June is National Homeownership Month, a time to celebrate the value of owning a home and its impact on individuals, families, and communities. This annual observance highlights the significance of homeownership in building strong communities, promoting financial stability, and achieving the American dream.Homeownership is a cornerstone of the American society, providing individuals with a sense of pride, stability, and security. It is not just about owning a piece of property; it is about investing in the future, building equity, and creating a place to call home. Studies have shown that homeownership can lead to greater overall well-being, improved educational outcomes for children, and increased civic engagement within communities.

In This Blog:

• Origins of Homeownership
• Non-Financial Benefits
• Financial Benefits
• Homeownership Statistics
• Free Homebuyer Resources

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Origins of Homeownership Month

Have you ever wondered how National Homeownership Month came to be? Well, let's take a trip down memory lane to the Clinton administration in 1995. It all started as a week-long celebration of homeownership, but it wasn't until 2002 that the U.S. government officially recognized it as a month-long event.

The main goal behind National Homeownership Month is to highlight the importance of owning a home and to shed light on the opportunities it can bring. It's a time to embrace the American Dream and to recognize the significance of putting down roots in a community.

Throughout the month of June, various organizations, government agencies, and housing advocates join forces to provide resources, education, and support to those who dream of becoming homeowners. It's a time to learn, to grow, and to take that first step towards making your homeownership dreams a reality.

So, whether you're currently a homeowner or you're just starting to explore the idea, National Homeownership Month is a great time to celebrate the value of owning a home and to learn more about the opportunities that await you. Let's come together to celebrate the American Dream and the joy of owning a piece of the land we call home.

Non-Financial Benefits of Homeownership

When it comes to owning a home, the benefits go beyond just financial gains. Let's explore the intangible rewards that homeownership brings:

• Pride of Ownership: Your home is more than just a place to live; it's a reflection of who you are. It's your canvas to showcase your personality, style, and individuality, creating a space that truly feels like home.

• Community Engagement: By owning a home, you're not just a resident; you're a stakeholder in your community. Homeownership fosters a sense of belonging and stability, encouraging you to actively participate in local events, initiatives, and affairs, ultimately strengthening the bonds within your neighborhood.

• Stability and Security: One of the most significant benefits of homeownership is the sense of stability and security it provides. Having a place to call your own offers a sanctuary for you and your family, creating a nurturing environment where you can thrive and grow together.

These non-financial benefits of homeownership highlight the emotional and social rewards that come with owning a home, making it not just a financial investment but a cornerstone of personal fulfillment and community engagement.

Financial Benefits of Homeownership

When it comes to owning a home, the advantages extend far beyond emotional fulfillment to include significant financial benefits:

• Forced Savings: Each mortgage payment contributes to your net worth, serving as a form of disciplined savings.

• Equity Growth: Homeownership allows you to accumulate equity over time, providing a valuable asset that can be leveraged for various purposes such as funding education, starting a business, debt repayment, retirement planning, and more.

• Appreciation: Historically, real estate has shown a tendency to appreciate in value over the long term, making homeownership a reliable investment that can yield substantial returns over time.

• Enhanced Financial Security: By owning a home, you significantly increase your net worth, granting you greater financial flexibility and resilience to navigate unexpected challenges or seize new opportunities.

• Protection Against Inflation: Fixed mortgage payments shield homeowners from the impact of rising rental costs, serving as a safeguard against inflation and ensuring financial stability in the face of economic fluctuations.

• Tax Advantages: Consultation with a tax professional can unveil potential tax benefits associated with homeownership, offering opportunities to optimize your financial situation and maximize savings through tax incentives.

These financial benefits underscore the value of homeownership as a strategic investment in your financial well-being and long-term prosperity.

Homeownership Statistics

The latest data provides insight into the impact of homeownership:

• As of the first quarter of 2024, the homeownership rate stands at 65.6%.

• Millennials surpass baby boomers and become the largest group of home buyers at 38%.

• The National Association of Realtors' 2023 Profile of Homebuyers and Sellers reveals that the average age of first-time homebuyers is 35.

• As of early 2024, the average mortgage-holding homeowner holds $299,000 in equity according to ICE’s Mortgage Monitor report. This marks a notable increase from $274,000 at the close of 2022 and a significant rise from $182,000 recorded at the onset of the pandemic.

Bottom Line

As we commemorate Homeownership Month this June, it's essential to acknowledge the profound impact that owning a home can have. From the financial security it offers to the sense of belonging and personalization it brings, homeownership is more than just a transaction—it's a cornerstone of stability and community enrichment. Let's stand together in supporting and empowering individuals on their path to homeownership, paving the way for a brighter and more prosperous future for all.

Free Homebuyer Resources

To support and educate potential home buyers, Greenway provides a wealth of free information and resources.

• FREE First-Time Home Buyer eBOOK – Handy resources & checklists
• First-Time Home Buyer Resources – Learn about our First-Time Home Buyer Programs 
• Home Buying Comparison Chart - Take this chart with you during your home search
• Buying Your First Home – Learn everything you need to know
• Refinance Your Mortgage  - Get a free loan quote
• Renovation Mortgage Programs - Put your home improvement plan into action
• Construction Loans - Can't find your dream home? Build it with a Construction Loan
• FREE Construction Loan Guide Book - Learn everything you need to know about construction loans and the process
• Mortgage Calculators – We have an entire library of easy-to-use calculators!
• Mortgage Terms – Get up to speed on some mortgage terminology
• What to Expect During the Mortgage Process
• When Can You Cancel Your Private Mortgage Insurance? - Find out by using our easy calculator
• Get a FREE Pre-Approval
• Ready to get started? Apply Now using our online application.

 

As your loan balances decrease through regular payments and your home values increase over time, you may become eligible to eliminate your Private Mortgage Insurance (PMI). PMI can add hundreds of dollars to your monthly expenses. By removing it, you can keep that money in your pocket instead.

Moreover, if you now have sufficient equity to drop PMI, you also have enough to secure a Home Equity Line of Credit (HELOC). A HELOC is a versatile financial tool that can be used for a variety of purposes, from funding home improvements to financing higher education.

No Immediate Need For Cash?

This is where the beauty of a HELOC truly shines.

A HELOC can serve as an emergency reserve account to pay for life's unexpected expenses. The best part? If you don't use the funds, you don't make a payment.

Even when you do tap into your HELOC, you typically only need to pay interest on your balance initially. Principal payments are often deferred for 10 years or more, providing you with flexibility and financial breathing room.

In essence, a HELOC offers a safety net for unforeseen circumstances while also providing the flexibility to access funds for planned expenses or investments. It's a financial tool that allows homeowners to leverage the equity in their homes to meet their evolving needs and goals.

Bottom Line

If you're curious by the prospect of leveraging your home equity to eliminate PMI and gain access to a flexible line of credit, it's worth exploring further. Whether you're considering home improvements, planning for the future, or simply want to optimize your financial situation, a HELOC could be the solution you've been looking for.

Ready to explore your options? Let's chat and see if this financial strategy aligns with your goals. The Greenway Team is here to provide personalized guidance and support every step of the way. 888-616-9885

 

 

Love it or List It? We've all played out that scenario in our minds at some point, haven't we? The choice between renovating your current home or hunting down the perfect fully renovated dream home. Whichever path you choose, one thing's for sure: a well-executed home renovation can work wonders for your space, not only enhancing its charm but also boosting its resale value. However, not all renovations are created equal in terms of maximizing your return on investment (ROI).

So, which upgrades are worth their weight in gold? We've got the lowdown on the top five in today's blog and provide solutions to help finance these projects. Let’s dive in.

#1 Kitchen Upgrades

Imagine sleek countertops, a trendy backsplash, and appliances straight out of a chef's dreams. A modern kitchen isn't just a cooking space; it's the heart of the home. Even simple updates can work wonders, turning your kitchen from drab to fab and catching the eye of potential buyers.

Key Kitchen Renovations To Consider:

• New Countertops

• Updated Backsplash

• Fresh coat of paint

• High-end appliances

#2 Bathroom Remodels

Let's talk about luxury – soaking tubs, rain showers, and fixtures that scream "spa day every day." From minor touch-ups to full-blown makeovers, bathrooms hold serious ROI potential. After all, who can resist the allure of a beautifully designed oasis?

Key Bathroom Renovations To Consider:

• New Soaking Tub

• Sleek Walk-In Shower

• Heated Floors

• New Skylight

#3 Hardwood Floors

There’s simply no question about it, adding hardwood floors can significantly enhance the value of your home. It's not just about aesthetics; it's about durability, easy maintenance, and that timeless appeal that never goes out of style. Plus, buyers are willing to pay more for homes with these classic floors. We know what you’re thinking. How much will this cost? It depends on the size of your rooms and the style you choose.

#4 Eco-Friendly Improvements

Going green isn't just a trend; it's a smart investment. Energy-efficient upgrades like windows, lighting, and appliances not only save you money on utility bills but also attract environmentally conscious buyers who are willing to pay more for sustainability.

• Energy-Saving Windows
• LED Lighting
• Energy Star-Certified Appliances
• Higher-rated Insulation
• Updated HVAC
• Solar Panels

Did you know Greenway Offers Energy Efficient Mortgages, too? With this type of mortgage, you can roll upgrade costs into your mortgage, making it easier to finance your eco-friendly renovations.

Click to learn more about our Energy Efficient Mortgage program along with its eligible upgrades.

#5 Adding Extra Space

Whether it's a cozy attic retreat, a basement hideaway, or an outdoor oasis, extra living space adds serious value to your home. With more people working remotely, home offices and outdoor living areas are in high demand, making these additions a savvy investment.

• Outdoor Living Space
• Finished Basement
• Attic
• Workout Room
• Additional Bedroom
• Office Room
• Deck/Patio

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Solutions to Finance Your Home Renovations

#1 Greenway’s Home Renovation Loans Can Help

Whether your home improvement projects are big or small, a Renovation Loan can help you enhance your home's value while financing the improvements conveniently.

Unlike personal loans and other financing options with higher interest rates and monthly payments, our renovation loans consolidate the purchase price and renovation costs into a single mortgage payment. Whether you're purchasing a new property or refinancing your existing mortgage, our renovation programs streamline the process, making it effortless to finance your home improvements while maximizing your investment.

Our Renovation Loans Include:

• FHA 203 K Program
• Streamlined 203K
• Standard 203K
• HomeStyle Renovation Loan

If you're curious about how a Renovation Loan can benefit you, reach out to us today or visit our website for more information.

#2 Cash-Out Refinances for Renovations:

As home prices continue to climb, many homeowners find themselves sitting on a considerable amount of equity. In fact, according to CoreLogic, the average U.S. homeowner has approximately $290,000 in equity.

Another option to consider is a Cash-Out Refinance. This refinancing strategy enables you to unlock your home's equity by refinancing your mortgage for more than your current balance, allowing you to pocket the difference in cash.

Overall, it's a smart move for increasing your home's overall value. Any funds allocated toward repairs and improvements have the potential to enhance your home's value even further.

Learn more about Cash-Out Refinances and their benefits here.

Bottom Line:

So, there you have it – the top five home renovations that promise a bang for your buck. But remember, it's not just about the upgrades; it's about strategic planning and market research to understand what features the top-selling homes in your area offer.

With these top renovations in mind, which one will you get started on first?

 

A lot of would-be homeowners are waiting to buy due to higher interest rates. That can be wise, if the payments are simply out of reach, yet current rates alone should never keep you from making a move. After all, ownership can still have financial benefits.

Homeownership Has Financial Benefits

How? The real cost of owning is less than the payment and the long-term benefits typically remain regardless of where rates are when you buy. Just look at where rates have been in the past. Recent rates have simply been close to the long-term average.

Housing Market in 1990

To see how ownership at higher rates is still beneficial, let’s go back in time and image this scenario. In 1990, the media price of a home in the United States was $122,900, and interest rates were about 10%. Back then, buyers had the same concerns that you may now. Yet those who purchased have had many opportunities to lower their payment by refinancing to lower rates and have enjoyed significant appreciation in value.

Median home prices climbed to over $400,000 in 2023. Those who bought in 1990 saw their home’s value rise more than three times over the course of their 30-year loan. No one knows for sure what home prices will do in the future, but historically, values have risen an average of 5% per year. That means that a $400,000 home could appreciate by $20,000 in the first year alone.

You won’t get a check for this growth until you sell or refinance, but the equity can open the door to many financial opportunities in the meantime. Think of it like this: if you’re paying 8% in interest, but appreciation and value provides an average of 5% per year in equity, one could say that your real cost of financing is 3%.

Homeownership and Taxes

Homeownership brings other potential benefits too. For instance, when you own a home, the interest and real estate taxes you pay may be deductible. This can reduce the “real” cost of your payment even further. And of course, all the while, you enjoy what the government calls “owner’s equivalent rent”. This is the value of the housing itself, or what you would otherwise pay to rent a similar home. Add it all up, and you can see that weather rates are high, low, or somewhere in between, owning a home can still make a lot of dollars and sense.

Ready To Get Started?

Reach out with questions or to get started on your own journey home. The Greenway Team is happy to help.

 

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Homebuyer Resources

• First-Time Homebuyer Resource Page
• Loan Programs
• NJ First-Generation Down Payment Assistance Program
• NJ Conventional Down Payment Assistance Program
• Homebuying Comparison Chart
• Homebuyer Guide
• Mortgage Calculators
• Apply Now - Full Mortgage Application
• 5 Reasons To Work with a Mortgage Lender

 

 

There are countless reasons to stay awake at night: dreaming of your next vacation, getting lost in a good movie, or delving into an interesting podcast. But one thing that shouldn't keep you up? High-interest debt.

US households have been facing a significant increase in non-mortgage debt payments, nearly matching what they traditionally spend on mortgage interest. According to an article from Bloomberg.com:

“Non-mortgage interest payments climbed to an annual rate of $573.4 billion in January. That’s the highest on record even after adjusting for inflation — and within a hair’s breadth of the $578.3 billion in annual mortgage interest that households were shelling out as of the last quarter of 2023.”

This shift prompts a closer look at how homeowners can effectively manage their financial burdens.

Understanding the Trend

We're seeing a remarkable change where interest payments on non-mortgage debt, like credit cards and student loans, have surged to record levels, nearly equaling mortgage payments. According to the Fed:

 “The typical charge on a credit card has climbed to a record above 20%.”

This is a departure from the usual pattern where mortgage payments typically outweighed other forms of debt, can be attributed to various factors.

• Millions of Americans took advantage of the low-rate home loans in the post-2008 decade or even lower rates early in the pandemic, shielding those debts from the Federal Reserve's subsequent increase in borrowing costs.

• Other types of credit, which have grown faster than mortgage loans since the Great Financial Crisis, have seen a significant increase in servicing costs since 2022.

Impact on Household Finances

The rapid growth in consumer debt has raised concerns about potential defaults. Many households, particularly those with lower incomes, have ended up resorting to the costliest types of debt.

Exploring Mortgage Refinancing Solutions

Imagine consolidating all your debt into one manageable payment, bidding farewell to those sleepless nights spent worrying about high-interest debt. Homeowners can consider mortgage refinancing as a solution.

Greenway Mortgage offers tailored refinancing options to improve financial stability and reduce homeownership costs.

1. Refinancing Your Mortgage: By refinancing existing mortgages at lower interest rates, homeowners can instantly reduce their monthly payments, providing immediate relief to financial burdens.

2. Cash-Out Refinance: Tap into your home's equity to pay off high-interest debt in one fell swoop, leaving you with a single, more manageable monthly payment. Learn about the benefits of a cash-out refinance here.

3. Consolidation with Home Equity Loans: Homeowners can leverage their home's equity to consolidate high-interest debts, such as credit card balances or student loans, into a single, manageable loan. By refinancing your debt at a significantly lower rate than your current payments using the equity in your home, you can achieve considerable savings with a reduced monthly payment. 

Benefits of Refinancing

Sure, refinancing your mortgage may mean a slight change in your interest rate, but compared to the relief of wiping your slate clean, it's a small price to pay.

By securing lower interest rates or extending loan terms, homeowners can significantly reduce monthly mortgage payments, freeing up resources for other financial obligations.

This consolidation not only simplifies debt management but also paves the way for substantial long-term savings.

Bottom Line:

As households navigate rising debt payments, strategic solutions like mortgage refinancing offer a pathway to financial resilience.

If you're ready to take control of your financial future, Greenway Mortgage is here to help. Reach out today, and let's explore all your options together.

It's time to say goodbye to sleepless nights and hello to financial freedom!