Michelle Piccinini and Dan Armolea // Real Estate + Lender Video Series
Summary of Today’s Video:
#1 ~ Median Home Price in Northern NV Up 2% + Unit Sales Down 8%
As of May 2017, unit sales are down. There’s such a low inventory of properties yet they’re in high demand. In addition, new listing inventory is actually down 31% from 2016. This is due to the sudden influx of new businesses and people the flooded Reno recently.
We’re trying as quickly as possible to build new properties, but we can only move so fast….Which means prices will continue to rise.
With that being said, it’s a great time to list!
#2 ~ Home Equity Line of Credit ~What the Heck is That?
In the news you may be hearing some buzz about the Home Equity Line of Credit…
A lot of headlines are claiming: “raising rates, raising rates!”
Well, before you get freaked out, you may want to learn the truth…
What is a Home Equity Line of Credit?
It’s a type of loan is a 30 year loan, but it’s essentially a large credit card that you’re leasing on your home. You get to borrow against that credit card for 10 years. The issue arises when (just like a credit card) that interest rate can change. Since you’re paying your loan back based on interest only, meaning none of that payment you make monthly goes toward the principle, the balance doesn’t change. So, for example, from 2008-2015, prime (which is what all equity lines are based off of) didn’t change. However, now people find themselves in this grey place. Initially this loan was great because payments weren’t changing…but now all of a sudden, prime is going up.
What does this Mean?
Well, short term rates are now increasing, and even though a lot of them are minimal increases, it still might sound scary for a consumer.
Just that slight change in payment can be a fear for people.
We get it! But please don’t worry…we can help you RIGHT where you’re at.
Give our team a call today to learn about your options!
Phone: 775) 848-6923
#3 ~ What’s Up with Rates Right Now?
Okay, so rates are predicated to go up, but it’s not happening just yet. We’re hovering from the low 4’s to the high 4’s. And ultimately, the rate you get depends on the type of loan you qualify for. Fortunately our government loans are still relatively low. We actually just locked one in for our clients at a happy 3.75%.
So, for everyone out there scared of this market, we encourage you to relax, take a deep breath and don’t jump to any conclusions before talking to an expert. Remember, rates are still low right now! Take advantage of the market we’re currently in, instead of fearing the “what ifs” of the future .
~ If you’re interested in getting prequalified with the Piccinini Team ~
We hope you enjoyed this fun little video in our new series!
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