FINE NEST NOVEMBER 2022 NEWSLETTER

11/7/2022

??️ What a Wonderful Autumn it's Been ??

Perfect weather, great people and a whole lot of fun! Our annual Fine Nest client appreciation block party recently passed and we are incredibly thankful to everyone who came out and enjoyed the petting zoo, face painting, tasty food and home made desserts! It was a blast catching up with everyone, meeting new faces, and basking in the fall weather that couldn't have been more ideal. Thank you to everyone who took part and a special thank you to all of our sponsors and staff who helped us pull together this amazing event!

For anyone who may have missed out on the fun, make sure to keep your eyes out for furture Fine Nest events!

Fine Nest gladly provides the most up-to-date real estate information and local resources we hope are useful to you and your loved ones as we continue to navigate the real estate market.

The Latest News

November Market Metrics Report

Getting Creative

With 6-7% interest rates dominating the current market, lenders everywhere are finding creative ways to help buyers finance their home loans. Fine Nest has compiled a few options that might just be the right fit for you or someone you know who is currently trying to buy.

2/1 Buydown Program
As we briefly covered in August's Newsletter, buyers can buy down their interest rates for the first two years of their loan at no additional cost to them. This is done via the 2/1 buydown program that includes a seller subsidy where the seller covers the cost of buying down the interest rate 2 percentage points for the first year and 1 percentage point for the second year. The benefit to the 2/1 buydown program is that, hopefully, buyers can refinance before year 3 to potentially lock in a lower interest rate, although it's not a guarantee. The graph below helps provide an example of what mortgage payments would look like via this program.

A downfall to the 2/1 buydown is that sellers have to agree to the seller subsidy, buyers have to be approved at the maximum payment to qualify, and there are currently no ways in which buyers can cover the cost of the buydown themselves because of federal and state laws. If you're interested in finding out more, reach out to Fine Nest so we can connect you with a lender partner.

Home Ready & Home Possible Programs
Fannie Mae’s Home Ready and Freddie Mac’s Home Possible programs provide options for lower income buyers that meet certain requirements. These programs can offer as low as a 3% down payment with some grant money also available, flexible down payment sources, and many other options.

Adjustable Rate Mortgages (ARM)
ARM's got a pretty bad rap during the 2008 market crash when homeowners were faced with non existent rate caps and overnight increases on their mortgage payments. Since then, more regulations have been put into place making ARMs a much more reliable financial option. Offering 3, 5, 7 and 10 year locked in interest rates, buyers closing on a home during times of higher interest rates can potentially secure lower interest rates using an ARM. For example, let's say a 5 year ARM began at a 5% interest rate. At the end of 5 years, the rate is adjusted at the SOFR (Secured Overnight Financing Rate) and the regulated ARM margin, usually between 2.5 - 3%. So the 5% interest rate would adjust at the SOFR + the 2.5 - 3% ARM margin to equal a whole new rate on the mortgage. The benefit to an ARM product is that, hopefully, buyers can refinance before the ARM adjusts to potentially lock in a lower interest rate. Keep in mind, there are downsides to ARMs such as running the risk that the mortgage rate will go up instead of down. For an in depth explanation, click HERE.

Assumable Loans/Mortgages
Assumable loans, which are typically FHA, VA and USDA loans, are considered a good option for buyers looking to lock in a lower interest rate. Assumable mortgages essentially allow buyers to take over a sellers loan and keep the same interest rate from when the seller purchased the home. However, there are pros and cons to this kind of financing that Fine Nest owner, Kelly Martinez, explains in this informative TikToK video.

Curbing Inflation

Our pocketbooks have certainly suffered this year as inflation continues to effect our economy. As a result, the IRS recently announced tax bracket adjustments for the 2023 tax year andincreases to contribution limits on tax-deferred retirement plans. These Axios articles will help breakdown the exact tax bracket adjustments for your income level as well as help you see how much more you can contribute to your IRA's, health spending arrangements, and more.

Make Your Home Shine Over the Holidays

Using Fine Nest's long time vendor connection, you can avoid the stress of hanging your holiday lights by calling Clearly Amazing to do the hard lifting for you! They specialize in helping you design, install and take down your holiday lights so you can enjoy the festivities from the warmth of your home.

Traditional Thanksgiving Side Dishes with a Twist

If you're craving to jazz up your Thanksgiving side dishes this holiday season, then you can look no further than these Real Simple recipes that take everything from mac n cheese and sweet potato casserole to a gourmet level!

Holiday Decorations on a Budget while Keeping Things Classy

Trying to decorate your home for the holidays while staying on budget? Don't want your decorations looking cheap? Katheryn from her Do it On a Dime YouTube channel has all the latest info on affordable Walmart &Dollar Tree holiday décor inventory along with tips on how to make your decorations match World Market and Hobby Lobby quality while still dazzling guests!