Posts with tag 'Home Buying Process'
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2
Move-Up vs. Second Home: Which One is Right for You?
The pandemic has changed the way many of us live, work, and attend school—and those changes have impacted our priorities when it comes to choosing a home.
With virtual school and working from home a reality for many families, the need for additional space has only intensified. A growing number of buyers are choosing homes which offer more space both inside and out.
But not everyone is permanently sold on suburban or rural life. Instead, some are choosing to purchase a second home as a frequent getaway, often where they can work or homeschool for awhile, if necessary. Without the requirements of a five-day commute, many homeowners feel less tethered to their primary residence and are eager for a change of scenery after spending so much time at home earlier in the year.
If you're feeling cramped in your current space, you've probably considered a move. But what type of home would suit you best: a move-up home or a second home? Let's explore each option to help you determine which one is right for you.
WHY CHOOSE A MOVE-UP HOME?
A move-up home is typically a larger or nicer home. It's a great choice for families or individuals who simply need more space, a better location, or want features their current home doesn't offer—like an inground pool, a different floor plan, or a dedicated home office. If you're struggling with a lack of functional or outdoor space currently, a move-up home can greatly improve your everyday life.
Most move-up buyers will sell their current home and use the proceeds as a down payment on their next one. I can help you estimate how much you could expect to net if you sold your existing home. And with mortgage rates at their lowest level in history, you may be surprised how much home you can actually afford.
To learn more about mortgage rates, contact me for a free copy of my report "Lowest Mortgage Rates in History: What it Means for Homeowners and Buyers"!
If you like where you are but are longing for that vacation vibe, a second home may be a better choice for you.
WHY CHOOSE A SECOND HOME?
Once reserved for the ultra-wealthy, second homes have become more mainstream. Home sales are surging in Southwest Michigan as more people come into the area searching for a place to escape the crowds and quarantine in comfort. Instead of trips, some families are channeling their vacation budgets into vacation homes that can be utilized throughout the year.
A second home can also be a good option if you're preparing for retirement. By purchasing your retirement home now, you can get financed while you're still working, lock in a low interest rate, start paying down the mortgage, and begin enjoying the perks of retirement living early. Down the road, when you're ready to sell your current home and make the second home your primary residence, you will see significant savings on your property taxes.
One advantage of choosing a second home is that you can offset a portion of the costs—and in some cases turn a profit—by renting it out on a platform like Airbnb or Vrbo. However, be sure to research whether short-term rentals are allowed in the specific location where you plan to buy, as some areas have restrictions.
WHICH ONE IS RIGHT FOR ME?
You may read this and think: I'd really like both a move-up home AND a second home! But if you're dealing with a limited budget (aren't we all?), you'll probably need to make a choice. These three tasks can help you decide which option is right for you.
1. Determine Your Time and Financial Budget
You may meet the bank's qualifications to purchase a home, but do you have the time, energy, and financial resources to maintain it? This is an important question to ask yourself, no matter what type of home you choose.
Most buyers realize that a second home will mean double mortgages, utilities, taxes, and insurance. But consider all the extra time and expense that goes into maintaining two properties. Two lawns to mow. Two houses to clean. Two sets of systems and appliances that can malfunction. Second homes aren't always a vacation. Make sure you're prepared for the labor and carrying costs that go into maintaining another residence.
Of course, some move-up homes require more work than a second home. For example, if your move-up option is a major fixer-upper, you'll probably invest more energy and capital than you would on a small vacation condo by the beach. Have an honest discussion about how much time and money you want to spend on your new property. Would a move-up home or a second home be a better fit given your parameters?
2. Rank Your Priorities
If you're still undecided, make a wish list of the characteristics you'd like in your new home. Then rank each item from most to least important. This exercise can help you determine your "must-have" features—and which ones you may need to sacrifice or delay. Here's a sample to help you get started:
| RANK # | FEATURE |
| Dedicated home office | |
| Main floor master suite | |
| Privacy | |
| Big back yard | |
| Close to stores | |
| Easy access to beach | |
| Close to friends and family | |
| Investment potential |
3. Explore Your Options
Once you've determined your parameters and priorities, it's time to begin your home search.
If you're still not sure whether a move-up home or a second home is right for you, I can help.
Contact me to schedule a free consultation. We'll discuss your options and help you assess the pros and cons of each, given your unique circumstances.
I can also send you property listings for both move-up homes and second homes within your budget so you can better envision each scenario. Sometimes, viewing listings of homes that meet your criteria can make the decision clear.
LET'S GET MOVING!
Whether you're ready to make a move now or need help weighing your options, I'd love to help. I can determine your current home's value, put you in touch with a lender so you are certain of your buying power, and show you local properties that fit within your budget. Waterfront homes are in high demand, so if you have one you don't get much use out of anymore, now is a great time to cash in. Or, if your heart is set on a second home in another market, I can refer you to a worthy agent in your dream locale. Contact me today to schedule a free, no-obligation consultation!
2
Lowest Mortgage Rates in History!
It's been all over the news, if you can filter through the negativity, and even if you completely ignore the news, you probably know someone who has been affected by this:In July, the average 30-year fixed-rate mortgage fell below 3% for the first time in history.1 And while many Americans have rushed to take advantage of this unprecedented opportunity, others question the hype.
Are today's rates truly a bargain? While average mortgage rates have drifted between 4% and 5% in recent years, they haven't always been so low. Freddie Mac began tracking 30-year mortgage rates in 1971. At that time, the national average was 7.31%.2 As the rate of inflation started to rise in the mid-1970s, mortgage rates surged. It's hard to imagine now, but the average U.S. mortgage rate reached a high of 18.63% in 1981.3 Fortunately for home buyers, inflation normalized by October 1982, which sent mortgage rates on a downward trajectory that would bring them as low as 3.31% in 2012.3 Since 2012, 30-year fixed rates have risen modestly, with the daily average climbing as high as 4.94% in 2018.4
So what's causing today's rates to sink to unprecedented lows? Economic uncertainty.
Mortgage rates generally follow bond yields, because the majority of U.S. mortgages are packaged together and sold as bonds. As the coronavirus pandemic continues to dampen the economy and inject volatility into the stock market, a growing number of investors are shifting their money into low-risk bonds. Increased demand has driven bond yields—and mortgage rates—down.5
However, according to National Association of Realtors Chief Economist Lawrence Yun, "the number one driver of low mortgage rates is the accommodating Federal Reserve stance to keep interest rates low and to buy up mortgage-backed securities." According to Yun, "we will see mortgage rates stay near this level for the next 18 months because of the significance of the Fed's stance."6
HOW DO LOW MORTGAGE RATES BENEFIT CURRENT HOMEOWNERS?
Low mortgage rates increase buyer demand, which is good news for sellers. But what if you don't have any plans to sell your home? Can current homeowners benefit from falling mortgage rates? Yes, they can!
A growing number of homeowners are capitalizing on today's rock-bottom rates by refinancing their existing mortgages. In fact, refinance applications have surged over the past few months—and for a good reason.7 Reduced interest rates can save homeowners a bundle on both monthly payments and total payments over the lifetime of a mortgage.
The chart below illustrates the potential savings when you decrease your mortgage rate by just one percentage point. When it comes to refinancing, the bigger the spread, the greater the savings.
Estimated Monthly Payment On a 30-Year Fixed-Rate Mortgage
| Loan Amount | 4.0% | 3.0% | Monthly Savings | Savings over 30 Years |
| $100,000 | $477 | $422 | $55 | $20,093 |
| $200,000 | $955 | $843 | $112 | $40,184 |
| $300,000 | $1432 | $1265 | $167 | $60,277 |
| $400,000 | $1910 | $1686 | $224 | $80,368 |
| $500,000 | $2387 | $2108 | $279 | $100,461 |
Be sure to factor in any prepayment penalties on your current mortgage and closing costs for your new mortgage. For a refinance, expect to pay between 2% to 5% of your loan amount.8 You can divide your closing costs by your monthly savings to find out how long it will take to recoup your investment, or use an online refinance calculator. For a more precise calculation of your potential savings, we'd be happy to connect you with a mortgage professional in our network who can help you decide if refinancing is a good option for you.
HOW DO LOW MORTGAGE RATES BENEFIT HOME BUYERS?
We've already shown how low rates can save you money on your mortgage payments. But they can also give a boost to your budget by increasing your purchasing power. For example, imagine you have a budget of $1,500 to put toward your monthly mortgage payment. If you take out a 30-year mortgage at 5.0%, you can afford a loan of $279,000.
Now let's assume the mortgage rate falls to 4.0%. At that rate, you can afford to borrow $314,000 while still keeping the same $1,500 monthly payment. That's a budget increase of $35,000!
If the rate falls even further to 3.0%, you can afford to borrow $355,000 and still pay the same $1,500 each month. That's $76,000 over your original budget! All because the interest rate fell by two percentage points. If you've been priced out of the market before, today's low rates may put you in a better position to afford your dream home.
On the other hand, rising mortgages rates will erode your purchasing power. Wait to buy, and you may have to settle for a smaller home in a less-desirable neighborhood. So if you're planning to move, don't miss out on the phenomenal discount you can get with today's historically-low rates.
HOW LOW COULD MORTGAGE RATES GO?
No one can say with certainty how low mortgage rates will fall or when they will rise again. A lot will depend on the trajectory of the pandemic and subsequent economic impact.
Forecasters at Freddie Mac and the Mortgage Bankers Association predict 30-year mortgage rates will average 3.2% and 3.5% respectively in 2021.9,10 However, economists at Fannie Mae expect them to dip even lower to an average of 2.8% next year.11
Still, many experts agree that those who wait to take advantage of these unprecedented rates could miss out on the deal of a lifetime. "With rates now at all-time historic lows, it's hard to imagine that people may be holding out for something even better," warns Paul Buege, president and COO of Inlanta Mortgage.12 Positive news about a vaccine or a faster-than-expected economic recovery could send rates back up to pre-pandemic levels.
HOW CAN I SECURE THE BEST AVAILABLE MORTGAGE RATE?
While the average 30-year mortgage rate is hovering around 3%, you can do a quick search online and find advertised rates that are even lower. But these ultra-low mortgages are typically reserved for only prime borrowers. So what steps can you take to secure the lowest possible rate?
- Consider a 15-Year Mortgage Term
Lock in an even lower rate by opting for a 15-year mortgage. If you can afford the higher monthly payment, a shorter mortgage term can save you a bundle in interest, and you'll pay off your home in half the time.13
- Give Your Credit Score a Boost
The economic downturn has made lenders more cautious. These days, you'll probably need a credit score of at least 740 to secure their lowest rates.14 While there's no fast fix for bad credit, you can take steps to help your score before you apply for a loan:15
- Dispute inaccuracies on your credit report.
- Pay your bills on time, and catch up on any missed payments.
- Hold off on applying for new credit.
- Pay off debt, and keep balances low on your credit cards.
- Don't close unused credit cards (unless they're charging you an annual fee).
- Make a Large Down Payment
The more equity you have in a home, the less likely you are to default on your mortgage. That's why lenders offer better rates to borrowers who make a sizable down payment. Plus, if you put down at least 20%, you can avoid paying for private mortgage insurance.
- Pay for Points
Discount points are fees paid to the mortgage company in exchange for a lower interest rate. At a cost of 1% of the loan amount, they aren't cheap. But the investment can pay off over the long-term in interest savings.
- Shop Around
Rates, terms, and fees can vary widely amongst mortgage providers, so do your homework. Contact several lenders to find out which one is willing to offer you the best overall deal. But be sure to complete the process within 45 days—or else the credit inquiries by multiple mortgage companies could have a negative impact on your credit score.16
READY TO TAKE ADVANTAGE OF THE LOWEST MORTGAGE RATES IN HISTORY?
Mortgage rates have never been this low. Don't miss out on your chance to lock in a great rate on a new home or refi for your existing mortgage. Either way, I can help. I'd be happy to connect you with the most trusted mortgage professionals in my network. And if you're ready to start shopping for a new home, I'm an Accredited Buyers Representative and I'd love to assist you with your search - all at no cost to you! Contact me today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
Sources:
- CNN Business -
https://www.cnn.com/2020/07/16/success/30-year-mortgage-rates-record-low/index.html - Freddie Mac -
http://www.freddiemac.com/pmms/pmms30.html) - Value Penguin -
https://www.valuepenguin.com/mortgages/historical-mortgage-rates - Federal Reserve Bank of St. Louis -
https://fred.stlouisfed.org/graph/?g=NUh - Bankrate -
https://www.bankrate.com/mortgages/how-interest-rates-are-set/ - Washington Post -
https://www.washingtonpost.com/business/2020/06/25/mortgage-rate-remains-historic-low/ - Yahoo! Finance -
https://finance.yahoo.com/news/mortgage-refinancing-makes-big-comeback-151500346.html - Bankrate -
https://www.bankrate.com/mortgages/is-no-closing-cost-for-you/ - Freddie Mac June 2020 Quarterly Forecast -
http://www.freddiemac.com/fmac-resources/research/pdf/202006-Forecast.pdf - Mortgage Bankers Association Mortgage Market Forecast July 15, 2020 -
https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary - Fannie Mae July 2020 Housing Forecast -
https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_071420.pdf - Washington Post -
https://www.washingtonpost.com/business/2020/06/25/mortgage-rate-remains-historic-low/ - Investopedia -
https://www.investopedia.com/articles/personal-finance/042015/comparison-30year-vs-15year-mortgage.asp - Money -
https://money.com/mortgage-rates-below-three-percent/ - Experian -
https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/ - Equifax -
https://www.equifax.com/personal/education/credit/report/understanding-hard-inquiries-on-your-credit-report/
3
Is Now a Good Time to Buy or Sell Real Estate?
Traditionally, spring is one of the busiest times of the year for real estate. However, the coronavirus outbreak—and subsequent stay-at-home orders—led many buyers and sellers to put their moving plans on hold. Across the country in April, new listings fell nearly 45%, and sales volume fell 15% compared to last year.1
Fortunately, as restrictions have eased, we've seen an uptick in market activity, most notably here in Michigan where real estate had been completely shut down. And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2
6
The 2020 Real Estate Market Forecast
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START PREPARING TODAY
1. Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly. 2. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What's most important to you in a home? I can set up a customized search that meets your criteria to help you find the perfect home for you. 3. Schedule a meeting. The buying process can be tricky. I'd love to guide you through it. I can help you find a home that fits your needs and budget, all at no cost to you. Give me a call to schedule an appointment today!
If you plan to SELL this year:
1. Call me for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help determine which repairs and upgrades may be required to get top dollar for your property, and it will help me price your home correctly once you're ready to list. 2. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. I can help you determine which ones are worth the time and expense to deliver maximum results. 3. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don't use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage ... and get you one step closer to moving when the time comes! |
Sources:
- NBC News -
https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511 - Curbed -
https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates - HousingWire -
https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/ - Forbes -
https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935 - National Association of Realtors -
https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in - Redfin -
https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/ - HousingWire -
https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/ - Realtor.com -
https://www.realtor.com/research/2020-national-housing-forecast/ - YCharts -
https://ycharts.com/indicators/30_year_mortgage_rate - MBA Mortgage Market Forecast November 2019 -
https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary - Dallas Morning News -
https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/ - Realtor.com -
https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/
16
MAKE AN OFFER THEY CAN'T REFUSE
You've found THE right home and you're ready to make an offer. Can your agent get it accepted? If yours is the only offer on the table, that shouldn't be hard. But in this market, you're more than likely to face competition from other buyers, and sellers know it. In order to make your offer more appealing, you should know that sellers take into account more than just price when choosing an offer. Speed of closing, number of inspections, and contingencies are also big factors.
Having your financing already lined up is prerequisite for making an offer, but not all preapprovals hold the same weight. Conventional loans are usually favored over government loans because they can close quicker and with less hassle. Likewise, the lender you choose can have a big impact on the whole sales process. A smart seller's agent...
Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 04/28/2026. The listing information on this page last changed on 04/28/2026. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of Delta Media Group MLS (last updated Tue 04/28/2026 5:12:39 AM EST) or MichRic (Michigan Regional Information Center) (last updated Mon 04/27/2026 11:17:29 PM EST) or NIRA MLS (last updated Mon 04/27/2026 11:04:46 PM EST) or IRMLS (last updated Mon 04/27/2026 11:12:01 PM EST). Real estate listings held by brokerage firms other than Cressy & Everett Real Estate may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved.
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