BLOG

Thinking About an Adjustable-Rate Mortgage? Here’s What You Need To Know. If you’ve been looking for a home lately, you’ve probably felt how tough affordability still is. And that's exactly why more buyers are opting for adjustable-rate mortgages , or ARMs. Here's what you need to understand about how they work, and whether they make sense for you. What Is an Adjustable-Rate Mortgage? Since a lot of people aren’t familiar with this type of loan, let’s start with a definition. This is how Business Insider explains the main difference between a fixed-rate mortgage and an adjustable-rate mortgage: “With a fixed-rate mortgage, your interest rate remains the same for the entire time you have the loan. This keeps your monthly payment the same for years . . . adjustable-rate mortgages work differently. You’ll start off with the same rate for a few years, but after that, your rate can change periodically. This means that if average rates have gone up, your mortgage payment will increase. If they’ve gone down, your payment will decrease.” Basically, one doesn’t change much over the life of your loan. And one could change... either by a little, or a lot. Of course, things like taxes or homeowner’s insurance can still have an impact on a fixed-rate loan, but the baseline of your mortgage payment is fairly steady. But the big difference is that with an ARM, your monthly payment could change over time. Why Adjustable-Rate Mortgages Are Getting More Attention So, why do some buyers choose this option? It's simple. It’s because of the upfront savings. Business Insider explains it like this: “Because ARM rates are typically lower than fixed mortgage rates, they can help buyers find affordability when rates are high. With a lower ARM rate, you can get a smaller monthly payment or afford more house than you could with a fixed-rate loan. ” And right now, according to Mortgage News Daily and the Wall Street Journal , the upfront rate on an ARM is lower than a 30-year fixed mortgage (see graph below): If you’re wondering how that shakes out in real dollars and cents, here’s what Redfin says. According to their research, the typical buyer could save about $150 per month by taking out an ARM instead of a 30-year fixed mortgage. For some people, that’s enough to make a difference. More Buyers Are Choosing Adjustable-Rate Mortgages Today A growing number of buyers are willing to trade the uncertainty later for a lower payment now. Data from the Mortgage Bankers Association (MBA) shows the share of buyers choosing ARMs has increased, especially over the last few years (see graph below). This doesn’t mean ARMs are becoming the go-to option for everyone. It only means some buyers are opting for this type of mortgage, so they can still buy today. And if you remember the housing crash, seeing ARMs gain popularity again may raise concerns. But rest easy. Today’s ARMs aren’t the same. Back then, some buyers were given loans they couldn’t afford once rates adjusted. Today, lending standards are stricter, and lenders evaluate whether borrowers could still handle the payment if rates rise. So, the return of ARMs doesn’t signal another widespread crash. It just reflects how some buyers are adapting to today’s affordability challenges. The Trade-Off – What You Need To Consider If you’re considering an adjustable-rate mortgage yourself, just remember it really all depends on your situation and your risk tolerance. An ARM may make sense if you plan to move before your rate would adjust or if you expect you’ll make a higher income in the future. But there are trade-offs you need to think through. For example, once the fixed period ends, your rate can adjust, and your payment could increase, potentially by a meaningful amount depending on where rates are at that time. And keep in mind, there’s also no guarantee mortgage rates will come down in the future, which means refinancing later isn’t always an option. That’s why it’s important to think through your plan, understand your long-term earning potential, and work closely with a trusted lender before you choose an ARM. Bottom Line ARMs are getting more attention again because they can make buying a home more affordable in the short term. But they’re not right for everyone. The key is understanding how they work, what the risks are, and whether they fit your plan. And that’s why you need to talk to a trusted lender and financial advisor before you make any decisions.

Don’t Let Home Prices Headlines Fool You Spend about 5 minutes online searching for news about the housing market, and odds are you’ll see something pop up about home prices . You may even stumble onto social media influencers saying we’re headed for a crash. Let’s get you the context you need. The truth is prices are going to vary depending on where you live. But they're not crashing. Here’s what you need to know. The Local Perspective: Home Price Trends by Area The biggest thing feeding into the confusion online is how different home price trends are by area right now. Take a look at this data from ResiClub and Zillow (see graph below). About half of the largest metros are seeing prices go up. The other half are seeing some declines. Unfortunately, the online chatter only focuses on the markets where prices are down – and that makes it sound like something bigger is happening. But, as you can see in this graph, that’s only one side of the story. The full picture is different. The National Perspective: Moderate Price Growth As a country, when you average it all together to get a true baseline, one thing becomes clear, home prices are still net positive at the national level. According to the Redfin, national home prices were up about 1% year-over-year in February. So, what we’re seeing right now isn’t a collapse. It’s a market that’s normalizing after a period of unusually fast growth. And that impacts some local markets more than others – particularly those where prices rose too far, too fast during the pandemic. A true crash, like what happened in 2008, would mean prices dropping sharply across the entire country. That’s just not what the data shows today. And it’s not where things are going either. Experts Agree This Isn’t 2008 In fact, Fannie Mae surveyed over 100 housing market experts to ask their opinions on where prices are headed from here. And the experts agree, nationally, prices are expected to keep rising over the next five years : That rise will be moderate, particularly this year, but the trend is clear. Nationally, prices are forecast to grow every year now through at least 2030 – and that’s normal. Daryl Fairweather, Chief Economist, at Redfin explains: “ House prices aren’t going to fall on a national scale any time soon—and that’s actually a good thing. It’s normal for house prices to rise gradually over time . . .” That's why even in the select areas where prices have dropped slightly this year, the decline is expected to be temporary. According to that same quarterly Fannie Mae survey mentioned above, 85% of the experts say the markets that are seeing mild declines right now will return to positive price growth before the end of 2027. The main takeaway? This isn’t a crash. And prices aren’t expected to fall nationally. If anything, the few areas experiencing declines are expected to rebound in the next year or so. Bottom Line It’s easy to get caught up in headlines that make it sound like something big is about to happen. But don’t be fooled. The housing market isn’t crashing. It’s just shifting. The key is understanding what’s actually happening in your market, so you can make the right move for you. Let’s connect if you want the local perspective.

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Your House Hasn’t Sold Yet. Should You Rent It Out Instead? When your house sits on the market longer than expected, it can get frustrating fast. You start asking: what now? And for a growing number of homeowners, that turns into: should I just rent it instead? While it sounds like a simple backup plan, becoming “ accidental landlord ” is actually a much bigger decision than most people realize. That’s when someone planned to sell, didn’t get the price or traction they hoped for, and decided to rent the house out instead. And lately, that's happening more often. Why the Number of Accidental Landlords Is Rising If you’re faced with the same choice to rent or to sell, here’s what you need to know. First, you’re not alone. And that should actually be some comfort. According to Zillow about 2.3% of homes available for rent were previously listed for sale. That may not sound like a lot, but it’s actually the highest share in almost 6 years. Before you go that route yourself, it’s worth slowing down and looking at the full picture. Ask yourself these 3 questions first. 1. Would Your House Actually Work as a Rental? What’s right for your situation is going to depend on your location, your home’s condition, and what the rental market looks like in your area. Think about: If you’re moving away, do you have a plan for how you’ll handle ongoing maintenance and repairs from afar? Does your house need repairs before it’s rental-ready? And do you have the time, energy, and the funds for that? What's the market like in your area? Are there a lot of rental vacancies? What monthly rent could you realistically expect? As C&C Property Management explains: “At the heart of any rental market is the balance between supply and demand. When more tenants are looking for housing than there are available units, rental prices rise. On the other hand, if new construction adds hundreds of apartments or homes to a neighborhood, prices can soften as tenants have more choices.” If your home would struggle to stand out or command the rent you need, that’s something to take seriously. Just because you can rent it doesn’t mean it’s the best option for you. 2. Are You Ready To Be a Landlord? This is the part people don’t always think about upfront. On paper, renting sounds like easy passive income. But in reality, it’s a hands-on responsibility. Imagine: Taking midnight calls about clogged toilets or broken air conditioners Chasing down missed rent payments Covering unexpected repairs Fixing damage between tenants And those costs can hit when you least expect them. 3. Have You Run the Real Numbers? There’s also the financial side of things. For starters, renting out your house comes with extra expenses. Here are a few of the biggest according to Bankrate: Higher insurance premiums (landlord insurance typically costs about 25% more) Management fees (if you use a property manager, they typically charge around 10% of the rent) Routine maintenance and services Advertising fees to find tenants Gaps between tenants, where you cover the mortgage without rental income coming in For some people, that’s totally manageable. For others, it’s more than they want to take on. Your Next Step: A Conversation with Your Agent Before you make any decision, talk to your current agent about overhauling your sales strategy first. Sometimes it’s not that buyers aren’t out there. It’s that something about the pricing, presentation, or marketing isn’t quite lining up with what they’re looking for. And a few small adjustments can make a big difference. Because while renting can be a great choice for the right person with the right house, if you’re only considering it because your listing didn’t get traction, there may be a better solution. Bottom Line If you're torn between selling and renting, make sure to carefully weigh the pros and cons first. For some homeowners, the hassle (and the expense) of renting may not be worth it.

Before You Fall in Love with a House, Do This First. Be honest. Have you started looking at homes online yet? If you have, it’s already time to get pre-approved . Because here’s what not enough people know. If buying a home is on your radar – even if it’s more of a someday plan than a right now plan – you don’t want to wait until later on in the process to tackle this step. No matter what you’ve heard, pre-approval isn’t about commitment. It’s about clarity. And here are the two big ways pre-approval sets you up for success. You Know Your Numbers Up Front During the pre-approval process, a lender will walk through your finances and tell you what you can borrow based on your income, debts, credit score , and more. And once you have that number, your search becomes a lot more focused. With a mortgage pre-approval, you know what you can borrow, so it’s easier to figure out your ideal price point, and what you can actually afford. And that clarity is key. Because if you just start browsing online and just guess at your price point, you run the risk of falling for a house that’s outside of your price range – or missing out on ones that aren’t. You want this number to be clearly defined before your search. Here’s why. You Can Move Quickly When You Find the One This is how a lot of home searches go today. You scroll through listings just to see what’s out there, and then it happens. You fall in love with something you’ve seen online. If you’re already pre-approved? You’re probably in great shape. But if you’re not… Instead of being able to jump on that house and quickly make an offer, you have to scramble to get a lender, gather the financial documents, and then submit the necessary pre-approval paperwork first. And while you’re waiting to hear back from your lender, someone else who’s more prepared could beat you to the house. As Bankrate explains: “The best time to get a mortgage preapproval is before you start looking for a home. If you find a home you love but don’t have a preapproval in hand, you likely won’t have time to get preapproved before you need to make an offer . . .” And that’s avoidable, with the right prep. Because while you can’t control when the right home shows up, you can be ready for it. Think of it like showing up to the starting line with your shoes tied and your warm-up done – while everyone else is still looking for parking. It’s not about rushing your timeline. It’s about removing the delay between finding the right home and being able to move on it. One Thing You Need To Know About Pre-Approvals Speaking of timing, pre-approvals do have an expiration date. So, be sure to ask your lender how long it’s good for. The Mortgage Reports explains: “ Mortgage preapproval letters are typically valid for anywhere from 30 to 90 days. However, a preapproval can be updated and extended if the lender re-checks your information.” Doing the right prep and knowing this information can make the whole process a lot smoother. You don’t have to be ready to buy to be ready to buy. Getting pre-approved doesn’t mean you’re committing to buy right now. It just means you’ve taken a step to understand your numbers. And when a home catches your attention, you’re prepped and good to go. Bottom Line Ask yourself this: if your perfect home popped up tomorrow, would you be ready to make a move? If the answer is no and you want to buy, it may be time to get pre-approved. You don’t feel behind before your search even officially kicks off.

The 10 Best Markets for First-Time Buyers This Spring For a while, buying your first home hasn’t just felt hard. It may have felt out of reach. Not because you weren’t ready . Not because you weren’t trying . But because every time you ran the numbers, they didn’t work . That’s why so many first-time buyers stepped back. But after years of sitting on the outside looking in, this Spring could give buyers like you an opening again – especially in some markets. Metros Where Buyers May Have an Easier Time Breaking into the Market Zillow just released a list of the top 50 metros for first-time buyers this Spring. And here’s a quick snapshot of the top 10 (see chart below): According to Zillow, in these top-ranked markets, median-income households can afford 68% of all homes for sale . Let that sink in. Not long ago, it felt like you could barely afford anything. Now, you may actually have some options again. That doesn’t mean every home is suddenly going to fit your budget. But it does mean the door that felt closed for so many buyers is starting to crack back open. And in a number of cities, first-time buyers may finally be getting a shot at buying . Why This Is Starting To Open Up These cities are rising to the top not because of any one big change, but from a few smaller ones finally lining up. As Orphe Divounguy, Senior Economist at Zillow, explains: “ First-time buyers are finally seeing some light at the end of the tunnel. Affordability is still a challenge, but rising incomes, stabilizing prices and improving inventory are creating real opportunities in parts of the country. In the strongest markets for first-time buyers, they'll find more choices, less competition and a clearer path to homeownership than they've had in years .” Basically, three big things are working in your favor: More homes are hitting the market. Realtor.com says inventory is up 8.1% compared to last year. That gives you more choices, less pressure, and more chances to find a place that fits your budget. Price growth is moderating, so homes aren’t moving further out of reach as quickly. Some may even be falling back within your target price point. Incomes are rising. If you make more money, that can offset some of the affordability challenges too. And even though mortgage rates have been higher lately, that combination can still make a difference. As Mark Fleming, Chief Economist at First American , explains : “Income growth has outpaced house price growth for 19 straight months, boosting house-buying power even as mortgage rates remain elevated.” How To Find the Opportunities in Your Local Market But what if your city didn’t make the top 10 list, or even the top 50 markets? Here’s what you really need to remember. There’s going to be opportunities in every market, if you know where to look. Even in the same city, two buyers can have completely different experiences. And a big part of that is who they choose as their partner. The right agent knows how to find pockets of opportunity in any market. That could mean: A neighborhood where prices haven’t climbed as quickly A part of town with more inventory, or A new build community offering incentives so builders can sell their inventory So, even if your city didn’t make the list, that’s okay. There’s still an opening for you, you just need your agent to help you find it. Bottom Line For a long time, first-time buyers have felt stuck, waiting for their turn to buy. But for some buyers, this Spring might be the first time in a while where things start to feel more within reach again. Want to see which neighborhoods could give you the best shot at buying right now? Let’s talk.

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

3 Must-Do’s for First-Time Home Buyers Buying your first home is exciting, but it can also be a little nerve-wrecking because it’s something you’ve never done before. And trying to think of everything you need to do can feel like a lot. But here’s the key. You don’t have to figure everything out on your own. And you don’t have to do it all at once. Just tackle it one thing at a time. Here’s a simple list of 3 main things you should focus on to help you get started. 1. Assemble Your Team: Don’t Do This Alone Buying a home is a team sport. And having the right professionals by your side can make a world of difference. Here’s who you need to find: A local real estate agent is your guide from the first showing to closing day. They’ll make sure you understand all the details along the way, so you feel confident in your decision. A trusted lender will walk you through loan options, monthly payments, and what’s realistic for your situation. That information is something you’re going to want early on. 2. Prep Your Finances: Set the Foundation First This is what determines what you can afford, how competitive you’ll be, and how confident you’ll feel when it’s time to make an offer. Here’s how to get ready: Check your credit score. Your credit score impacts the loan options you’ll qualify for and even the mortgage rate you’ll get. Knowing this number early gives you time to work on raising your score, if you want to. Save for your down payment and closing costs. Most buyers focus on the down payment , but closing costs matter too. Having savings set aside for both helps you avoid last-minute stress and surprises. Look into assistance programs. Many first-time buyers qualify for programs that’ll give their homebuying savings a boost. This can make buying possible sooner than you expect. Talk to a lender about mortgage options. Fixed-rate, adjustable-rate, FHA, VA , and conventional loans all work differently. Understanding the options helps you choose what fits your goals best. Get pre-approved. A pre-approval tells you what a lender would be willing to give you for your home loan. This’ll help you figure out your price range and set you up to move fast when the right home comes along. Figure out your budget. Your mortgage is just one part of homeownership. Budgeting for your utilities, home insurance , and everyday expenses and maintenance will help make sure your payment feels comfortable, not stressful. 3. Gather Your Documents: Save Time (and Stress) When you’re officially ready to kick off the buying process, lenders are going to need to verify your income, assets, and financial history. Having these documents ready-to-go upfront can speed up the process and reduce back-and-forth. Here’s what Bankrate says you need to prep: W-2s and tax documents (past 2 years). These show income stability and help lenders verify your earnings over time. Recent pay stubs (generally the past 1–2 months). Pay stubs confirm your current income and employment status. Bank statements (past 2–3 months). These show your savings, spending patterns, and where your down payment funds are coming from. Investment account statements (past 2-3 months). If you’re using investments as part of your financial picture, lenders may ask for these as well. Copy of your driver’s license. This verifies your identity and is required for loan processing. Residential history (past 2 years). Lenders use this to confirm stability and background information. Statements for any outstanding debts (past 2 months). Student loans, auto loans, and credit cards affect your debt-to-income ratio, so lenders will want to know about them. Proof of supplemental income. Bonuses, commissions, side work, or child support may count toward your income if documented properly. Note: the exact time frames and list of documents may vary lender to lender. This is just a general rule of thumb to help you get the ball rolling. Bottom Line Buying your first home doesn’t mean you have to have everything figured out. It just requires a plan. If you start with your finances, organize your documents, and surround yourself with the right people, you’ll be in great shape when the time comes to make a move. And if you want more information on anything in this list or just need help getting started, don’t hesitate to reach out.

People are turning to AI for just about anything you can think of: Trying to figure out if a strange symptom is worth a doctor’s visit Drafting a text they’ve been overthinking for three days Deciding whether that noise coming from their car is “normal” or “you should probably pull over immediately” Even asking how to handle awkward conversations, negotiate a salary, or plan out major life decisions So of course, it makes sense that people buying or selling a home would turn to AI at different stages of the process. And to be fair, it can be incredibly useful. It can give you a general sense of how the process works, help you understand terminology, and prepare you to ask better questions. Ideally, it helps make things smoother. More efficient. More informed. But that really hinges on whether it’s actually giving you accurate information, and whether that information is being interpreted correctly. That’s not to say that AI always gives wrong or even bad advice. But one thing it always gives is…confident advice. And sometimes, that confidence can be misplaced. When Everyone’s AI Answer Is “Right”… Things Can Go Wrong A recent story making the rounds is a perfect example of how this can play out in real life. According to NewsNation , well-known celebrity agent Ryan Serhant shared how a major deal nearly fell apart because both sides were turning to AI for guidance during negotiations. Basically, the seller asked if they were accepting too low of an offer, and AI confidently said yes. On the other hand, the buyer asked if they were paying too much. And, wouldn’t you know it, they were confidently told that they were in fact overpaying. That led to both sides wanting to cancel the contract. The agents involved were able to step in, help their respective clients understand the market data, and ultimately bring the parties back together to salvage the deal. And that’s becoming a more common role in today’s market. Agents are having to help people navigate situations where the challenge isn’t a lack of information… but rather being too certain about the information they are receiving. Very Few People Actually Trust AI, Yet Many Still Follow Its Advice A recent survey found that while only 16% of people say they trust AI “a great deal,” yet many still rely on its answers when making decisions. Even more interesting: 58% of people admit AI has influenced their opinions 32% don’t fully understand how it generates answers And despite all of these things, many people still rely on the confident-sounding answer from AI over a trusted, verified source That’s a tricky combination. Because if you don’t fully understand how something works, it becomes very hard to recognize when it might be wrong. And when the answer is delivered in a way that sounds authoritative, it’s easy to accept it at face value. AI Is the New Dad in the Room In a way, none of this is entirely new. Real estate agents have been navigating this dynamic for years, it just typically comes from different sources. For instance: The well-meaning buyer’s dad at the home inspection. A relative who “sold a lot of houses” in their life. (It was two. And they were in the 80s and 90s.) Their hair stylist who knows every house on the market in town. That’s just to name a few examples. There are plenty of other people with thoughts and opinions they want to share with someone who is in the middle of buying or selling a home. And, while they come in all shapes and sizes, the one thing they all have in common is that they are absolutely, 100% confident in the advice they give. Unfortunately, their perspective and advice is often wrong or outdated, which puts the agent in a tough spot because they have to gently untangle advice that sounds logical, but isn’t actually good advice. People are often speculating how many jobs AI will replace in the near future. Will it replace the well-meaning friend or family member soliciting advice to home buyers and sellers? Probably not. Most likely AI will just be added to the list of outside advice agents have to help their clients assess and decide whether it’s accurate or not. And that’s really what this all comes down to. By all means, use AI. Ask it questions. Get a feel for things. Explore different angles. And while you’re at it, hear out the thoughts and advice of friends, family, and even that random person who sounds incredibly confident in what they’re saying. There’s nothing wrong with gathering input. But at the end of the day, just make sure you have an agent you trust helping you weigh the confident-sounding advice… so you can make a confident decision of your own. The Takeaway: More and more people are turning to AI for advice, and when it comes to buying or selling a home, that’s no exception. It can be a helpful starting point, giving you a general understanding of the process and helping you feel more prepared. The challenge is that AI often delivers confident answers that can sound right… even when they don’t fully apply. That’s why having a trusted agent matters. Not just to provide information, but to help you interpret what you’re hearing from AI (or even a well-meaning friend or relative), filter out what doesn’t apply, and guide you toward decisions that actually work in your specific situation.