Hope Leitner, Realtor®, CRS

Happy New Year! May 2022 be filled with joy!   Exciting things are happening! We have a little bit more time to enjoy the ice rink at Liberty Station before it goes away. There are two great film festivals happening. One in Borrego Springs and the other is the second largest Black Film Festival on the West Coast.    If you know anyone who might be interested in receiving this event calendar every month, please have them sign up at this link.   MONTHLY WORD OF ADVICE:  Just like you have your taxes reviewed every year, you should have your home value reviewed as well. Give me a call to find out your home's current value.   Remember, I am always here for my clients and their friends and family.   Your trusted real estate agent, Hope Leitner

Soft inquiries, sometimes known as a soft credit check or a soft credit pull, do not impact your credit scores because they are not attached to a specific application for credit.   They can occur when a credit card issuer or mortgage lender checks a person's credit for preapproval purposes. Examples of soft inquiries are when you check your own credit or one of your current creditors checks your credit.   If you are concerned about the negative impact on your score, specify to the lender that you want a "soft pull" to see if you qualify for preapproval. Soft inquiries may appear on your credit report but should not adversely affect your credit score. Consumers are entitled to one free copy from each major credit bureau, Experian, Equifax and TransUnion, once every twelve months available at AnnualCreditReport.com .   Hard inquiries occur when a borrower makes a new application for credit.   These will impact your credit score and will remain on your credit report

When the situation arises that you have a lump sum of cash to pay down your existing mortgage,  there may be different options available.   Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same. Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest payment but leaves the term intact with the same payoff date. The interest rate on the mortgage will stay the same regardless.   Prepaying principal can be done at any time but may not be applied until the next payment date.   Recasting cannot be done within the first 90-days of a mortgage. Pre-paying principal is like driving faster on a trip to a specific destination to get you there sooner.   Recasting/Re-amortization gets you to the destination at the same estimated time of arrival but using less fuel. Most loans allow you to pre-pay principal, but recasting is not allowed on FHA, VA, and GNMA.   If you have a conventional loan

  The market has been slowing for the season. But, the opportunities are still there... If you are looking to buy, consider doing it now before the rates go up. If you're thinking of selling - there might not be a better time. Sign up to have this market update delivered your email inbox every month. https://bit.ly/3yKTK5m 

 With the New Year just around the corner finances are at the top of everyone's list. This month's newsletter explores some ways you could be affected by current market conditions.  Whether you're trying to buy, or sell, or if you are looking to save money, there are things to consider when it comes to real estate financing. Read more below.  If you have questions, or if you need me to refer you to an excellent loan officer, you can always give me a call. Click here to find out how to select a loan officer and key items to consider.  Learn more click here.  I am here to support you whatever your real estate needs might be.  When you are ready to make the decision to buy or sell, give me a call. As always, I am here for you, your family, and friends.  Hope Leitner, CalDRE #01874321 Your Trusted Real Estate Agent HOMEBUYERS, HOME SELLERS, MARKET CONDITIONS, FINANCE Slowing Sales Create Opportunity After an astonishing 114 consecutive months of year-over-year home price g

Do you remember if or when you have replaced your washing machine hoses?   Are they the original hoses and if so, how old is your washing machine?   It is recommended that washing machine supply hoses should be replaced every five to seven years.   Washing machines, like all appliances, are expected to work and when they don't, it's time to have them fixed or replaced.   However, there is a critical connection from the water supply that may even be older than your washing machine itself. Eventually, unless hoses are replaced, they will fail, which on the mild side could be slow leaks or burst entirely, and could cause a catastrophic flood in the home.   The failure could come from a number of causes including age, improperly installation, poor-quality materials or poor design. The hoses are generally under the same pressure as the other plumbing in the home.   Imagine having an open faucet running directly on your floor. Ask someone whose hose broke while they were asle

The Fannie Mae and Freddie Mac loan limits are adjusted annually to keep up with cost of living but with the appreciation experienced in many markets, it may not be enough. When the conforming loan limit is not enough, qualified buyers can turn to a jumbo loan. The maximum loan limit on conforming, conventional loans for 2022 is $625,000 for a single-family home but is increased up to $937,500 for designated high price areas.   The underwriting guidelines for conforming loans are consistent with regards to things like minimum down payment, private mortgage insurance, debt-to-income ratio, minimum credit score and cash reserves required. Jumbo loans are loans more than the FNMA maximum limits and are considered non-conforming loans.   This allows lenders to set their own requirements on maximum loan amount, minimum required credit score, maximum debt-to-income ratio, and minimum down payment. The rates paid on the jumbo loans may be the same as conforming loan rates.   It might so

  Check out all the fun things happening in San Diego County this December! Sign-up to receive this calendar in your email inbox each month. https://bit.ly/3xdOfLx

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties How to Choose the Best Houseplants Just like picking paint and furniture, it’s important to spend time choosing the best plants for your interior space. Not only should you be considering the care your new plant friends will need, but also how they will impact your space as they grow to their full forms. Below are several tips for picking the best houseplants. Understand sun exposure . The quickest way to shrivel a houseplant is by giving it the improper amount of sunshine. Take the time to get to know the sunniest and shadies areas of your interior, and pick plants that thrive in that environment. Consider maintenance.  If you’re choosing houseplants that need a good amount of TLC—water, trimming, etc.—make sure you have the time in your schedule and bandwidth in your brain to take this on. If not, pick a plant that needs minimal attention, like a succulent. Pick proper containers.  L

Credit utilization reflects how much of your available credit is being used at a given time.   Lower credit utilization indicates that a borrower is not heavily relying on their credit and that they are using their credit responsibly. Is calculated by dividing your total credit card balances by your total limits.   The higher the percentage, the higher the risk which adversely affects the credit score according to most of the companies.   It is recommended that your credit utilization be under 30% to positively impact your credit score. If the available limit on a credit card is $12,000 and their normal monthly balance is around $3,000, they have a credit utilization of 25%.   If for whatever reason, the borrower's available limit was reduced to $6,000, and their long history of having a monthly balance of $3,000, the ratio, then, increases to 50% which will likely lower their credit score. For borrowers who use more than 30% of their available credit and regularly pay off th

  November 2021 This newsletter is focused on financing. Whether you're trying to buy or if you are looking to save money, there are things to consider when it comes to real estate financing. Read more below.  If you have questions, or if you need me to refer you to an excellent loan officer, you can always give me a call. Click here to find out how to select a loan officer and key items to consider.  Learn more click here.  I am here to support my clients, whatever their real estate needs might be.  When you’re ready to make your move to buy or sell, give me a call. As always, I am here for you, and I welcome any communication from you. HOMEBUYERS, FINANCE Compare Interest Rates and APRs When you apply for a mortgage, you may not pay the advertised rate. The best rates are for those homebuyers with the best credit scores. However, lenders are competitive, so you’d be wise to apply to several lenders at once. You’ll receive a loan estimate that you can compare side-by-side. Fir

  San Diego has hit a milestone this month, with the average price of a home breaking $1 million.  With that fact, however, there are signs that the market is slowing.  I am always here for my clients and their friends and family. If you have any questions about our ever changing real estate market give me call! Your Trusted Real Estate Advisor,  Hope Leitner Hope@CDHorn.com 858-382-3763  

Some people consider a house payment as basic as monthly utilities but with a plan and some discipline, you can be mortgage free. Consider a person borrowed $300,000 at 3% for 30 years, the principal and interest payment would be $1,264.81 and at the end of 12 years, the unpaid balance on the mortgage would be $210,900. If that same person had financed the home on a 15-year term at 2.5%, the payments would have been $2,000 but the unpaid balance at the end of 12 years would be $69,310.   The homeowner will have a larger equity but they have also had to make higher payments. 15-year mortgages usually have a lower interest rate than the 30-year loans and at the time this article was written, the difference in a 30-year loan was about 0.5%.   A 15-year loan gives the lender their money back in half the time.   If rates go up during the interim, they will be able to loan it at the higher rate sooner.   For that reason, they are usually willing to offer a slightly lower rate on the sh

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties 4 Tips for Designing Your Home Bar Nothing says fun like a home bar. From intimate dinner parties to full-blown banquettes, it provides a space to gather and enjoy conversation. For luxury buyers who plan to frequently entertain friends and family, this is a lifestyle amenity that is worth getting excited over. If you’re considering adding a watering hole to your home, here are a few tips to help design the perfect bar. Identify the Details First, you’ll have to determine where the home bar will work best. Pick a space that doesn’t interrupt the flow when you’re playing host and is large enough to meet your needs. Consider seating, storage, as well as equipment that will be needed, and try to incorporate it into or nearby your entertaining areas. Get Inspired Think about the atmosphere and décor of your favorite bars or restaurants. Try to pinpoint what it is that you love about them o

Homeowners know the need to periodically check certain things around the home to ensure that things operate properly and efficiently.   If maintenance is required, it may be less expensive to take care of it early rather than waiting until it is not working at all. Checklists are helpful because it requires little effort to know what must be done.   They are usually concise and provide enough information to complete the task.   These items apply to most homeowners but in no way offer a comprehensive list. Vacuum dryer exhaust ... not only does it affect the efficiency of your dryer itself, the accumulation of lint along with the hot air can ignite and create a fire hazard. Replace HVAC filters 4 to 6 times a year ... This is one DIY project that almost everyone should feel confident in handling.   Locate the filter, make a note of the size, and keep replacements available.   Turn off the unit, open the door or housing, remove the dirty filter, and replace it with the

You don't have to have an Uncle IRRRL but you must be a veteran with a current VA-backed home loan. IRRRL is an acronym for Interest Rate Reduction Refinance Loan. To refinance with this program, also called the VA Streamline, the loan must provide a net tangible benefit (NTB) which would be in the financial interest of the Veteran.   Obtaining a lower interest rate is usually the reason behind refinancing but there needs to be enough difference in the current and the new mortgage to justify the expenses incurred.   Significantly lower payments or a shorter term are examples of acceptable benefit. The Veteran must currently have a VA-backed home loan to refinance using this program.   The Veteran does not have to currently live in the home as long as it can be certified that he or she did at one time. In most cases, an appraisal is not necessary and less verifications are required.   A minimum 640 credit score is needed, and borrower must be current on their payments with no

 

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties What to Do If You Think You're a Victim of Identity Theft Identity theft is continuing to skyrocket thanks to the proliferation of online shopping and the sharing of personal information with companies and financial institutions alike. In fact, hundreds of millions of people have had their data stolen. This can occur through massive breaches of banks, stores and other businesses, or a dishonest person can misuse data that was disclosed on medical forms, employment records or other documents. Identity theft can be devastating. Thieves can open fraudulent accounts, make purchases with existing accounts, or empty bank accounts altogether. Victims often don’t realize there’s a problem until criminals have been misusing their accounts for weeks or longer. Call Your Creditors If you notice an unauthorized charge on a credit card, contact the bank immediately to dispute it. It’s possible

The decision to buy first or sell first, has always been a little of the "Which came first: the chicken or the egg?" type of question.   Is it better to buy another home before you sell your current one or sell the current one before you buy the replacement? Some buyers don't have a choice because they need the equity out of the current home to purchase the new one and possibly, their income limits their ability to qualify for having both mortgages at the same time.   However, some buyers, with sufficient financial resources, may have other options available to facilitate the move. A home equity line of credit, HELOC, is a type of loan that a traditional lender like a bank will loan up to the difference in what is currently owed on the home and 75-80% of the value.   A borrower is approved for the line of credit and then, can borrow against it as needed.   A homeowner with sufficient equity, would want to secure a HELOC prior to contacting for the new home.   Typica

In divorce situations, it is common, for the spouse who keeps the home to refinance to remove the other spouse from the loan.   Equally as common, first-time buyers who don't have enough income to qualify may ask a parent to co-sign and must add their name to the mortgage. Another situation that requires removing or adding a person to a loan could be to qualify for a better interest rate.   The difference in a minimally acceptable credit score and something that might be considered "good" could be as much as a 0.5% higher rate for the term of the mortgage. Consider that a couple is buying a home on a conventional loan, and they have individual credit scores of 760 and 670.   The underwriters will price the loan based on the lower of the two scores.   A half percent interest on a $400,000 30-year mortgage could have close to $110 a month difference. A possible solution to this dilemma could be available, assuming the borrower with the higher credit score had enough i

Let's assume that you have owned your home for several years.  It has increased in value and the unpaid balance considerably less than you originally borrowed.  In short, you have equity in the home.  You're thinking about buying another home and one of the questions going through your mind is "should we find a replacement property before we put our home on the market? It is a good question but maybe there is another one you should be asking.  "Should we keep our current home and convert it to a rental when we buy another home?  The answer to the question may have a great deal to do with your finances but if you can afford it, it may end up being one of the better investments you have made. Do you have enough discretionary funds for a down payment and closing costs for your new home?  Is it enough to put 20% down payment so you can avoid paying mortgage insurance?  Can you qualify for the mortgage on the new home with the additional liability of your current home?

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties Daily Habits to Support Physical and Mental Health Between work, family, social lives and hobbies, it can be easy to forget to take care of ourselves. Below are a few things you can do to safeguard your physical and mental health: Call a Friend While our lives may be too busy to see our friends regularly, calling a loved one every day can help you feel a sense of community and belonging. Touch Your Toes While hitting the gym or going for a walk are great ways to exercise, remember to stretch your muscles. At least once a day, take 5 to 10 minutes to stretch your limbs and get your blood flowing. Learn Something New If you’re no longer in school that doesn’t mean you can’t continue learning. Every day take 15 minutes to choose an interesting article to read or listen to a podcast that can help you gain a perspective you may not have had before. Rest Rest should not occur only when you s

With the rapid appreciation that homes have had in the last two years, most homeowners have equity.   A common way to release part of the equity is to cash-out refinance but some homeowners may not be eligible currently. This type of loan replaces the current mortgage by paying it off and an additional amount of cash for the owner.   Generally, lenders will consider a new mortgage up to a total of 80% of the current value. Typically, the rate on a cash-out refinance will be slightly higher than a traditional purchase money mortgage.   As is in any lending situation, the rate depends on the borrower's credit and income.   The best interest rates are available to borrowers with higher credit scores, usually over 740. Loan-to-value can affect the rate a borrower pays also.   A 70% loan-to-value mortgage could be expected to have a lower interest rate than an 80% LTV because there is a larger amount of equity remaining in the property and therefore, less risk for the lender. Th