Chris Lamm Mortgage

🎉  New Year! 🏡  New Home? January 2021 Mortgage Market Update

💰 Buy NOW or Buy Later? Pros and Cons of Putting 20% Down vs. Paying Mortgage Insurance.

One of the top questions I was asked in 2020 was, “Should I wait and save to put more money down when purchasing a home, or should I put less down now and pay mortgage insurance?” Many experts out there will tell you it’s always a good idea to put at least 20% down when buying a home. One of the benefits to putting 20% down is you don’t have to pay an additional fee for monthly mortgage insurance. In addition, putting 20% down gives you built in equity in your home. If your property value drops, you are still in a good position if you needed to sell, and most likely wouldn’t be upside down on your loan. With that being said, there are also benefits to putting less down and paying mortgage insurance. First of all, mortgage insurance has never been cheaper, and perhaps you don’t have 20% to put down. By putting less money down and paying mortgage insurance, you get to buy a home sooner, reap the tax benefits of owning a home, and have your home appreciate in value. 

Let’s take a look at this scenario for 2020. What if you had saved up 5% to put down at the beginning of 2020, took out a loan and paid mortgage insurance of around $100 a month. Now, this year you are able to refinance your loan to a lower interest rate, remove your PMI mortgage insurance and have around an 8-10% appreciation in your home’s value. Had you waited to buy until you saved 20% you would have lost out on all of that appreciation! Putting less down and paying mortgage insurance helps get you off the sidelines and into owning real estate that will most likely appreciate in the future.

🇺🇸  Over HALF of America Refinanced in 2020!

I know you’ve heard me say this before, but right now interest rates are the lowest they have ever been – in the low to mid 2’s! If you bought a home last year with an interest rate higher than 3%, it may be a great opportunity for you to refinance already to lower your interest rate and payment, and maybe even remove your mortgage insurance. In 2020, over half of America refinanced their home. While interest rates stay insanely low, we predict to see even more refinances this year. Even though half of America refinanced already last year, there are still a lot of people that haven’t yet who are looking to take advantage of the low interest rates. Even if you just refinanced or purchased a home last year, it’s still a good idea to give our office a call to see if a refinance now would help you save money!

🏡  All time LOW INVENTORY in Shasta County Housing Market

I have never seen housing inventory this low! There are only around 420 homes for sale in Shasta County! Supply is LOW, and the demand is HIGH. There has never been a better time to sell your home than right now. We’ve seen homes gobbled up within minutes of them hitting the market with multiple offers and bidding wars. Sellers are making a substantial profit on the equity in their home. The only downside of selling right now is it might be hard to find the perfect replacement home as the inventory is super low, causing somewhat of a gridlock. This low inventory trend is the same for most of California and throughout the country. Most experts are seeing these trends carry into 2021 with low interest rates helping to fuel appreciation. Hopefully as we move into the spring and summer months we will see even more new construction to create more inventory, giving people more options to sell and buy new homes.

🙏🏽  Thank you for your business!!!

Thanks again for your continued support, and referrals to our office. As always, if you have any questions or would like to get pre-qualified for a purchase or refinance, give us a call here at the office. I hope you and your family are doing well navigating these times, take care, and Happy New Year!

Questions? Contact Chris Today!

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Chris Lamm

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Redding, CA 96002
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