Consumers are optimistic about the U.S. economy and real estate market. However, rising interest rates has many home buyers especially millennials concerned as buyers. 68% of buyers ages 18-34 are feeling a sense of urgency to buy a home before mortgage interest rates rise. 1 in 5 has a desire to buy now. 55% feel discouraged to feel the urgency to "buy now". With the right guidance from a skilled  HMRE real estate professional, prospective buyers a can be empowered to start a home  that meets there needs and financial objections. Tight inventory is also contributing to the the wait some, young buyers are saying that they will wait to buy a unit at entry-level that suites there needs even if the interest rates rise. https://youtu.be/LB-I9SgW3pI

Blake Papalia 

Home Made Real Estate Broker 

Mortgage refinance activity may have been the true hidden culprit behind the housing crisis. Refi's were more likely to default than mortgates taken out to purchase a home, mainly because home owners were treating there homes like ATMs through cash-out refi's. 84 % of government sponsored enterprise (Fannie mae and Freddie mac) Refi's in 2008 and 2007 were cash-out refi's. These types of refinances at the time tended to have "sloppy underwriting process"   Between 1999 and 2015. 6% of the Refi's and 4% of purchase loans were more than 180 days delinquent. In 2007, the peak, 16% of Refi's and 10% of purchase loans were more than 180 days delinquent. https://youtu.be/GPOv72Awo68

Blake Papalia 

Home Made Real Estate Broker 

According to the latest study, most Americans would see a tax decrease under such a proposal - but many middle class would see a net average tax increase. Taxes paid by homeowners with adjusted gross incomes between $50,000 and $200,000 would rise by an average of $815. The study also estimates that the combined tax savings from claiming the mortgage interest  deduction and real estate property tax deductions would drop 82%  between 2018 and 2027.

Tax reform and lower rates are worthy goals, but only if we can achieve them in a fiscal responsible way.  Balancing tax reform on the backs the home owners isn't an option.  In addition to increasing taxes on many middle class home owners, the report finds that such a proposal could cause home values to fall more then 10% in the near term. and in areas with higher property taxes or state income taxes, the drop can be even greater.

Blake Anthony Papalia

Broker  

The great run pf the past 5 years is coming to an end for investors. With values stabilizing over the next five years and it feels like it is running faster and faster on a treadmill. The markets interest rates are being threaten to hike 9% in 5 years but we will see if this happens. This could mean investors would lose the leverage of borrowing for good rates to make good profits. Residential will be fine with new construction coming to the fore front as 1st time home buyers are more likely to buy affordable housing instead of renting. 

Blake Papalia 

Two of the largest Realtor associations announce they are going to merge into the third largest realtor association in the morning, The new realtor association will serve more then 25,000 FL Realtor members and 30,000 MLS subscribers. With more then 40,000.00 listings and $21 Billion in inventory. Video about merger https://www.supportmerger.com/video

Blake Papalia 

Broker 

"Delaying", time kills... Dragging your feet means you could end up paying more in a bidding war situation or missing out on the property all together. Buyers need to be ready with there paperwork, such as bank statements, a pre-approval letter, and documents supporting proof of funds, from the day they shift into active house hunting mode. That way they can pounce quickly with an offer when they find a home they like. Making an offer for there pre-approved amount. Submitting low ball offers. Low balling offers typically back-fire especially in a sellers market. making an offer that is not backed up by the math is disrespectful and you could lose the offer all together. If your buing a property at around or close to market value you are making a good buy in the current market conditions and inventory supply. Waiving inspections is never a good idea when it comes to the buy. Unless you are skilled or qualified and confident in your home purchase. Not presenting yourself well enough. In today's market the listing agent is trying to figure out which buyer is going o be the easiest to deal with. 

Blake Papalia 

Broker 

Marketplace and brokers are mortgage middlemen 

The easiest way for tech startups to enter the mortgage market is by serving as a middleman. So that's what you'll encounter most in your search for online mortgage. 

Mortgage marketplaces, like lending tree, mortgage hippo, zillow and eloan. Are lead generators for loan originators.  Here's how that work: Their mortgage rate algorithm takes your basic application info. and present you a roster of potential lenders. You chose one, or several , of the rate options,and the referring, marketplace place site receives a fee for the lead.  You then complete the  process with the lender. Online mortgage brokers offer another twist  on the process. Companies like Sindeo provide  a concierge service with advisers guiding you through the home loan selection process., in which the broker works closely with you and your lender to complete your loan package. Online lenders streamline the process. Online lenders are becoming more of a force in the industry.  In fact quicken loans  has become one of the largest mortgage companies in the country.  Another large company, rocket mortgage offers lending service and full mortgage or re-financing in 8 minutes. The mortgage lending process is changing radically.  Next gen lenders strip away  delays in the old system by using algorithms , auto-mated loan decisions and documentation gathering through secure online communications. Non-bank cater to those with less then perfect credit. Big bank lenders are shying away from loans after the crisis. Smaller family owned lenders often face less federal regulations then the larger institutions. Credit unions also play a big role.  You have mortgage options every were. It's empowering to know  when it comes to financing a home you have options. While the lending process is moving more and more to e-documents the  closing process is still within title companies and attorneys. Choosing to go to the mortgage middle man or the direct lender is a personal choice. 

Blake Papalia 

Broker