1. Builders are increasing prices. Oh my gosh, I can’t blame the builders. They don’t even know how much to charge for for a house because they don’t know what the costs are going to be in nine months from now. There is no end in sight for this. You guys are not going to see a crash. There is no crash when there’s a shortage of inventory and massive inflation. Prices have to go up and without enough inventory, builders have raised their prices. Now, you see, I’m going to just tell you, I just got word several big builders just raised their prices by $35,000. You heard me $35,000. They have to. But that’s built in equity for you. If you own a home, your house just went up in value. Call your local builder and thank them.
2. Second thing, 80% of appraisals are coming in under value. They can’t come in for value because houses are going up so fast that the appraiser doesn’t have a comparable to bring in to show you that it’s a value. So be prepared to pay the difference. So if you’re buying a house for $500 and it appraises for $450 then your loan amount is going to be based on the $450. Whatever you’re putting down 20% of $450 then you pay the difference for whatever the purchase price is. So be prepared for that. The good news is, that I’m seeing my clients doing this, they’re having a little stomach ache over it and then in 30 days, the house is already at value. So you’re no longer in that situation where you feel like you might be upside down, it’s catching up, you’re going to be fine. Orlando, Florida is a very dynamic place. If you own property, your property is going to skyrocket in the next 10-15 years, it’s going to go through the roof. So you’re in great shape, don’t worry about it.
3. And the third big thing, you need to know, if you already have a mortgage and you’re in the fours, pick up the phone please and give me a call, it’s time to refinance it. So right now, interest rates are still very, very attractive. They’re not as low as they were in January, they’re not as low as they were a few months ago, but they’re still really record lows. So here’s the reason not to refinance. If you’re going from a 30 year to a 30 year and you’re not cashing out and the cost to do that loan Does not break you even in 36 months. Don’t do it. It’s not worth it. I don’t care what rate you’re paying most lenders won’t tell you that. I will tell you that. Don’t do it. Here’s the reason to refinance. Convert from a 30 year to a 15 year. Do you know that if your credit is marginal and you’re going to a 15 year that I will not have any risk based pricing increases on a 15 year loan for credit score. So let’s just say you have an FHA loan right now and your credit score was 680. Not bad, but not great. Not for conventional OK, for FHA. But now you’ve got 2025 30% equity. I could refinance you to a 15 year with that credit score and get you in the 2% range and now you’re free and clear in 15 years. Another reason your home has gone up so much in value that if you want to do home improvement or wipe out debt, do it now, do it now. Okay. And the third thing would be to get rid of PMI maybe you’re having FHA Loan, a conventional loan, you put five or 10% down time to get rid of the PMI. You got the equity, don’t count on the lender that did your loan. Even if it’s me just removing PMI because the rule is not that you have 20% equity to get rid of PMI. The rule to Fannie Mae and Freddie Mac is that you have to have 22 from the original purchase price, not the future proof of future value, which is now. You want to refi let me help you save money 407-869-8830.

The Loan Arranger is always here to help you. These are the three big things you need to know have a great weekend.