First Time Homebuyers

Tips to Reduce Home Insurance Costs in South Florida?

Are you a home buyer in Florida looking to save money on your insurance costs? Here are some expert tips to help you reduce your home and wind insurance expenses.

Shop Around: Don’t settle for the first insurance quote you receive. Take the time to compare prices from multiple insurers. By doing so, you can find the best coverage at the most competitive rates.

Increase Deductibles: Consider raising your deductibles to lower your premium. While this means you’ll pay more out of pocket in the event of a claim, it can significantly reduce your monthly insurance costs. Make sure you take on a deductible that won’t leave you financially overwhelmed when you need to make a major claim.

Improve Home Security: Installing security measures such as alarms, deadbolts, and smoke detectors can make your home safer and lower your insurance premiums. Insurers often offer discounts for homes with enhanced security features.

Bundle Policies: If you have multiple insurance needs, consider bundling your auto, umbrella, home and wind insurance with the same provider. This can lead to substantial savings on your premiums.

Maintain a Good Credit Score: Believe it or not, your credit score can affect your insurance rates. Pay your bills on time, keep your credit utilization low, and regularly check your credit report for errors to maintain a good credit score and potentially lower your insurance costs.

Consider Wind Mitigation Measures: Living in Florida means being prepared for hurricanes. By fortifying your home against wind damage with measures like impact-resistant windows and reinforced roof trusses, you can qualify for wind mitigation discounts.

Avoid Making Small Claims: While insurance is designed to protect you from significant financial losses, making multiple small claims can lead to higher premiums. Consider handling minor repairs out of pocket to avoid impacting your insurance rates.

Look for Discounts: t’s easy to miss a discount you’re eligible for. Homeowners often have the stress of the home-buying process in the background when they get coverage, meaning insurance could be one thing hurriedly checked off the list. You can qualify for discounts if you:

Have a residence with no smokers
Pay your premium upfront
Pick paperless billing
Sign up for automatic payments

Remember, every insurance policy is unique, so it’s essential to speak with a qualified insurance agent to find the best ways to lower your home and wind insurance costs in Florida. Don’t let high premiums take away from the joy of homeownership – take action today and start saving!

Filed under: 4 Point Inspection, Blog, Boca Raton real estate, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Flood Insurance, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Maintenance, home safety, Homebuyer Advice, Homeowners Insurance, Hurricane Preparedness, Insurance Claims, Real Estate, real estate news, South Florida Real Estate by Kim Bregman
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2023 Florida Jumbo Loan Limits

A jumbo loan is a type of mortgage loan that’s used to finance loans that exceed the conforming loan limit. In the United States, the Federal Housing Finance Agency (FHFA) sets loan limits for conforming loans each year.

If the home you’re purchasing will require you to borrow more than the conforming loan limit (CLL), you’ll need to apply for a jumbo loan. But because of the larger loan amounts and increased risk for lenders, Florida jumbo loans often come with higher interest rates and stricter requirements than conventional loans.

In 2023, the conforming loan limit for most U.S. real estate markets is $726,200. However, the jumbo loan limit in Florida depends on what county you’re planning to buy a home in.

· $726,200 is the conforming loan limit in most Florida counties.

· $874,000 is the maximum limit in Monroe County

The amount being borrowed is what determines whether you will need a jumbo loan, not the price of the home.

The requirements for a jumbo loan are much more stringent than a conforming loan. Each lender may have different requirements or processes, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: When it comes to obtaining a jumbo loan, credit score requirements are typically stricter than for conventional mortgages. While some lenders may be willing to accept a lower score, a credit score of at least 720 is generally required to qualify for a jumbo loan.

Larger down payment: When applying for a jumbo loan, keep in mind that down payment requirements are generally more substantial than for traditional mortgages. While the specific amount will depend on the lender and the borrower’s financial situation, many jumbo loan lenders require a down payment of at least 10%, and some require as much as 20% or more.

More assets: During the asset review process, lenders typically request that jumbo loan borrowers provide evidence of sufficient liquid assets or savings to cover the equivalent of one year’s worth of loan payments.

Lower debt-to-income ratio (DTI): Whether you’re applying for a traditional mortgage or a jumbo loan in Florida, lenders evaluate your spending habits and creditworthiness by analyzing your debt-to income ratio ( DTI) The DTI is determined by dividing the total of your monthly debt payments by your gross monthly income. While some lenders may accept a DTI as high as 50% for a conforming loan, those applying for a jumbo loan should aim for a DTI under 43% and ideally closer to 36%.

Additional home appraisals: For a jumbo loan, lenders may require an additional home appraisal to ensure that the property’s value is accurate. This is particularly true in places where there are few comparable home sales. The additional appraisal acts as a second opinion and helps the lender to mitigate their risk. It’s important to note that the cost of a second appraisal may be higher than a typical home appraisal, particularly in areas with fewer sales.

Filed under: Blog, Boca Raton real estate, closing costs, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Jumbo loans, Mortgage Information, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, Refinancing, South Florida Real Estate by Kim Bregman
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Hurricane Preparedness Before Your Vacation

As a Floridian, you already know the drill: hurricane season runs June 1 through November 30 each year, and certain hurricane preparations are needed to protect your home when storms appear to be heading your way. But what happens if you are some distance away, or even out of state, when this occurs? You can still prepare ahead of time – and a few extra steps is all it takes to secure your home while you’re away.

Performing the following hurricane preparation before vacation will allow you to relax and enjoy family time, or the scenery wherever you’re vacationing.

Insurance Coverage. Every year, you should review your homeowners, flood, and wind insurance policies to make sure you will have the coverage you need should your home be in the path of the next major hurricane or storm surge. Ideally, this is done before hurricane season begins, but should absolutely be done before you leave on vacation.

Home Safety Measures. Whatever hurricane preparedness you might normally do if you were home when a storm was approaching, do before you leave on vacation. This includes closing/installing your hurricane shutters, trimming trees, and bringing in any outdoor furniture or other items subject to becoming projectiles during a hurricane. Doing all of this before a storm is even on the horizon might seem like overkill – but the peace of mind it provides should bad weather threaten while you’re away will be priceless. Especially since you won’t be able to do much from a distance.

Electronics, Water & Gas. Consider unplugging valuable electronics and appliances to avoid potential power surges as the result of a hurricane or tropical storm. Alternatively, you could opt to turn the power off at the breaker. To avoid potential leaks, you may also want to consider turning off the main water and gas valves to your home.

Inform a Trusted Neighbor or Friend. Let someone you trust know about your vacation plans, including when you’ll be away, how you might be contacted, and any relevant details about your home security or other systems. They may be able to keep an eye on your home in your absence should a hurricane develop.

Ready the Emergency Kit. Stock up on supplies you would rely on if you were home during a hurricane, such as flashlights, batteries, first-aid kits, nonperishable food, and an ample supply of bottled water. This hurricane preparedness will be helpful if you return home without power or access to supplies are limited. Store a small version of this kit in your car, and top off the tank.

Have a Backup Plan. Should you be unable to get to your home upon your return from vacation, or if your home is damaged by a hurricane or tropical storm, have a contingency plan of possible friends or nearby locations you may be able to shelter in until your home is safe to return to.

‍Stay Informed. Even with all the right hurricane preparedness before you leave on vacation, you’ll want to monitor weather conditions from afar, especially once a hurricane or tropical storm has been identified. You’ll be able to make the best decisions when they are informed by as much information – and preparation – as possible.

Filed under: Blog, Exclusive Buyer Agency, First Time Homebuyers, Flood Insurance, Home Buyer Advice, Home Maintenance, home safety, Homebuyer Advice, Homeowners Insurance, Hurricane Preparedness, Insurance Claims, Uncategorized by Kim Bregman
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Beware of Polybutylene Pines in Older Homes

Think twice about purchasing a home with Polybutylene (PB) pipes. Polybutylene (PB) pipes were widely used in Florida residential construction from 1978 to 1995. Billed as a less expensive alternative to traditional copper pipes, up to 10 million homes across the United States were outfitted with PB piping during this period. Polybutylene pipes tend to degrade over time, creating small fractures and pinhole leaks. Any single fracture could eventually result in sudden failure, which generally ends up causing extensive damage to the home. A class-action lawsuit in 1995 resulted in nearly $1 billion being awarded to affected homeowners but the class action is no longer an option for compensation by current homeowners.

Many experts will tell you that PB pipe failure is not a matter of if, but when, and if you currently have polybutylene pipes in your home they have been there for many years. Polybutylene pipes take about 10-15 years to deteriorate, and sometimes you may not know you have a leak, especially if the pipes are behind sheetrock.

These leaks are a serious risk because they can create:

Mold
Water damage
Or even flooding

Ways to tell if you have PB pipes:

PB pipes used for interior applications are generally gray in color but may also be black. PB pipes used outside may be gray, blue or black.
PB pipe is flexible, not rigid.
PBpipes may be stamped with the code: PB2110.

The easiest places to see polybutylene pipes in your home are…

Near the water heater
Connecting to sinks and toilets
At the main shut-off valve or water meter

A home inspection and/or 4-point inspection will determine if there existsPB piping, but only if it is visible. No home inspection, for the purpose of purchasing a home, will open walls to determine the existence of polybutylene piping. I advise my clients to assume that it exists if the home was built between 1978-1995.

If PB pipes exist in a home, you basically have 2 options:

1. Replace the pipes with PEX (a more reliable type of plastic pipe)

2. Wait until they rupture and pay for expensive water repair AND then re-pipe the home.

To replace polybutylene pipes or copper pipes, you’ll have to remove them and re-pipe your home’s entire plumbing system. This will likely involve opening walls and even floors. Re-piping generally requires takes 1 – 2 days, dependent on the size of the home, followed by 2 – 4 days of drywall repair and floor repair and painting to return the home to its original appearance.

I advise my clients to think twice about purchasing a home with polybutylene piping unless you plan on doing extensive renovations. The home may be uninsurable in today’s insurance environment until this work is completed and as a result excludes buyers needing financing to purchase the home.

Filed under: 4 Point Inspection, Blog, Exclusive Buyer Agency, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, home Inspections, Homebuyer Advice, Homeowners Insurance, Insurance Claims, PB Pipes, PEX piping, Polybutylene pipes, Real Estate, Real Estate Investment, real estate news, South Florida Real Estate, What Buyers Should Check When Buying an Older Home by Kim Bregman
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Benefits of Home Automation

Home automation is increasingly popular as technology improves and devices become more affordable. Smart home automation works by connecting various devices in your home to a central hub or directly to a network. These devices can then be controlled remotely through a smartphone app, voice assistant or web interface.

Smart home components like security or climate control can be integrated with other smart devices, like your home entertainment system. This allows you to create a comprehensive and integrated smart home system that can automate many different tasks.

There are tons of reasons you may want to invest in home automation, but they generally fall into four categories.

Convenience. This is one of the primary reasons people start down the smart-home path. It just makes life a little easier when your home automates all the mundane tasks you used to have to do on a day-to-day basis.
Safety. A lot of smart-home technology is centered around your home’s security system, and there’s a good reason for that. No one piece of security equipment will protect your home comprehensively, but a network of pieces of equipment all working and thinking together can.
Sustainability. A lot of energy is wasted when you leave the lights on or keep your AC running when you’re gone for the weekend. A truly smart home will adjust itself to your habits and make sure your environmental impact is a little lighter.
Savings. You waste a lot of money when you leave things running unnecessarily. Your smart home will improve your economic efficiency by helping you remember to turn things off or down when they’re not needed

Here’s some of what the marketplace currently has to offer:

Detectors – Smart detectors provide peace of mind, so you aren’t left worrying that you forgot something. Smoke and carbon monoxide detectors are vital additions to any home. Gas and water leak detectors are good additions as well.
Heating and Cooling – With the initial success of 2011’s Nest Learning Thermostat, this product category is most associated with home automation.
Lighting – With the ability to control lights through your tablet or phone, intelligent lighting has become the initial step many take in setting up smart home technology.
Security Systems – This area has taken home automation to the next level. A lot of the newer, more advanced smart home tech is in this category, with keyless entry, camera equipment, and more. D
Hubs – Hubs, for the most part, are what tie your systems together. .
Appliances – Get a text message from your washer when a load finishes. Have your fridge create your grocery list for you. Shut the coffee pot off from work. Smoke a brisket for a few hours while remotely controlling its temperature. All possibilities with smart appliances.
Energy Management – Track your energy use and make changes in real time, from any location.
Lawn and Landscape Care – Control your pool cleaner, mow your lawn or set the irrigation system, all via smartphone app.
Window Coverings – Automatic shades and blinds timed to open or close with your bedtime or wake up call.

Technology experts say that tomorrow’s smart homes will have more seamless smart home device integration, more intelligent home appliances and gadgets, movement into the virtual world, and increased customization, efficiency, and control.

Filed under: 2022 Real Estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, First Time Homebuyers, Florida Real Estate, home automation, Home Buyer Advice, Home Buyers, Home Maintenance, home safety, Homebuyer Advice, Real Estate, Real estate trends, smart home, South Florida Real Estate, Uncategorized by Kim Bregman
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Confused About Flood Insurance?

The National Flood Insurance Program is a pre-disaster flood mitigation and insurance protection program designed to reduce the escalating cost of disasters. The National Flood Insurance Program makes federally backed flood insurance available to residents and business owners. Standard flood insurance by the National Flood Insurance Program generally covers physical damages directly caused by flooding within the limits of the coverage purchased. Private providers may have higher limits or broader coverage compared to National Flood Insurance Program policies.

A flood insurance policy is intended to cover physical damage to your building or personal property “directly” caused by a flood. Flood insurance covers damage caused by hurricanes, rivers, and tidal waters. Flood insurance covers water that rises, wind insurance covers water damage cause by blowing water, rain, etc. that enter or damage the property due to wind damage to the property.

Flood insurance rates are determined by several factors, including:

The amount and type of coverage
Location and flood zone
Design and age of your home
Elevation (for homes in high-risk areas built after the first Flood Insurance Rate Maps were drawn)

Losses due to flooding are not covered under most homeowners’ insurance policies. It is recommended that homeowners add a Florida Flood Insurance policy to ensure complete protection of your home in case of a hurricane strike.

In some flood zones, flood insurance is affordable at about $1.40 per day (average is $503 per year), and the U.S. government provides a 100% guarantee.

Flood insurance typically requires a 30-day waiting period on new policies. Here are the exceptions:

If flood insurance is being purchased in connection with the creation, increasing, extending, or renewing of your mortgage loan.
If your home has been recently designated in the SFHA and flood insurance is being purchased within the 13-month period following a map revision.
If flood insurance is required because of a lender determining that your mortgage loan that does not have flood insurance coverage should be protected by flood insurance.
If an additional amount of insurance is selected as an option on the renewal bill.
If your home is affected by flooding on burned Federal land that is a result of, or is exacerbated by, post-wildfire conditions when the policy is purchased within 60 days of the fire containment date.

Flood risk zones are identified by the National Flood Insurance Program (NFIP) and are divided into the following three categories:

High-Risk Zone

There is at least a 25% chance of flooding during a 30-year mortgage. All homeowners in high-risk zones with mortgages from federally regulated or insured lenders are required to purchase flood insurance.

Zones: A, V

Moderate to Low-Risk Zone

The risk of flooding is reduced but not completely removed. Even if you live in a moderate-to-low-risk zone, it’s recommended that you purchase flood insurance. About 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk. On average, only two inches of water in your home can cause $7,800 or more in damage. Poor drainage systems, rapid rainfall accumulation, and broken water mains can all result in flooding.

Zones: B, C, or X

Undetermined Risk Zone

No flood-hazard analysis has been conducted, but a flood risk still exists. Flood insurance rates reflect the uncertainty of the flood risk.

Zone: D

Only a licensed property and casualty insurance agent can sell NFIP flood insurance. Customers can find a local one using FEMA’s Agent Locator Tool.

Filed under: Blog, Exclusive Buyer Agency, First Time Homebuyers, Flood Insurance, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, Homeowners Insurance, Hurricane Preparedness, Uncategorized by Kim Bregman
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Beware of “Too Good To Be True” Lenders

Homeowners beware.

With the potential of a recession and rising mortgage rates; lenders are seeing fewer loan applications and many buyers are not able to qualify for legitimate loans. Homeowners are often coerced into using the equity in their homes to pay off debt, finance unexpected expenses and to cover job losses, etc.

Lenders that over promise are likely to be ones to stay away from. If you cannot qualify for a mortgage with a reputable financial institution if is best to wait to purchase a home until you can.

What Is Mortgage Fraud?

Any misrepresentation of information on a home loan application can be considered mortgage fraud, classified under Financial Institution Fraud (FIF). Mortgage fraud is typically carried out for profit or for housing.

Mortgage scams for profit: Those who attempt mortgage fraud for financial gain are typically lenders, brokers and other entities that make false claims to obtain monetary compensation or equity from lenders and homeowners.

How To Spot Mortgage Scams

In cases of mortgage fraud for profit, scammers most commonly promise victims to save their homes from foreclosure with term modifications and debt management, or to entice buyers with free services and reduced interest rates. Scammers prey on vulnerable homeowners and prospective homeowners who lack education or financial security.

Predatory mortgage lenders will often use tactics to make their offer seem like a good deal. You may be getting scammed. The following signs may indicate mortgage fraud.

‘Too Good To Be True’ Interest Rates

Mortgage rates that are noticeably lower than market interest rates are typically a sign of various hidden fees or even a bait-and-switch tactic. Predatory lenders may try to tell you that you no longer qualify for the advertised rate, or tack on additional fees after locking in the original rate if they think they can get away with it.

Your Loan Estimate Isn’t Honored

Your Loan Estimate gives basic loan information in a standardized format from the U.S. Department of Housing and Urban Development. It includes itemized costs of a loan, including fees, and is sent within 3 business days of a mortgage application. Lenders aren’t allowed to charge fees outside of the credit report fee prior to accepting the terms.

Mortgage Payment Scams

A mortgage payment should remain under 28% of your monthly income. The higher your debt-to-income ratio (DTI), the riskier you are for a mortgage lender. If your lender is recommending a type of home that requires a loan larger than 28% of your disposable income, be wary.

Homes Overvalued

Overvalued property creates risk for legitimate mortgage lenders by generating an inaccurate resale valuation or an inflated borrower income that will be difficult to pay off with existing income.

Penalties For Prepayment

A prepayment penalty is charged for paying off your mortgage too quickly or for refinancing. While prepayment penalties can offer lower overall interest rates, oftentimes, they’re hidden in the fine print of agreements. As a result, many borrowers don’t realize the stipulations of the penalties and are hit down the line with fees. Generally, these penalties are included as a way for lenders to make money on interest payments at the expense of the borrower.

Your Credit Score Doesn’t Matter

Your credit score will always affect your mortgage rate, without exception. If you’re being offered a home loan that states this score won’t affect the mortgage, be wary. These tactics are typically scams that prey on low-income borrowers and generally come with undesirable terms.

Deceptive Marketing

Victims of predatory lending frequently describe being subjected to a flood of phone calls and letters from brokers and lenders, encouraging them to take out a home equity loan.

Red flag: Lenders who engage in high-pressure tactics, telemarketing, cold calling, and deceptive advertising campaigns.

Excessive Fees

Predatory lenders routinely charge borrowers fees totaling as much as 15% to 20% of the loan amount. Fees alone can have a ruinous impact on a homeowner’s equity. But add them to prepayment penalties and you’re locked into a high-rate, financially disastrous loan.

Red flag: You inquire about fees and charges, but you can’t get the facts. They insist there are no “upfront” fees.

Equity stripping

You need money. You don’t have enough coming in each month to cover your expenses. You have equity in your home. A lender tells you that you could get a loan. This is a big shock because you know you will have difficulty keeping up with the payments. The lender encourages you to “pad” your income on your loan application to help get the loan approved.

Equity stripping is particularly dangerous for people who find themselves in financial trouble. Scammers target people who are facing foreclosure or other financial hardships and make false promises of relief. Beware of anyone who pops up at what seems like the perfect time promising to let you cash in the equity you’ve built up without any consequences. Falling for this scam could end up with you losing your home and all the equity you’ve accumulated.

Red flag: Any suggestion that you can qualify for a loan when you know the truth is you cannot reasonably make the payments.

Balloon payment

You’ve fallen behind in your mortgage payments. Another lender offers to save the day by refinancing your mortgage and lowering your monthly payments. But beware. The payments may be lower because the lender is offering a loan on which you repay only the interest each month.

Red flag: Unrealistically low payments.

Loan churning

Senior homeowners who are asset-rich, but cash-poor are prime targets for this scam. A mortgage company contacts you offering to refinance your loan and throw in some extra cash along with it. The problem is, each time you refinance, the fees and interest rates are going up. Red flag: Lenders that contact you and any suggestion that a loan is the way to get your equity to start “working” for you.

Not all lenders are predatory. The best way to protect yourself against those who are is to be keenly aware of their tactics and always on the lookout for the red flags. If you need an explanation, talk to someone you can trust who has nothing to gain or to lose by the decision you make. Be careful how often you refinance your mortgage. Talk to a HUD-approved housing counselor (hud.gov/counseling) if you have questions or concerns about any mortgage loan transaction. Then consider all the costs of financing and repayment before you agree to a loan.

Filed under: Blog, Boca Raton real estate, cash out refinance, Exclusive Buyer Agency, First Time Homebuyers, Florida Real Estate, HELOC, Home Buyer Advice, Home Buyers, home equity, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, peer to peer lending, private money lender, Real Estate, real estate news, Refinancing, Reverse Mortgage, Seller Financing, South Florida Real Estate by Kim Bregman
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Planning for 2023 As Mortgage Rates Rise

If you’ve been house-hunting in recent years, you’ve really been through it. Maybe you were waiting out the market, hoping the rocketing prices would start to flatten. Now, of course, they have — but between 2021 and 2022, mortgage rates have more than doubled, from less than 3 percent to more than 7 percent.

If you are renting and trying to save for a down-payment, the cost of your rental has likely increased as well.

Sellers who are sitting on low mortgage rates are not listing their homes for sale and supply shortages, cost of land, and cost of lending, along with higher labor and building costs have slowed down new construction.

All these factors contribute to a continued shortage of desirable inventory and home prices are staying propped up and not decreasing as one would expect.

Buyers need to adjust their expectations…Every buyer needs to do a gut check on how much house they can afford now. That might seem daunting, but higher mortgage rates don’t have to derail your dream of buying a home. In fact, historically, today’s rates are not considered particularly high.

Review your Budget: When you review your budget, keep in mind that newly built homes typically come with builder and manufacturer warranties and new energy-efficient appliances. Those advantages of a new home can lower your monthly housing costs. That’s especially true if you currently own an older home that needs repairs and has inefficient appliances.

Raise More Cash: Another option to buy a home with a higher rate is to spend more cash up-front. You can use cash to increase your down payment as a percentage of your loan amount, pay for builder upgrades in cash, or buy down your loan’s interest rate. You should work with your lender on the best use of your cash to achieve the lowest ongoing expenses to home ownership.

Evaluate Loan Options: A third strategy is to get a hybrid loan. This type of mortgage has a fixed rate that resets at the end of a specified period and is then fixed or adjustable for the remainder of the term. An example is a 7/1 hybrid adjustable-rate mortgage (ARM). This type of loan has a lower fixed rate for the first seven years. After that, the rate is adjusted annually (that’s the “1” part) for the remainder of the 30-year term.

Hybrid loans can be more affordable since the initial rate is usually lower. But there’s a risk: If you don’t refinance or sell your home before the rate resets, your payment could rise significantly for the rest of the term. If you can’t afford the higher payment, you could lose your home.

Rethink Your Needs and Wants: Buying a less costly home is another way to cope with higher rates. Less costly doesn’t have to mean a home you don’t like or that doesn’t fit your needs.

Reconsider Your Timing: Interest rates fluctuate, sometimes dramatically, over time. If you postpone buying a home, rates might be lower in the future, making the home you want more affordable. Or they could be higher, putting the home you want further out of reach. Experts are predicting the latter. The question for homebuyers is whether waiting and hoping makes sense. The answer is never as clear as a crystal ball.

Experts recently polled project average 30-year mortgage rates to fall between 5-9.31%in 2023. No one is expecting a move downward in the next 5 years. Several factors could lead to unexpected rate movements in the coming year.

Owning a home has certain benefits that renting doesn’t offer. Renting means no control over future [home price or interest rate] increases, no accumulation of equity through price appreciation, no tax deduction for property taxes and mortgage interest if you itemize your deductions, and no benefit for improvements you make to the property. Waiting to buy while you hope rates move lower means forgoing those benefits.

The lost opportunity of not buying due to a fear of higher rates far outweighs the benefits of homeownership. It’s best to take advantage of what the rates are today and build equity sooner rather than later.

Filed under: 2022 Real Estate, Blog, Boca Raton real estate, cash out refinance, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Foreign Home Buyers, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, International Home Buyers, International investors, Mortgage Information, peer to peer lending, private money lender, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, Refinancing, Relocation, Retirement, second home, Self Directed IRA, Seller Financing, South Florida Real Estate by Kim Bregman
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Shop for a Mortgage as Rates Rise

It is always advisable to shop for a mortgage, but as rates rise the savings can be significant. Each lender offers different loan programs and sets different borrower requirements. It’s important that you get quotes from several types of financial institutions, mortgage lenders, and brokers to find one that offers the best loan program for you.

Banks

Banks are for-profit financial institutions that typically offer several different products such as mortgages, credit cards, checking and savings accounts, and more. Many large banks have branches nationwide or throughout a specific region where you can get in-person support, and they also might offer a wider selection of mortgage products.

One downside to banks is that they tend to charge slightly higher interest rates on home loans compared to credit unions, according to a side-by-side comparison by the National Credit Union Administration.

Credit Unions

Credit unions are nonprofit organizations that offer banking services to their members. In addition to offering lower interest rates on mortgages and other financial products, credit unions have historically earned the highest customer satisfaction ratings.

However, you’ll need to join a credit union to get a mortgage. Some credit unions are open to anyone, but others may require you to work in a certain industry or live in a certain area.

Mortgage Lenders

You might also find a home loan with another type of lender. For instance, online lenders, such as Rocket Mortgage, offer an end-to-end digital process. You may be able to get pre-approved, upload loan documents, and close on the loan all online. By saving money on overhead costs, online lenders may also be able to offer lower rates or special discounts.

Mortgage Brokers

Mortgage brokers are licensed to act as a go-between with you and your lender. When working with a mortgage broker, you’ll have access to a variety of residential loan programs from different lenders. The broker doesn’t make a loan. Instead, the broker has a variety of lenders they work with.

In general, a mortgage broker will have a lot of knowledge of different home loan programs, and a good idea of what you might qualify for, including what interest rate you’re eligible for.

Shop For Best Rates

Getting rate quotes from multiple lenders and comparing offers is one of the easiest ways to save money on your mortgage. That’s because the interest rate is one of the key components of the mortgage’s total cost, and rates can vary considerably with each lender. Despite this, about half of homebuyers skip shopping for the best rate.

To find the best loan for you, research all costs of the loan. Knowing just the amount of the monthly payment or the interest rate isn’t enough. Even more important than knowing the interest rate is knowing the APR — the total cost you pay for credit, as a yearly interest rate. The interest rate is a very big factor in calculating the APR, but the APR also includes costs like points and other credit costs, like mortgage insurance. Knowing the APR makes it easier to compare “apples to apples” when considering mortgage offers.

When you’re shopping around, you may see ads or get offers claiming to have rates that are very low or fixed. But they may not tell you the true terms of the deal as the law requires. The ad may feature buzz words that are signs that you’ll want to dig a little deeper.

Low or fixed rate. A loan’s interest rate might be fixed or low only for a short introductory period — sometimes as short as 30 days. Then your rate and payment could increase dramatically. Look for the APR: under federal law if the interest rate is in the ad, the APR also should be there. Although it should be clearly stated, you may instead need to look for it buried in the fine print or deep within a website.
Very low payment. This might seem like a good deal, but it could mean you would pay only the interest on the money you borrowed (called the principal). Eventually, though, you would have to pay the principal. That means you would have higher monthly payments or a “balloon” payment — a one-time payment that is usually much larger than your usual payment.

You also may find lenders that offer to let you make monthly payments where you pay only a portion of the interest you owe each month. The unpaid interest is added to the principal that you owe. That means your loan balance will increase over time. Instead of paying off your loan, you end up borrowing more. This is known as negative amortization. It can be risky because you can end up owing more on your home than what you could get if you sold it.

Find out your total payment. While the interest rate determines how much interest you owe each month, you also want to know what you must pay for your total mortgage payment each month. The calculation of your total monthly mortgage payment considers these factors, sometimes called PITI:

principal (money you borrowed)
interest (what you pay the lender to borrow the money)
taxes and
homeowners’ insurance

“Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation,” says Sam Khater, Freddie Mac’s chief economist. “Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate.”

Filed under: 2022 Real Estate, Blog, Boca Raton real estate, cash out refinance, Exclusive Buyer Agency, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, peer to peer lending, private money lender, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Refinancing, Reverse Mortgage, Seller Financing, South Florida Real Estate by Kim Bregman
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2022 Hurricane Preparedness Guide

2023 Hurricane Preparedness Guide

Look carefully at the safety actions associated with each type of hurricane hazard and prepare your family disaster plan accordingly. But remember this is only a guide. The first and most important thing anyone should do when facing a hurricane threat is to use common sense.

Know Hurricane Terms:

Hurricane Watch – A hurricane is possible within thirty-six hours. Stay tuned for additional information.

Hurricane Warning – A hurricane is expected within twenty-four hours. You may be advised to evacuate. If so, evacuate immediately.

Storm Surge – Storm surge is simply water that is pushed toward the shore by the force of the winds swirling around the storm. This advancing surge combines with the normal tides to create the hurricane storm tide, which can increase the mean water level 15 feet or more.

Ask your local emergency preparedness office about evacuation plans. Learn evacuation routes.

Plan a place to meet your family in case you are separated from one another in the hurricane.
Assemble a disaster supplies kit ( See information below)
Board up windows. Permanent storm shutters and impact glass offer the best protection. Also, you can use 5/8″ marine plywood. Tape does not prevent windows from breaking.
Know how to shut off utilities.
Make a record of your personal property (take digital photos or video tape the contents of your home and/or business and keep in a waterproof container with you along with your homeowners insurance policy or better yet, upload everything to the Cloud)
Be sure trees and shrubs around your home are well trimmed.
Clear loose and clogged rain gutters and downspouts.
Determine how and where to secure your boat.
Reduce the water level in your pool by about 1 foot. DO NOT drain your pool.
Charge cell phones and back up batteries
Get extra cash since ATMs will be inoperative if power is lost.
Consider flood insurance and purchase it well in advance.

Have a Place To Go:

Develop a family hurricane preparedness plan before an actual storm threatens your area. If your family hurricane preparedness plan includes evacuation to a safer location for any of the reasons specified with in this web site, then it is important to consider the following points:

If ordered to evacuate, do not wait or delay your departure.

If possible, leave before local officials issue an evacuation order for your area. Even a slight delay in starting your evacuation will result in significantly longer travel times as traffic congestion and weather deteriorates worsens.

Select an evacuation destination that is nearest to your home, preferably in the same county, or at least minimize the distance over which you must travel in order to reach your intended shelter location. In choosing your destination, keep in mind that the hotels and other sheltering options in most inland metropolitan areas are likely to be filled very quickly in a large, multi-county hurricane evacuation event.

If you decide to evacuate to another county or region, be prepared to wait in traffic.

The large number of people in this state who must evacuate during a hurricane will probably cause massive delays and major congestion along most designated evacuation routes; the larger the storm, the greater the probability of traffic jams and extended travel times.

If possible, make arrangements to stay with the friend or relative who resides closest to your home and who will not have to evacuate. Discuss with your intended host the details of your family evacuation plan well before the beginning of the hurricane season.

If a hotel or motel is your final intended destination during an evacuation, make reservations before you leave. Most hotel and motels will fill quickly once evacuations begin. The longer you wait to make reservations, even if an official evacuation order has not been issued for your area or county, the less likely you are to find hotel/motel room vacancies, especially along interstate highways and in major metropolitan areas.

If you are unable to stay with friends or family and no hotels/motels rooms are available, then as a last resort go to a shelter. Remember, shelters are not designed for comfort and do not usually accept pets. Bring your disaster supply kit with you to the shelter. Find Pet-Friendly hotels and motels.

Make sure that you fill up your car with gas, before you leave.

Preparing Your Pets for Emergencies Makes Sense.

Get Ready Now.

If you are like millions of animal owners nationwide, your pet is an important member of your household. The likelihood that you and your animals will survive an emergency such as a fire or flood, tornado or hurricane depends largely on emergency planning done today. Some of the things you can do to prepare for the unexpected, such as assembling an animal emergency supply kit and developing a pet care buddy system, are the same for any emergency. Whether you decide to stay put in an emergency or evacuate to a safer location, you will need to make plans in advance for your pets. Keep in mind that what’s best for you is typically what’s best for your animals.

If you must evacuate, take your pets with you if possible. However, if you are going to a public shelter, it is important to understand that animals may not be allowed inside. Plan in advance for shelter alternatives that will work for both you and your pets.

Make a back-up emergency plan in case you can’t care for your animals yourself. Develop a buddy system with neighbors, friends and relatives to make sure that someone is available to care for or evacuate your pets if you are unable to do so. Be prepared to improvise and use what you have on hand to make it on your own for at least three days, maybe longer.

Disaster Supply Kit

I personally prepare a hurricane closet in May with all the needed supplies and materials so that there is never a last minute rush to the store when the shelves have been cleaned out.

Water :

Plan on one gallon of water per person per day for at least 3 days, for drinking, washing, cooking, and sanitation. Extra water for pets
Store as much as possible in plastic containers such as soft drink bottles.
Avoid using breakable containers, such as glass bottles or mason jars.
Fill bathtubs with water for bathing and washing dishes

Food :

Store at least a three day supply of non perishable food.
Choose foods that do not require refrigeration or cooking.
Choose foods that are healthy and high nutrition type. (Canned meats, fruits and vegetables, protein or fruit bars, dry cereal or granola, peanut butter, dried fruit, nuts, crackers, canned juices, non-perishable pasteurized milk, high enery foods, vitamins, food for infants and pets, comfort/stress foods)

Supplies and Equipment:

A battery operated radio with extra batteries
NOAA Weather Radio with tone alert and extra batteries
A flashlight with extra batteries
Blankets or sleeping bags ( store in trash bags to keep dry)
Paper plates and utensils, including a non electric can opener
Candles and matches in a waterproof container
Plastic sheeting and duct tape to shelter-in-place
Toothbrushes, toothpaste, soap, moist towelettes, and other personal grooming items
Paper towels and toilet paper
First aid kit and medicines ( ask your pharmacist or drug supply company for a one month hurricane supply and store in water proof container)
Fire extinguisher
Wrench or pliers to turn off utilities
Cell phone and plug in battery operated charger
Infant formula and diapers
Books, games and toys to keep kids occupied ( remember those batteries)
Important family documents such as copies of insurance policies, identification and bank account records, COVID Vaccine Passport, in a waterproof, portable container
Complete change of clothing including long sleeved shirt, long pants and sturdy shoes
Insect repellent and sun-screen
Paper and pencil
Local Maps
Make sure to keep all of your medications filled.

Business Preparedness

* Have an emergency communication plan in place before the storm hits. How will co-workers stay in contact if the physical location of a business is damaged?

* Turn off all non-critical work devices before the storm hits.

* Alert a third party about business evacuation plans in case a storm makes it impossible to get to your place of business.

* Protect important business documents that you may need quickly, such as property insurance policies.

* Have cash on hand to pay employees or contractors after the storm.

* Know which employees are certified in CPR, EMT, etc.

* If possible, disconnect a building’s main electrical feeds.

* Have a plan to notify all employees, post-storm, about damage and how you’ll move forward.

* Review contracts that are date sensitive and have a backup plan in place to handle potential problems.

* Assess all functions that could be impacted by a lapse in business – cash flow, bills, budgets and any upcoming events.

Links to Hurricane Information:

National Hurricane Center

NWS Hurricane Awareness site

FEMA Hurricane Info

American Red Cross

FEMA

Filed under: 2022 Real Estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, First Time Homebuyers, Flood Insurance, Home Buyer Advice, Home Buyers, home safety, Homebuyer Advice, Homeowners Insurance, Hurricane Preparedness, Insurance Claims, real estate news, South Florida Real Estate by Kim Bregman
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