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Apache is functioning normally

June 8, 2023 by Brett Tams

Real estate has the power to change your life for the better, but it can do so much more than that. Today’s guest, Jen McConnell, used her commissions to fight pediatric cancer, and she later created a foundation to help further the cause. On this podcast, Jen shares how real estate changed her life and has given her the ability to impact the lives of countless others. Jen also covers the advantages of running your own brokerage, ways to deliver five-star customer service, and more.

Listen to today’s show and learn:

  • Jen McConnell’s start in real estate [1:34]
  • What agents learn selling homes for builders [5:31]
  • The Charleston real estate market [6:47]
  • McConnell Real Estate Partners’ sales and team structure [8:04]
  • The advantages of running your own brokerage [13:32]
  • Social media as a tool for real estate agents [15:20]
  • The financial crisis compared to this correction [17:17]
  • About The McConnell Foundation and donating to causes that matter [18:33]
  • Restarting in real estate after major life challenges [22:18]
  • Advice on starting a non-profit foundation [26:53]
  • Advice for agents on giving five-star service to get referrals [27:29]
  • Jen’s favorite CRM: Follow-Up Boss [30:19]
  • The post-closing checklist: When to follow up with buyers [31:13]
  • Transitioning from paid leads to referrals [34:42]
  • Where to find and follow Jen McConnell [36:25]

Jen McConnell

Jen was fortunate enough to start her real estate career when she was a junior in college.  Now with over 17 years of experience in the industry, she has a particular expertise in luxury real estate and custom home building. She moved to Charleston in 2006 after receiving her B.A. in Marketing from Ashland University. In 2022 Jen was awarded the South Carolina Women in Business Award, and chosen as a Top 40 Under 40 Real Estate Agent in Charleston.  Jen has also been featured on Charleston Home Showcase & Lowcountry Live and has been featured in Charleston Real Producers Magazine, Charleston Style & Design Magazine, Southern Living Magazine, The Post & Courier, Charleston City Paper, Charleston Regional Business Journal, Charleston Daily, Greenville Business Journal, Columbia Business Journal and many others. She is a Certified Luxury Home Marketing Specialist through the Institute for Luxury Home Marketing where she has been awarded the prestigious Million Dollar Guild award. Jen has also earned the coveted Realtor of Distinction Award achieving the highest rank possible as a Platinum Award winner through the Charleston Trident Association of Realtors. The Platinum Award places Jen in the Top 2% of agents in Charleston.

Jen is the Co-Founder of King Tide Investment Group and Blue Ocean Investments, both residential real estate investment companies based in Charleston, SC and Greenville, SC respectively. In 2021 Jen and her husband Josh opened their own brokerage on Isle of Palms and formed McConnell Real Estate Partners where she is the broker-in-charge.

Jen met her husband, Josh, in Charleston and was married at Wild Dunes on Isle of Palms in 2010. They now live on Isle of Palms and welcomed their daughter Bennett in 2016 and their son Bodhi in 2017. They have embraced all Charleston has to offer but most especially the outdoor living, the amazing restaurants and long summer days at the beach. The McConnell’s are avid Clemson Tigers, strong supporters of MUSC Children’s Hospital, the South Carolina Aquarium, Pet Helpers Adoption Center and are members of First United Methodist Church on Isle of Palms.

Jen prides herself on being persistent, utilizing her experience to always find the most advantageous terms for her clients, and providing unparalleled professionalism and expertise for her clients in each and every transaction. Whether you’re looking to buy, sell or invest in real estate throughout the Charleston area, Jen would love to share her passion and market knowledge with you.

Related Links and Resources:

Thank You Rockstars!

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

Posted in: Small Business Tagged: 2, 2016, 2017, 2021, 2022, About, advice, agent, agents, All, beach, best, blue, Broker, brokerage, builders, building, business, Buy, buyers, Career, checklist, Children, church, city, closing, College, columbia, commission, commissions, companies, Crisis, CRM, custom, custom home, customer service, design, estate, experience, facebook, Featured, financial crisis, Financial Wize, FinancialWize, foundation, Giving, guest, guests, Guild, home, home building, homes, impact, in, industry, Instagram, Invest, invest in real estate, investment, investments, Learn, Life, Links, Live, Living, Luxury, luxury real estate, market, Marketing, married, Media, More, offer, or, outdoor, outdoor living, Pet, platinum, podcast, questions, Real Estate, real estate agent, Real Estate Agents, real estate investment, real estate market, realtor, Realtors, referrals, Residential, residential real estate, restaurants, Review, running, sales, sc, Sell, selling, shares, social, Social Media, South, South Carolina, Style, summer, time, Transaction, Twitter, under, united, value, women, women in business, working

Apache is functioning normally

June 8, 2023 by Brett Tams

LOS ANGELES — The average long-term U.S. mortgage rate rose this week to its highest level since mid March, driving up borrowing costs for prospective homebuyers facing a housing market that’s constrained by a dearth of homes for sale.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.57% from 6.39% last week. The average rate a year ago was 5.10%.

High rates can add hundreds of dollars a month in costs for homebuyers, limiting how much buyers can afford in a market that remains unaffordable to many Americans after years of soaring home prices and limited housing inventory.

The median monthly payment listed on applications for home purchase loans in April rose to $2,112, up nearly 12% from a year ago and a 0.9% increase from March, the Mortgage Bankers Association said Thursday.

The average rate on a 30-year home loan has risen two weeks in a row, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans.

The 10-year Treasury yield has been mostly rising of late, climbing to 3.79% in afternoon trading Thursday. Two weeks ago, it was at 3.39%.

The move up in bond yields comes as investors react to stronger-than-expected economic data and the implications that could have on whether the Federal Reserve will raise interest rates again next month.

Bond traders are also factoring in the possibility that the U.S. government may default on its debt as the White House and GOP leadership wrangle over a deal to raise the federal government’s debt ceiling so it can avoid an unprecedented default as soon as June 1.

“The U.S. economy is showing continued resilience which, combined with debt ceiling concerns, led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s chief economist.

Jitters over the possibility that the government ends up defaulting on its debt could cause creditors to ask for higher interest rates on U.S. Treasury bonds, which could lead to a “significant increase” in borrowing costs, including mortgages, said Jiayi Xu, an economist at Realtor.com.

“Resolving the debt impasse sooner, rather than later, would mitigate potential adverse effects on the housing market, which is already contending with high prices and elevated mortgage rates,” Xu said.

Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates influence rates on home loans.

The Fed has raised its benchmark interest rate 10 times in 14 months. At its last meeting of policymakers, the central bank signaled that it could finally pause its yearlong campaign of rate hikes, though a pause would likely only nudge mortgage rates slightly lower.

Low mortgage rates helped fuel the housing market for much of the past decade, easing the way for borrowers to finance ever-higher home prices. That trend began to reverse a little over a year ago, when the Fed started to hike its key short-term rate in a bid to slow the economy and cool the highest inflation in four decades.

The spring homebuying season got off to a lackluster start this year as prospective buyers grappled with higher borrowing costs and a near record-low inventory of homes on the market.

Sales of previously occupied U.S. homes fell 23.2% in the 12 months ended in April, marking nine straight months of annual sales declines of 20% or more, according to the National Association of Realtors. The national median home price fell to $388,800 last month — down 1.7% from a year earlier and the biggest year-over-year drop since January 2012.

The modest pullback in home prices reflects heated competition among buyers, especially those vying for the most affordable homes. At least one-third of the homes sold last month went for more than their list price, according to the NAR.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, rose to 5.97% this week from 5.75% last week. A year ago, it averaged 4.31%, Freddie Mac said.

Source: abcnews.go.com

Posted in: Renting Tagged: 15-year, 2, 30-year, affordable, affordable homes, Applications, ask, average, Bank, bond, bond yields, bonds, borrowers, borrowing, buyer, buyers, Competition, creditors, data, Debt, debt ceiling, decades, driving, Economy, expectations, fed, Federal Reserve, Finance, Financial Wize, FinancialWize, fixed, Freddie Mac, future, government, guide, home, home loan, home loans, Home Price, home prices, home purchase, Homebuyers, homebuying, homes, homes for sale, house, Housing, Housing inventory, Housing market, in, Inflation, interest, interest rate, interest rates, inventory, investors, leadership, lenders, list, list price, loan, Loans, LOS, los angeles, low, Low inventory, low mortgage rates, LOWER, market, median home price, More, Mortgage, Mortgage Bankers Association, MORTGAGE RATE, Mortgage Rates, Mortgages, Move, NAR, National Association of Realtors, News, or, policymakers, Popular, price, Prices, Purchase, Purchase loans, Raise, rate, Rate Hikes, Rates, realtor, Realtor.com, Realtors, refinancing, Reverse, rose, sale, sales, Sam Khater, short, soaring, Spring, The Economy, the fed, trading, Treasury, Treasury bonds, Treasurys, trend, U.S. Treasury, white, white house, will

Apache is functioning normally

June 7, 2023 by Brett Tams

All 12 Federal Reserve districts have seen issues with a lack of housing inventory, which is largely due to existing homeowners holding back on listing their homes after previously locking in low mortgage rates. 

Demand from the buyer side has remained steady or increased, however, and new home builders have responded to inventory shortages by increasing speculative inventory production, according to the Federal Reserve Beige Book, released Wednesday. 

The Beige Book is a compilation of data and interviews with bank and branch directors, community organizations and economists from on or before May 22.

“Residential real estate activity picked up in most Districts despite continued low inventories of homes for sale,” the report states. 

The Beige Book also notes that “home prices and rents rose slightly on balance in most Districts, after little growth in the prior period.”

In return, the lack of inventory of homes for sale pushed demand for rental properties in some areas — including New York, Chicago, St. Louis, Kansas City Federal Reserve districts.

Following are excerpts of statements on housing conditions from each of the 12 Federal Reserve districts. 

***

Boston – Contacts around the District attribute the still-low sales numbers to low inventories more than to weak demand, as slightly lower mortgage rates have helped bring more buyers to the market.

House price appreciation has slowed on average but remains slightly positive, with the exception that home prices in Massachusetts (not including Boston) have experienced modest declines from a year earlier. The modest price growth in the Boston area marks a trend reversal from the preceding few months. 

Contacts anticipate that, despite healthy buyer demand, home sales are likely to experience only a modest seasonal increase moving forward, owing to extremely low inventory levels.

New York – The residential sales market has been strong across the District. A New York City-area contact reports that the sales market in and around New York City has picked up strongly in recent weeks after a brief pause in early April, which was due to uncertainty in the banking sector.

After a slow start to the year, housing markets in upstate New York have also started to pick up, with bidding wars and multiple offers becoming more common. Inventory remains exceptionally low and is restraining sales activity in much of the District. A key factor suppressing new listings is the prevalence of homeowners with historically low interest rates on their existing mortgages, reducing the incentive to sell and move.

A strong economy and relatively high mortgage rates have pushed some movers to the rental market, boosting demand.

Philadelphia –  High interest rates have continued to dissuade existing homeowners from listing their house and losing their low interest rate. Existing home sales have fallen moderately in this district, and prices have continued to rise as the market heats up again. New home builders have benefited from the unseasonably modest sales of existing homes as the resale market has slowed. 

Cleveland – Demand for residential construction and real estate has stabilized in this District, and contacts attribute this stabilization to the arrival of spring and flattening interest rates.

Homebuilders have reported an increase in speculative construction projects in this District, as many buyers want to purchase and move into homes immediately, in part to avoid further rises in interest rates.

Richmond – Residential real estate respondents indicate in the report that the spring market is off to a good start, with sales prices continuing to appreciate, but not at the same pace as last year. For-sale inventory remains constrained due to fewer people putting their homes on the market, but buyer traffic has been steady while the days on market has increased slightly in the last month. 

However, fluctuations in mortgage rates have caused buyers to pull back, with pending sales and closed sales both down in this District. Builders have been offering strong incentives to close deals. 

Atlanta – Housing demand throughout the District has remained strong despite interest rate and home price volatility. Though home sales are down compared to a year ago, sales in many markets in this District have increased on a monthly basis, as buyer sentiment has modestly improved. 

The supply of existing homes for sale has remained low as homeowners have showed increased hesitancy to list homes for sale, especially if they financed at a low interest rate. Home prices remain down from peak levels but have recently shown month-to-month improvement.

New home builders have responded to inventory shortages by increasing speculative inventory production, and some have begun to reduce buyer incentives.

Chicago – Residential construction activity has been down modestly in this District. Contacts report that high-interest rates have led some projects to be postponed or canceled and that while construction costs had fallen, the decline isn’t enough to offset higher financing costs. 

Residential real estate activity has decreased modestly as well. Prices and rents have declined, and the low inventory of homes for sale has helped to prevent larger declines.

However, there have been reports of rising retail rents in some areas because of a lack of high-quality new construction.

St. Louis – Rental rates for residential real estate have increased slightly in this District. The number of new listings in residential real estate have dropped sharply in Louisville since our previous report, while new listings in the Memphis and Little Rock regions have remained unchanged. Seasonally adjusted home sales have remained unchanged since the previous report. 

Minneapolis – Residential construction has remained subdued. Single-family permitting in April was more than 40 percent lower year over year in the Minneapolis-St. Paul region; most other large markets in the District saw even bigger declines. Discounts have started to appear for some speculative developments.

Closed (residential real estate) sales in April fell notably year over year across the District, with many larger markets seeing declines of 30 to 50 percent. Median sale prices have declined in western and central Montana and have been flat in several other markets. 

Kansas City – Housing rental rate growth has remained elevated in several western District states, but the pace of increases has declined broadly and swiftly from the growth rate experienced during the past year. 

Dallas – Housing demand broadly has held up in the Dallas District, though sales have continued to be weaker than a year ago. Contacts have noted a decent spring selling season, with prices largely stable, and builders have been able to raise prices slightly in selected areas.

Outlooks have been cautious, however, with some voicing concern about whether demand would hold up beyond the spring selling season.

San Francisco – Activity in residential real estate has slowed further in this District. Contacts across the District have reported stable demand for single-family homes, although high mortgage rates have restrained prices. Existing single-family inventory has been low, and owners appeared hesitant to forego their existing low-rate mortgages by listing their homes.

Despite reported improvement in the availability and cost of materials, construction of new homes has been flat-to-down as developers responded to higher financing costs.

Source: housingwire.com

Posted in: Paying Off Debts, Real Estate Tagged: About, All, Appreciate, appreciation, atlanta, average, balance, Bank, Banking, before, Beige Book, bidding, bidding wars, book, boston, builders, buyer, buyers, chicago, city, construction, contacts, cost, dallas, data, days on market, Deals, Discounts, Economy, estate, existing, Existing home sales, experience, Family, Federal Reserve, Financial Wize, FinancialWize, financing, good, growth, healthy, hold, home, home builders, Home Price, home prices, Home Sales, Homebuilders, homeowners, homes, homes for sale, house, Housing, housing demand, Housing inventory, Housing market, Housing markets, improvement, in, interest, interest rate, interest rates, Interviews, inventories, inventory, inventory levels, Kansas City, list, Listings, Little Rock, louisville, low, Low inventory, low mortgage rates, LOWER, market, markets, Massachusetts, memphis, minneapolis, montana, More, Mortgage, Mortgage Rates, Mortgages, Move, Movers, Moving, multiple offers, new, new construction, new home, new listings, new york, new york city, offers, or, Other, percent, price, Prices, PRIOR, projects, Purchase, quality, Raise, rate, Rates, Real Estate, Real Estate Listings, rental, rental market, rental properties, resale, Residential, residential real estate, return, rise, rose, sale, sales, san francisco, seasonal, sector, Sell, selling, shortages, Side, single, single-family, single-family homes, Spring, St. Louis, stable, states, trend, Upstate New York, volatility

Apache is functioning normally

June 7, 2023 by Brett Tams

The four-day business week accompanying the Memorial Day Holiday contributed to a further slowdown in mortgage applications. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, decreased 1.4 percent on a seasonally adjusted basis and dropped 12 percent on an unadjusted basis.

The Refinance Index decreased 1.0 percent from the previous week and was 42.0 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 27.3 percent from 26.7 percent the previous week.

The seasonally adjusted Purchase Index dipped 2.0 percent. The unadjusted index was down 13.0 percent week-over-week and 27 percent on an annual basis.

“Mortgage rates declined last week from a recent high, but total application activity slipped for the fourth straight week,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed rate dipped to 6.81 percent; 10 basis points lower than last week but still the second highest rate of 2023 to date.  

“Overall applications were more than 30 percent lower than a year ago, as borrowers continue to grapple with the higher rate environment. Purchase activity is constrained by reduced purchasing power from higher rates and the ongoing lack of for-sale inventory in the market, while there continues to be very little rate incentive for refinance borrowers. There was less of a decline in government purchase applications last week, which was consistent with a growing share of first-time home buyers in the market.”

 Highlights from MBA’s Weekly Mortgage Applications Survey

  •  Loan sizes dropped by about $10,000 last week. The overall loan size was $381,200 with purchase loans averaging $429,700.
  • The FHA share of total applications increased to 13.2 percent from 12.7 percent and the VA share increased to 12.5 percent from 12.1 percent. USDA loan applications accounted for 0.4 percent of the total.
  • The 6.91 percent average rate for conforming 30-year fixed-rate mortgages (FMR) was accompanied by a point drop from 0.83 to 0.66.
  • Jumbo 30-year FRM had an average rate of 6.74 percent compared to 6.78 percent the prior week. Points fell to 0.56 from 0.76.
  • Thirty-year FRM with FHA guarantees declined from 6.85 percent, with 1.26 points to 6.73 percent with 1.15 points.
  • The rate for 15-year fixed-rate mortgages decreased to 6.25 percent from 6.41 percent, with points decreasing to 0.62 from 0.84.
  • The average contract interest rate for 5/1 adjustable-rate mortgages (ARMs) increased to 5.93 percent from 5.39 percent, with points increasing to 0.96 from 0.46.
  • The ARM share of activity was unchanged at 6.8 percent.  

Source: mortgagenewsdaily.com

Posted in: Refinance, Renting Tagged: 15-year, 2, 2023, 30-year, 30-year fixed rate, 429, About, Applications, ARM, ARMs, average, borrowers, business, buyers, environment, Fall, FHA, Financial Wize, FinancialWize, fixed, fixed rate, government, holiday, home, home buyers, in, index, interest, interest rate, inventory, Joel Kan, loan, Loans, LOWER, market, MBA, measure, memorial day, More, Mortgage, mortgage applications, Mortgage Bankers Association, Mortgage Rates, Mortgages, one year, percent, points, president, PRIOR, Purchase, purchase applications, Purchase loans, rate, Rates, Refinance, sale, second, survey, The VA, time, USDA, VA, volume

Apache is functioning normally

June 7, 2023 by Brett Tams

Most mortgage lenders offer both home purchase loans and refinances. But Direct Access Funding is all about the refis.

In fact, the Southern California based lender refers to itself as a the “refinance division” of its parent company.

Seeing that most refinances are driven by the desire to obtain a lower mortgage rate, there’s a good chance their pricing is competitive.

They say they’ve got the best refinancing rates period and quality customer service to boot, which their reviews seem to back up.

So if you’re an existing homeowner looking for a better mortgage, they could be worth looking into. Let’s dig into the details.

Direct Access Funding Fast Facts

  • A direct-to-consumer mortgage lender that offers home refinance loans
  • Founded in 1998, headquartered in Irvine, California
  • The refinance division of Absolute Home Mortgage Corporation
  • Licensed to do business in 15 states and the District of Columbia
  • Their parent company funded $2 billion in home loans last year
  • Claim to offer the best mortgage refinance rates

As the name implies, Direct Access Funding is a direct-to-consumer mortgage lender based in Irvine, California, which is in the heart of Orange County.

Instead of a physical branch network, they work remotely with customers from a central call center to help you process and close your loan.

The company is located near many other mortgage lenders, including CashCall Mortgage, ClearPath Lending, loanDepot, and Watermark Home Loans.

As noted, they dabble only in mortgage refinancing, meaning their target market is existing homeowners as opposed to home buyers.

They are actually a division of Absolute Home Mortgage Corporation based out of Fairfield, New Jersey, which originated about $2 billion in home loans last year.

They’re currently licensed to do business in 15 states and the District of Columbia.

Those states include Arizona, California Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, and Virginia.

How to Apply with Direct Access Funding

To get started, you can call them on the phone or simply visit their website and begin on your own.

Your best move might be to get in touch with a licensed loan officer first to discuss mortgage rates, lender fees, and overall eligibility.

Once you get the information you need to proceed, you can fill out their digital mortgage application online.

It allows you to complete the form 1003 electronically, eSign disclosures, and upload supporting documents via a secure portal.

Once your loan is submitted, you’ll be able to manage your loan online from start to finish.

It’s unclear if the processing and underwriting of your loan is completed in-house or at their parent company’s headquarters.

Regardless, their goal is to make refinancing stress-free and they employ the latest technology and solutions to make that happen.

Because they focus on existing homeowners only, the process should be faster than traditional banks and lenders.

Loan Programs Offered by Direct Access Funding

  • Rate and term refinances
  • Cash out refinances
  • Streamline refinances
  • No cost refinances
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • FHA loans
  • Fixed-rate mortgages in various loan terms

Direct Access Funding seems to be solely focused on mortgage refinances for existing homeowners.

This includes rate and term refinances, cash out refinances, and streamline refinances.

They can also structure your loan as a no cost refinance through the use of lender credits so nothing needs to be paid out of pocket.

In terms of loan types, I believe they only originate conforming loans backed by Fannie Mae and Freddie Mac, along with FHA loans.

It’s unclear if they offer VA loans or jumbo loans as well.

You can get a fixed-rate mortgage such as a 30-year fixed or a 15-year fixed, and possibly an adjustable-rate mortgage too.

They lend on primary residences, second homes, and investment properties, including condos/townhomes.

All in all, their product menu isn’t vast but should cover most of the population.

Direct Access Funding Mortgage Rates

While they claim to have the “best” mortgage rates for a refinance loan, they don’t list their rates online. At least not on their website.

However, you might find them on third-party websites alongside other lenders in mortgage rate tables.

My assumption is their rates are very competitive since they’re a branchless, refinance-only lender.

And because refis are generally pursued to save money, they will need to beat your existing rate to earn your business.

But do take the time to compare their quote to other lenders to be sure. And also ask about any lender fees, such as a loan origination fee or application fee.

I’d classify them as a low-cost mortgage lender because of their lightweight business model (lack of branches and advertising), which is a good thing if you’re looking for lowest possible rate/fee.

Direct Access Funding Reviews

On Experience.com, Direct Access Funding has an impressive 4.91-star rating out of a possible 5 from over 1,000 customer reviews.

You are able to filter the reviews by loan officer to see how certain individuals have performed in the past. If a certain person stands out, be sure to ask for them when calling in.

Over at Google, they have an even better 4.9-star rating from nearly 200 reviews, which is pretty close to perfection.

Lastly, they’ve got a 4.9 rating on Bankrate from 15 reviews, with 100% of reviewers indicating they’d recommend the company to others.

Their parent company Absolute Home Mortgage Corp. is an accredited company with the Better Business Bureau (since 2013) and currently holds an ‘A+’ rating based on complaint history.

All of these reviews give them some legitimacy, even if they’re not a household name like some of the larger lenders out there.

In closing, Direct Access Funding seems to be a streamlined refinance shop that could be a good fit for an existing homeowner looking for a lower mortgage rate or cash out.

They’re probably best suited for those with plain vanilla loan scenarios (e.g. W-2 employee, conforming loan amount, single-family residence).

If that’s you, they might be able to beat your existing mortgage rate and save you money each month.

But those with more complex loan scenarios (self-employed borrowers, investors, jumbos) may want to look elsewhere.

Direct Access Funding Pros and Cons

The Pros

  • Can apply for a home loan online in minutes without a human
  • Offer a digital mortgage application (paperless process)
  • Say they offer the best refinance rates
  • Excellent reviews from past customers
  • Parent company is accredited, A+ BBB rating

The Cons

  • Not licensed in all states
  • No branch locations
  • Only offer refinancing products (not home purchase loans)
  • No mention of lender fees

Source: thetruthaboutmortgage.com

Posted in: Renting Tagged: 15-year, 2, 30-year, About, Advertising, All, Arizona, ask, banks, best, borrowers, business, buyers, california, chance, closing, Colorado, columbia, company, condos, Conforming loan, Connecticut, cost, credits, customer service, Delaware, Digital, Digital mortgage, existing, experience, Family, Fannie Mae, Fannie Mae and Freddie Mac, Fees, FHA, FHA loans, Financial Wize, FinancialWize, fixed, Florida, Freddie Mac, Free, get started, goal, good, Google, history, home, home buyers, home loan, home loans, home purchase, Homeowner, homeowners, homes, house, household, How To, Illinois, in, investment, Investment Properties, investors, irvine, Jumbo loans, lenders, lending, list, loan, Loan officer, Loan origination, loan programs, loanDepot, Loans, low, LOWER, Make, manage, market, Maryland, model, money, More, Mortgage, mortgage lender, mortgage lenders, MORTGAGE RATE, Mortgage Rates, mortgage refinance, mortgage refinancing, Mortgage Reviews, Mortgages, Move, needs, new, New Jersey, north carolina, offer, offers, or, orange, orange county, Oregon, Origination, origination fee, Other, party, Pennsylvania, pretty, products, programs, pros, Purchase, Purchase loans, quality, rate, Rates, Refinance, refinancing, Review, Reviews, save, Save Money, second, second homes, self-employed, single, single-family, southern california, states, stress, target, Technology, Tennessee, time, townhomes, traditional, traditional banks, Underwriting, VA, VA loans, virginia, W-2, Websites, will, work

Apache is functioning normally

June 7, 2023 by Brett Tams

This post is by April Dykman. Yes, you read that right. April was recently wooed back to Get Rich Slowly and will be writing here a couple of times a month. She plans to focus on interviewing experts on money-related topics, which also helps her justify that journalism degree…

Photo by Rich Anderson, courtesy Flickr Creative Commons

Bill had to sell his house quickly.

He was being transferred out of state, and the company wasn’t footing the bill. Instead, they offered him a higher salary. Now he had to sell quickly or risk paying two mortgages.

But Bill wasn’t sweating it. After all, his house was in a great neighborhood in a desirable part of town. He hired a real estate agent, confident that once the “for sale” sign went up, the buyers would come knocking. He’d get a quick sale at asking price, no problem.

Only a month went by, and there were zero offers. Bill had to move soon and was getting nervous about those double mortgage payments, but no one was interested. Then, to really rub salt in the wound, buyers were leavings tons of negative comments!

So what was the problem?

You aren’t making your house ready for buyers

Bill refused to make his house buyer-friendly.

His real estate agent, Lynda Conway, had warned that unless he got the house show-ready, it would sit on the market and sell for far less than asking price. Lynda, who heads The Turner Team in Austin, Texas, and teaches for the Austin Board of Realtors, says Bill’s mistake is a common one.

“Many sellers think they can just put a sign up and that’s enough,” she says. “But buyers don’t fall for that. They want to back up their moving truck, unload their stuff, and put their toothbrush in a cup by the sink.”

And when sellers refuse to believe they need to get their house ready to go on the market, they can suffer financial consequences. In Bill’s case, his refusal to invest in sprucing up his home was about to cost him a double mortgage payment, not to mention the stress of trying to sell his house from out-of-state.

It can also result in a lower final selling price. Lynda recalls one seller who refused to make basic repairs and cosmetic improvements. “After a long time on the market, we finally got an offer,” she says. “But the owners felt insulted because it was $20,000 below list price. They wound up taking the offer because it was the only one.”

So if this mistake can cost you time and money, not to mention cause some serious stress, why do sellers refuse to make their houses more attractive to buyers?

The three reasons you aren’t getting your house ready for buyers

Lynda says there are three main reasons that sellers don’t get their houses in tip-top shape.

First, they don’t believe it makes a difference. Like Bill, they think their house will sell itself, so the extra investment seems like a waste of money. “Bill was really cautious about spending any money because he was being transferred on his own nickel,” says Lynda. “He refused to believe that a coat of paint would make a difference.”

Second, they don’t think there’s a problem. Lynda says it’s often difficult to convince smokers and pet owners that their homes don’t smell like roses. Bill, for example, was both a smoker and a pet owner. “Some sellers don’t realize it smells because they’re so used to it, or else they don’t think it’s a big deal,” says Lynda. “But it’s a huge deal to buyers.”

Third, they think they don’t have the money. Remember the clients that got $20,000 less than list price? Lynda says that it wasn’t until they were all at the closing table that they finally admitted to her that they didn’t have the money to make her suggested improvements. “Some sellers don’t want to admit that they don’t have money on hand, but I can’t help them if they aren’t willing to talk about it.”

So how can you avoid these problems and sell your house quickly (and for list price)?

Make your house show-ready

You’ve got to invest in wowing potential buyers.

When Lynda showed Bill the negative comments people were leaving about his home, he finally relented, telling Lynda, “Okay, tell me what to do.” They took the house off the market while he worked his way through the to-do list. After $2,500 in updates and repairs, they put the house back on the market at the original price. In three days they received three offers.

“Buyers are picky,” says Lynda. “If you want to get top dollar for your home, you have to prepare for that.”

And the good news is that if you have more time than money, Lynda says there’s a lot you can do yourself to improve your home’s appeal.

So how can you make your house best in show?

Five ways to make your house show-ready (and net more money)

Lynda says here are five things you can do to make buyers fall in love with your home.

  1. Start packing now. You’re about to move, right? So get some boxes, packing tape, and a Sharpie and put your stuff in storage. “Decluttering your home makes it look bigger and cleaner,” says Lynda. “You can make your house more attractive to buyers and get a head start on moving.”
  2. Give it some elbow grease. “Clean your house like you’ve never cleaned it before,” says Lynda. “Windows should sparkle. Make sure the house smells nice and fresh, not like last night’s fish dinner or grandpa’s cigars.” Lynda says sellers can deep clean themselves, or if they have more money than time, they can hire a professional.
  3. Do a daily sweep. Steaming the carpets and dusting the ceiling fans is important, but all is lost if your bathroom counter is cluttered with hair products or there are dishes in the sink. “Do a daily wipe-down on all surfaces, especially in the bathroom and kitchen,” says Lynda. “Keep counters completely clear to make them look as big as possible, especially important in a small space.” Lynda had one client who put her toiletries in her travel bag while her home was on the market. “She’d get ready in the morning like she was on a trip, then put the travel bag away and out of sight.”
  4. Make a good first impression. “When a buyer pulls up to your house, you have five seconds for that house to sell itself from the curb,” says Lynda. “And when the front yard looks inviting, that creates positive expectations about what you’ll see inside.” Take care of the obvious, like lawn care and putting your yard gnome in storage. Then give the front door some TLC. “Your front door should be warm and fresh, she says. “You can give it a coat of paint or replace it entirely.” Lynda also recommends adding some color. “Buy cheap, colorful pots, potting soil, and some flowers,” she says. “I like the combination of rosemary and flowers because it smells nice and looks attractive.” The bonus of potted plants? You can take them to your new home!
  5. Deal with the bigger issues. Here’s where it can get expensive, depending on the condition of your home. But if your house is in serious need of a coat of paint and a new roof, you have to either deal with those issues or adjust the price accordingly and wait for a buyer willing to take care of it themselves.

Finally, consider getting a pre-inspection. Lynda says almost no one does this because people think, “why open a can of worms?” But the can will be opened eventually when the buyers have your house inspected. And then those problems might cost you a willing and able buyer.

“When a buyer falls in love with your home, then finds out there’s a major problem you didn’t disclose, they fall out of love very quickly,” she says.

They’re angry and distrustful, even if you honestly weren’t aware of the problem. “Buyers feel like you should have known because it’s your house,” she says. “And sometimes they’ll terminate and refuse to even negotiate the repairs.” Lynda says when buyers are willing to negotiate, they may want the price lowered by double, or even triple, the cost of repairs. Ouch!

But she says if you get your home pre-inspected, you won’t be caught off guard. You can attach repair receipts to your seller’s disclosure or have the house re-inspected and attach the report. And most importantly, says Lynda, “you won’t lose a deal or have to come down on your list price.”

What are some ideas you’ve used to make your home more appealing to buyers? Or from a buyer’s perspective, what are the major turn-ons and turn-offs when you walk into a house?

Source: getrichslowly.org

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Apache is functioning normally

June 7, 2023 by Brett Tams

Appearing as a guest on Good Morning America this week, Barbara Corcoran answered several questions from viewers, ranging from when the right time to buy a home is to how to win a bidding war. As for the former, Corcoran said now is the time to buy.

“It’s a good time to buy because the minute interest rates go down, everybody’s waiting for them to go down even by a point, and when they do, they’re going to come rushing back in the market,” Corcoran said. “Prices are going to explode, and you’re going to be paying more for the same house. And you can always refinance, remember, when and if interest rates come down.”

It’s not Corcoran’s first time advising against even attempting to time the market. Previously, on the Chicks in the Office podcast, Corcoran said to forget about the timing, again stressing that now is always the time to buy. 

The self-proclaimed “NYC Real Estate Queen” founded the Corcoran Group with a $1,000 loan in 1973, which she famously turned into $66 million after selling her business in 2001. She’ll always be a powerhouse within the real estate industry, but now most people know her as the spunky, blunt, and well-dressed shark on ABC’s Shark Tank.  

Another viewer asked Corcoran how to win bidding wars, saying that he and his fiancee have been looking for a house but have been out bid every time they’ve found one they like. Corcoran said the key is to look like the “best deal in town,” while playing on the seller’s emotions.  

“You have to be prequalified for your mortgage so you can go in there as an all cash deal. I’m an all cash deal, it’s not contingent, I already got my mortgage—you want that power behind you,” Corcoran said. “You also want to go in and realize it’s never just a financial deal. Get a nice piece of stationery and handwrite a note to that owner, and tell them how much you love the house. It makes a difference because people like to sell homes to people who love their house.” 

As for the different types of mortgage loans that buyers can choose from, Corcoran said it depends on how long you’re going to live in that home. If you’re going to live there a long time, or at least except you are, Corcoran said a conventional rate mortgage at the shortest term you can afford, is the best option. On the other hand, if you’re only going to be living there for a short period of time, likely under five years, she said you’ll want to get an adjustable rate mortgage because it’s cheaper. 

When Corcoran was then asked if there’s any way to get relief as someone who’s “house poor,” a term used to describe someone that’s spending more than 30% of their income on housing, she answered: “you don’t get relief from that.” In coastal cities, Corcoran said, people are spending more than 40% of their income on housing. But there’s a light at the end of the tunnel, in her view—people are forced to save by paying off their mortgage. 

“When it comes time to retire, for most of us, it’s the only money we have to retire on,” Corcoran said. 

Now if you want to make the most out of  your home purchase, she said you’ll always get the best return in a high-traffic area. And if you want to make a killing, buy a home in an up and coming area. Corcoran’s formula for doing so? Follow the creative community and see where they’re living, and check out the nightlife. 

And of course, a Corcoran Q&A couldn’t be complete without touching on rentals and renting. As for rent prices, Corcoran said they’re going to continue to go up, and there won’t be any relief. When interest rates go up and chase people into the rental market, rents generally go up. But when interest rates go down, that doesn’t mean rent follows. Corcoran said she’s never met a landlord that brings down their rent, ever. And, most of us know how she feels about renting—that it’s a “no-win game.”

Source: fortune.com

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Apache is functioning normally

June 7, 2023 by Brett Tams

ISAs can have a HUGE impact on your ability to convert real estate leads at a high level, but how do you know who to hire? How do you know which systems to put in place in order to ensure their success? Find out on today’s Real Estate Rockstars with Oak & Ocean’s lead inside sales agent, Travis Halverson. Travis covers scripts, systems, and lead sources. Tune in and learn exactly how to hire and train an ISA so the you can turn more contacts into clients.

Listen to today’s show and learn:

  • What an ISA is [3:17]
  • How to track an ISA’s success [4:18]
  • How to make an ISA’s follow-up more effective [5:50]
  • One of the best problems for an ISA to have and how to solve it [7:27]
  • The most successful real estate agents [9:30]
  • A way to make meaningful touches with Follow Up Boss [10:40]
  • An easy system for following up with the best leads first [12:50]
  • Simple scripts for non-committal buyers [15:38]
  • A potential problem to avoid when your buyer wants to use a VA loan [19:21]
  • When ISAs should follow up after passing off a lead [20:14]
  • The follow-up Oak & Ocean ISAs do for past clients [22:39]
  • How to start prepping to hire your first ISA [28:22]
  • The right person to hire for an ISA position [29:26]
  • Where to find potential hires for an ISA position [30:55]
  • Different ways to compensate ISAs and what Travis prefers [32:30]
  • Travis’ favorite CRM, lead source, and texting service [35:54]
  • The oldest lead Travis ever converted [38:14]
  • Using templates to save time with touches [39:40]
  • How much time and money you can save with the right system [41:19]
  • Why you need a system now [42:49]
  • What all new ISAs need to remember [44:21]

Travis Halverson

Travis is the Lead Inside Sales Associate at Oak & Ocean and manages a team of 6 client care specialists. He takes pride in making sure that all of our clients are met with that 6-Star Ritz Carlton service from the first “hello” all the way to the first meeting with one or our amazing agents. He has gained vast knowledge of lead generation tactics from his network and contacts in other real estate markets across the country. Travis has made it his mission to ensure that all of his team members abide by Oak & Ocean’s core values of Results.Resilience.Respect. In his free time he likes to spend time with his girlfriend and go to the movies.

Related Links and Resources:

Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
-Aaron Amuchastegui

Source: hibandigital.com

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Apache is functioning normally

June 7, 2023 by Brett Tams

Today we’ll explore one of the nation’s largest loan servicers that happens to be a major mortgage lender as well, “Lakeview Loan Servicing.”

As their name implies, they service mortgage loans, meaning they collect monthly payments from customers after the loan funds.

These days, a lot of mortgage lenders don’t do that, and instead focus on making new loans and selling them off quickly so they can fund even more.

But Lakeview has adopted a strategy some of the largest mortgage lenders in the country have, doing both.

This means aside from servicing loans, they also originate billions in mortgages annually. Let’s see if they could be a good fit for a new mortgage.

Lakeview Loan Servicing Fast Facts

  • Direct-to-consumer mortgage lender that offers home purchase and refinance loans
  • Founded in 2010, headquartered in Coral Gables, Florida
  • Funded $41 billion in home loans last year (a top-25 mortgage lender nationally)
  • The 4th largest loan servicer in the country
  • Licensed to lend in 48 states and the District of Columbia
  • Also operates a wholesale and correspondent lending business

As noted, Lakeview Loan Servicing operates as both a loan servicer and a direct-to-consumer mortgage lender. This is similar to a NewRez or a Rocket Mortgage.

They are currently the nation’s fourth largest loan servicer in the country, and help more than 1.4 million customers manage their home loans annually.

The company also recently became the largest servicer of Ginnie Mae mortgages, aka FHA loans and VA loans.

To clarify, they own the servicing rights to all these mortgages, and actually partner with subservicers like LoanCare to process payments, manage escrow, etc.

At the same time, they mustered an impressive $40.7 billion in home loan origination last year, landing them in the top-25 lender list.

They did a near-equal amount of home purchase loans and mortgage refinances, so they could be a worthwhile choice for both a new home buyer or an existing homeowner.

My guess is they tap into their massive loan servicing portfolio to find new refinance candidates. So if they service your loan, they may have reached out.

As I always say, when a lender reaches out, reach out to other lenders! That way you can comparison shop.

At the moment, they are licensed in 48 states and D.C., with Hawaii and New York the exceptions.

How to Apply for a Mortgage with Lakeview Loan Servicing

If you’re a current loan servicing customer, you may have received solicitations from Lakeview Loan Servicing to refinance your loan.

But they’re also a big originator of home purchase loans, so home buyers with no prior relationship could also choose them as their lender.

They say they’ve got more than 100 loan officers in four locations across the country to serve home buyers and refinancers.

And both loan processing and underwriting are done in-house to ensure fast turn times. Those who need to get pre-approved for a mortgage can do so in as little as 24 hours.

To get started, you can visit their website or call them directly. If you go online, you can create an account and submit a new mortgage request.

At that point, a licensed loan officer will get in touch to discuss loan pricing and eligibility.

They offer a digital mortgage application powered by ICE Mortgage Technology that allows you to complete most tasks electronically.

And once your loan is submitted, you’ll be able to manage it and check status via the online borrower portal.

Once the loan funds, it’ll be serviced by them as well via one of their subservicing partners.

Lakeview Home Rewards

One perk to using them for a home purchase loan is the “Lakeview Home Rewards” program.

In short, it’s a real estate agent referral program and mortgage lender all rolled into one.

Once you sign up, you’ll be matched with a top local real estate agent and a dedicated mortgage loan officer from Lakeview.

After your loan funds, you’ll receive up to $6,500 cash back, depending on the home’s purchase price.

Those who sell and buy a home using the service can receive up to $13,000 in rebates once both transactions close.

Note that these rewards aren’t offered in some states (AK, IA, LA, and MO) and are limited in others.

They say they only work with “premier brokerages across the United States,” and pick the top real estate agents from those companies.

This includes real estate agents with at least five years of experience who maintain a 90%+ satisfaction rating.

If you aren’t already working with an agent, this program could be a money-saver and provide the convenience of an end-to-end home buying process.

Loan Programs Offered by Lakeview Loan Servicing

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Home equity loans

Lakeview Loan Servicing offers home purchase loans and mortgage refinance loans, meaning they serve both existing homeowners and prospective home buyers.

If you already own a home, you can refinance to obtain a lower mortgage rate and/or get cash out. Streamline options are offered as well.

All the major loan types are available, including conforming loans backed by Fannie Mae and Freddie Mac, and government-backed loans like FHA, VA, and USDA loans.

It’s also possible to get a jumbo home loan, and even a second mortgage in the way of a home equity loan.

They seem to offer mostly fixed-rate mortgages, including the 30-year fixed, 15-year fixed, and other less common loan terms.

I’m not sure if they also originate adjustable-rate mortgages, which aren’t very popular at the moment.

But they should have enough options to suit most home buyers and homeowners out there.

Lakeview Loan Servicing Rates

They say they offer low interest rates, but that’s about it. You won’t find their daily mortgage rates listed online to compare to other lenders.

As such, you’ll need to call them up and get in touch with a loan officer to obtain the latest pricing.

Be sure to inquire about lender fees when you do that to get the full picture. It’s unclear if they charge a loan origination fee or other fees for processing, underwriting, and so on.

My guess is they’re a middle-of-the-road lender in terms of pricing, though that’s just an assumption.

At the end of the day, they might be priced lower than the big banks and national brands, but perhaps higher than the low-cost mortgage lenders out there.

But you won’t know until you call and speak to a human.

Lakeview Loan Servicing Reviews

On Zillow, they have a 4.84-star rating out of 5 from about 400 reviews. A decent number of recent reviews indicated the interest rate was lower than expected.

Their Zillow rating might be the best representation of their home lending division, while other reviews you come across could be more related to their servicing business.

For example, over at Google it’s more of a mixed bag, with a much lower 2.5-star rating from over 600 reviews. The caveat is this may include both lender customers and servicing customers.

This is one of the problems with operating as both types of companies under the same brand. Take the time to read the reviews to see if they relate to new loans or existing, serviced loans.

While they aren’t accredited with the Better Business Bureau (BBB), they do have an ‘A+’ rating based on complaint history.

In summary, Lakeview Loan Servicing could be a good choice for a home purchase loan due to their rebate program, and potentially good for refinancers if the rates are low.

The only question marks are pricing and customer service, the latter of which might be muddled because they are also a loan servicer.

Lakeview Loan Servicing Pros and Cons

The Pros

  • Can apply for a home loan online in minutes
  • Digital mortgage application powered by ICE Mortgage Technology
  • Lots of home loan programs to choose from including second mortgages
  • Lakeview Home Rewards offers up to $6,500 cash back
  • A+ BBB rating
  • They’ll service your loan after closing
  • Free mortgage calculator and mortgage glossary online

The Cons

  • Not licensed in Hawaii or New York
  • No physical branches
  • Do not publicize mortgage rates or lender fees
  • Lots of mixed reviews (which may be due to servicing)

Source: thetruthaboutmortgage.com

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Apache is functioning normally

June 7, 2023 by Brett Tams

If you were ever to become disabled or suffer a chronic illness or age-related debility that requires you to pay for help feeding and dressing yourself or similar assistance for an extended period, long-term care insurance could be a valuable thing to have. This insurance pays for services regular health insurance doesn’t cover, including assistance with activities of daily living at home or in an assisted living center or nursing home. Timing is an important consideration when it comes to buying long-term care insurance. If you’re thinking about long-term care insurance, consider talking it over with a financial advisor.

Long-Term Care Insurance Basics

Long-term care insurance can help you pay the costs of receiving extended care in nursing homes and assisted living facilities, as well as in-home assistance with activities of daily living such as bathing and getting dressed. These are costs that health insurance, including Medicare, typically does not cover. Another government health plan, Medicaid, can pay for these services. However, only people with limited financial means can generally qualify for Medicaid.

Long-term care insurance works similarly to other types of insurance. That is, in exchange for paying a premium, usually monthly, the policy will pay providers for the care they deliver or, alternatively, reimburse you for your out-of-pocket costs. However, long-term care insurance has special features that distinguish it from some other types of insurance.

For instance, unlike auto insurance, which is mandatory in most states, long-term care insurance is entirely voluntary and most people do not purchase it. Also, it’s less likely to be provided as a benefit by employers than health and life insurance coverage. Finally, timing is a bigger factor with long-term care insurance. When you buy it is a major consideration. Here’s how to factor timing into the decision.

Do You Need Long-Term Care Insurance?

The cost of long-term care can be daunting. According to LongTermCare.gov, the price of a semi-private room in a nursing home averages $6,844 per month or $82,128 per year. However, that doesn’t mean everybody needs long-term care.

People who have significant assets that they want to protect from having to expend for long-term care are more likely to benefit from long-term care insurance than someone who has a small net worth. Also, good candidates for long-term care insurance generally will have a good income so they can pay the premiums. Gender can also be a factor since women who need long-term care typically need it longer than men.

When to Buy Long-Term Care Insurance

Buying long-term care insurance isn’t cut and dry for everyone and there are a number of things that you need to consider. Chief among these considerations might be the timing of when you buy. If you think you want to buy long-term care insurance, here are considerations on timing:

  • Coverage is permanent: Once you acquire a policy, you are covered for life as long as you keep paying the premiums. Your coverage can’t be canceled except for non-payment or if you voluntarily relinquish the policy.
  • Premiums are expensive: The average premium for a 55-year-old man with $165,000 in immediate coverage in 2022 was $2,220 per year, according to the American Association for Long-Term Care Insurance (AALTCI).
  • Premiums are likely to go up: While your insurer can’t hike your personal premium because you get older or have a claim, it is not uncommon for premiums for groups of policyholders to go up periodically and, sometimes, steeply.
  • Health matters: If you are in less than good health when you apply, your initial premium will be higher than if you buy a policy when you are healthy. For that reason, it’s often better to buy long-term care insurance before your health starts to fail.
  • Age matters: If you are older when you buy long-term care, even if still healthy, you’ll pay more than if you bought at a younger age.
  • You have to qualify to even get coverage: If you are seriously ill or already need long-term care when you move to buy a policy, you may be rejected. Again, the time to buy it is before you need it.

These considerations combine to complicate the decision of when to buy long-term care coverage. For instance, if you buy insurance at a younger age, many years before you are likely to need it, you’ll be paying expensive premiums for many years. And it’s a good idea to keep in mind the fact that, according to the AALTCI, only about half of people who buy long-term care insurance ever use it. The rest have paid their premiums for no tangible financial benefit.

Add it up and the most common time when people buy long-term care insurance is between ages 55 and 65. In many buyers’ estimation, this is the sweet spot between having to pay higher premiums if they wait to purchase and having to pay lower premiums for a longer time if they purchase sooner.

The Bottom Line

Timing is an important consideration when deciding whether or not to buy long-term care insurance. Most purchasers acquire coverage when they are aged 55-65. Waiting longer risks having to pay higher premiums because of advancing age or declining health. Buying sooner means having to pay premiums for a longer period of time before the coverage is likely to be of value. Individual circumstances, such as family health history, personal assets and income also may be important factors in deciding when or even whether to buy long-term care insurance.

Tips for Buying Insurance

  • A financial advisor can help you decide how and whether long-term care insurance fits into your overall financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • If you are considering buying life insurance, you are probably wondering how much coverage to get. SmartAsset’s life insurance calculator can give you an answer based on your location, age, income and other factors.

Photo credit: ©iStock.com/tuan_azizi, ©iStock.com/JLco – Julia Amaral, ©iStock.com/Sunan Wongsa-nga

Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.

Source: smartasset.com

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