I’ve got a bone to pick…it seems you aren’t bothering to shop around for your mortgage?
Instead, you’re just going with the first lender you come across, for better or worse. This is according to a new survey from the Consumer Finance Protection Bureau (CFPB).
The agency claims in their National Survey of Mortgage Borrowers that nearly half of those who take out a mortgage to purchase a home only “seriously consider” a single lender or mortgage broker before applying.
Equally troubling is that the mortgage borrowers simply rely on information from a lender/broker, followed by their real estate agent, as opposed to outside sources, such as websites, housing counselors, family/friends and so on.
It makes me wonder why I bothered creating this site. If you’re not going to take the time to learn about mortgages or shop around for the largest purchase in your life, I’m concerned.
But do take the time to comparison shop for your toaster. That’s important.
No Time to Shop
As you can see from the graphs, an overwhelming number of consumers only considered one candidate. And an even higher number (~77%) applied with just one lender.
Interestingly, first-time home buyers were a bit more shop-happy, though not by much.
The good news is that most consumers (51%) indicated that they’re “very familiar” with the loan options available in the marketplace.
For those who said they weren’t, they’re more likely to rely on the real estate agent or a personal acquaintance for direction. See my piece on using the real estate agent’s lender for more on that.
Those who did shop around indicated that they did so mostly to find better loan terms, such as a lower interest rate and/or reduced fees.
Others did so over qualifying concerns, some because of information learned from their GFEs, and of course more still because they were denied a mortgage from a prior lender.
What Are Consumers Looking for in a Lender?
This might explain the lack of shopping around. The report revealed that “having an established banking relationship” was the number one reason why a consumer chose a certain lender/broker.
While this makes sense, there are a lot of great banks out there that do a poor job originating mortgages. Sure, it’s convenient to use a one-stop shop, but it might not make sense for your pocketbook.
And if you use an inept bank or broker, you could miss out on a chance to buy your dream home. So it’s not always the best strategy.
Fortunately, reputation of the lender/broker came in a close second, and that’s certainly important if you want to receive a loan approval and a good rate.
The takeaway from the report is that a lot of homeowners don’t shop around for mortgages, and the CFPB wants to change that.
Check Out the Rate Checker
Today, the CFPB also released a new tool known as the “Rate Checker,” which uses real lender data from Informa Research Services.
It’s updated daily to give mortgage shoppers a good idea as to where interest rates should be for a given loan scenario.
The CFPB notes that the tool is unbiased, meaning you don’t actually get paired up with any particular lenders. Instead, you get to see the rates lenders are offering most frequently to borrowers based on certain criteria.
For example, if you tell the tool you’ve got an excellent credit score and a 20% down payment, it’ll tell you what lenders are typically offering for such a loan.
So if a lender tells you they can offer a rate of 4.5% for a 30-year fixed mortgage, but the tool tells you that most lenders are offering 3.625%, you might want to ask some questions.
Sure, there are situations where rates could fluctuate based on pricing adjustments. But if the rate you’re offered is way off from the tool’s data, there should be a pretty clear explanation.
On a $200,000 loan, a difference in rate of 50 basis points (4% instead of 4.5%) results in nearly $60 in monthly savings.
Over the first five years, that’s about $3,500, along with an additional $1,400 in principal paid down. So it can make a pretty big difference. But continue not to shop for your mortgage.
The broader economy showed signs of recovery last week, pushing the average mortgage rate for a 30-year fixed loan up eight basis points to 3.17%, according to Freddie Mac’s Primary Mortgage Market Survey
Since January, mortgage rates have increased roughly 50 basis points from historic lows and home prices have risen, leaving would-be homebuyers with less purchasing power. Unfortunately, this disproportionately affected the low end of the market, where supply is the slimmest, said Sam Khater, Freddie Mac’s chief economist.
“During the course of the pandemic, ‘home’ had become more important than ever, and as a result, strong purchase demand continues—but buyers also outnumber the sellers,” Khater said.
Mortgage applications decreased for the third straight week on Wednesday, according to the Mortgage Bankers Association, as rising mortgage rates pushed refinance activity down to its slowest pace since September 2020. That’s a full 5% drop.
Many economists speculate rising rates will be the key to quelling construction woes, even if it does eventually take a slight toll on demand. Even a slight quarter turn in rates will cause many borrowers to wait out the market. As they do, home builders can seize the opportunity to catch up. With greater supply comes lower home prices, and with them, a stabilization of building costs.
The uptick in rates, coupled with limited supply and rising home prices, did in fact deter some homebuyers last month. Sales of existing homes fell 6.6% in February to a seasonally adjusted annual rate of 6.22 million, according to the National Association of Realtors. At the current rate, unsold inventory sits at a mere 2 month supply, and it’s even lower than that in some of the country’s hottest housing market.
New home sales, which are more likely to be affected by rising rates, plummeted 18.2% month-over-month.
“New home sales from 2018 showed us that mortgage rates of 4.75% to 5% create a supply shock and caused builders to back off construction,” said Logan Mohtashami, HousingWire’s lead analyst. “We are far away from those mortgage rate levels right now, but you have to know your limits with new home sales.”
One potential bright spot is that many Americans have been saving money over the past year. There’s a strong possibility that once the country fully reopens, those reserves will strongly bolster the economy. Demand has yet to be contained as the market is still outperforming pre-pandemic levels with sales 9.1% higher existing home sales than a year ago.
(Bloomberg) — US homeowners are nearly twice as willing to sell if their mortgage rate is 5% or higher, but just one in five mortgaged homes meet that criteria.
Most Read from Bloomberg
For those who have a mortgage rate of at least 5%, 38% said they’re planning on selling their homes, according to a quarterly survey by Zillow. Just 21% of holders with rates below that dividing line said the same.
Existing-home sales have fallen almost every month since the start of last year as higher mortgage rates disincentivize owners from moving. Prospective buyers have sought out new construction instead since inventory on the resale market is so low.
About 80% of mortgage holders reported having a rate of less than 5%, and about 90% have a rate of less than 6%, Zillow said. Almost a third reported a rate of less than 3%.
Mortgage rates “are unlikely to return to 5% in the near future,” said Orphe Divounguy, a senior economist at Zillow Home Loans. “That means many homeowners will move only for major life events, like a new baby or retirement.”
Even so, nearly a quarter of homeowners are considering selling their home in the next three years or currently have their home listed for sale — significantly higher than the 15% of homeowners who said the same one year ago, Zillow said. That suggests inventory could be on the rise soon.
Of course, mortgage rates aren’t the only factor that influence one’s decision to move. About two-thirds said they’re looking to upgrade to a nicer home while 45% cited a growing family.
The tight supply on the resale market has kept home prices elevated. Zillow’s latest monthly market report finds that home values hit a record high in June, topping $350,000 for the first time nationally. And home values climbed in all of the 50 largest metro areas for a second month in a row.
More news on the mortgage rate lock-in effect, this time from Zestimate creator Zillow.
The company conducted a survey and found that homeowners with a mortgage rate above 5% are nearly twice as likely to sell.
This appears to be the “rate-lock tipping point,” where it essentially no longer matters to give up your mortgage rate.
On the other side of the coin, you have the homeowners with sub-5% rates that are essentially locked-in to their properties for fear of losing their low payments.
The latter group explains why housing inventory continues to be at historically low levels, arguably keeping home prices elevated despite affordability issues.
By analyzing data from the ZG Population Science Quarterly Survey of Homeowner Intentions and Preferences, Zillow discovered that low locked-in mortgage rates affect housing supply.
A homeowner’s reluctance to sell “results in a shortage of housing options, resale supply, homeowner mobility, and places upward pressure on housing prices.”
Specifically, they learned that mortgage holders with interest rates above 5% are about twice as likely to have plans to sell their home over the next three years versus those with lower rates.
As you can see from the graphic above, this ratio is 38% vs. 21%, illustrating just how important a low rate mortgage is to existing homeowners.
And of the homeowners who reported plans to sell, 47% of homeowners with a mortgage rate above 5% have already listed their property for sale.
Meanwhile, just 20% of those planning to sell with a rate below 5% have yet to take their home to market.
As to why, it’s due to the huge jump in mortgage rates over such a short period of time. After all, you could land a sub-3% as recently as 2022.
Today, the going rate on a 30-year fixed is closer to 7%, which aside from being an unattractive payment increase, may also be unaffordable for many.
This means a homeowner with a low rate must carefully decide if selling and buying another property makes sense financially.
It’s yet another factor to consider when moving, and partially explains why there’s so little resale inventory at the moment.
Intent to Sell Driven by a Homeowner’s Mortgage Rate
Zillow Home Loans senior economist Orphe Divounguy said the company expects mortgage rates to ease slightly as inflation cools.
But doesn’t see a return to 5% for the 30-year fixed “in the near future.” This means someone selling and buying today must settle for a market rate closer to 6/7%.
And this may be driving intent to sell, with 41% of homeowners with rates between 5.00-5.99% considering selling, while just 26% with rates between 4.00-4.99% expressing the same.
But the company also found that this sentiment seems to change as the direction of mortgage rates shifts.
For example, the interest rate at which homeowners are less likely to move climbs higher when mortgage rates are trending up.
But when rates seem to have plateaued and/or are showing signs of improvement, homeowners may be more willing to move, even if they have a lower rate.
The idea likely being that their low rate matters less if mortgage rates are expected to improve.
Conversely, if the outlook for mortgage rates is negative, the existing homeowner may be more reluctant to sell and obtain a new purchase mortgage.
This also applies to the housing market climate overall. If mortgage rates are trending lower, there may be more buyers and higher asking prices.
But if mortgage rates are trending up, buyers could be few and far between. And it makes a new home loan less attractive to the seller as well.
Either way, this inflection point seems to have hovered between 4-5% over the past year, which seems to somewhat track the movement of the 30-year fixed mortgage during that time.
Zillow cited another study, which found that for every 1% increase in the difference between a homeowner’s mortgage rate and current market rates, moving rates fall by 9%.
So if we want the existing supply of homes to move again, mortgage rates need to come down.
Per Zillow’s survey, roughly 90% of existing mortgage holders have a mortgage rate below 6.00%, around 80% have a rate below 5.00%, and nearly a third a rate below 3.00%.
Read more: The National Average Mortgage Rate Lock-In Effect Is Worth $55,000
In our latest real estate tech entrepreneur interview, we’re speaking with Paul Burke from ColivingCircle.
Who are you and what do you do?
I’m the Founder and CEO of ColivingCircle, a marketplace for finding coliving. I’m a solo founder working on everything from development, design and content to partnerships and customer support.
What problem does your product/service solve?
As coliving grows in popularity among renters we’re seeing more companies enter the space. Because every coliving space is unique – geared towards different lifestyles and interests, there is a need to provide a marketplace that helps consumers find the right coliving space for them.
You previously built RentHoop to connect roommates (interview is here). What learnings from that led you to your new product, ColivingCircle?
We’re actually talking to buyers regarding selling RentHoop which will be the end of a long chapter of my life that occupied most of my mid-20s.
As a first-time founder, I didn’t have the context or experience to know how to best build a product, evaluate an industry, allocate resources or manage a team. It’s all trial by fire when you’re just starting.
Over a span of a couple of years, I began to develop a level of objectivity that helped me see the industry from a different light. While the need for a product like RentHoop was, and still is, massive, there’s a reason people still use Craigslist, primarily, for finding roommates. It’s a tough business to monetize until you achieve density, scale and products people will pay for. Those things typically require a good amount of capital, especially for a low-velocity product like finding a roommate, room or sublet.
My goals this time around are very different than they were for RentHoop. For ColivingCircle, I am not looking to build a ‘startup,’ one optimized for user growth and raising money from VC’s, but a business with limited overhead that seeks profitability and can be self-sustaining.
What are you most excited about right now?
Coliving is “the antithesis to social distancing” as Rolling Stones Magazine put it. In the short-term, many coliving spaces are taking a hit.
The positive is that many people who are sticking it out in coliving spaces are able to experience community in a wonderful way. From some of the interviews I’ve done on the ColivingCircle podcast, we’re hearing about how people don’t feel isolated or lonely because they have others around.
We’re going to see demand for coliving explode in the next year and enter the mainstream.
What’s next for you?
Continue to advocate for the industry and connect people with a coliving space near them. We already have about a dozen partnerships with coliving spaces in the United States so we’re excited to officially launch!
What’s a cause you’re passionate about and why?
I’m half-Egyptian and those roots are extremely important to me. My family and I took a trip to Egypt this past September and we got the opportunity to work closely with a boys and girls orphanage. In the last week we were able to purchase them a school bus with the help of some family and friends. We continue to support them so they can receive an education and the opportunity to live out their dreams.
Thanks to Paul for sharing an update to his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Well that didn’t take very long. Just a week into 2015 and HUD is planning to lower mortgage insurance premiums on FHA loans.
In case you missed it, this was one of my 10 predictions for mortgage and real estate in 2015. I just didn’t expect it to come this soon. I’m still taking the ornaments off the tree…
Technically, the news isn’t official yet, but every major media outlet is reporting it thanks to “people with direct knowledge” of the initiative.
For the record, the FHA has been raising mortgage insurance premiums for years now to shore up capital reserves after losing its shirt on high-risk loans during the mortgage crisis.
It’s still not fully healed, but this move seems to be the direct result of pressure from politicians and industry trade groups to make FHA loans more affordable.
After all, some 375,000 prospective home buyers might be shut out at the moment.
FHA Annual Premiums Dropping to 0.85%
Update: Pictured above is the new annual mortgage insurance structure, as outlined by HUD. Notice that the premiums for 15-year loans are unchanged. It will go into effect on January 26th, 2015.
If you already have an active FHA Case Number, the FHA will temporarily approve cancellations within 30 days of the effective date of mortgagee letter (2015-01).
Also note that this change does not apply to streamline refinances of FHA loans that were endorsed on or before May 31, 2009.
What we know so far is that the annual MIP on FHA loans currently set at 1.35% will drop a half percentage point to 0.85%.
By the way, it’s not 1.35% for all borrowers, and that’s where some of the uncertainty in this change lies.
Only FHA borrowers with LTV ratios above 95% and loan terms greater than 15 years are currently paying 1.35% in annual mortgage insurance premiums.
Borrowers with higher loan amounts are paying as much as 1.55%, while borrowers with 15-year fixed loans are paying as little as 0.45%.
That being said, I don’t think the .50% reduction in MIP will apply to all FHA borrowers. My guess is that it only applies to those borrowing more than 95% of a home’s value.
More details are supposed to be revealed during a speech by President Obama in Phoenix tomorrow.
In the meantime, prospective FHA borrowers can anticipate saving a little bit of money each month thanks to the lower premiums.
On a $250,000 loan, the monthly MIP fee at 1.35% is currently $281.25. If the fee drops to 0.85%, the monthly MIP would be only $177. That’s an annual savings of $1,250.
It might not seem like a lot, but every little bit helps. And the lower fees could even make qualifying easier with strict DTI ratios now in place.
The lower fees also mean the FHA will be able to compete with conventional lending, which has become a lot more popular thanks to all those premium increases in recent years.
The FHA was at great risk of losing even more market share thanks to a recent policy change at Fannie and Freddie to allow 97 LTV lending again.
So perhaps this is a defensive move to maintain market share at the FHA. The bad news is that the annual mortgage insurance premiums will still remain in place for the life of the loan.
This was perhaps the worst change in recent history, and the lower premiums won’t change that. Yes, the fee reduction will lead to a lower monthly mortgage payment, but it won’t change the fact that FHA borrowers pay it for 30 years in many cases.
I’ll provide updates once the official news is released tomorrow. Overall this is great for borrowers who need FHA financing, especially with mortgage rates so low at the moment.
Update: The announcement is now official, though it’s still unclear if premiums at levels other than 1.35% will be lowered as well. And if so, by how much. We now know…and it’s pictured above.
Homeowners with a mortgage rate above 5% are nearly twice as likely to say that they plan to sell their home than those paying a rate below 5%, according to Zillow’s quarterly survey report.
Additionally, the survey found that about 80% of mortgage holders reported having a rate of less than 5%, while 90% reported having a rate of less than 6%. Almost one-third reported having a rate of less than 3%.
Mortgage rates, by first being historically low during the pandemic and then jumping into the 7% range, have incentivized homeowners to stick around instead of moving. As a result, total existing home sales slipped 3.3% in June from the prior month to a seasonally adjusted annual rate of 4.16 million.
“We expect mortgage rates may notch down slightly as inflation comes under control, but they are unlikely to return to 5% in the near future,” said Orphe Divounguy, a senior economist at Zillow Home Loans. “That means many homeowners will move only for major life events, like a new baby or retirement. Over time, homeowners will likely accept higher rates as the new normal, but until then, the market could remain challenging for home shoppers, who will see fewer options and higher prices.”
Nearly one-quarter of homeowners are considering selling their home in the next three years or currently have their home listed for sale (23%), per Zillow. It is significantly higher than the 15% of homeowners who said the same one year ago. In fact, the share is even greater among mortgage holders who have a mortgage rate above 5%. Nearly 40% of those homeowners say they would consider selling their home in the next three years.
Of the homeowners considering selling in the next three years, two-thirds (66%) cited a desire for an upgraded home with nicer features as the reason. Half said it was because they expect to get more money now than in the future, and 45% said a growing family would influence their decision to sell and find a new house.
All of this suggests inventory could meaningfully rise as mortgage rates tick down into the 5% range.
In the meantime, the shortage of for-sale homes is pushing up prices, adding to an already severe affordability crisis. A typical monthly mortgage payment is more than twice as much as it was in 2020 and 13% higher than a year ago.
However, demand remains strong. Buyers are persisting and getting creative to achieve homeownership. According to a recent survey from Zillow Home Loans, nearly half of them are buying points to lower their interest rate and reduce their monthly mortgage payment (45%). Mortgage points give buyers an option to pay an upfront fee to buy down the interest rate on a loan. Buyers are also forced to compromise on their initial wish, settling for smaller, more affordable homes.
Inside: Are you looking to buy items from Amazon but aren’t sure if they ship internationally? This guide is your shopping and shipping resource on which countries Amazon ships to.
Whether you’re an Amazon seller or shopper, you may be wondering if Amazon ships internationally.
In today’s global marketplace, it’s important to know whether or not Amazon ships internationally.
The answer is it depends!
Amazon does ship internationally, but there are a few things you need to know before placing an international order.
Here’s what you need to know.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Can Amazon be delivered internationally?
Yes, Amazon offers international shipping through its Global Delivery service to several countries worldwide. A few things to keep in mind are:
Not every product can be shipped internationally. Here are the most up-to-date countries Amazon ships to.
There may be restrictions based on the destination country’s customs laws.
Products eligible for international shipping will be marked under each listing.
Use services like Ship7, which forwards your Amazon purchases to your country.
Remember…Always confirm if the specific product can be shipped to your country by checking the details on the product page.
What countries can Amazon not ship to?
Well, there are certain countries that Amazon’s global delivery service doesn’t cover.
Firstly, Amazon does not ship to countries like Cuba, North Korea, Iran, Sudan, and Syria due to strict regulations and package restrictions.
Secondly, certain countries have customs laws that prohibit Amazon packages from entering their territories.
Here are the most up-to-date countries Amazon ships to.
Please note that even if Amazon ships to your location, not all products may be eligible for international shipping due to various restrictions.
FIND SPECIFIC ITEMS FOR AMAZON INTERNATIONAL SHOPPING
How does Amazon International Shipping work?
Amazon’s international shipping works by allowing customers from around the world to purchase products from its U.S. site, even if the same items may not be available on their regional Amazon sites.
Here’s how this shipping option generally works:
The customer first places an order on Amazon.com choosing a product they would like to purchase. This can be any item, as long as it’s available for international shipping.
After selecting an item, the customer proceeds to checkout. During this process, they need to provide a shipping address. If the shipping address is outside of the U.S., Amazon recognizes it as an international order.
Following the checkout, Amazon takes over the responsibility of getting the product delivered to the international location. They arrange the necessary paperwork, pay the appropriate customs duties and taxes, and work with reliable international couriers or postal services to have the item delivered to the customer’s doorstep.
The timeframe for delivery can vary depending on the destination country and available shipping options. However, Amazon usually provides an estimated delivery date at the time of checkout.
The charges for international shipping and handling are generally included in the final total at checkout. However, any import duties or taxes applicable to the product in the destination country are typically the customer’s responsibility.
Not all products on Amazon are available for international shipping.
Amazon provides clear information on whether a product can be shipped internationally or not on its product detail page. In case a customer tries to purchase an item that cannot be shipped to their location, Amazon informs the customer about the limitation during the checkout process.
It’s important for customers to bear in mind that while Amazon makes international shipping possible and generally straightforward, the availability, shipping fees, and delivery timelines can vary greatly depending on the product and the destination country.
Customers are therefore strongly advised to read and understand Amazon’s international shipping policies before making a purchase.
What countries does Amazon ship to?
Amazon ships to over 125 countries worldwide, thanks to its Amazon Global service.
Here are the regions:
Africa and the Middle East (30 countries)
Americas (30 countries)
Australia, Asia, and the Pacific (24 countries)
Europe (46 countries)
To check if Amazon ships to your country, head to their international shipping page.
Don’t forget, only eligible items can be shipped internationally. To find eligible items, use the international shipping filter while searching.
Remember terms, conditions, and potential additional fees apply.
When shipping internationally, it takes Amazon the same time to ship, but the delivery will be longer.
FIND SPECIFIC ITEMS FOR AMAZON INTERNATIONAL SHOPPING
How to Order from Amazon with an International Address
Getting your favorite Amazon items internationally is a breeze!
Just follow these easy steps:
First, log into your Amazon account on your chosen device.
Hover over “Account & Lists” then click on “Your Account”.
Head over to “Your addresses” under “Ordering and shopping preferences”.
Now it’s time to add a new address. Key in your international information, ensuring to change the country in the dropdown. Hit “Add address” and then “Set as Default” next to the address you added.
To find items that ship to your country, apply the International Shipping Filter – “Ship to Your Country”.
If the item can’t be shipped, consider using a package forwarding company.
Alternatives to international shipping
If Amazon’s international shipping options do not meet your needs or the product you desire is not available within your region, there are several alternatives to consider for getting the product to your doorstep.
Sometimes you have to be creative on how to get your item delivered.
Then, you are likely to need to know how to track Amazon order from someone else.
Parcel Forwarding Services
Shopper services connect you with shoppers in a particular country who can buy the product for you and then forward it to your international address.
This could be a way to get products that are otherwise not available in your country.
It’s important to consider, however, that using these services tends to be more expensive compared to regular shipping prices.
Nevertheless, it’s an ensured way to get whatever you want from any storefront in the world.
Parcel forwarding services such as Grabr and Shippn could also be a solution to international shipping obstacles.
Shipito
Shipito is an international forwarding service that eliminates the complexity and confusion of international shipping.
The service requires membership to be used and only works for deliveries where packages are being shipped to a United States address from a foreign country.
Despite this, Shipito offers an effective and convenient way to handle international shipping, making it simpler for customers to receive goods from other countries.
How do I track my international orders from Amazon?
This process is very similar to as in the United States.
Visit the Amazon website and log in to your account.
Find the order you wish to track and click on “Track Package.”
You should be directed to another page containing the tracking number for your order.
You will now be able to see the progress of your order.
FAQ
Yes, Amazon Prime is indeed international!
However, you are ineligible for Prime Shipping with International destinations.
Yes, Amazon USA can ship to the UK. However, not all products are eligible for international shipping.
You can check this by selecting the UK as your default shipping address. When you choose a product, Amazon will inform you if it’s available for shipping to the UK.
If a product doesn’t ship directly, you can use services like MyUS or Ship7. They provide you with a US address, forward your packages to this address, and then ship them to your location in the UK. It’s a convenient workaround.
Yes, Amazon does indeed offer shipping services to Germany.
However, this isn’t a concern for German-based customers or other international buyers.
Through services like Amazon Global, Amazon provides an international portal to cater to customers from different parts of the world, including Germany. However, on occasion, certain products may not be directly available for shipment to particular countries.
Yes, Amazon does deliver to Italy.
However, not all products available on Amazon can be shipped internationally due to certain restrictions and regulations.
For more accurate information, individuals in Italy interested in purchasing from Amazon should review the specific product details or contact Amazon customer service for any queries related to international shipping.
Amazon Shipping Internationally is Possible
Now, you know if Amazon ships to your location.
This guide should help you to know whether or not Amazon will ship to your location.
Although there are a few constraints with international shipping on Amazon, there are also various ways to navigate around these issues.
From using shopper services to parcel forwarding services and utilizing regional shopping options, there are multiple feasible alternatives to choose from. However, keep in mind these options may involve extra costs and longer delivery times.
Always do your due diligence when choosing an international shipping alternative to ensure it suits your needs and budget.
Make sure you do your due diligence on getting a package delivered to avoid how to get a refund on Amazon.
Yes, Amazon delivers on Saturday and on Sunday, too.
Know someone else that needs this, too? Then, please share!!
90 percent of the real estate professionals reading this report will understand that the leveraging of property technology (PropTech) to research, buy, sell and manage real estate, is the future. This report is to help the other 10 percent and to validate what most industry professionals already know.
The PropTech 101
Before diving into the deep end of PropTech investing, it’s important
to define what this new wave of PropTech incorporates. Advancements in the way
real estate professionals process data are not new, you see. However, the
breaking technologies that have powered up almost all business are set to take off toward a new paradigm. Artificial
intelligence (AI), Big Data analytics, Virtual Reality, and Augmented Reality, and more advanced forms of computer-aided
design (CAD) are the main areas of the innovative shift. 20 years ago such
technologies were considered science fiction, but today PropTech startups are
addressing everything from fixing a tenant’s leaking faucet to industry
insights and more. Make no mistake, PropTech is not only here, but it’s also
becoming as indispensable as the telephone. If you are among the 10 percent, who think your real estate related
business can operate without these new technologies, imagine running your store
with no phone.
PropTech Investment Barometer
The latest Global PropTech Confidence Index published by New York VC
firm MetaProp reveals the robustness of the investor segment. The report also
frames the overall maturity of the startup ecosystem from data gleaned from
over 500 investors across 1,600 startups. The twice-per-year index also shows
that 60% of PropTech investors surveyed plan to invest even more in 2019. With
2018 seeing the most investment ever, this vote of confidence is a significant
litmus test. Even with a mixed bag of geo-policy and economic factors weighing
on investors, confidence in the segment still runs very high. There are several
reasons for this including the quality of investment pitches VC receive. The
“maturity” of innovation is reflective of the overall quality advancements
innovators are creating. Take so-called “smart buildings,” as a for instance.
In a report for Forbes, real estate innovator, and entrepreneur,
Angelica Krystle Donati predicted coming investments in segments aligned with
“direct synergies on the concept of “smart cities,” such as AI, IoT, cybersecurity, mobility, and e-commerce.” Her
prediction is in line with the more than one-third of major investors who feel
smart building tech will take off. The PropTech innovations are like a snowball
set to roll over and snatch up anything in their path. The investment landscape
mirrors what happened in the mid-2000s with internet technologies and phones.
Maturing Globally
Then there is the revelation that PropTech sector is maturing. This
is best illustrated by the fact there is a sharp division in winners and losers
in the space. Just as was the case in the Web 2.0 era, the cream of innovation
and value is rising to the top, while the rest end up in what became known as
“the dead pool” of technology startups. The best become profitable, and the
useless, underfunded, or ill-planned startups end up bankrupt. In such a
metamorphosis we can expect these big winners to make the next logical step –
to become international companies.
News from Italian proptech startup Casavo is a subtle indicator that
PropTech winners will scale globally. The with the goal of decreasing the time
it takes to sell a property just snagged a €7 million Series A round from
Berlin-based Project A Ventures, Picus Capital, 360 Capital Partners, Kervis
Asset Management, Boost Heroes, alongside Marco Pescarmona and Rancilio Cube.
At its core, Casava creates a simplified transaction process leveraging the Instant Buyer
(iBuyer) model in combination with an s automated valuation engine. The
valuation/offer process is greatly streamlined, with the seller receiving a
full cash payment with a month. Casavo’s
automated valuation engine factors in 70 plus variables to provide the seller
with a fair market value for their property – and a buy offer is presented.
There are many other examples.
Now, let’s say the
Casavo model takes off across Europe. This will create a lot of competition,
and things like the negative aspects of the iBuyer model will squeeze Casava
and other early adopters. What will fill the value void? This is the big
question. You see, the downside of iBuyer models are the losses suffered
on account of commissions and discounts built in. The quick and easy sale is at
the expense of the seller and not the agents or intermediaries. Here’s where
the competition comes in, a competition that will be won by big players like
Zillow and the other U.S. players. The end of the story will be innovators like
Casavo innovating and finding an exit runway with a huge profit, or failing to
innovate and going bankrupt.
Invest in Collaboration
Modernizing the transaction process technologies like AI, AR, CAD,
and VR are allowing potential buyers to visualize without even visiting the
property. The homebuyer can even us CAD and VR alongside Big Data analytics to
check demographics, tax incentives, neighborhood statistics, and local
amenities without ever leaving their reclining living room chair. Agents can
use intelligent machines and big data to streamline
much of the traditional transaction process further, and even match
investors to a property type, etc. The list of potential PropTech uses is as
long as the list of tasks agents, buyers, and sellers have in front of them. At
the end of the day, PropTech relieves many pain points encountered by both real
estate professionals and potential buyers – and investors know this. That’s why
the investing trend is the barometer for PropTech adaptors.
Finally, this report from KPMG in 2017
reveals how real estate professionals can integrate PropTech and bride the gap
between the “built” and the digital environment. The research confirms that Big
Data and analytics will reap the biggest rewards for adopters, but the IoT that
will power smart buildings comes in second, followed by AI innovations. Those
surveyed also validate that streamlined process and improved decision making
are at the top of the list of benefits real estate businesses will receive from
these innovative technologies. What most striking about this 2017 study is the
fact that collaborative PropTech ventures are the key to success in adaptation.
What this means is, “build your own” solutions will no longer work, not even
for the huge players like Zillow. In the end, a collaboration between real
estate and technology players will be the future. Almost half of the leading
real estate decision makers surveyed by said they would collaborate with a new
or existing supplier of PropTech.
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
With today’s high mortgage rates and a shortage of new homes for sale in many markets, a number of American homeowners may be looking to tap into the equity they’ve built in their homes instead of looking for something new. In fact, the Home Equity Lending Study, released this month by the Mortgage Bankers Association, reveals that home equity is surging. Originations of both home equity loans and home equity lines of credit (HELOCs) increased by 50% in 2022 compared to two years earlier, when the study was last conducted.
“Home renovations and remodeling drove demand for home equity products in 2022, with roughly two-thirds of borrowers citing it as a reason for applying for a home equity loan,” Marina Walsh, CMB, the association’s vice president of industry analysis said in the report’s release. “Other borrower reasons were for debt consolidation (25 percent) and emergency cash management or other (10 percent).”
No matter what your long-term plans are for your home, tapping into home equity can have a lot of uses today — and even specific benefits to help reduce costs. Start by finding home equity rates you can qualify for here now.
Why use home equity today?
If you’ve been keeping up with the housing market fluctuations, you may already be familiar with the incentives home equity can offer homeowners compared to a new home purchase.
For one, mortgage rates are much higher today than they were just a few years ago. While pandemic-era rates dropped new mortgages to under 3% for some borrowers, today’s top mortgage rates are between 6% and 7% or more. But there’s also an ongoing shortage in homes for sale affecting several markets throughout the country — making it even more difficult to afford a home.
“The housing inventory shortage, combined with home-price appreciation and a low-rate first mortgage, make home renovations an attractive alternative for many homeowners who are looking to improve their spaces,” Walsh also noted.
Borrowing from home equity could help you get lower interest rates since the loan is secured by your home. And if you decide to use your home equity for home renovations or repairs, you can enjoy the improvements now and preserve any increased price value when you are ready to make a change.
Learn more about home equity rates available for you today!
How to borrow from your home equity
If you’re thinking about using home equity today, there are a few different options to consider:
Home equity loan
A home equity loan is sometimes called a second mortgage. When you qualify for this loan, you’ll receive the amount you’re eligible to borrow from the equity you’ve built in your home as a lump sum. Home equity loans have a fixed term and fixed interest rate — so you’ll pay back the loan in monthly installments over time.
Like the other options below, the interest you accrue on your home equity loan may be tax deductible if you use the money for eligible home improvements outlined by the IRS.
HELOC
A HELOC, on the other hand, is an open line of credit that allows you to borrow only the amount you need from your approved credit limit — which is based on the equity you’ve built in your home. Throughout the multi-year draw period, you can borrow as much as you’d like. Then, you’ll repay only what you actually borrowed over the longer repayment period.
HELOCs carry variable interest rates, so they could be a good option if you believe interest rates could drop in the future. Start comparing home equity loan and HELOC rates you can qualify for now.
Cash-out refinance
This option may be best for you if you already have a very high mortgage rate. Unlike the others, a cash-out refinance actually replaces your existing mortgage. You’ll open a new mortgage loan at a new rate that’s worth more than you actually owe currently. Then, you can take the difference as cash.
If you decide to refinance, there are some additional things to consider. For one, you’ll take on added closing costs to complete the loan. You should also think about any differences in the loan term or other details that may differ from your existing mortgage and result in higher costs over time. Finally, if you have a lower interest rate already, you should consider whether refinancing is worth the added cost you’ll pay through the lifetime of your loan.
The bottom line
With the challenges buyers are facing in today’s housing market, you might want to consider tapping into equity you’ve built in your home while you wait out a potential move. Not only is this a great alternative, but it’s also one that many Americans are taking advantage of. Using a home equity loan, HELOC or even cash-out refinance to make lasting home improvements can improve your experience today and boost your home’s value when you sell in the future.
Learn more about your home equity options today and explore rates here!