How Did I Help this Family Navigate a Tricky Escrow Process?

"Matthew and Jessica had been renting a home for nearly seven years. They already had two kids, but with two more on the way they needed a little bit more space to stretch out. They were keeping a close eye on the market because it moves very quickly, and they were happy that I could show them homes so quickly.

They had some trouble with the inspection and some unforeseen damages, but I managed to clear up the issues and get them into their brand new home. If they were working with anybody else, I'm not sure they'd be able to sit in their brand new kitchen right now!" - Scott

How Does the Interest Rate Hike Affect Porter Ranch?

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You may have heard the Fed met this month and increased interest rates for the first time in almost a decade. The real estate industry has been talking about this meeting for a long time. However, the interest rate hike doesn’t affect mortgage rates instantly. The market expected this, and it was already built into mortgage rates. Rates still remain around 4% to 4.25% for a 30-year fixed mortgage.

Now, we have a new question to consider. How often, if at all, will the Fed increase rates in 2016? This might be the only hike we experience, or it could be one of many. We can’t predict what will happen. However, I am confident we will see low rates heading into the new year.

Further increases are likely to be gradual. Prospective buyers and sellers have some time before these higher rates set in. However, a slight increase of interest rates can make a big difference on your home loan.

For example, maybe you have a home worth $300,000 with a 3.9% interest rate on a 30-year fixed mortgage. Your total interest payment would be $212,500. That number shifts to $231,295 with a 4.25%. That’s a significant price difference of nearly $20,000!

There are a few things to keep in mind. We have a whole generation of first-time home buyers that have never experienced the meaningful rate increase. It’s new and unfamiliar territory to all of them. Even with a slight increase in rates, now is still a great time to buy. Don’t purchase more than you can afford, as always. It’s likewise an opportune time to sell.

If you’re looking to buy or sell a home next year, get a head start today. Reach out to me by phone or email! I’d be happy to help answer any questions and serve your real estate needs.

These Repeat Customers Walked Away Smiling

"Brent has been an acquaintance and client of mine for many years. I've sold a few different homes for him and his family. With this particular home, Brent didn't know if he wanted to sell it or rent it out. After some deliberation, I finally helped the family reach a conclusion to sell the home. We decided this was right for his family.

We hosted an open house and had multiple offers by the end of the event. They were very pleased with the marketing I used to draw in qualified buyers. I was very happy to help Brent sell again!" - Scott