Low Inventory, Stable Home Values and Rising Interest Rates - What should you do?

We had some big news this week in the mortgage world and, unfortunately, it's not what we'd like to hear. 'Mortgage Rates Top 7%, Hitting 21 Year High' was one of many headlines.

The swing in rates over the past 18 months has created a challenging market for home buyers (especially those buying for the first time!), up against crazy low inventory and prices that aren't falling enough (if at all) to help affordability. Below are a few of my thoughts for those shopping right now...

1. Buy what you can afford today, and that may not be your dream home. The equity you build in this home will be used for your next home, and the one after that, and so on. 'Trading up' in Real Estate has long been known as a practical and safe investment.

2. If you're holding off buying because of the current rate remember that if you do buy a home today there are two possible outcomes for your interest rate in the future - 1) Rates go up, and you're happy you locked in now. 2) Rates go down and you have the option to refinance but will be glad you locked in today's sales price. If the 2020/2021 markets taught us anything about rates, it was that as soon as they drop, the bidding wars begin and home prices rapidly increase.

3. Make sure you have a great Realtor and Lender working for you. They both should fully understand your goals and be advocating for you whether that's negotiating the winning offer in a bidding war or comparing loan products and options like buying down the rate, ARMs, and more. If there is one thing I hear most from my customers after they talk with my husband, Ryan, (Mortgage Broker/Owner at Hudson Mortgage Solutions) it's that they had no idea there were so many financing options. No home purchase or loan approval process will be the same as another, and in this market, you can't afford to settle for a one size fits all service.

If you have questions about whether or not you could make the move you've been wanting to please don't hesitate to reach out. I would love to strategize with you and help you reach your goals!

As always, thanks for being here!

- Lindsey

Update: FL Hometown Heroes Down Payment Program

The Florida Hometown Heroes Down Payment Assistance program that just rolled out it's updated in early July announced last week that only 33% of funds remain available at this time and it is predicted to run out within the next 30 - 45 days. If you are counting on this program for your loan approval please plan accordingly and do not wait to purchase a home assuming there will be down payment assistance promised. There is no indication that the funds will be replenished at this time. Please feel free to call or text me with any questions.

For more on the FL Hometown Heroes program, click here.

As always, thanks for being here!

- Lindsey

Homeowners: Don't forget to file for Homestead Exemption!

If you bought a house in 2022, now is the time to file for homestead exemption (don't worry, you have until March 1)!

What is Homestead Exemption? If you own your home, reside there permanently and are a Florida resident as of January 1, you may qualify for Homestead exemption, a legal provision that allows a homeowner to protect the value of their primary residence from creditors and property taxes.

Why should I apply? Homestead can reduce your assessed value on your home as much as $50,000, saving you approximately $750 annually. More importantly, your assessed value, which is used to calculate your property taxes, cannot increase more than 3% annually after you are granted the exemption.

How can you apply? In order to receive this benefit, you must apply before March 1, 2023. You can file for homestead exemption in person at your local Property Appraiser's office, online or by downloading the proper documents and mailing in the application prior to March 1.

If you live in Orange County, visit exemption.ocpafl.org/ for more information and the online application.

For Seminole County, visit scpafl.org for more information and the online application.

*Additional exemptions are available for veterans, disabled persons, widows/widowers and homeowners over the age of 65.

Questions? Give me a call :)

As always, thanks for being here!

- Lindsey