Buy, Sell or Refinance? Ask the Experts

Transcription

1 Buy, Sell or Refinance? Ask the Experts Greg Jaeger Vice President, USAA Mortgage Origination Views and opinions expressed in this webinar are provided for informational purposes only and are subject to change. This discussion should not be considered a recommendation, tax, legal or other estate planning advice, but rather a general overview of the subject matter discussed. Consult with your tax, legal or estate planning professional regarding your own specific situation. D Ann Harper President, Coldwell Banker D'Ann Harper, REALTORS J.J. Montanaro CERTIFIED FINANCIAL PLANNER TM Practitioner

2 Agenda Real Estate Today Buying a Home in Today s Market Selling Your Home in a Buyer s Market Refinancing: When is it worth it? Your Questions 2

3 3 Real Estate Today: Lots of Bad News

4 Historical Mortgage Interest Rates 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 16.6% 4 5.0% Year Fixed Mortgage Rate

5 Buying a Home in Today s Market Historic lows in mortgage rates It s a buyer s market In 2009, 62.4% of homes were considered affordable, up from 44.6% in 2008 Favorable home values in many areas More inventory to choose from when buying Tax credits for first-time homebuyers Refinancing can drop your mortgage payment by hundreds of dollars 5

6 Selling Your Home in a Buyer s Market The biggest mistakes sellers make How to make your house stand out If you must move, what is the best option? How to reduce the time it takes to sell your home Why You Should Use a REALTOR Leveraging a REALTOR and their tools What a REALTOR can do for you 6

7 Refinancing: When is it worth it? Why refinance? Shorter term pay off loan faster Longer term, lower monthly payments ARM vs. Fixed More than a rate all lenders are not created equal Watch for hidden fees Commission vs. non-commission lenders 7

8 Refinancing: When is it worth it? Refinancing Example Current Loan Refinance Loan Balance $200,000 $200,000 Closing Costs n/a $7,000 Rate 6.50% 4.75% Years Left to Pay Principal/Interest Payment $1,315 $1,043 Monthly Savings $272 Break-even Estimate 25.7 months (2.1 years) NOTE: Hypothetical example. These sample loans are for illustration purposes only and are not a rate quote, pre-approval, or commitment to lend. 8

9 Recap This is a buyer s market Be patient when selling your home Using a REALTOR has advantages MoversAdvantage rewards for buying and selling your home When refinancing, do the math USAA members can use tools on usaa.com or call us for free financial advice 9

10 Questions and Answers Submit your questions in the box to the left. Or call us now at

11 Thank You for Participating For more specific advice on your individual situation please call a USAA mortgage specialist at or visit usaa.com 11

12 Thank You for Participating Views and opinions expressed in this webinar are provided for informational purposes only and are subject to change. This discussion should not be considered a recommendation, tax, legal or other estate planning advice, but rather a general overview of the subject matter discussed. Consult with your tax, legal or estate planning professional regarding your own specific situation. MoversAdvantage offered by USAA Relocation Services, Inc., a licensed real estate broker and subsidiary of USAA Federal Savings Bank. Not available for employer-sponsored relocations, or for transactions in Iowa or outside US. This is not a solicitation if you are already represented by a real estate broker. Cash bonus limited in some states. Bonus ranges from $350-$1,550 based on sale price of home sold/purchased. You must enroll in program before contacting participating real estate firm and be represented by that firm at closing to qualify for bonus. Qualify for an additional $100 when you also finance your home purchase with a USAA mortgage. REALTOR - A registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS and subscribes to its strict Code of Ethics. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP and CERTIFIED FINANCIAL PLANNER in the United States, which it awards to individuals who successfully complete CFP Board s initial and ongoing certification requirements. USAA means United Services Automobile Association and its affiliates. Financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), and its wholly opened subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. Bank products provided by USAA Federal Savings Bank, Member FDIC. 12