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You Have Nothing to Lose with a Refinance

A recent borrower we worked with bought a townhome 18 months ago with a 4.75% rate. After running the numbers we found that we could refinance to drop her rate down to 2.625% and save her $350 per month. At first she was super hesitant to do the refinance because she was only planning to live in Utah for another 2 years. She was interested in the idea of keeping the property as a rental when she moves out of state but had not fully made up her mind yet. She spent hours running numbers this way and that to work out if refinancing would benefit her long term For me it was a super easy decision because her breakeven point was only 10 months. Meaning that 10 months of saving $350 paid all of her refinance costs. She is definitely staying in Utah for another 2 years so she will save $350 every month after month 10. And if she does decide to keep the property and convert it to a rental down the road she is in a much better position to have cash flow. She had nothing to lose with this refinance and in the long run it saved her thousands. If you are wondering what a refinance could do for you, give me a call. I'd love to price out some scenarios to show you what potential savings a refinance could provide for you.

Pandemic Changed Homeowner Needs

As we look back over the past year, we have certainly lived through one of the most stressful periods in modern history. After spending so much more time at home throughout the pandemic it’s no surprise that the needs of homeowners are changing. The pandemic has become the biggest motivating factor causing real estate to transact that we have ever seen in our careers. It has caused all of your clients to re-evaluate where they want to live, what features they need in a house and helped them determine their “why” for what they need in their house. What used to be a place to return to after a long day now serves multiple purposes to people all day, every day. The home now serves as an office, school, restaurant, gym, playroom and for some as an escape from the stress of the outside world. We are seeing more people leaving the cities. As telecommuting and remote work are increasing among industries many realized they no longer need to live near their work. The increase in remote work has caused a fluctuation of people not only leaving the city but moving to another state. A recent client we helped purchase a home moved from California to Utah to be closer to their family now that their employer allows them to work remotely. We have also seen an increase in home improvement and remodeling projects. Research has found that 70% of American homeowners completed a home improvement project since the start of the pandemic. The most popular upgrades are a backyard makeover, addition of a home office, home gym, or entertainment space such as a deck or patio, swimming pool, or theater room. People are needing to make their house functional for daily life, but also a means of escape since traveling and other avenues of relaxation have been put on hold. We predict these changes in homeowner needs will last long after the pandemic is over with many people realizing the importance of having a space that is not only comfortable but also functional. As we look beyond the trials of the pandemic, many are hoping for a new beginning, and for some that could mean moving. If the pandemic has changed your needs or if you are looking to tap into your equity to finish a home improvement project of your own, reach out. We can help evaluate your current situation and create a plan to get you into the home that is perfect for your needs.

A Refinance Success Story

A recent borrow we worked with decided to complete a cash out refinance so he could finish his basement remodel and other home renovations that his wife had been bugging him about for years.

He started out in a VA loan with a great rate of 3.625%. We were able to drop his rate to 2.375% and pull $75,000 cash out.

He was able to use the money to complete all of their home renovations before the new year. But the best part about the refinance was that even though his loan amount increased by $75,000, his monthly payment only went up by $19 per month because we were able to drop the interest rate so much.


Another great bonus of a cash out refinance is that if interest rates have dropped since you took out your original loan, a cash-out refinance could also lower your mortgage rate at the same time. 

If you are not sure if a cash out refinance is right for you, give us a call! We can help you explore your options and see what refinance option would be best for your situation.

  801.206.4343  | NMLS # 888979

The Case for a Starter Home

4.5 years ago, the Martinez family wanted to buy a house. At the time, the number one thing for this family of four was sticking to their set budget. They qualified for $150,000 however, to stick to their budget they had to be under $120,000. They were determined to stick to their budget. They finalized their first purchase in June of 2015 for 1,080 sq. ft. three-bedroom, one bath for $115,000. Things they did not like about this house was that it only had one bathroom, it did not have a garage, and the city wasn’t an ideal location for them. But they loved yard and the budget worked, so they decided to make this their starter home. Four years later they took out a HELOC and completely remodeled the house. It was now nicely updated, but still only 1,080 sq. ft. with one bathroom. Despite their home not growing, their family sure did. Today they have three kids and one on the way which means it is time for a change. Through appreciation over the last 4.5 years and with the remodel, their home is now worth $250,000. They gained over $100,000 in equity. We are now searching to buy their forever home with a $350,000 to $400,000 price range which fits nicely inside their new budget as they have progressed in their careers and are now making more money. Had they rented the last 4.5 years they would not have a large down payment and they would be looking to buy a $250,000 to $300,000 house which would not get them exactly what they want in terms of space. They did not get what they wanted when they originally bought 4.5 years ago. But by buying then, they set themselves up to get what they really want today. Too often I have clients who tell me they can’t afford what they want so they are just going to rent. This is a huge mistake! Home prices keep going up and often times it is the appreciation from the first house you don’t love that allows you to get into a house you do love further down the road. If you are interested let me run a rent vs buy scenario for you to help show you how much you could be losing by not buying now.

Don’t Let a Down Payment Hold You Back

A recent borrower I worked with was a past client that I helped purchase a condo 5 years ago and at the time it was the perfect pad for him and his girlfriend. A few years down the road they got married, each graduated from the University of Utah, and have progressed in their careers. As the years went on, they found their Condo was getting a little cramped. They have plans to start a family soon and really wanted a house where they could invite friends over to entertain (you know, as soon as the pandemic is behind us). They needed the equity from their condo to use as the down payment on the new house, (which by the way had appreciated $100,000 from when they bought it 5 years ago). However, the market is really tough right now and they did not want the stress of listing their condo, going under contract, and then having less than a week to find and go under contract on a new house. We were able to save the clients a lot of stress by buying their new house first and selling the condo later on. We were able to accomplish this timeline by opening a HELOC (home equity line of credit) on their condo. We accessed the equity from the HELOC and used that as the down payment for their new home. They were able to be patient and wait for the perfect house to pop up on the market. Once it did, they were able to get the house under contract quickly thanks to their pre-qualification. With the purchase complete they were able to list and sell their condo and pay off the HELOC. They are now extremely happy with their big beautiful new house and can’t wait for what the future will bring for them and their family. If you are feeling like you are stuck in your property due to lack of means for a down payment, there may be a direction like this one that we can take to help you get into a better housing situation.