Your home is not just the cherished place you live. It is a valuable asset that can bring you opportunities for financial security and growth. Owning a home helps you build equity, and in turn, wealth, providing an option when you need to access funds. But there are other ways you can use your home as part of your financial strategy. Let’s explore how you can put your home to work for your financial benefit.
The Tangible Benefits of Homeownership
Owning a home can be a very rewarding experience. In addition to giving you a sense of pride and a connection to your community, homeownership provides tangible benefits that can improve your financial well-being. Two key benefits are equity and tax advantages.
Building Equity Over Time
As you make mortgage payments, you build equity in your home. Equity is the difference between the market value of your home and the amount you owe on your mortgage. Once you’ve accumulated enough home equity, you can tap into it for various needs like home renovations, debt consolidation or other expenses. You can typically obtain this cash through a second mortgage, such as a fixed-rate Home Equity Loan or a Home Equity Line of Credit (HELOC).
Tax Advantages
As a homeowner, you can deduct some of the interest you pay on your mortgage from your federal income taxes. This can save you a significant amount of money each year.*
Strategies to Unlock Your Home’s Financial Potential
Understanding the different ways you can take advantage of your home can help you unlock its full financial potential and move you closer to your goals.
1. Home Equity Loans
Having home equity can be a safeguard for managing large expenses. For example, if you need access to funds for home improvements, debt consolidation, school tuition, an emergency or any other significant expense, consider a Home Equity Loan.
A home equity loan allows you to borrow against your home’s equity and receive a one-time cash payment. Since this type of loan is a second mortgage, your primary mortgage, including your interest rate, remains unaffected. This can be a great advantage if you have a very low interest rate on your first mortgage and you want to access cash from your home equity without refinancing your entire loan balance — especially if rates are running on the higher end in the current market. You’ll also have the security of a fixed interest rate and payment on this type of loan, unlike a line of credit. The amount borrowed may even be tax deductible if the funds are used to renovate your home.*
2. Consolidate Debt
Your home equity can help you take charge of your debt. If you have a lot of high-interest debt from credit cards or personal loans, consider consolidating your debt with a home equity loan or cash-out refinance. A cash-out refinance replaces an existing mortgage with a new loan with a higher balance, sometimes with more favorable terms than the current loan. The difference between these two loans is distributed to the homeowner as cash.
Credit card and personal loan interest rates are typically much higher than home loan interest rates, so a cash-out refinance or home equity loan could potentially save you a lot of money on interest payments.
Paying down debt can also boost your credit score. But don’t treat a cash-out refinance or home equity loan like an ATM. Have a plan in place to avoid further debt.
3. Home Improvements
Certain improvements to your property can substantially enhance your home’s worth. Upgrading areas like the kitchen and bathrooms or incorporating energy-efficient elements can greatly appeal to future potential buyers if you choose to put the house on the market. Even if you’re not planning on selling anytime soon, this kind of investment often yields long-term financial benefits. Any increase in market value also contributes to an increase in your home equity.
4. Exterior Improvements
Exterior improvements like landscaping, a new wood deck or a wrap-around porch not only boost curb appeal but may also boost your home’s market value. When your market value increases, so does your home equity. Plus, when you’re ready to sell, potential homebuyers may be willing to pay more, often making these types of upgrades good long-term investments.
5. Investment
If you have good credit, liquid reserves and other qualifications, the equity in your home could be used to purchase an investment property.
A single-family home, townhouse or multi-family unit can be a long-term asset, offering additional tenant income. A vacation home can provide a reliable getaway that appreciates over time — and you can buy one with as little as 10% down.
6. Higher Education
As the equity in your home grows, so does the amount of accessible funds you have available to pay for a child’s education or your own tuition expenses. Just be sure to compare the interest rates of a home equity option vs. taking out a student loan. And do the math to ensure your existing budget can manage the increased or additional loan payments you’ll be responsible for.
7. Renting Out Spare Rooms or Basement
If you have extra space, you may be able to generate additional income by renting out a spare bedroom, guest house, casita or basement. A bedroom, guest house or casita could be rented to a tenant, and a spacious basement or garage could be leased to someone who needs storage space. Do your due diligence before renting out a room to ensure you understand the laws involved, any HOA restrictions, insurance, permits and safety requirements and tax implications.
8. Listing Your Space for Short-Term Rentals
Earn money by listing your guest house, casita or extra room as a short-term rental on a peer-to-peer exchange service such as Airbnb. Hosting out-of-town visitors can be very profitable, especially if you live in a tourist spot, business or transportation hub or near a university. Again, you’ll need to comply with your area’s legal, zoning, insurance, tax rules and other regulations.
9. Rent Out Your Pool or Backyard
Have a pool or backyard that often goes unused? Rent it out and bring in some extra cash. Apps like Swimply and Peerspace allow you to list your pool or yard and connect with individuals looking to swim, host a party, conduct photoshoots and even film commercials. That said, before you get started on using your property for this type of business venture, be sure to check with your homeowners insurance provider on any additional protections needed.
10. Home Equity Line of Credit (HELOC)
A HELOC allows you to access your home equity by providing a line of credit, which behaves similarly to a credit card. Borrow the amount you need when you need it, up to your approved limit. Keep in mind that HELOCs use variable rates, so the interest rate will fluctuate based on certain benchmark rates and the current market.
Want to leverage your home equity? Check out our home value estimator to help give you an idea of your home equity, then explore our home equity loan options or contact a Pennymac Loan Expert today.
*Consult a tax adviser for further information regarding the deductibility of mortgage interest and charges.
Penny stocks offer a unique glimpse into the lesser-seen side of the stock market. These stocks, tied to small and sometimes obscure companies, present a blend of opportunity and challenge, attracting investors with their potential for high returns despite inherent risks.
In the history of penny stocks, there are tales of spectacular gains and equally dramatic losses, reflecting their unpredictable nature. This market segment appeals to a certain type of investor: one who is not just willing to take on risk, but who is also keen on conducting thorough research to unearth potential opportunities in overlooked corners of the market.
This introduction to penny stock trading aims to strike a balance between the excitement of potentially lucrative investments and the sober reality of the risks involved. As we delve into this topic, we’ll explore both the allure and the cautionary aspects of trading in penny stocks, offering insights for those curious about this intriguing area of finance.
What are penny stocks?
Penny stocks are defined by the Securities and Exchange Commission (SEC) as shares issued by small or micro-cap companies for any amount below $5 per share.
They typically trade on the over-the-counter (OTC) or dark market. But you may find some on U.S. securities exchanges, foreign exchanges, and in rare cases, on major stock exchanges.
They are designed for investors who can withstand a high level of risk, as the low price point is a tell-tale sign of bigger issues going on within the company. It could be anything from cash-flow issues to impending bankruptcy or fraud. You could also be dealing with a startup with little to no track record or a company with management woes.
Profit Potential in Penny Stocks: What to Expect
Penny stocks, often trading below $5 a share, can seem like a gateway to quick profits in the stock market. They’re attractive because of their low entry cost and the dream of buying a stock for pennies today that might be worth dollars tomorrow. However, it’s crucial to temper expectations with reality.
While there are occasional stories of penny stocks skyrocketing in value, these are more the exception than the rule. The overall success rate for investors in penny stocks is generally lower than in more traditional stock investments, largely due to their volatility and the opaque nature of many companies represented in this segment.
Navigating the Risks: The Realities of Penny Stock Investments
When considering penny stocks, it’s important to understand the risks involved. These stocks are known for their low liquidity, which means it might be difficult to sell your shares at the optimal time.
Moreover, the penny stock market is often a playground for manipulative tactics like ‘pump and dump’ schemes. In such scenarios, stock prices are artificially inflated through misleading or overly optimistic statements, only to be sold off by insiders at a profit, leaving other investors with losses.
What’s more, the lack of comprehensive financial information about these small or micro-cap companies adds another layer of risk. With less regulatory oversight compared to larger, more established stocks, it’s harder for investors to make fully informed decisions.
Making Informed Decisions
If you’re considering diving into the world of penny stocks, it’s vital to do your homework. Thorough research and a well-thought-out strategy are key. Look for penny stock companies with solid fundamentals, transparent business models, and potential for growth.
Be wary of stocks that exhibit sudden price jumps without any underlying business changes. Remember, a disciplined and patient approach, along with a readiness to react to market changes, is essential in navigating the high-risk, high-reward world of penny stock trading.
How to Get Started with Penny Stocks
Step 1: Conduct Thorough Research
Before you jump into penny stocks, it’s essential to do your homework. Start by understanding what penny stocks are and how they differ from traditional stocks. Research the companies behind these stocks thoroughly.
Look into their financial health, business models, and market potential. Pay special attention to their balance sheets, earnings reports, and any news that could affect their stock prices. Remember, information is power in the world of investing, and this is especially true for penny stocks.
Step 2: Set Realistic Investment Goals
Determine what you want to achieve with penny stocks. Are you looking for quick profits, or are you more interested in long-term growth? Setting clear and realistic goals will help guide your investment decisions and keep your expectations in check. Be aware that while penny stocks offer the possibility of high returns, they also come with a high risk of loss.
Step 3: Choose the Right Trading Platform
Select a trading platform or broker that caters to penny stock investors. Look for platforms with low fees, as penny stocks are typically low-value investments and high transaction costs can eat into your profits.
Ensure the platform provides adequate tools and resources for researching penny stocks. Some platforms may have restrictions or higher fees for trading penny stocks, so it’s crucial to read the fine print before making your choice.
Step 4: Start Small and Diversify
When you’re ready to start trading, begin with a small investment to test the waters. Penny stocks are highly volatile, so it’s wise not to put all your eggs in one basket. Diversify your investments across different stocks and sectors to spread the risk. Remember, diversification is a key strategy in mitigating risk in any investment portfolio.
Step 5: Learn from Mistakes and Stay Updated
Even the most seasoned investors make mistakes, especially in the unpredictable world of penny stocks. Take note of any missteps and learn from them. Stay updated on market trends and news that could impact your investments. Continuous learning and adapting your strategy based on your experiences and market changes are crucial for success when investing in penny stocks.
Common Mistakes to Avoid With Penny Stocks
Falling for hype: One of the biggest traps with penny stocks is getting swayed by hype. Avoid making decisions based on promotional emails or hot tips without doing your own research.
Ignoring red flags: Don’t overlook red flags like inconsistent financials, frequent changes in company leadership, or lack of transparent information.
Overtrading: Resist the urge to trade too frequently. Overtrading can lead to impulsive decisions and increased transaction costs.
Neglecting exit strategy: Always have an exit strategy for each investment. Decide in advance at what point you will sell, whether to capture profits or cut losses.
How to Find Promising Penny Stocks: Effective Strategies
Locating promising penny stocks is a nuanced process. While some penny stocks are available on major stock exchanges like Nasdaq, most are traded over-the-counter (OTC). Understanding where and how to find these stocks is crucial for potential success in this high-risk, high-reward market.
Explore OTC Markets and Major Exchanges
Most penny stocks are traded on OTC markets such as the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets, where listing requirements are less stringent than on exchanges. However, some penny stocks are also listed on larger exchanges like Nasdaq, adhering to their stricter regulations and offering slightly more stability. Familiarizing yourself with both OTC and large exchanges broadens your scope for finding potential stock picks.
Leverage Financial Information Sources
To aid in your search, utilize financial information sources like Google Finance or Yahoo Finance. These platforms provide valuable data on OTC stocks, including price movements, volumes, and company news. They are excellent starting points for initial research and tracking stock performance.
Selecting the Right Broker for Penny Stock Trading
Choosing a broker that aligns with your goals is crucial. Consider factors like fee structures, trade surcharges, volume restrictions, and trading limitations. Broker fees, especially for low-value transactions like penny stocks, can significantly impact your profits. Ensure the broker you choose allows you to trade penny stocks, as not all do.
Assessing Broker Resources and Tools
In addition to fee structures, assess the resources and tools each broker offers. Some brokers provide specialized resources for penny stock traders, such as advanced screening tools, research reports, and educational content. These can be invaluable in helping you make informed decisions.
Tips for Choosing a Broker
Compare fee structures: Look for brokers with low fees and surcharges for buying penny stocks.
Check for volume restrictions: Ensure the broker doesn’t impose restrictive trading limits that could hinder your strategy.
Research broker reputation: Choose a broker with a good reputation for customer service and reliability.
Evaluate educational resources: Consider brokers that offer educational materials and resources specifically designed for penny stock traders.
Finding the Best Broker for Your Penny Stock Investments
When it comes to choosing the best broker for penny stocks, there isn’t a one-size-fits-all answer. The ideal broker varies based on individual trading styles, preferences, and goals. Here’s a comprehensive list of the best online brokers for stock trading of 2023 can be a great starting point.
It’s important to verify that the brokers you’re considering do indeed offer penny stock trading, as not all brokers provide this service. Make sure to choose a broker that aligns with your investment strategy and provides the necessary tools and resources for penny stock investors.
Risks and Considerations of Penny Stock Trading
Before you dive into the world of penny stocks, there are some risks you should be aware of.
Trade Volume and Fees
It’s no secret. The trading volume for penny stocks is relatively low because of their risky nature, so you may find it difficult to buy and sell at the most optimal times. You also want to pay attention to the fees that brokers sometimes tack on to penny stock trades.
If you find that they are substantially higher than what you’d pay to trade regular shares, move on to brokers that don’t employ this practice.
Exchanges
If the shares aren’t listed on a major exchange, like the NYSE or Nasdaq, proceed with caution as the regulations are little to non-existent. In turn, you have much more to lose, as there’s no way to gauge how the penny stock company will perform in the short or long term with little information to go on.
Return on investment
When trading stocks, there’s no guarantee that you’ll turn a profit. In fact, the odds definitely aren’t in your favor if the company the shares are tied to is in the midst of a financial storm or rough patch.
While this isn’t a definitive nail in the coffin, you have to think about the time between the purchase of shares and when the penny stock price appreciates and if it’s worth the wait. This could take months, if not years.
Penny Stock Scams
Be on the lookout for scam artists that promise to make you wealthy from trading penny stocks overnight. They do this by promoting a particular penny stock heavily or issuing warnings that a particular penny stock should be avoided at all costs. Either way, these deceptive marketing tactics can drive stock prices up or down in a jiffy and wreck your earning potential.
Strategies for Trading Penny Stocks Successfully
Setting clear goals and risk tolerance
Ensure that you clearly understand your investment goals and risk tolerance before you get started. This can help guide your decision-making and ensure that you are comfortable with the level of risk you are taking on.
Using stop loss orders and other risk management techniques
Stop loss orders and other risk management techniques can help to limit potential losses in penny stock trading. These techniques can help to protect your investment and keep you from making rash decisions in the face of market volatility.
Being patient and disciplined in decision-making
Successful penny stock investors are often disciplined and patient. They take the time to thoroughly research potential investments, avoid the temptation to chase after quick gains, and stick to a well-thought-out trading plan.
Bottom Line
Penny stock trading offers a unique blend of risks and rewards, appealing to those willing to navigate its volatile waters. It’s crucial to approach this market with thorough research, a clear strategy, and realistic expectations. Remember, while the potential for high returns exists, so does the risk of significant losses.
Your Next Steps
Educate yourself further: Continuously expand your knowledge about penny stocks. Resources like financial websites, investment books, and online courses can provide deeper insights.
Stay informed: Keep up with market trends and news. Regularly visit financial news platforms and consider subscribing to newsletters focused on penny stocks.
Connect with a community: Engage with online forums or local investment groups where you can exchange ideas and learn from experienced penny stock traders.
Trading penny stocks isn’t for everyone, but with the right approach, it can be a rewarding part of your investment portfolio. Always invest wisely, understand the risks involved, and never stop learning.
Frequently Asked Questions
How much money do you need to start trading penny stocks?
It depends on the broker you open an account with. Each broker has different minimum deposit requirements for opening an account. Most of them don’t have any requirements at all.
Are penny stocks hard to trade?
Penny stocks can be volatile and unpredictable. They are also subject to market manipulation. Most active traders who trade them are day traders, and only about 10% of them are actually profitable.
Why are penny stocks risky?
Penny stocks can be highly volatile and are typically subject to greater risks than larger, more established stocks. They may also be more susceptible to fraud and manipulation, which can lead to significant losses for investors.
Is Robinhood good for penny stocks?
You can trade penny stocks on Robinhood. However, the only penny stocks supported by Robinhood are stocks that trade on either the NASDAQ or NYSE. While most penny stocks are not listed on these major exchanges, exchange-listed penny stocks are typically viewed as the safer alternative to OTC stocks.
Today we’ll take a hard look at “HomeAmerican Mortgage,” yet another home builder affiliated mortgage lender.
They offer home purchase financing to Richmond American Homes customers, which is a top-10 home builder nationally.
Because they are operated by the same parent company, they can offer a streamlined process and home buying experience.
And perhaps more importantly, extend special financing offers like big mortgage rate buydowns.
Read on to see if you should use their in-house lender or look elsewhere for a better deal.
HomeAmerican Mortgage Fast Facts
The affiliated mortgage lender of Richmond American Homes
Offers home purchase financing on newly-built homes
Founded in 1983, headquartered in Denver, Colorado
Licensed to do business in 16 states and Washington D.C.
Funded $2.75B in home loans last year
Most active in Arizona, California, and Colorado
Also operate a title/escrow company and insurance agency
HomeAmerican Mortgage is a full-service, direct lender based out of Denver, Colorado.
They got their start way back in 1983 and are a subsidiary of MDC Holdings, Inc., which is a publicly-traded company (NYSE: MDC).
MDC also owns Richmond American Homes, which builds single-family residences in more than a dozen states throughout the country.
Simply put, HomeAmerican Mortgage exists to serve these home buyers, offering purchase loans only (no refinances).
This is similar to Lennar Mortgage and DHI Mortgage, which exist to serve Lennar and D.R. Horton home buyers, respectively.
They are currently licensed to do business in 16 states and D.C., including Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.
These are also the states where their new home communities are located.
At last glance, they have about 50 sponsored mortgage loan officers working at the company, per the NMLS.
And like many other builder-affiliated lenders, they also operate related subsidiaries to control the entire home buying process.
This includes a title and escrow company, American Home Title and Escrow Co., along with an insurance agency, American Home Insurance Agency, Inc.
Last year, HomeAmerican Mortgage funded about $2.75 billion in home loans, per HMDA data.
They are most active in their home state of Colorado and in California, with the two states accounting for nearly half of total loan production.
The company also does a lot of lending in Arizona, Florida, and Nevada.
How to Apply
To get started, you can visit a new home sales office at one of their communities or simply head to their website and click on “Apply.”
Before you apply, you may want to discuss pricing and loan options with a licensed loan officer.
Their digital mortgage application is powered by fintech company Blend. It allows you to complete the app from any device, whether it’s a computer, tablet, or smartphone.
And you can link financial accounts to save time, upload necessary documents, and eSign disclosures.
Once your loan is submitted, you’ll be asked to provide supporting documentation to generate a commitment letter, which may be subject to final underwriting approval.
You’ll be able to check loan status 24/7 and get in touch with your loan team if and when you have questions.
It’s also possible to generate a mortgage pre-approval letter via their online application, though if buying a new home via their parent company this may not be necessary.
Loan Programs Offered by HomeAmerican Mortgage
Home purchase loans
Conforming loans backed by Fannie/Freddie
FHA loans
VA loans
Homebuyer assistance
Fixed-rate and adjustable-rate options
As noted, HomeAmerican Mortgage is a purchase-only mortgage lender. So they’re entirely focused on getting home buyers into new homes.
There are no mortgage refinances offered, but they have a wide array of available loan programs to suit different preferences and needs.
You can get a conforming loan backed by Fannie Mae and Freddie Mac, or a jumbo loan if purchasing a more expensive property.
In addition, they offer both FHA loans and VA loans, though USDA loans appear to be absent from their lending menu.
Of course, their new homes may not be located in rural areas anyway, so this is moot.
They also mention the availability of bond loans and rural housing loans, which sounds like homebuyer assistance via state, city, and municipal housing agencies.
They offer both fixed-rate and adjustable-rate loans, including a 5/1 ARM on FHA loans, and a 7/6 ARM for conventional loans.
HomeAmerican Mortgage Rates
While they don’t list their daily mortgage rates online, they do say they offer competitive rates This is apparently because they don’t rely on brokers or a middleman.
Of course, the real reason they might be able to beat the competition is because home builders often offer huge incentives if you use their affiliated lender.
The Richmond Homes website typically features special financing offers if you get under contract and close your loan by a certain date.
At last glance, I saw rates as low as 4.875% on select adjustable-rate mortgages, and 5.75% for 30-year fixed rates.
These deals are often hard to beat because the builder can offer a large amount of closing cost assistance that can be toward a permanent interest rate buydown.
However, be sure to pay attention to all lender fees and the mortgage APR, which takes into account all (or most) of the loan costs.
And put in the time to gather other quotes from third-party lenders and independent mortgage brokers as well.
Aside from potentially finding a better deal, having other quotes can help you negotiate more effectively.
HomeAmerican Mortgage Reviews
While they appear to have the latest technology, a good selection of loan programs, and low mortgage rates, their reviews are a little less convincing.
They’ve got a poor 1.4/5-star rating from about 120 Google reviews, which obviously is questionable.
A similarly low score of 1.5/5 can be found at Yelp, though it’s from a smaller sample size of about 30 reviews.
Ultimately, they don’t have a ton of reviews online. So take the time to read through them to see what the issues were.
But they do hold an ‘A+’ rating with the Better Business Bureau (BBB) and have been an accredited business since 2009.
And there are only seven customer complaints over the past three years on the BBB website, with just one in the last 12 months.
To summarize, HomeAmerican Mortgage could be a good option if you’re buying a Richmond American Home because they offer below-market mortgage rates.
But it sounds like the service can sometimes experience some hiccups. Still, if you can stomach it, the savings might be worth it.
Just be sure to gather outside mortgage rate quotes as well to see what else is out there, and to give yourself leverage when negotiating.
HomeAmerican Mortgage Pros and Cons
The Good Stuff
Digital mortgage application powered by Blend
Can apply for a home loan online via their website
Special mortgage rate deals for Richmond American Homes customers
A+ BBB rating and few customer complaints
Mortgage checklist and glossary on their website
Affiliated title/escrow/insurance companies for one-stop shopping
A roof over your head is a great blessing. However, homeownership has its ups and downs. One of those low points might be shelling out thousands of dollars to replace the roof that has protected you from the elements for years.
At some point, every roof will need to be replaced. It’s one of the many joys of homeownership. But, according to Angi, the average roof replacement cost ranges from $4,900 to $14,100. With a wide range of costs, you may be wondering how you can land the best deal.
The wide range of roof replacement costs is due to various factors such as style, location, the size of your roof, and the professional you hire.
Let’s take a closer look at how you can lower your overall costs and get ready for this significant undertaking.
Factors Affecting Roof Replacement Cost
The cost of replacing your roof can vary significantly based on several key factors. Understanding these factors is crucial for managing your budget effectively. Here are the primary elements that influence roof replacement costs:
Roofing material: The type of material you choose for your new roof can have a substantial impact on the overall cost. Materials like asphalt shingles are generally more affordable, while options such as metal or slate can be considerably more expensive.
Location: Your geographical location plays a role in cost variations. Areas prone to extreme weather conditions or high wind zones may require more durable and costly roofing materials.
Roof size and complexity: Larger roofs with multiple peaks and angles, as well as varying roof pitch, will require more materials and labor, leading to higher costs.
Professional you hire: The choice of roofing contractor can affect costs. Highly experienced professionals may charge more for their expertise.
Additional accessories: Roofing accessories such as flashing, underlayment, and ventilation systems can add to the overall expense.
Types of Roofing Materials and Their Costs
When it comes to replacing your roof, one of the critical decisions you’ll face is choosing the right roofing material. The choice of material not only affects the aesthetics of your home but also significantly impacts the overall cost of the project. Let’s delve deeper into some common roofing materials, their characteristics, and how they influence the cost of roof replacement.
Asphalt Shingles
Cost: Basic asphalt shingles are often the most budget-friendly option, with prices ranging from $1.20 to $4 per square foot.
Durability: They offer reasonable durability and come in various styles and colors to match your home’s design.
Energy efficiency: Standard asphalt shingles are less energy-efficient compared to some other materials.
Metal Roofing
Cost: Metal roofing tends to be more expensive, typically starting at around $5 per square foot.
Durability: Metal roofs are known for their longevity and resistance to harsh weather conditions.
Energy efficiency: They are highly reflective and can help reduce energy costs.
Slate Tiles
Cost: Slate tiles are among the costliest roofing materials, often exceeding $10 per square foot.
Durability: They are incredibly durable and can last for a century or more if properly maintained.
Energy efficiency: Slate tiles provide excellent insulation, contributing to energy efficiency.
Wood Shingles
Cost: Wood shingles fall in the mid-range of roofing material costs, typically starting at $5 per square foot.
Durability: They offer a charming, rustic look but may require more maintenance.
Energy efficiency: Wood shingles provide decent insulation but may not be as energy-efficient as some other options.
Solar Panels
Cost: Solar roofing can be expensive, considering both the cost of the panels and installation.
Durability: Solar panels have a long lifespan and generate renewable energy.
Energy efficiency: Solar panels are highly energy-efficient, potentially reducing your utility bills.
Clay Tiles
Cost: Clay tiles are often on the higher end of the cost spectrum, starting at around $10 per square foot.
Durability: They are incredibly durable and can withstand severe weather conditions.
Energy efficiency: Clay tiles provide good insulation, contributing to energy efficiency.
It’s important to note that the roofing costs mentioned here are approximate and can vary based on factors such as your location, the complexity of the project, and the specific product you choose. When selecting a roofing material, consider not only the initial cost but also its longevity and energy efficiency, as these factors can impact your long-term savings and the value of your home.
By understanding the characteristics and costs associated with different roofing materials, you can make an informed decision that aligns with your budget and aesthetic preferences. Keep in mind that the choice of material is a significant factor in determining the overall cost of your roof replacement project.
When Should You Replace Your Roof
The first thing you need to do is determine whether you really need a new roof. A visible hole in your ceiling is not the sign you should be waiting for. If you get your roof replaced before it reaches the final stop of its useful life, then you could be avoiding potentially bigger problems down the road.
A few signs that your roof is ready to be replaced include:
Water leaking into the house
Cracked shingles
Missing shingles
Shingles that are curling on the edges.
“Bald spots” on your roof where granules are missing.
Overall signs of age on your roof.
Another tip is to be mindful of your neighbors. If your homes were built in the same time period, then you may notice many new roofs in the area. It could be a sign that the inevitable demise is coming to your roof soon.
As soon as you spot any of these signs, you should start considering a new roof. The longer you wait, the more damage might be done to the value of your home.
If you are considering selling your home, do not assume that you can pass along the failing roof to the new owner. Many buyers will shy away from aging roofs because it is an added cost that they can easily avoid by choosing another home to buy.
Make sure to regularly take a closer look at what is happening on your roof. You can help prolong the life of your roof by taking care of it. For example, removing moss and algae growing in your shingles can prevent damage to the shingles can help prevent damage to your roof’s shingles.
How much does a roof replacement cost?
As with all things in life, you have choices for your roof replacement. The total roof replacement cost will vary considerably based on your choices.
The costs stem from the materials, labor, and disposal of your old roofing material.
In terms of material, you’ll need to choose between numerous shingles such as wood, clay, asphalt, solar, slate tiles, metal, and more. The material you choose may be based on cosmetic preference or necessary toughness to combat the elements of different locales. For example, in high wind areas of hurricane-prone Florida, homeowners are required to upgrade their roofing materials in hopes of withstanding potential hurricanes.
Asphalt shingles will most likely be your least expensive choice. An asphalt shingle roof costs about $1.20 to $4 per square foot to remove and replace an entire roof. Other materials, such as metal roofing, will generally cost at least twice as much per square foot. However, a new metal roof will likely save you money on homeowners insurance.
The cost to install 30-year architectural shingles is typically around $350 to $500 per square foot. And 50-year architectural shingles are even more expensive. Of course, they are stronger and last longer.
For labor, the size and construct of your roof will be a significant factor. If you have many peaks and ledges, expect your labor costs to be higher.
Assessing the Condition of the Current Roof
Before diving into a roof replacement project, it’s essential to assess the condition of your existing roof thoroughly. This step can significantly impact your overall cost and project planning. Here’s how to evaluate your roof’s condition:
Look for signs of damage: Check for water leaks, cracked or missing shingles, curling edges, bald spots, and any visible signs of aging.
Neighborhood trends: Pay attention to neighboring homes; if many have recently replaced their roofs, it might be a sign that your roof is due for replacement soon.
Preventive maintenance: Regular maintenance, such as removing moss and algae, can extend your roof’s lifespan and help you avoid costly roof repairs.
When evaluating the condition of your current roof, you might find that not all areas require a full roof replacement. In some cases, a partial roof replacement can be a viable option. This approach is typically chosen when the damage is localized to specific sections of the roof or when budget constraints are a concern.
Estimating the Size and Complexity of the Project
Understanding the size and complexity of your roof replacement project is vital for accurate cost estimation. Here’s how to estimate the scope of your project:
Measure your roof: Determine the square footage of your roof to calculate the amount of materials needed.
Consider roof design: Roofs with many peaks and angles may require more labor and materials, leading to higher costs.
Roofing layers: If your existing roof has multiple layers, removal and disposal costs will increase.
Roof features: Any additional features like chimneys, skylights, or roof vents can affect the complexity of the project.
Labor and Installation Costs
The cost of labor and installation is a significant part of your roof replacement budget. Several factors influence these costs:
Roof size: Larger roofs require more labor hours, leading to higher installation costs.
Roof complexity: Roofs with unique designs or many angles may demand more skilled labor, increasing costs.
Contractor expertise: Experienced contractors may charge higher labor fees, but their quality of work can be worth the investment.
Location: Labor costs can vary by region due to local labor rates and demand.
Additional Costs for Roofing Accessories
In addition to the primary roofing material and labor, there are other accessories and components that can impact your roof replacement cost. These include:
Flashing: Necessary for sealing roof joints and preventing leaks.
Underlayment: Provides an extra layer of protection beneath the roofing material.
Ventilation systems: Ensures proper airflow in the attic, which can affect the longevity of your roof.
Gutters and downspouts: Proper drainage is essential to protect your home’s foundation.
Removal and Disposal of the Old Roofing Materials
Before installing a new roof, the old roof must be removed and properly disposed of. This is a necessary step in the replacement process and can add to your project cost. Key points to consider:
The number of existing layers: Removing multiple layers of old roofing can be more labor-intensive and costly.
Disposal fees: Depending on your location, there may be fees associated with disposing of old roofing materials.
Potential Hidden Costs and Unexpected Expenses
While you plan your roof replacement budget, it’s essential to be prepared for potential hidden costs and unexpected expenses that may arise during the project. Some factors to be aware of include:
Structural damage: If hidden structural issues are discovered during the replacement, repairs can be costly.
Unforeseen leaks: Roofing projects can reveal additional leaks that were not visible before, requiring immediate attention.
Weather delays: Adverse weather conditions can cause project delays, potentially leading to increased labor costs.
Comparing Quotes from Different Contractors
To make an informed decision, it’s crucial to obtain multiple quotes from different roofing contractors. Here’s how to effectively compare these quotes:
Ensure each quote includes warranty information for both materials and installation.
Beware of significantly low bids, as they may indicate lower quality work.
Check online reviews to gauge the reputation of the roofing company.
Verify that the contractor is licensed by contacting your state consumer protection office.
How to Reduce Your Roof Replacement Costs
You should expect to pay thousands of dollars for your roof repair. However, there are methods to lower your overall roof replacement cost.
1. Hire a Professional Roof Inspector
If you’ve noticed that your roof is looking a bit worse for wear, then you should call in an inspector. Although it can cost a few hundred dollars to hire an inspector, it might be well worth the cost.
An inspector will be able to tell you whether you really need a new roof. They might recommend a patch or suggest that you wait a few years before replacing the whole roof. Either way, it will give you a better understanding of the problem at hand.
2. Replace or Repair?
After receiving the inspection report recommendations, you’ll need to decide whether you will replace or repair the roof. It is a good idea to go with the guidance of the inspector. However, as the owner, you have the final say in this decision.
3. Check the Home Warranty
When was your roof last replaced? If the answer is recently, then the replacement might be under warranty.
If you recently bought the home, you should check through the closing paperwork. Home warranty information is often available in that fine print. If you can’t find the information, consider contacting the previous owners to see if they can provide you with that paperwork.
The home warranty may cover your replacement costs, so it is an option you should look into.
4. Decide What You Want
Before talking to a roofing contractor or salesman, make sure you know exactly what you want on your new roof. Take the time to research the different materials and options and choose the one that will work well for your area and your budget.
Build an understanding of the features of your roof. Is it huge? Does it have many peaks and ridges that will increase labor costs?
With this level of research, you’ll be able to discuss the details of contractor bids coherently. Doing this homework helps ensure that you are not being taken advantage of. You might not need the latest and greatest product that the salesman attempts to sell you.
5. Compare Bids
Once you have a good understanding of what you need, then it is time to call in the contractors. Obtain estimates from various roofing contractors. Each bid should include roof warranty information on both the materials and the installation.
Do not automatically jump for the lowest bid. If the bid is significantly lower, do more research before accepting that bid. Sometimes very low bids translate into lower quality work. Online reviews of a roofing company may help you find out if the company is worth doing business with.
Make sure to confirm that the bid is from a licensed contractor. You can contact your state consumer protection office to confirm this.
Trust your instincts when choosing a roofer. You want a roof that will last for years to come at an affordable price. Cutting corners now will only cause more problems down the line.
6. Go the DIY Route
In the world of homeownership, there is always the option to fix the problem yourself. Although the roof is a high stake home repair, you may be able to do part of it yourself for a fraction of the cost.
The labor costs of a DIY roof replacement can account for the bulk of the expense. Sometimes, a contractor will allow you to remove the old roofing material yourself to cut the total cost. However, you should only pursue this option if you have the proper tools and knowledge.
7. Check Your Insurance Policy
If you are like most Americans, you carry a homeowner’s insurance policy on your home. In that case, the policy might cover roof damages.
Most insurance policies will help cover some or all of your roof replacement. However, if the need for replacement is due to neglect, then it is unlikely they will assist you. Call your insurance provider to find out how much they might be willing to cover.
8. Ask for a Discount
Most roofers are at the whim of seasonal work. In the winter, work can dry up in some places. Whereas in the summer, they can’t work through the jobs fast enough.
If you are willing to wait for a convenient time for the roofing company, then ask if they will give you an off-season discount. For example, you could request a 10% discount to wait until they have a slow month for your roof repair.
It never hurts to ask; the worst thing they can say is ‘no.’
Financing Options for Roof Replacements
Replacing a roof can be a significant financial undertaking. If you’re concerned about the upfront cost, consider these financing options:
Home improvement loans: Home improvement loans are tailored for renovation projects like roof replacement. They typically offer competitive interest rates and flexible terms, available from banks or online lenders.
Home equity loans or lines of credit: Leverage your home’s equity to finance your roof replacement. Home equity loans provide a lump sum upfront, while home equity lines of credit (HELOCs) offer flexibility in accessing funds.
Insurance coverage: Review your homeowner’s insurance policy to check if it covers roof replacement, especially for damage caused by specific covered perils like severe storms or hail.
Contractor financing: Many roofing companies offer financing options to help you manage the cost of roof replacement. When considering this option, inquire about terms, interest rates, and the company’s reputation to ensure transparency and fairness in their financing offerings.
Bottom Line
Understanding the cost of roof replacement is a crucial step for homeowners. It’s not merely an expense but an investment in the protection and value of your home. By taking the time to assess your roof’s condition, research materials, budget wisely, and seek multiple quotes, you can make informed decisions that align with your financial situation.
Roof replacement can be a substantial undertaking, but with careful planning and consideration, you can ensure the longevity and safety of your home. Remember that each roof is unique, and roofing costs can vary based on several factors. Whether you’re facing an imminent replacement or planning for the future, being well-informed is the key to making cost-effective choices for your roofing needs.
Frequently Asked Questions
How much does a roof cost?
The cost of a roof varies widely based on factors like size, materials, and geographic location. For standard materials like asphalt shingles, prices can range from $7,000 to $12,000 for an average-sized home. More premium materials like metal, slate, or tile can significantly increase the cost. Additional factors like roof design complexity, labor rates, and regional costs also play a crucial role in determining the final price.
What is the average cost of replacing a roof?
The average cost of replacing a roof in the United States is around $10,000, but pricing can vary widely depending on factors like the size of the roof, materials used, and geographic location. High-end materials or complex roof designs can push costs significantly higher.
How do different types of roofs affect the replacement cost?
The type of roof has a major impact on replacement costs. Asphalt shingles are generally the most affordable, while materials like metal, tile, or slate are more expensive. The complexity of the roof design, such as the presence of skylights or multiple levels, also affects the cost.
Are there any additional expenses associated with roof replacement?
Yes, there can be additional expenses beyond the basic cost of materials and labor. These might include costs for permits, structural repairs, gutter replacement, or disposal of the old roofing materials. These costs should be considered when budgeting for a roof replacement.
Does the size of the roof influence the cost?
Absolutely. The larger the roof, the more materials and labor will be needed, which increases the overall cost. Roofing costs are often calculated by the square foot, so a larger roof area will result in a higher total cost.
What factors can affect the overall cost of a roof replacement?
Several factors can affect the total cost, including the type of roofing material, the complexity of the roof’s design, the need for structural repairs, local labor rates, and whether the old roof needs to be removed first. Weather conditions and seasonal demand can also play a role.
Is roof removal included in the replacement cost?
In many cases, the cost of removing the old roof is included in the roof replacement quote. However, this is not always the case, so it’s important to clarify this with the contractor. The cost of removal can vary depending on the size and material of the existing roof.
Do I need permits for a roof replacement?
Yes, most local governments require permits for a roof replacement. The cost and requirements for these permits vary by location. It’s important to factor in these costs and ensure that your contractor handles the permit process.
Are there any financing options available for roof replacement costs?
Many roofing contractors offer financing options to help manage the cost of roof replacement. Additionally, some banks and credit unions offer home improvement loans. It’s advisable to compare rates and terms to find the best financing solution.
What are some signs that indicate a need for a roof replacement?
Signs that you may need a roof replacement include missing or damaged shingles, frequent leaks, sagging, and daylight visible through the roof boards. If the roof is more than 20 years old, it might also be time to consider replacement.
How long does a typical roof replacement take?
The time required for a roof replacement can vary, but most projects are completed within a few days to a week. Factors that influence the timeline include the size of the roof, weather conditions, and the complexity of the job. More complex projects or unforeseen issues can extend this timeline.
How much can I save by replacing my roof myself?
DIY roof replacement can lead to significant savings, primarily by eliminating professional labor costs. You may also reduce expenses by sourcing materials and handling waste disposal yourself.
However, while DIY can cut initial costs, it’s crucial to consider the value of professional workmanship, which often ensures quality and adherence to safety standards. Inexperienced DIY attempts might lead to costly future repairs, potentially offsetting the initial savings.
Building your dream home in Oregon is an exciting journey, shaped by the state’s diverse landscapes – from Portland’s urban scenes to the serene Willamette Valley.
This Redfin article is curated with insights from seasoned Oregon builders, and navigates you through essential steps. From local building codes to sustainable practices, these practical tips empower effective project management, bringing your vision of an Oregon home to life.
7 essential pre-build tips for your Oregon home
1. Set a realistic budget for your Oregon build
Building your dream home in Oregon requires careful budgeting due to the state’s cost variations. Researching current prices for land purchase, design, permits, construction, and interior finishes is crucial. For land, costs range from $10,000 to $150,000+ per acre based on location. Design and permitting fees can be $5,000 to $20,000 and $1,000 to $5,000, respectively. Construction costs vary from $150 to $350+ per square foot. Interior finishes, including basic ($20,000 – $50,000), mid-range ($50,000 – $100,000), and high-end ($100,000+), add to the budget.
These estimates are general, so consulting local professionals is essential. Be mindful of unforeseen expenses and market fluctuations, ensuring a well-prepared budget for your Oregon home construction.
2. Make sure you account for Oregon’s climate
Building in Oregon requires meticulous consideration of its diverse climate, ranging from coastal to mountainous regions. Collaborate closely with your builder to create a weather-conscious construction schedule, accounting for variations in rainfall and snowfall. Coastal areas like Astoria experience higher precipitation, while desert regions like Bend are drier. Plan construction activities during the drier seasons, typically summer and early fall, to avoid weather-related delays.
Be proactive in protecting materials from rain and snow, and maintain flexibility in your schedule due to Oregon’s unpredictable climate. Regular communication with your builder is crucial for a successful and adaptable construction process.
3. Be informed about Oregon’s building codes and regulations
Understanding Oregon’s diverse regions involves navigating specific building codes tailored to each area. In coastal regions like Newport, emphasis on structural resilience against storms may require reinforced roofing and foundations. Wildfire-prone areas, such as parts of Southern Oregon like Medford, demand adherence to fire-resistant building standards, influencing material choices and landscaping practices. Cities like Portland, located near fault lines, necessitate compliance with seismic design codes for earthquake resilience.
Stay informed about local regulations. Tailoring your understanding of building codes ensures compliance with local regulations and addresses the unique environmental challenges of your chosen Oregon location. Regular consultations with local authorities and experienced builders provide valuable insights into region-specific codes for a successful construction process.
4. Conduct thorough contractor research and get local expertise
Building in Oregon’s competitive construction industry requires meticulous contractor research. Verify track records, experience, and reputation to ensure the selected contractors are licensed and bonded, providing a safety net for homeowners. For example, when building in regions like Eugene or Bend, leverage local expertise. Local builders possess insights into environmental challenges, permitting nuances, and regional hazards, contributing to a smoother construction process.
This regional knowledge ensures contractors are well-prepared to navigate the specific demands of each area, from eco-friendly considerations in Eugene to high desert challenges in Bend. Regular consultations with local builders and authorities enhance your understanding and facilitate informed decisions throughout the construction journey.
5. Look into builder associations and certifications in Oregon
While general contractor licensing isn’t mandatory, affiliations with associations like the Oregon Home Builders Association can signify commitment to quality. Certifications, such as Earth Advantage, highlight a builder’s dedication to sustainable practices.
6. Choose the right location
Oregon’s diverse landscapes demand thoughtful location selection. Whether it’s the urban vibrancy of Portland or the tranquility of Bend, factor in climate, terrain, and local regulations to align your choice with your lifestyle.
“Constructing a home in Central Oregon comes with unique challenges, notably the region’s unpredictable daily weather,” insists website design company Mooney Marketing. “The weather can swiftly transition from sunny skies to snowfall within minutes. To navigate this, we strategically oriented our house to face South, maximizing sunlight in winter, and adjusted our roof pitch to direct snow away from the driveway. This thoughtful planning is essential, especially considering that snow can persist in our yard until May. If you appreciate cold weather and snow, Central Oregon is an ideal location for your home.”
7. Employ sustainable building practices
Embrace Oregon’s commitment to sustainability with eco-friendly options. Explore features like solar panels, rainwater harvesting, and native landscaping to create an environmentally conscious and efficient home.
“Sustainability in Central Oregon goes beyond trend – it’s a commitment to environmental consciousness and energy efficiency,” asserts Oregon tiny house builders Spindrift Homes. “We embrace eco-friendly construction by using materials with minimal ecological impact, including locally sourced and reclaimed options. We integrate energy-efficient technologies, such as solar panels and advanced insulation, to reduce long-term energy consumption. This reflects Central Oregon’s dedication to a resilient and eco-conscious built environment, harmonizing modern development with environmental preservation in this picturesque region of the United States.”
9 construction and design tips to consider
1. Embrace sustainability and resilience
“Oregonians prioritize sustainable construction, drawing inspiration from lush landscapes and a commitment to environmental stewardship,” shares construction company Kimball Construction. “The diverse climate necessitates careful material consideration for resilience against rain and heat. Homes often embody the Pacific Northwest aesthetic, featuring local wood and expansive windows for abundant natural light. Navigating stringent building codes, particularly in earthquake-prone areas, underscores the emphasis on safety and durability. Building in Oregon is a harmonious blend of innovation, nature, and community values.”
2. Blend indoor comfort with outdoor beauty
When integrating indoor and outdoor spaces in Oregon, a key tip is to focus on creating a seamless transition between the two. This can be achieved through the use of large glass doors or retractable walls that open up to an outdoor living area. Incorporating similar flooring materials both inside and outside can also enhance this sense of continuity. Additionally, consider the use of covered patios or decks that provide protection from Oregon’s rainy weather, while still allowing for an outdoor experience.
“Our focus on timeless design, natural light, and smart technology ensures seamless integration of indoor and outdoor spaces,” states Woodland Construction Group.
3. Invest in energy-efficient features
To address Oregon’s diverse weather, prioritize energy-efficient features tailored to specific regions. In rainy cities like Portland, focus on well-insulated walls to combat moisture. Optimize natural light and insulation with energy-efficient windows. In colder areas like Bend, invest in a high-efficiency HVAC system for effective heating. Enhance sustainability by incorporating solar panels, particularly in eco-conscious regions like Eugene.
Consulting with local energy experts ensures a region-specific approach, contributing to both your home’s resilience and Oregon’s environmental goals.
4. Use durable construction materials for Oregon’s varied climate
Given Oregon’s weather conditions, characterized by frequent rain and occasional storms, prioritize durable building materials that can withstand these elements. In coastal areas like Cannon Beach, where exposure to salt air is a factor, consider materials like cedar siding known for its resilience against moisture and pests. Additionally, in Bend, where snowfall is common, metal roofs provide durability and effective snow shedding.
These materials not only ensure longevity but also demand minimal maintenance, making them ideal choices for Oregon’s varied climates.
5. Prepare for rainy seasons
During Oregon’s rainy seasons, proactive measures are essential to mitigate water-related risks and fortify your home against potential issues. Implement strategic landscaping solutions, such as graded slopes away from the foundation, to facilitate proper water drainage. Consider integrating rain gardens, especially in regions like Salem, to absorb excess water and prevent soil erosion. Well-placed drains, particularly in cities like Astoria with higher rainfall, further contribute to effective water management around your property.
By incorporating these measures, you enhance your home’s resilience, ensuring it remains safeguarded during Oregon’s periods of increased rainfall.
6. Employ fire resilient building strategies
Bend’s new west-side neighborhood Discovery West shares “we employ cutting-edge building practices to fortify the resilience of homes located near the wildland-urban interface, particularly in response to the escalating threat of wildfires driven by climate change. Striking a balance between aesthetics and safety, our community employs key fire mitigation techniques, including meticulous material choices in landscaping and construction, incorporation of fire-resistant plants, strategic tree spacing, and the implementation of small vent screen openings to reduce the risk of embers infiltrating homes.”
7. Add native plants to your landscaping
Elevate your property’s aesthetics while contributing to conservation efforts by integrating native Oregon plants into your landscaping. In regions like Medford, consider drought-tolerant choices such as manzanita and yarrow. These plants not only enhance visual appeal but also adapt well to Oregon’s varying climates, ensuring a sustainable and low-maintenance landscape. Consulting with local horticulturists provides insights into additional native species that thrive in your specific Oregon location.
8. Design a home that is in tune with Oregon’s environment
“Harmonize your home with its natural surroundings by incorporating native landscaping, embracing natural color palettes, and aligning with the neighborhood’s aesthetic,” shares custom home builders Rogue Brothers Construction. “The key lies in choosing an architect and builder with the expertise to bring your dream to life. Collaborating as a team with your architect and builder ensures your home not only withstands the elements but also enhances the beauty of its environment.”
9. Ensure your home is properly insured
Safeguard your Oregon home by considering insurance beyond the standard coverage. Additional protection against natural disasters like landslides or heavy rains is crucial in this region.
Ready to build your Oregon dream home?
Building a home in Oregon is a rewarding journey, requiring strategic planning and collaboration with local experts. These insights from Oregon builders equip you to navigate the unique challenges of the state, ensuring a successful home construction journey in the heart of the Pacific Northwest.
In the wake of the landmark Sitzer/Burnett commission lawsuit case, the real estate world is in turmoil. As industry players scramble to assess the fallout, there’s a silver lining for the astute – opportunity amidst chaos.
The savvy real estate agents and loan officers see this not a crisis but a golden opportunity. Now is the time to rise as an influencer, a trusted advisor and a beacon of stability in a sea of uncertainty. This is a call to arms for real estate agents and loan officers ready to seize the day.
The distraction advantage
Let’s cut to the chase: Your competitors are distracted. They’re caught in the headlights of change, poring over legal jargon, worrying about commission structures and losing sight of the prize – sales.
This is your moment. While they’re busy worrying, you should be busy working. The key is to stay laser-focused on what you do best: selling homes and providing stellar financial advice.
While your peers are entangled in adapting to changes, your clear focus and proactive approach puts you steps ahead. Your competitors’ distraction is your playground. In this environment, those who stay engaged in core sales activities, unswayed by the chaos, will not just survive but thrive.
The power of influence
In times like these, influence is your most potent weapon. It’s about being the voice that cuts through the noise, the trusted source of information when rumors and confusion are rampant. Personal branding isn’t just about recognition; it’s about establishing authority and trust. Your clients need a guide, and you are poised to be that guiding light.
Scripting the narrative
As you engage with clients, your message should be one of assurance and insight. You need to own the narrative with your clients. Here’s how:
For real estate agents:
Script: “While the industry is evolving, my commitment to finding your dream home remains steadfast. Let others focus on the noise; we’ll focus on your needs.”
Message: Project confidence and deep understanding of market changes. Show them that your expertise is their anchor in these turbulent times. That means you’d better do your homework!
For loan officers:
Script: “Market changes bring new opportunities. I’m here to offer you tailored, up-to- date financial advice. Let’s turn these changes into wealth!”
Message: Reinforce your role as a guide through uncertain financial landscapes. Highlight your adaptability and insight in finding optimal mortgage solutions, regardless of market fluctuations.
Presentation skills: A gateway to higher conversion rates
Presentation skills are another crucial element. Storytelling within sales presentations is proven to significantly improve conversion rates. A compelling narrative adds context to numbers, makes data relatable, and fosters deeper connections with clients.
Sales reps must balance stories with hard data to establish trust and enhance customer loyalty. Effective storytelling can also distinguish your brand, forming long-term partnerships and boosting customer retention.
Moreover, the caliber of a sales pitch is directly tied to the salesperson’s skills. Presentation analytics are invaluable in honing these skills. By analyzing factors like presentation duration and the time spent on specific sections, sales managers can identify strengths and weaknesses, enabling targeted coaching to improve performance.
This data-driven approach ensures that every team member can maximize their impact during sales pitches.
Comprehensive strategies for staying ahead and amplifying influence
Enhance client relationships: Trust is your currency. Forge stronger bonds through consistent, reliable communication and personalized service.
Educate yourself and clients: Stay abreast of mortgage and real estate industry changes and translate complex information into digestible, actionable advice for your clients.
Leverage social media: Regularly share insights and updates on social media to establish yourself as an industry thought leader.
Host informative sessions: Use webinars or community meetings to demonstrate your knowledge and reassure clients and prospects.
Network with purpose: Build relationships with like-minded professionals who see opportunity as they can support and enhance your influence.
Be visible and vocal: Use every platform available to you to share your perspective and insights, reinforcing your status as a go-to housing market expert.
Adapt to market needs: Be quick to adjust your strategies in response to market shifts, ensuring your services remain relevant and in demand.
Harness the influencer’s advantage
In these times of industry upheaval, your influence is your capital. Use it to build trust, provide clarity and lead with confidence. Those who do will emerge not just as survivors of change, but as architects of a new real estate era.
Rene Rodriguez is a best-selling author, keynote speaker, leadership advisor and transformational speaker coach.
Learning how to budget money on a low income takes work, but it can pay off big if you start early. Here’s how.
November 28, 2023
Starting your first job after school can be exciting, but it also ushers in new challenges. One of the biggest hurdles is making sure you can cover all of your bills and living expenses with your entry-level income.
Taking the time to create a budget can reduce stress and set you up for long-term financial success, says Michela Allocca, founder of the personal finance blog Break Your Budget. Sticking to a budget on a low income in your 20s can get your financial life in order with the right mindset for planning.
Not sure how to budget money on a low income? Allocca explains what a budget is, why it’s important to have one, and how to stick to one—even on a low income.
Why budgeting for young adults is important (especially on a low income)
Creating a budget may not sound like the most exciting way to spend time when you’re young and adventurous. But Allocca says that putting in the work now will make it easier to reach your financial goals and avoid money stress in the future.
In short, a budget is a spending plan based on an individual’s income and expenses, Allocca says. “In its simplest form, it’s how you choose to allocate your funds over a certain period of time,” she says. “It includes the essential expenses that make up your cost of living, as well as your nonessential expenses such as eating out, entertainment, or travel.”
Allocca believes having a budget is helpful at any stage of life, but it’s especially important in your 20s. “Not only does it provide direction on where your money is going, but it draws your awareness to what you are spending your money on,” she says. “This level of awareness makes it possible to nip poor spending habits in the bud early on, as well as ensure the money you are spending is being directed toward things that matter to you.”
How to create a budget that works for you
Younger people are often looking to align their spending with their values, Allocca says, and creating a budget can make your financial dreams a reality. When you’re ready to create a budget, Allocca recommends taking the following steps:
1. Gather information
“First, start by bringing awareness to your expenses,” Allocca says. “Look back at how you’ve been spending pre-budget.” She recommends taking a look at your credit and debit card statements from the last three months. From there, you can figure out the categories, based on your monthly expenses, that you’ll need to allocate money to.
2. Pinpoint your spending
Next, identify what you’re spending on average for each of the various categories of your budget. “You can use your historical information as a guide from the statements you reviewed earlier,” Allocca says. This is especially helpful if you’re thinking about how to budget to pay off debt.
3. Adapt and adjust
No budget is perfect out of the gate, Allocca says. Rather than spending time making sure your budget is flawless, it’s more important to put it into action and iterate as you move forward. “It’s super normal for your budget to shift and change both throughout the month and over time,” she says. “If it’s your first budget, keep an open mind to adjustments, and don’t worry if you are over or under in a certain area at first.”
To build your beginner budget, Allocca recommends using either a budgeting app or a budgeting spreadsheet (her personal preference).
How to stick to your budget over the long run
Creating a budget is the first step toward building a healthy financial future, but sticking to a budget is crucial. Allocca shares some tips for budgeting for young adults, even those who have a low income.
Learn how to say no
“’No,’ is a full sentence,” Allocca says. “In your early 20s it can be easy to succumb to peer pressure or to feel like you need to buy things to keep up with an image. It’s okay to turn down plans if it’s going to stretch your finances too thin or if it just isn’t worth it.” Your future self will be rewarded for making those sacrifices early in adulthood, she says.
Keep your essential expenses as low as possible
Having fewer expenses will make it easier to stick to a budget. “The highest expenses you’ll have are rent and your car, if you have one,” Allocca says. “If you’re in your early 20s, get a roommate or two, and don’t buy or lease a car that is more than 10%-15% of your income.”
Prioritize your value categories
What expenses are most important to you? “You don’t need to do everything, and you don’t need to spend your limited income on anything that isn’t adding value to your life,” Allocca says. “In my early 20s, I prioritized my discretionary income on my gym and my restaurant budget because those two things added the most value to my life.” Or, if you’re learning how to budget to pay off debt, you should prioritize your debt payments in your budget to become debt-free.
How to adjust when your expenses outweigh your income
Allocca says that budgeting for young adults on a low income is very similar to budgeting on an average or even a high income. The formula stays the same, she says: Allocate your income to the appropriate categories.
“The challenging part of having a low income is that you have less wiggle room, which can make day-to-day decision-making a lot harder,” Allocca says. “Don’t let this intimidate you, because a budget shows you how to use your money. It’s designed to be a tool to help you.”
And if your expenses outweigh your income, you can either reduce your expenses or increase your income. “Unfortunately, there is no secret sauce to this problem; it boils down to the math,” Allocca says. “That being said, there are ways to go about this that don’t need to be super overwhelming or stress-inducing.”
First, look at your expenses. If this is your first budget, there are likely many ways to make cuts. Start with unnecessary expenses: What can you live without? Once you’ve trimmed the nonessentials, assess whether you can reduce any essential expenses—whether that means moving to a less expensive apartment or buying produce on sale.
Spending less is a great start, but you can only cut your expenses so much. “The other side of the coin is increasing your income, which isn’t as hard as you think,” Allocca says. She encourages people to pick up a side hustle, such as ride-share driving or delivering food to earn extra cash. “Think about skills you have that you can leverage to earn money online via freelance websites,” she says.
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Budgeting allows you to get a handle on your expenses, spending, and financial goals. Having a budget in place early in adulthood helps you develop healthy financial habits—such as regularly adding to your savings account—and can reduce money-related anxiety, Allocca says.
But budgets are not a one-and-done exercise; your budget should evolve to adapt to your life situation and goals, she says. To stay on top of your changing priorities, try referring to a financial review checklist to ensure your budget is always aligned with where you are—and where you want to be.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates are down across most terms this week. The most popular 30-year mortgage rate has inched down eight basis points from this time last week.
Positive economic data showing that inflation is slowing has pushed mortgage rates down. It’s likely they’ll fall further as inflation continues to come down and the Federal Reserve is able to pull back from its fight against price growth.
All this is good news if you’re hoping to buy a home soon. If you’re waiting for better rates before you start shopping for a home, you may finally find some increased affordability by the time we reach the spring buying season in 2024.
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Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Inch Down (-0.08%)
The current average 30-year fixed mortgage rate is 6.91%, down eight basis points since this time last week. This rate is also down quite a bit compared to a month ago, when it was 7.72%.
At 6.91%, you’ll pay $659 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Decrease (-0.13%)
The average 20-year fixed mortgage rate is down 13 basis points from last week and sits at 6.58%. This time last month, the rate was 7.62%.
With a 6.58% rate on a 20-year term, your monthly payment will be $750 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
The average 15-year mortgage rate is 6.29%, down a tiny bit from last week. It’s also down from this time last month, when it was 6.80%.
With a 6.29% rate on a 15-year term, you’ll pay $860 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Drop (-0.35%)
The 7/1 adjustable mortgage rate is lower than it was a week ago, currently at 7.04%. It’s down since this time last month as well, when it was at 7.91%.
At 7.04%, your monthly payment would be $668 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Tick Up (+0.17%)
The average 5/1 ARM rate is 7.20%, a 17-point increase from last week. But it’s a bit lower than it was a month ago, when it was 7.54%.
Here’s how a 7.20% rate would affect you for the first five years: You’d pay $679 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Dip (-0.21%)
The average 30-year FHA interest rate is 6.29% today, which is a bit lower than it was a week ago. This rate was 6.75% a month ago.
At 6.29%, you would pay $618 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Go Down a Bit (-0.12%)
The current VA mortgage rate is 6.16%, 25 basis points down from this time last week. This rate was 7.12% a month ago.
With a 6.16% rate, your monthly payment would be $610 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Fall (-0.16%)
The average 30-year refinance rate is 7.10%, which is down from last week. It’s also down compared to a month ago, when it was 7.77%.
Here’s how a 7.10% rate would affect your monthly payments: You’d pay $672 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Up a Bit (+0.18%)
The current 20-year fixed refinance rate is 6.89%, which 18 basis points up compared to a week ago. This rate was 7.56% this time last month.
A 6.89% rate on a 20-year term will result in a $769 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Barely Go Down (-0.05%)
The average 15-year fixed refinance rate is 6.62%, which is nearly flat compared to last week. This rate is just a bit lower compared to this time in October, when it was at 6.78%.
A 6.62% rate on a 15-year term means you’ll pay $878 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Hold Steady (-0.02%)
The average 7/1 ARM refinance rate is 6.96%, right around where it was last week. A month ago, it was higher at 7.73%.
Refinancing into a 7/1 ARM with a 6.96% rate means your monthly payment toward principal and interest will be $663 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Inch Up (+0.09%)
The 5/1 ARM refinance rate is 7.37%, up just a little bit from last week. It’s been holding relatively steady compared to this time last month, when it was 7.44%.
A 7.37% rate will result in a monthly payment of $690 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Decrease a Tiny Bit (-0.06%)
The 30-year FHA refinance rate is 6.37%, which is slightly down from last week. This rate was 6.50% this time last month.
A 6.37% refinance rate would lead to a $624 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Go Down (-0.38%)
The average 30-year VA refinance rate is 6.36%, which is down from last week. This rate was 7.20% a month ago.
At 6.36%, your new monthly payment would be $623 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they’re higher than they were in November 2022.
As inflation starts to come down, mortgage rates will recede somewhat as well. But average 30-year fixed rates will likely remain somewhere in the 7% to 8% range in the near term.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Long-term personal loans can be an attractive option if you’re facing large expenses like medical bills or home repairs. By spreading out repayment over a longer period of time, long-term loans may allow for lower monthly payment amounts that can make major costs more affordable.
However, long-term loans can have drawbacks, too. They may have higher cumulative interest than short-term loans and can be difficult to qualify for since they’re often unsecured.
Here’s what you need to know if you’re deciding whether or not a long-term, unsecured personal loan is right for you:
What Is a Long-Term Loan?
As its name suggests, a long-term loan is one whose repayment period, or term, is fairly lengthy. Generally, long-term personal loans carry terms between 60 and 84 months, or five to seven years.
Mortgages and student loans are also examples of long-term loans. Mortgages, for instance, are frequently repaid over as many as 30 years.
For the purposes of this article, we’re talking about long-term, unsecured personal loans, which borrowers can use for a variety of things. These loans can allow consumers to make big purchases or pay expensive bills by paying the total off over several years’ time. 💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.
Benefits of Long-Term Personal Loans
There are plenty of reasons why a long-term loan might be a worthy consideration for large expenses.
Large Loan Amounts
While short-term loans and credit cards may cap out at a few thousand dollars, long-term, unsecured personal loans are available at much higher amounts — up to as much as $100,000.
So depending on what you need the money for, a long-term personal loan might give you more leverage than other types of funding.
Affordable Monthly Payments
Since long-term personal loans are paid off over many months, the monthly payments are often lower than they would be with a shorter-term loan.
However, that doesn’t mean a long-term loan is less expensive in the long run.
Flexibility
Unlike secured loans, which are tied to a physical piece of collateral or the need to be used for a specified purpose, unsecured personal loans can be taken out for a wide range of intended purposes. Common reasons borrowers take out personal loans include:
• Home renovations or repairs.
• Medical expenses.
• Wedding loans or funeral expenses.
• Debt consolidation.
Affordable Monthly Payments
Since long-term personal loans are paid off over many months, the monthly payments are often lower than they would be with a shorter-term loan.
However, that doesn’t mean a long-term loan is less expensive in the long run.
Drawbacks of Long-Term Personal Loans
There are also some drawbacks worth considering before you apply for an unsecured personal loan.
Potentially Higher Interest Rates
Although long-term, unsecured personal loans may have smaller monthly payments, they may carry higher interest rates than shorter-term, unsecured personal loans. And even at the same interest rate, they cost more over time.
Personal loan interest rates can range from as little as 6.99% to as much as 35.99% APR.
For example, imagine you take out a $10,000 loan at an interest rate of 10%. To repay the loan in a single year, you’d have to pay a whopping $879 per month, but you’d only pay a total of $550 in interest over the lifetime of the loan.
To repay the loan in seven years, you’d pay only $166 per month, but you’d also pay $3,945 in interest along the way.
So while long-term, unsecured personal loans can make large purchases feasible, factoring in the total cost over the lifetime of the loan before you sign those papers is also important.
Long-Term Debt
Along with higher interest rates, long-term loans do, obviously, mean going into debt for a longer period of time — unless you plan to pay off your loan early. A thorough review of the loan agreement will disclose prepayment penalties or other fees that can be costly in their own right.
Furthermore, the future is unpredictable. Five to seven years down the line, that promotion you were counting on might fall through or another life circumstance might supersede your repayment plans.
If you find yourself in a situation where you need to borrow more cash, it can be difficult to increase your personal loan amount.
Although unsecured personal loans can be helpful when life throws big expenses your way, they’re still a form of consumer debt, and, ideally, minimizing debt is a smart thing to do.
Qualification Difficulties
Long-term, unsecured personal loans may have more stringent qualification requirements than other types of credit. That’s because, from the lender’s perspective, they’re riskier than loans for smaller amounts or those that come attached to physical collateral.
Along with your credit score and history, a potential lender might also require proof of income and employment or a certain debt-to-income ratio. Depending on the stability of your financial situation, you may or may not qualify for the best interest rates and terms or be considered eligible to take out the loan at all, at least without a cosigner or co-borrower. 💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.
Alternatives to Long-Term Loans
Ideally, the best way to pay for a large purchase is to save up the cash and pay for it without going into debt at all. Of course, this may not always be possible or realistic.
If you’re not sure about taking out a long-term, unsecured personal loan, there are other alternatives to consider. However, each of these comes with its own risk-to-reward ratio as well.
You might consider borrowing money from friends and family, but those important relationships can suffer if your repayment doesn’t go as planned. A written repayment agreement can go a long way toward making the transaction as transparent as possible, with expectations of both parties clearly outlined.
Another option might be saving part of the money you need and applying for a short-term, unsecured personal loan for the remainder. This means delaying a purchase until savings can accumulate, and might not work if the money is needed sooner rather than later.
The Takeaway
Long-term loans are those whose repayment periods generally span between five and seven years, which can help borrowers fund expensive purchases while making affordable monthly payments.
However, the longer-term can also mean more interest charges over time, making these unsecured personal loans more expensive relative to shorter-term lending options. And like any form of consumer debt, they carry risk.
Your credit score and/or personal financial situation can suffer if you find yourself unable to repay the loan.
That said, when used responsibly, long-term, unsecured personal loans can be a smart financial choice, particularly if you shop around for a lender who offers affordable, fixed interest rates, low fees, and great customer service to ensure you’ll always be in the know and in control.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
Photo credit: iStock/Melpomenem
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
When it comes to borrowing money, homeowners are at an advantage right now. Rates on personal loans, mortgage loans and other lending products are higher than they were just a couple of years ago — but the unusual economic climate that led to those high rates has also led the average homeowner to have hefty amounts of equity in their home.
With homeowners having an average of nearly $200,000 in tappable home equity at their fingertips, they’re able to borrow against it for just about any purpose. For example, your home equity can be borrowed against to consolidate debt, make home renovations, pay for college or education expenses or cover other big expenses. And, what’s more, home equity loans typically come with much lower interest rates than what’s offered on credit cards or other lending products.
That said, there are some hurdles to jump through when borrowing from your home’s equity, like the appraisal process. Much like buying a home, obtaining a home equity loan traditionally involves a thorough appraisal of the property’s value. But is it possible to secure a home equity loan without undergoing the appraisal process? And what are the alternatives?
Find the top home equity loan rates you could qualify for here.
Can I get a home equity loan without an appraisal?
Traditional home equity loans involve borrowing a lump sum against the equity in your home. To determine the loan amount, lenders typically require a professional appraisal to assess the current market value of your property. This appraisal helps ensure that the loan amount aligns with the property’s worth and the lender’s risk tolerance.
But while traditional lenders generally require an appraisal for home equity loans, some financial institutions may offer alternatives that don’t involve a full appraisal process. However, keep in mind that these alternatives might come with certain conditions or limitations. Some traditional appraisal alternatives may include:
Automated valuation models (AVMs)
Some lenders use automated valuation models, which rely on data algorithms and public records to estimate a property’s value. AVMs are quicker and more cost-effective than traditional appraisals, but they may not be as accurate — so the estimate on your home could be much lower (or higher) than expected. And, if that happens, it can mean complications with the home equity lending process.
Explore your home equity loan options online here.
Desktop appraisals
Another option is a desktop appraisal, where an appraiser assesses your property remotely using available data, photographs and other information. While faster than a traditional appraisal, desktop appraisals may not capture all nuances of a property, either.
Loan-to-value (LTV) ratio
Some lenders may rely on the loan-to-value ratio based on tax assessments or recent purchase prices instead of a full appraisal. This approach simplifies the process but, again, it may not provide a precise valuation.
FHA-insured home equity conversion mortgages (HECMs)
While limited to seniors aged 62 and older, FHA-insured HECMs, also known as reverse mortgages, are a type of home equity loan that may not require a traditional appraisal. These loans allow homeowners to convert a portion of their home equity into cash without making monthly mortgage payments. However, the requirements for this type of loan can vary.
Alternative home equity solutions to consider
If you find that obtaining a traditional home equity loan without an appraisal is challenging, it may be worth it to consider exploring alternative financial solutions to tap into your home’s equity:
Home equity line of credit (HELOC):A HELOC is a flexible line of credit that allows you to borrow against your home’s equity as needed. Some lenders may offer HELOCs without requiring a full appraisal, making them a more accessible option for certain homeowners.
Cash-out refinancing:Cash-out refinancing involves replacing your existing mortgage with a new one for a higher amount than you currently owe. The excess funds can be used as needed. While a new appraisal is typically required, it may offer a way to access more substantial sums of money. That said, mortgage rates are high right now, and if you currently have a low interest rate on your mortgage, it may not be worth taking this route.
The bottom line
While obtaining a home equity loan without an appraisal may be challenging with traditional lenders, various alternatives and creative solutions exist. If you would prefer to take this route, it’s crucial to explore different options, compare terms and assess your financial goals to determine the best way to leverage your home’s equity. And, if you still aren’t sure, it may be helpful to consult with financial professionals and lenders to find the most suitable solution for your unique circumstances.