David Cramm

1 major component to your interest rate with a conventional loan is your FICO score.

The better the FICO score... the better your interest rate will be.

But - did you know if you have a 740 or an 850 - you are still in the same tier?

Tag a friend that may be shopping for an interest rate and could benefit from this post!

According to this Home Price Survey... the answer is NO!

This is the cumulative appreciation rates by 2026 which means any house you buy today will be cheaper now than in the future!

Did you know there is a BIG difference in a home inspection vs an appraisal?

An Inspection is when a 3rd party inspector checks out the functionality of a home... things like the foundation, roof, attic, walls, ceilings, windows, doors, and any attached decks, electrical, heating, air conditioning, and plumbing systems!

An appraiser is who determines the current market value of your home but comparing it to the most recent home sales in your neighborhood (based on sqft, beds, and baths).

Having a hard time sleeping? Try out these 6 tips!

Actual footage of buyer’s lining up as soon as a listing hits the market!

We're here for you!!!

It is more important than ever to work with a mortgage ADVISOR!

With this infaltion rate so high, the war, and the Fed's talking about another Fed rate increase - what will this do to mortgage rates?

Should you still buy a home in 2022?

These are all things a true advisor can help answer for you!

What should we eat for dinner tonight?

Am I wrong? haha

Have a great weekend!

How much money should you have in an "Emergency account?"

Most financial advisors would tell you 3-6 months of your monthly expenses.

So if your expenses are $3,000 a month that would be either $9,000 or $18,000.

This way if something unexpected happens you have the money vs charging it on a credit card and accumulating debt.

Thank you Michael for the kind words!

Don't hesitate to reach out for your mortgage needs!

One of the biggest questions I get asked is "Why is my mortgage FICO score differently than what I see online?"

Did you know there are currently over 20 versions of the FICO score?

That means your mortgage score could be different than the car dealership, your credit cards, or your credit monitoring service!

Yes.. rising rates are on the move BUT - what does this really mean?

Most people stay in their homes for 8-10 years. In this example, a rate moving to 4.5% would cost this buyer $26k MORE in interest.

But here is the good news - the home will likely appreciate for WAY more than this over the next 10 years so you are still winning in real estate!

To answer this I'd have to ask, What is the alternative?

If the answer is rent - then I would say 1000% YES!

Here are my top reasons why it makes sense to buy in 2022:

1. Rent prices are increasing faster than home prices

2. You get 0% appreciation or equity when you rent

3. Home Prices and mortgage rates are NOT predicted to go DOWN - which means every day you wait to buy is costing you money.

The main tax benefit of owning a house is that the imputed rental income homeowners receive is not taxed...

What does that mean?

Well, essentially it is a form of income that is not taxed.

Homeowners may deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax if they itemize their deductions.

This is exactly why the rent trap gets so costly!!

Share this post with someone you know who is currently renting and let's help them find their way HOME while building WEALTH.

Now more than ever, I want to stress upon you all TO SAVE where you can and to really start analyzing where your money is coming and going on your monthly bank statements because the cost of living is only going up!

Don't panic though, I have a pro tip!

Like anything, we are experiencing a season or "cycle" where inflation is through the roof and everything is costing more.

Things like gas, oil, utilities, groceries, you name it!

And due to a large amount of Americans who are on a fixed income... if basic costs are coming up and income stays the same... will then this could snowball until it is too late or at the cost of extremely high credit card interest making it almost impossible to ever pay off.

What's the solution?

Get smarter around spending habits and analyze what you are paying for/if these items are truly essential as right now, things are just much more expensive than they have ever been and may continue to be this way until this too shall pass.

Print off your bank statements and start highlighting what can be cut or ways to "trim the fat."

Please share this post with others who may benefit as well!!

CLIENTS - don't forget to maximize your real estate tax write-offs!!

Let this be your favorite lender's tip for when you go to file your taxes!!

Just a friendly "Lender Reminder" while some of you may be off and tempted by those amazing President Day Sales today...

You can always pay cash, but DO NOT FINANCE anything while under the home buying process as any new credit pull or newly financed item (even if 0% for 100 months) will have to be included in your debt to income ratio which could hurt the qualification or approval.

If in doubt - just ask us. :)

Happy President's Day!!

Happy Saturday Friends!!

The battle between the LOAN TERMS...

Here is the deal, when it comes to paying off a mortgage in 15 years vs 30 years, I’d say it’s not only a big financial decision but also an emotional one.

Let's look at the math to help guide our decision (while ultimately knowing you have to always do what is best for you!).

By paying down the mortgage in 15 years, you would likely have less money than you would if you paid down the mortgage in 30 years, as long as you are consistently investing the difference between the 15 yr mortgage payment and the 30-year mortgage payment.

(*This example assumes a 10% rate of return in the stock market).

🏠 15-year mortgage:
☑️ Potentially a lower interest rate
☑️ Debt-free quicker
☑️ Higher monthly payment
☑️ Pay less interest
🏠 30-year mortgage:
☑️ Lower monthly payment
☑️ Pay more interest on the home
☑️ More funds freed up for investing/saving goals
☑️ Higher interest rate

Most wealthy people I know, choose a 30-year mortgage even if they have the cash to pay for the house in full.

This is because many wealthy people leverage low-interest debt.

After looking at the facts, which option would you choose?

Your debt-to-income ratio is all your monthly debt payments (found on a credit report using minimum monthly payments) divided by your gross monthly income.

This number is one-way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income.

Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out.

Obviously, this could vary depending on your unique situation, yet this graphic is a good cheat sheet to help you reverse engineer what your total monthly debt SHOULD be in order to qualify pending your total gross income.

Let me know if you want us to run numbers on your exact situation.

You’re probably excited to get started and ready to get to that coveted score in the high 700s or even 800s, whether you’re starting from scratch or looking to turn your credit around.

There are some tricks that can help you bump up your score quickly without compromising your credit health—no quick fixes are required.

Here are some of the best moves you can make to build up your score and establish healthy long-term credit habits.

Let me know what questions you have!

I am happy to help!!

Which do you think impacts your monthly mortgage payment more:

A. Sales Price
B. Interest Rate

Let's look at the numbers as an example:

A $50,000 above asking offer on a $500k sales price, would increase your monthly mortgage payment by $224.

However, if interest rates increase just 0.5% (half a point), the monthly mortgage payment increases by $142.

Perhaps the better strategy is to write an aggressive offer with a clause stating; "We will pay 5% over whatever the appraised value is," versus offering $200,000 or $100,000 over list price just to get the deal when we now have appraisal gap issues.

What are your thoughts?

Let's have some super bowl fun... at the start of every game there is a coin toss... do you think it will be heads or tails?

Who do you think will win?

What will the final score be?

Drop your answers below and we'll see who wins!