Marin County Real Estate Blog

Should I Move or Refinance?

Should I Move or Refinance? |
MyKCM

The level of equity homeowners have is at an all-time high. According to the U.S. Census, over 38% of owner-occupied homes are owned free and clear, meaning they don't have a mortgage. Those with a mortgage are seeing their equity skyrocket too. Every time real estate values increase, homeowners get a dollar-for-dollar gain in their home equity.

According to the first-quarter 2021 U.S. Home Equity Report from ATTOM Data Solutions:

17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.

The count of equity-rich properties in the first quarter of 2021 represented 31.9 percent, or about one in three, of the 55.8 million mortgaged homes in the United States. That was up from 30.2 percent in the fourth quarter of 2020, 28.3 percent in the third quarter and 26.5 percent in the first quarter of 2020.

This surge in home equity has given most homeowners the opportunity to use that equity in one of two ways:

  1. Refinance to cash out some...

Don't Forget to Budget for Closing Costs

Don't Forget to Budget for
Closing Costs | MyKCM

When buying a home, it's important to have a budget and make sure you plan ahead for certain homebuying expenses. Saving for a down payment is the main cost that comes to mind for many, but budgeting for the closing costs required to get a mortgage is just as important.

What Are Closing Costs?

According to Trulia:

When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you're in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price.

Trulia gives more great advice, explaining:

There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely...

Experts Say Home Prices Will Continue to Appreciate

Experts Say Home Prices Will
Continue to Appreciate | MyKCM

It's clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for When is the housing market going to crash? has actually spiked 2450% over the past month.

In addition, Jim Dalrymple II of Inman News notes:

One of the most noteworthy things that came up in Inman's conversations with agents was that every single one said they've had conversations with clients about whether or not the market is heading into a bubble.

To alleviate some of these concerns, let's look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:

Goldman Sachs' Research Note on Housing:
...
Current Homes for Sale
Southern Marin
City # Price Range
Belvedere 8 $3.8m - $22.5m
Mill Valley 38 $585k - $12.5m
Sausalito 11 $475k - $4.8m
Tiburon 21 $940k - $13.8m
Central & North Marin
City # Price Range
Corte Madera 7 $849k - $3.7m
Fairfax 8 $795k - $3.5m
Greenbrae 9 $628k - $3.8m
Kentfield 6 $1.6m - $18.0m
Larkspur 9 $497k - $5.3m
Novato 45 $247k - $4.3m
Ross 4 $2.8m - $7.3m
San Anselmo 12 $799k - $3.8m
San Rafael 63 $105k - $6.2m
New Listing

Email Alerts

Subscribe Today!
Have

Questions?

Contact Us Now!