Ahh, the sweet volatility of the real estate market. It has seemingly had buyers and sellers alike on a roller coaster the last couple of years, and it seems like it’s taking us out for another ride as it works its’ way back to “normal.” Today, the seller’s market is cooling down as interest rates begin to rise. In fact, mortgage applications are down 75% from a year ago—the lowest in 22 years. If you’re in the market to purchase a new home or are considering refinancing your existing home, you might feel a sense of panic. Does it make sense to buy in this market? Will interest rates continue to rise? What’s really happening is the equalization of a market that’s been running rampant for years, resulting in low inventory, fervid competition, and massive price gains.

In a new episode of A Place of Possibility™, we’re shedding light on everything you need to know about current interest rates and refinance options. We also discuss some of the programs currently available for first-time home buyers and welcome Del Monte Group’s support advisor Leo Bojorquez to explain how they work and how he has benefited from these programs personally. Tune in to hear more about:

  • Why interest rates are rising but will most likely stabilize soon
  • How a HELOC is more beneficial to you than refinancing your home if you need quick access to cash
  • Why adjustable-rate mortgages (ARM) can actually be beneficial for home buyers
  • Programs available for moderate-income first-time home buyers for forgivable down payment loans and grants that pay closing costs

And more!

We know it’s hard right now to purchase affordable homes or make investments, and you may be holding out, hoping prices drop. While that may not happen, hope is not lost. Download a copy of our free guide and listen in for strategies to help you stay on top of your housing and real estate investment game.

P.S. Looking to meet with Richard or Angela at our office in Alamo, CA? Want to discuss more of what you heard in this episode? Wondering where the heck you need to get started or what all of this means for your retirement plans? Schedule a free 30-minute session and find the peace of mind you deserve for the rest of your life. You can also reach us by calling 925.736.6410 or sending an email to Info@APlaceOfPossibility.com.

“In most cases, it works out where you’re better off paying a higher interest rate to start and getting a lower price on your home, right? Rather than paying a higher price on the home with a lower interest rate, because you can always refinance that mortgage in five, 10, 15 years, whereas you can never go back and lower the purchase price of your home.”

We’re proud to present you with our “Know Your Possibilities Guide,” a tool and free resource for you to take notes, review, keep on hand, or even share with your friends and family. So grab your copy, click the play button, and follow along. You’re just minutes away from discovering your next Place of Possibility.

A Glance at this Episode:

0:00 Introduction

2:45 This episode focuses on the real estate market and how it’s turned on a dime. Listen in here as Richard and Angela review the latest changes to this volatile market.

3:34 Home buyers have become used to a 3% interest rate, but that’s quite low compared to 15 years ago when 7% was standard. This is called a “recency bias.”

4:20 Although interest rates have gone up, a subset of people still think now is the time to buy before the rates rise even more. This is also known as “panic buying.”

6:26 By January, the real estate market is expected to cool down considerably, giving buyers time to think about what they’re doing. But a cooldown isn’t the same as a crash. Here’s what you need to know.

9:01 Next, Richard and Angela talk about mortgages. Should you panic now that mortgage rates are increasing? Start listening now to find out.

12:41 Interest rates will vary significantly throughout a 30-year mortgage. Listen in to hear why getting a lower purchase price than a lower interest rate on your mortgage is more important.

13:52 Adjustable-rate mortgages, or ARMs, have gotten a bad rap over the years. But they actually do have some benefits. Press play here to understand why they could be a better option.

16:18 We’re back to the point where shopping around for mortgages makes sense. Listen here to know why you should always take a close look at a mortgage’s fine print.

16:48 Do you need cash for that home repair or to send your child off to college? Here, Richard and Angela discuss refinancing your home to get a cash infusion.

19:54 Though the interest rates can be higher, Richard and Angela explain why a home equity line of credit (HELOC) may be better than refinancing your home at the current interest rates.

22:06 Pro Tip: You should never focus on the dollar amount of your mortgage payment but rather the amount of interest you’ll be paying instead. Press play now for more.

22:14 Does it make sense to pay points on a mortgage to buy your rate down now that things are in flux? Richard and Angela explain the rule of thumb you should follow here.

23:12 Many first-time home buyers are currently priced out of the home market. So, what are some ways to reduce your down payment and closing costs? Richard and Angela welcome Del Monte Group support advisor Leo Bojorquez to discuss some amazing strategies.

24:53 Leo talks about two programs to help buyers. The first, the Forgivable Equity Builder Loan, allows first-time buyers to take out a forgivable loan for a down payment. Sound too good to be true? It’s not. Here’s what you need to know.

28:23 Another program, NeighborhoodLIFT, eliminates closing costs. Leo explains what this means for buyers.

32:13 Though the current home market can be discouraging, putting yourself in the proper position can help. Make sure your documents are in order, so you’re prepared when the time is right. Tune in for more from Leo on how to prepare.

33:36 Q&A What’s the minimum credit score needed to qualify for a home loan?


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Links/Resources Mentioned in this Episode:


“One-size-fits-all” won’t fit you here! The Del Monte Group team understands that everyone’s financial goals are unique. That’s why we always provide customized advice. No matter where you are in life, you can depend on our proven expertise to provide financial planning support for long-term success. Ready to get started? Schedule a meeting with Richard or Angela in our Alamo, CA based office today or we can meet via Zoom! >> You can select a date and time that works for you via our calendar, call us at 925.736.6410, or send an email to Info@APlaceOfPossibility.com. We can’t wait to help you!

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