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For the last several years, home values have been rising, which means homeowners have been building equity. Now is a great opportunity to leverage that equity to avoid or eliminate high interest debt.
 
Recently, the 2018 Houzz & Home Study revealed:
 
 “Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”
 
The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.
 
Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.
  1. Desirable Location
  2. Improved National Economy
  3. Improved Local Economy
  4. Low Home Inventory in My Area
How are Homeowners Taking Advantage of this Opportunity?
 
Many homeowners are considering cash-out refinances as a way to access the value that accumulated in their homes. A cash-out refinance replaces your current loan with a new term, interest rate and monthly payment. Read more about Cash-out Refinances in our latest blog.
 
Buying a home is like having a “forced savings account.” Making a monthly payment on the loan, along with any property appreciation, builds value in the home.
 
You cannot access that value (equity), without selling. Instead, you have to borrow the equity, which a Cash-out Refinance allows you to do. Of course, it’s important to have a bit of home equity first.
 
Wondering How Much Home Equity You Have?
 
To figure out how much home equity you have, you’ll want to find out what your home’s value is and how much you owe on your mortgage. If the difference between the two is a positive number, that’s the equity you have in the home. However, if you owe more than your home is worth you may not be a candidate for a cash-out refinance.
 
Speak with a Greenway Loan Officer today to see what your options are. One of the perks of having worked hard to build equity in your home is that the equity is available to you when you need it. 
 
What can the money can be used for?
  • Home Remodeling or Repairs – most popular!
  • Emergency
  • Debt Consolidation
  • Starting a Business
  • Paying off College Tuition
  • Purchase a Second Home
Benefits of a Cash-Out Refinance
  • Potentially secure a lower rate and monthly payment
  • Mortgage rates are typically lower than credit cards or personal loans
  • With improvements, you could increase your home’s value
Bottom Line:
2019 is a great year for homeowners who want to take advantage of their home equity. In fact, CoreLogic forecasts that home prices will increase by 4.8% by the end of the year.
 
Ready to Take the Next Step?
Reach out to a Greenway Loan Officer for a consultation today to discuss and compare which option would be best for your specific needs. 732.832.2967. 
 
 

 

For the Week Ending March 15, 2019

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Wholesale prices barely rose in February, after falling for 3 straight months. This is a sign there is little inflation pressure in the economy, which is good for rates.
Retail sales edged up in January, but December was revised sharply lower. The increase was mainly due to discretionary spending and purchases of building materials.
Import prices rose in February by the most in 9 months. However, the trend in imported inflation remains weak, supportive of rates staying low.

 

New home sales declined to a 3-month low in January. The government shutdown and a battered stock market appear to have hurt sales.
Construction spending posted its biggest increase in 9 months. However, private residential projects dropped 0.3%, falling for the 6th straight month.
The latest design trends include bolder color schemes and brass finishes, particularly in the kitchen and bathroom.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Looking to upgrade your existing home?
 
You might consider one of Greenway's many renovation programs, but a cash-out refinance might be a better solution.
 
Renovation Loans are not the only option when it comes to home repair and upgrades. Longing for a new kitchen, an updated bathroom, or need an addition for a growing family?
 
Everyone’s scenario is different and there are options -- Your Greenway Mortgage Loan Officer will help you determine how to best achieve your goals.
 
You can learn more about our Renovation Programs here.
 
But, how can a cash-out refinance work for me?
 
A cash-out refinance replaces your existing mortgage with a new loan that draws on the equity in your home. The equity you draw with the new mortgage goes to you in cash. That cash can be used for home improvements, debt consolidation or other financial needs.
 
But your home must have equity for this to work. This is another reason to reach out to a Greenway Loan Officer, as they will review your current mortgage documents and help you figure out what your home is currently valued at.
 
Why Choose A Cash-Out Refinance for Home Improvements?
  • Potentially secure a lower rate and monthly payment
  • Mortgage rates are typically lower than credit cards or personal loans
  • With improvements, you could increase your home’s value
 
Bottom Line
A cash-out refinance for home improvement may be just the answer you’re looking for if you’re ready to remodel, but are short on cash. Not only could you secure a low-interest rate with this option, but you could boost the equity you have in your home as well.
 
 
Try out our refinance interactive below and reach out to our loan consultants for a detailed review of your scenario.
 
Picture1-10
 
Ready to Take the Next Step?
Reach out to a Greenway Mortgage Loan Officer today to discuss and compare which option would be best for your specific needs. 732.832.2967
 

For the Week Ending March 8, 2019

 

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

A U.S./China trade deal may be close, after months of trade disputes. If a deal is signed, it could put some pressure on rates, as stocks may rally on the news.
The ECB statement this week reinforced concerns about a global economic slowdown. Weak global economies have helped to keep rates low here at home.
Private payrolls were up 183,000 in February, according to ADP. Unemployment claims last week were down, pointing to strong labor market conditions. 

 

Construction spending unexpectedly fell in December, after an increase in November. Only part of the drop was for private residential projects though.
New home sales hit a 7-month high in December, the highest level since May 2018. Mortgage rates are hovering near a 12-month low.
A recent survey showed over 79% of Americans still believe that owning a home is a vital component to achieving the American Dream.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 


During tax season, refunds help many become homeowners! If you’re planning to buy a home in the near future, consider using your tax refund as a down payment option.
 
We know that saving for a down payment can be a big challenge and even one of the biggest barriers to homeownership. Many people sometimes overestimate the size of the down payment they need.
 
Often times, a tax refund may cover the entire down payment.  Exactly how much of the down payment you can cover will depend on the amount you want to borrow and the percentage you’re required to put down.  
 
Depending on your credit history and other factors, there are financing options with much lower down payment requirements besides the typical 20% down. For instance, depending on the program, borrowers can make down payments between 3.5%-10%. Down payment assistance programs can also help you bridge the cash gap. Contact Greenway to find out which programs you could qualify for! Visit our website to learn more about our loan programs.
 
Mortgage products available for First-time Buyers Offering Low to No Down Payments
 
Bottom line:
During tax season, many tax payers have more funds than any other time of the year, so there is no better time to qualify for a new home.  This is a great opportunity – low rates, stable job market, and affordable homes.  Why not buy a home now?
 
Ready to Take the Next Step?
Greenway Mortgage is here to help. Contact us today to discuss your options. 732.832.2967.
 

 


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