enjoy, a very good read. — JaCi Wallace
Without fail, the number one question I get from first-time callers looking to refinance or purchase a new home is “what’s your rate?” I used to stumble a bit when asked this question because there is so much involved in getting an accurate interest rate and one that I can’t answer in a 30-second conversation. I wish it were that easy.
After years of experience, now I don’t hesitate to answer – I respond with, “What rate do you want? “This tactic usually serves to disarm them a bit and allow me to detail the components that go into an interest rate.
If you are not getting the rate you heard on the radio or the interest rate you read in the real estate section of the newspaper, it’s typically not because of some elaborate bait-and-switch scheme. In all probability, your rate is different because of Loan-Level Pricing Adjustments. Loan-level Pricing Adjustments are not discretionary fees, nor are they a profit source for me or my bank. These are federally mandated fees per Fannie Mae and Freddie Mac to compensate for loans with greater risk.
They work just like auto insurance. With greater risk come higher premiums. It’s an add-on to the base rates set by Wall Street. Here are just a few triggers that will increase your rate or fees:
- Having a second mortgage or line of credit that you would like to subordinate. (Keep in 2nd lien position)
- Doing a “cash-out” refinance with less than 40% equity in your home.
- Having a credit score of 740 will save you almost a full percent in rate relative to a 640 score.
- Investment property can add up to a full percent or more compared to the primary residence.
- If you like macaroni and cheese, it will cost you. Not really, just making sure you are paying attention.
You can research your scenario at Fannie’s site.
Why Getting the Lowest Rate Might Be a Bad Idea
I know it feels good to tell your friends that you have a lower rate than them, but you might just be spending more money over time to get that rate because you are paying points (aka extra fees to buy the rate down). And since many first-time homebuyers sell within 6 to 8 years, having that low rate was just for show. I know this might sound counterintuitive, but you may be paying more because of that lower rate.
The one constant in life is that life is continually changing. Folks can’t envision what will happen in years to come because life just happens, and maybe down the road, they need to a cash-out refinance to pay for required maintenance or repairs, or to help with their kids education, a wedding, or help with a new car, the list goes on and on.
The important thing is to work with a lender who will take a little bit of extra time to crunch some numbers and help you decide whether a buydown or lender credit is better for your long term and short term goals.
 Dan Tharp – Branch Manager – 916-257-14702250 Del Paso Rd. #A, Sacramento, CA 95834NMLS# 280913 | Company NMLS # 3274Equal Housing Lender, Guild Mortgage | ||
| To buy or sell your dream property, call Weintraub & Wallace Realtors, with RE/MAX Gold. We can be reached at 916-233-6759. |
Ring Doorbell in Rosemont Area of Sacramento Stops Burglary
Ring doorbell in Rosemont area of Sacramento stops burglary, is a true story. We have a listing in Rosemont that is pending sale. The seller called me to say that her ring device saw a man walking up to the front door and them she observed him pulling on the Supra lockbox. We had no appointment this day and it seemed odd someone was there attempting to remove our lockbox.
The next thing I know I have a text from the seller that the man had gotten the lockbox off the front door and had beaten the supra lockbox with an axe. She called the police and they immediately responded and caught the man. The supra was destroyed in little pieces and the house entry key was missing.
Our seller called a locksmith and changed all the locks asap. This property had no alarm and without the ring doorbell this attempted burglary could have escalated into a very dangerous situation. Our seller has two young daughters. No one was home at the time of this crime.
This gives an entire new thought about ring doorbells. When you stop to think how a Ring doorbell in Rosemont area of Sacramento stops burglary, it makes me want to install one at my home. The seller of this property is of course a huge fan of this technology. I must say, I too am now a believer in Ring type doorbells. Technology is bringing so much innovation in home security using video camera devices.
A perpetrator using an ax to beat the lockbox to death shows the level of force this suspect used. in an effort to obtain the key. Cameras outside your front door seem like a great idea and affordable option in preventing a bad situation like this one from getting much worse.
Imagine if ring was around when the east area rapist was breaking into homes several decades ago. Swift action by the Sacramento Police Officers got this criminal caught and arrested quickly. Cameras can be a big help in identification of a suspect.
We hope you enjoy this article. It is our goal to always keep you posted on real estate information. This was a real time event that happened this week to our listing. If you want to buy or sell a real property call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached 916-233-6759.
— JaCi Wallace
August 2020 Sacramento Area Housing Market
August 2020 Sacramento area housing market report is an excellent and exciting blog and makes you think. Every buyer out there in Sacramento should read this report. Enjoy. — JaCi Wallace
Trends in real estate are ever fascinating. Just as a flock of birds in the sky suddenly move in a different direction altogether, seemingly for no reason. The momentum in real estate is too omnipresent. Some people think greed and emotion have always driven the markets and real life in general. I think the driving common denominator of the two is desire.
As much of the west coast is on fire right now, the Sacramento area real estate market is red hot, meaning multiple offers, sales prices over list price, and more. The August 2020 Sacramento area housing market is making eyes water, much like the horrible smoke that has filled the west coast skies for weeks. The fires burning over 2 million acres, which by the way, is about the size of 10 New York Cities. The desire of buyers and sellers to buy and sell is essentially an effort to better their situation they deem needs to be better.
The Law Of Supply And Demand
Look at the green graph above. For three months in a row, housing inventory (light green) in Sacramento County has been eclipsed by the solds (dark green). That is not supposed to happen. Imagine having 10 people in a store all trying to buy the last package of toilet paper. Wait, that actually happened. Well, you know what I mean. The law of supply and demand says that the price of that package of TP must increase if there is more TP demand than there is TP supply. Whoever desires it the most will get it. Prices either increase or the product runs completely out. Now I don’t think housing supply will run out, but the August 2020 Sacramento area housing market is suggesting a change could be coming. That change could be a reduction in prices OR a spike in the already record-breaking median home price of $425,000 that August gave us.
Median Home Prices
For three consecutive months, inventory was lower than closed sales. For those same three months, the median home price in Sacramento county broke records each month. The latest home price increase is 10% higher than the August 2019 median. We know that homeowners are hesitant to sell because even though many of them have tons of equity right now. The challenge sellers see they would be put into the buyer’s shoes and suffer the headache of trying to find a replacement home amongst all this crazy competition. If homeowners only knew that they could stay in their home until they closed escrow on a replacement home.
Another perc for a potential seller is that if they are 55 or older they could possibly take their base year tax level with them to a replacement home. This property tax adjustment could potentially save them up to thousands of dollars per year. Realtors that are in love with their career know these things and can help people navigate tough markets just as well as they can in more normal markets. The trick is cutting through the noise and gaining the trust of individuals who are looking for a Realtor to trust.
Average Days On Market
Look at the chart above. Trends usually tell us a lot about what to expect about the future, so when we are seeing the opposite happen, you know that change will follow change, for better or for worse. If you see what was happening last year with the Average Days On Market, homes were sitting on the market longer and longer as the months progressed from June 2019 through October 2019, which typically means price reductions.
There was a slight dip in November, but then the OMD (on market days) continued to climb through Jan. August 2020 saw a decline in OMD’s and an increase in the percent of the final sales price vs what the seller was originally asking. Some homes do sell for under asking, but that is because the seller was overpriced, to begin with. A top-producing real estate team can sniff these deals out and on the flip side, make sure your home sells quickly and maybe even over what the comparable homes in the neighborhood sold for.
Will Prices Go Even Higher?
The August 2020 Sacramento area housing market is raging. Will prices go even higher, or will it all fall apart? I think prices will continue to go up in our area, and neighborhoods will continue to change. I know that you don’t need me to tell you that a lot is going on in the world right now. But, don’t forget that Sacramento is two hours away from one of the wealthiest areas (Bay Area) in one of the wealthiest countries on earth.
The most successful businesses in history in the Bay Area have learned this year that many of their employees can work from home now. Why wouldn’t those top earners move to a place that is close enough to commute to work if needed, but far enough away to get what they deem as a bargain on a home?
To meet your home buying and home selling desires, call Weintraub & Wallace Realtors with RE/MAX Gold Real Estate. We have over 100 years of experience in the greater Sacramento four-county area real estate market. Call us today at 916-233-6759.
— Josh Amolsch
Weintraub & Wallace Realtors
How California Fires Are Affecting Sacramento Area Real Estate
How California fires are affecting Sacramento area real estate is a timely and brilliant blog. It is written by our exclusive buyer’s agent, Josh Amolsch. Enjoy, — JaCi Wallace.
I have realized over the years that things that are obvious to me are not always obvious to other people, and vice versa. We all live in our own little bubbles or “echo chambers” as I heard someone once say. We live “our own truth”, a sad but true reality for the misled.
If you were to ask my dentist how California fires are affecting Sacramento real estate, he might tell you that homes are sitting on the market longer right now because buyers don’t want to go out in the smoke to see homes. Well, no. Homes are flying off the shelf as if they were the mad rush in March 2020 for toilet paper. People don’t seem to care about the smoke-filled skies right now when it comes to buying a home. A steady stream of buyers keeps on coming in from the Bay Area. Since companies have found out that their employees can work from home, it seems they are taking advantage of that momentum. Boy, some commercial real estate is going to take a hit due to the lack of demand for brick and mortar.
One big way how California fires are affecting Sacramento area real estate is with affordability in the foothills. I recently wrote an offer on a property in Colfax, and the insurance quote came back at $8000/yr. That pre-approved buyer is suddenly not able to buy that home, even though it is in his price point. With fewer buyers for these types of properties, with astronomical insurance costs, we might start to see properties come down a bit in Placer and El Dorado counties. Heck, as long as I am speculating, we all might see our insurance rates go up if we keep having these fires in California. #%^& flows downhill, right? Yes, it does, especially when all the trees and absorbent-brush have been burned up.
Displacement is another way that California fires are affecting the Sacramento area’s real estate. I can’t imagine all of those people who lost their homes in the fires will just wait. Who wants to wait in a hotel room for their insurance company to build them a new house right where theirs burned to the ground. Many sellers will move out of the area or out of state.
Sacramento area real estate is, ahem, on fire and has been since before it was trendy. To navigate this absolutely crazy market, you need an experienced agent, a legendary team. Give us a call if you want to buy or sell, and we will hit it out of the park for you. When we take on a client, we dedicate our lives to making their goal come to fruition.
Call Weintraub & Wallace Realtors with RE/MAX Gold Real Estate today to buy or sell your home. We can be reached at 916-233-6759.
— Josh Amolsch
Sacramento Heat Waves, Staycations with Swimming Pools
Sacramento heat waves, staycations with swimming pools, the real question is fiberglass or gunite? Gunite pools, of course, take more time to install and ongoing maintenance depends on finishes like gunite or pebble tec. Fiberglass comes with prefab pools, so construction time is much less.
COVID-19 finds most of us staying at home, and a swimming pool would be fabulous entertainment. Here are some things to know: The pool companies are slammed; because many people want to enjoy some time in a pool, so fiberglass pools are growing in demand. Also, well water is very difficult for pools. Saltwater and fiberglass could be your answer. Of course, some will say “no way” to fiberglass. However, many reviews online from homeowners state they were delighted with the fiberglass pools.
Selling Sacramento real estate this summer I have seen several pool homes with 10-plus offers and selling for up to $35,000 more than the same model without a pool. Kids are pent up at home, tropical vacations have been canceled, so staycations are the ticket. I’m researching now the cost of a fiberglass pool as I have several clients who are interested. There are so many shapes and sizes with accessories such as spas, swim ups, tanning ledges and more.
Pool costs have gone through the roof. I’m told a gunite pool is about $65,000, not for a fancy pool but for a simple smaller kidney-shaped pool. If a no-frills fiberglass can be installed for $35,000 with an owner builder, then well worth it. With the last ten+ days of temperatures exceeding 100 degrees, the pool business is booming. Sacramento real estate, with or without pools, is selling like hotcakes. If a pool will cost you $35,000 in resale, then perhaps buying a home with a pool-sized lot is still great investment.
Sacramento heat waves, staycations, with swimming pools, are hot topics these days, no pun intended, lol. If you are interested in learning more about buying a home and or adding a pool, we have some great vendors to refer you to. There are even self-help pool install companies where you run the job. Our vendor lists are always available to our clients. For premiere service, call Weintraub & Wallace Realtors with RE/MAX Gold today. We can be reached at 916-239-6759.
–JaCi Wallace
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