Why millennials are delaying homeownership

Why Millennials Are Delaying Homeownership

Homeownership, once the milestone many young adults strived for to prove “they made it”, has seen a steady decline from the younger millennial generation. There have been many reports and articles about millennials and their “unusual” buying behaviors; many claiming that this generation simply is changing the narrative of what it means to attain the American dream. Although that may very well be true, in the case of delayed homeownership, there may be an even simpler reason behind why this generation is opting out: affordability.

Low housing inventory has been an issue and on many industry insiders’ radar for quite some time now, but the supply of starter homes is even more stark which makes home prices rise. This fact is knocking many millennials in competitive markets out of the running. Another contributing factor to the home buying delay is credit history. According to data collected from TransUnion, about 38% of millennials fall into the subprime credit category meaning their credit history/score is below average. Being a high risk borrowers makes housing affordability even more challenging because the borrower usually has to apply for loans with higher interest rates and less favorable terms.

With all that being said, millennials may be delaying homeownership, but that doesn’t mean they aren’t planning on ever purchasing a home. The job market is stable and people’s overall incomes are on the rise. As the younger generation continues to take steps to improve their financial situations and (hopefully) as inventory starts to catchup with demand, we will begin to see more millennials take the next step into homeownership.

Why Is Spring The Best Time To Sell A Home?

In real estate, as in many other things in life, timing is everything. For many homeowners and prospective home-buyers, the decision of when to buy or sell a home can have a tremendous impact on the price, ease of sale, and competition. Many professionals in the real estate sector point to spring as the start of the busy season. This means that more houses will become available for purchase and more buyers will start looking at available properties.

The spring season brings with it an increase in real estate activity for a number of reasons. As the expensive holiday season becomes a distant memory, you might find yourself with more money in your pocket and start to become excited about a new project. Spring also means more sunlight and warmer weather, which to many people is a major motivator to finally get started on the home buying or selling process. Buying a home in the spring also lets you look forward to a summer moving project; a far better prospect than moving in the dead of winter.

So why should you consider selling your home in the spring? For starters, the boost in foot traffic at open houses increases the likelihood of multiple offers, which gives you the leverage necessary to negotiate a higher sale price. The spring weather also spurs the growth of plants and flowers, which can significantly improve the aesthetics of your home and ultimately allow you to ask for a higher price. Because spring marks the beginning of the “real estate season,” home-buyers will be nervous about missing out on a home that catches their eye, and this  can entice them to agree to a higher price.

That being said, this spring we’re gearing up for another active home-buying season.  If you’re shopping for a new home, don’t miss out.  Shop some of the most competitive rates and lock yours today. Click here for today’s rates.

AmeriSave Named 3rd In Customer Satisfaction By LendingTree For Q4 2017

AmeriSave Mortgage Corporation Named Top 10 Customer Satisfaction By LendingTree For Q4 2017

Atlanta, Georgia – January 19, 2018 – AmeriSave Mortgage Corporation was listed on LendingTree’s Top Ten Customer-Rated Lenders for Q4 2017, which was announced on January 19, 2018. AmeriSave was rated on offered rates, fees and closing costs, responsiveness, customer service and overall experience. The list features the top lenders in multiple loan categories including personal loans, business loans and auto loans.

“Once again AmeriSave has been recognized by LendingTree as one of their top lenders,” said Bob Smith, President of AmeriSave Mortgage Corporation. “I want to recognize the efforts of every team member, from loan origination to closing and beyond, who have played a part in this achievement. We will continue striving to retain a permanent spot on the LendingTree Top Ten.”

The quarterly “Top Ten” list is based on a weighted average of review rating and volume of customer reviews on the LendingTree (NASDAQ: TREE) website. This is AmeriSave’s eleventh appearance on the list in the past four years.

Choosing A Refinance Company That’s Right For You

There are many different motives behind why homeowners may choose to refinance their mortgages. Perhaps they are simply trying to obtain a lower rate, shorten the length of their mortgage term, switch mortgage types, or any other number of reasons. However, regardless of their intention for refinancing, deciding on the perfect lender for their specific needs should always be a top priority.

When it comes to choosing a mortgage lender, many borrowers’ top focus is on pricing. People want to go with the lender that’s going to give them the better deal. Even though pricing is the number one priority, there are other things to consider as well such as the loan programs offered, and the ease of working with the lender.

At AmeriSave, great rates and technology that makes obtaining a mortgage easy and efficient are our top priorities. We offer in-house processing, underwriting, closing, and funding, so that we can offer our very best rates and minimize delays.

It’s important to compare rates from multiple mortgage lenders to ensure you are receiving the deal that’s best for your needs. However, when comparing rates, keep in mind that in order to get the most accurate picture, you should compare rates for the same type of mortgage on the same day because the market changes daily. You will also need to review the cost of title insurance, closing/attorney and appraisal. Your Loan Estimate will show a breakdown of those fees.

For the financially savvy, refinancing your mortgage can be a very lucrative decision. Make sure you pick a lender that is going to offer you the best savings and meets all of your requirements. Head over to amerisave.com and get your rate locked in under ten minutes!

How To Sell To Millennial Homebuyers

When it comes to homeownership, there has definitely been a lag in the market brought on by the lack of participation from the millennial generation. There are many calculable reasons millennials have delayed homeownership with data showing the disparity between generation x and their millennial counterparts in regards to home prices, incomes, debt and other economic factors. However, lack of participation does not equate lack of desire, and as the younger generation has continued to age (the oldest of the millennials turning 36 this year) and reap the current economic benefits of increasing incomes and steady job growths as well as personal financial stability, we are beginning to see many more throw their hat into the housing ring.

With that being said, preparing a marketing strategy is more important than ever when selling to the millennial generation. Your audience is different, so expectations are different as well. Check out our 5 tips below for the best practices when selling to the millennial generation:

1. Get social

It is a widely known fact that millennials love social media. In fact, on Facebook alone, only 11% of 20-35 year olds don’t have an active account. If you’re not on social media you’re missing out on a gold mine of potential clients.

2. Location is key

For millennials, their dream home is more likely to depend on the location and neighborhood of the property than its aesthetic qualities. School district, community initiatives and business proximity all play a key role in selling to this demographic.

3. Be mobile friendly

Interacting with a generation in which 90% own smartphones and 93% are accessing the internet through mobile devices, it’s safe to say that making sure that you’re a mobile friendly agent is a great investment.

4. Be transparent

Authenticity is one of the best qualities you can develop when selling to millennials. This generation is being inundated with advertisements and sales pitches all day every day. They don’t want to be sold to. They want a transparent and honest relationship with their agent that provides education and clear information during their home buying process.

5. Build up your reviews

Thanks to the instantaneous nature of technology and endless resources at ones fingertips, the average millennial (first time homebuyer or not) will come to you already informed on the market and on you. Make sure you have positive online reviews placed on third party sites such as google and social media as well as on your personal webpage in order make it easy for them to choose you. This builds trust and establishes credibility between you and your clients

Staging Your Home for a Fast Sale

Staging Your Home For A Fast Sale

When it comes to selling a home fast, the staging and interior presentation can go a long way in persuading buyers to make a purchase.

Check out these 5 tips on how to stage a home in a way that showcases its strengths and de-emphasizes its weaknesses!

Tip #1 – Declutter

A cluttered home is a turn off. Make sure everything’s tidy and any excess junk is removed. You want the home to feel as open as possible.

Tip #2 – Neutral colors

Although you may love the electric blue kitchen or artistic horse mural in the living room, that’s not everyone’s cup of tea. Make sure all walls are painted a neutral color that won’t put off a potential buyer.

Tip #3 – Great Lighting

An important aspect to any home is the lighting. Make sure curtains aren’t drawn and let as much natural light inside as possible. Compensate for a dim lit room by replacing light fixtures and lamp bulbs with a higher wattage.

Tip #4 Group your furniture

Reposition your couch and chairs to help open a room up. Instead of having everything pushed up against a wall, bring your seating to the center of the room. Group couches and chairs into conversational arrangements, but remain mindful of traffic flow.

Tip #5 Accessorize

The right accessories can make your home feel more inviting. Make sure not to go overboard, however. Try accessorizing in 3’s or odd numbers and make sure the pieces are unifying.

Get An Early Start – Prepare Your Taxes!

Year after year around this time, government workers, small business owners, entrepreneurs and all other taxpaying citizens find themselves dreading the return of one of the most hated seasons – tax season. We understand how stressful this time of year can be with trying to make sure you get all of your paperwork filed accurately and on time, so we’ve compiled a list of ways to stay organized and on top of your taxes. Get started today!

Decide now how you want to file

Whether it’s through a software, traditional paper filing or your family’s accountant, deciding ahead of time what you’re going to do will help you know what steps you should take first.

Know about any changes

Being aware of changes ahead of time will not only help you stay prepared for what’s to come, but it will also lessen your stress by reducing unexpected surprises. Here’s a freebie; April 15th, which is known amongst most as tax day is actually not the tax deadline this year; its April 17th since the 15th falls on a Sunday.

Organization is the key to success

Don’t let your tax documents get lost in the clutter of your kitchen counter, or wherever you dump your mail. Store these documents in a specific place whenever you receive them in the mail. Also, if you didn’t do such a great job at it this year, make it your tax season resolution for the following year to track mileage and save your receipts and records if you’re a business owner or freelancer.

Know your deductions

Ever heard the phrase “don’t leave money on the table?” Every year American’s do just that by not claiming their tax money. Know beforehand what you can claim as a deduction such as interest you pay on student loans/mortgages, or miles you drove while volunteering.

File Early

Last year, out of 152 million tax returns, 111 million resulted in a refund. So, if you’re expecting to get money back, why not file as soon as possible? You can get your refund faster by filing your taxes early. Track your refund through the IRS “Where’s My Refund” link.

Remember, filing taxes can be stressful, but nearly everyone has to do it. The earlier you get started and the more organized and prepared you are, the easier it will be. Take advantage of all the free tools out there that can help you make the best decisions during tax filing season. Good luck!

2018’S Top 10 Housing Markets

The beginning of the year is off to a strong start for many housing markets across the US. According to a list aggregated by realtor.com, 10 metros are predicted to shine the brightest in 2018. The list was made by analyzing the prices and number of sales of existing home, the number of homes constructed in the 100 largest markets, the local economies in each metro, population trends, unemployment and finally, median household incomes.

10. Tulsa, OK Median home price: $199,586

With the home price national average at $275,000, Tulsa has the most affordable homes on this list falling well below the average.

9.Nashville, TN Median home price: $358,501

The population in Nashville is rising as more people move in to the now popular city which is making the listing prices jump. In the past year prices have soared 10.8%.

8. Colorado Springs, CO Median home price: $375,000

Thanks to legalized recreational marijuana, the entire state of Colorado has seen an economic boom. Builders are capitalizing on the city’s more affordable costs in comparison to neighboring city Denver.

7. Charlotte, NC Median home price: $325,045

Charlotte is a major financial hub so many are moving into the area for work. Not to mention, the low cost of living makes this a prime place for out of towners to retire.

6. Salt Lake City, UT Median home price: $360,828

The popularity of Salt Lake City makes the city an extremely competitive market for potential homebuyers. Some buyers are offering 20 -25% higher than the asking price.

5. Lakeland, FL Median home price: $224,950

Over the last few years, Lakeland has revived itself from a city severely affected by the recession to a booming housing industry.

4. Stockton, CA Median home price: $385,050

With prices less than a quarter of what buyers would pay in San Francisco, Stockton is becoming the new it city despite its reputation for crime.

3. Deltona, FL Median home price: $275,050

Location, location, location! Situated between Daytona Beach and Orlando with a 30 minute commute to either, Deltona is a prime area to take roots for an affordable price.

2. Dallas, TX Median home price: $339,300

Thanks to low cost of living and taxes, many companies are relocating to this Texas city and bringing their employees with them.

1.Las Vegas, NV Median home price: $285,045

In Las Vegas the economy is expected to grow a whopping 8.7% in 2018; compare that to the other top 100 markets’ 6.4% growth. The once downtrodden city is on the rise and attracting a wide range of new residents.

What-you-need-to-know-about HELOCs and the new tax reform bill

What You Need To Know About HELOCs And The New Tax Reform Bill

On December 20, 2017, President Trump signed into the law the Republican tax reform bill which went into effect at the start of 2018. With that, a number of changes have been made to our tax code, specifically, home equity loans and lines of credit. In the new bill, you can no longer claim a deduction for the interest paid on HELOCs. So, what does this mean for you?

First, let’s start by defining what a home equity loan is. Basically it’s when a homeowner receives a loan using the equity in their house. The equity is the difference between the home’s mortgage balance and its market value. Homeowners can either take out a onetime loan with a fixed interest rate, or a line of credit which is similar to a credit card with a debt limit based on your home’s equity.

Previously, homeowners who took out a home equity loan could deduct up to $100,000 in interest from their taxes; under the new law, that is no longer the case. For homeowners with available home equity they want to borrow against, they may find themselves at a crossroads. Now that interest isn’t tax deductible, the benefit of home equity loans and lines of credit may be reduced, but homeowners can utilize a different financing option such as a cash out refinance.

A cash out refinance is a way to receive cash for your home’s equity. It works by refinancing your mortgage for more than you currently owe and receiving the difference in cash. Right now, rates are still looking great, and if you’ve increased your credit score or equity in the past couple of years, a cash-out refinance could be a viable option. For more information on starting a cash out refinance, visit refinance.

AmeriSave Mortgage Corporation does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Our Best 2018 Mortgage Tips

Our Best Mortgage Tips For 2018

Are you purchasing or refinancing a home in 2018? Check out our mortgage tips to help you have an awesome mortgage this year!

Tip #1 – Build up your reserve savings

You may have enough for your down payment and closing costs but if the payout depletes your savings, you could still run into some issues. Typically, mortgage companies want you to have a savings fund in case unexpected expenses occur, so your house payment won’t be affected.

Tip #2 – Consider refinancing into a 15-year loan

This is dependent on a number of factors and you should seek financial advice before making this decision, but if circumstances make financial sense, a 15 year mortgage may be right for you. 15-year mortgages usually have lower rates than 30-year mortgages. Although monthly payments will be higher, you’ll be paying more to principal right away than you would with a 30 year loan, and you’ll pay significantly less interest over the life of the loan.

Tip #3 – Live within your means

A good rule of thumb is to buy the home that you can comfortably afford now, not the home that you can afford in the future. What that means is even though your future financial earning potential looks bright, you should still borrow what you can afford based on your current earnings. You can always upgrade your home after your income increases!

Tip #4 – Take advantage of a cash-out refi

A cash-out refi is a home mortgage refinance for more than the amount owed where the borrower is able to keep the difference. This can be a way to consolidate high interest debt with the goal of saving you money in the long run.