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!

 

Whether you're a seasoned home buyer or embarking on your first home-buying journey, the spring real estate market of 2024 is full of opportunities and challenges alike. At Greenway Mortgage, we're committed to ensuring you have a smooth and successful home buying experience, every step of the way.

As interest rates begin to shift and inventory remains tight, preparation is key to staying ahead in this competitive market.

That's why we've created a comprehensive Spring Guide to Buying a Home specifically tailored to help you navigate the complexities of today's real estate landscape with confidence.

 

Why Preparation Matters In Today's Housing Market

Being prepared helps you understand the language and the process of buying a home. It helps you paint a clear picture of your financial situation and determine your buying power.

It also helps you avoid pitfalls, particularly those related to documentation, that cause stress and slow down the process. Most importantly, it gives you confidence and helps you make better decisions.

What Our Homebuying Guide Offers:

Our Spring Guide to Buying a Home is packed with homebuying information, resources, checklists and interactive calculators that you can use as a resource throughout the home buying process.

1. The 5 Stages of the Mortgage Process: From pre-approval to closing, we break down each stage so you know exactly what to expect.
2. Harnessing the Power of Pre-Approval: Discover how a pre-approval can give you a competitive edge in securing your dream home.
3. Documenting Success: Learn how to avoid documentation mistakes that could slow down your mortgage application.
4. Deciphering Credit Scores: Understand how your credit score influences your mortgage qualification and how to optimize it.
5. Mastering the Art of Closing: Insider tips on navigating the closing process like a pro.
6. Property Evaluation Checklist: A handy home buying comparison checklist to help you evaluate properties and neighborhoods with confidence.

Download Your Free Homebuyer Guide Today:

Click here to download your free copy of our Spring Guide to Buying a Home and embark on your house hunting journey with confidence.

Feel free to contact us with any questions about programs, the mortgage process, or to get pre-approved - we are here to help.

Happy house hunting from the Greenway Mortgage Team.

 

 

 

Congratulations! Your new home is now in the 'pending' stage, indicating that your offer has been accepted, inspections have passed, and you're one step closer to sealing the deal. It's important to understand that this phase can be more complex than it seems. That's precisely why we've put together this Q&A blog, where we'll delve into the intricacies of pending homes and provide expert insights to make your home buying experience as seamless as possible.

Check out some common questions below and don't hesitate to reach out to us if you have any other questions. We are happy to help. Give us a call at 888-616-9885 or contact us here by filling out this short form.

#1: What does it mean when a home is listed as "pending" in the real estate market?

When a home is listed as "pending," it means that a buyer has made an offer, the offer has been accepted, and the home is under contract. The buyer can have inspections done and can back out based on the outcome of the inspections or the subsequent negotiations. Assuming those parts of the process go smoothly, a home is considered "pending" once those contingencies are resolved. The true definition: all parties have satisfied their ends of the contract and the home is simply awaiting closing day!

#2: Are there different variations of "pending" status for homes, and what do they mean?

Yes, there are variations of the "pending" status. Some homes may be listed as "active under contract" or have stipulations such as "shown for back up." These variations can indicate that there is an executed contract, but the seller is still open to entertaining backup offers or that additional contingencies exist. Confused about the home's status? Reach out to you real estate agent for details.

#3: What should buyers do when a home is in the "pending" stage?

When a home is pending, buyers should start preparing for the closing day. This includes finding movers, changing their address, packing, and handling utility transfers. They will also need to submit final paperwork to their mortgage lender and real estate agent. It's essential to be prepared but also aware that delays or unexpected issues can arise.

#4: What are some common reasons why a home sale might fall through during the pending stage?

A common reason for a home sale to fall through during the pending stage is when the buyer cannot secure a loan following their pre-approval. This is why it's important not to make any major financial changes until the sale is finalized.

#5: Can sellers entertain backup offers when their home is in a pending status?

Yes, sellers can entertain backup offers while their home is pending. Backup offers can become primary offers if the initial contract falls through, typically during the inspection renegotiation period. Offering a bid over the list price and being flexible with terms can make a backup offer more compelling.

#6: What happens if a buyer decides to back out of a deal during the pending stage?

If a buyer backs out during the pending stage, they may forfeit their escrow deposit, which is typically about 3% of the purchase price. They may also risk further legal action. The house will go back on the market for sale.

#7: What is the final step after the pending stage in a home sale?

The final step after the pending stage is either for the home to go back on the market or to fully close. If all requirements are satisfied, the home will officially close, and the buyers will receive the keys to their new property. If the deal falls through, the home will go back on the market.

Bottom Line:

The 'pending' stage in the home buying process represents a pivotal moment filled with promise and opportunity. While it denotes advancement, it's essential to grasp the finer details, as we've explored in this blog. Still have questions? Feel free to contact us 888-616-9885 or shoot us an email at leads@greenwaylending.com.

Looking for A Local Real Estate Agent?

Additionally, if you're in search of a local real estate agent, we have a selection available and are delighted to offer recommendations. Your journey towards homeownership is our priority!