3 Myths Stopping Millennials and Gen Z From Buying a Home
Ralph DiBugnara • September 5, 2024
Thursday, August 29, 2024
By: Ralph dibugnara
By: Paul Centopani
August 22, 2024
Mortgage rate forecast for next week (August 26-30)
Mortgage interest rates fell again after last week’s inch up.
The average 30-year fixed rate mortgage (FRM) declined from 6.49% on Aug. 15 to 6.46% on Aug. 22., according to Freddie Mac.
“Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming economic data suggest rates will gently slope downward through the end of the year,” said Sam Khater, Freddie Mac’s chief economist. “Earlier this month, rates plunged and are now lingering just under 6.5%, which has not been enough to motivate potential homebuyers. We expect rates likely will need to decline another percentage point to generate buyer demand.”
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In this article (Skip to...)
- Will rates go down in September?
- 90-day forecast
- Expert rate predictions
- Mortgage rate trends
- Rates by loan type
- Mortgage strategies for September
- Mortgage rates FAQ
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Will mortgage rates go down in September?
Mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% on Feb. 2 and as high as 7.79% on Oct. 26, according to Freddie Mac.
Find your lowest mortgage rate. Start here (Aug 22nd, 2024)
With the economy possibly heading into a recession, we may have already seen the peak of this rate cycle. Of course, interest rates are notoriously volatile and could tick back up on any given week.
Experts from CoreLogic, Realtor.com and others weigh in on whether 30-year mortgage rates will climb, fall, or level off in September.
Expert mortgage rate predictions for September
Molly Boesel, senior principal economist at CoreLogic
Prediction: Rates will moderate
“The July inflation numbers showed that prices are following a path that will allow for a Federal Reserve rate cut in September. Once the Fed begins easing, mortgage rates should follow their downward path as well. Look for the 30-year mortgage rate to remain in the mid-6% range in September.”
Ralph DiBugnara, president at Home Qualified
Prediction: Rates will rise
“September is the Fed Meeting most home market watchers have been looking forward to, in anticipation of the first Fed rate cut in over two years. This should create a sentiment that starts to bring interest rates down through the end of 2024. But for September, I believe a lot of rate reduction has been built into the market already based on speculation of a Fed cut. The 30-year fixed rate should average around 7% and the 15-year at 6.625%.”
Odeta Kushi, deputy chief economist at First American
Prediction: Rates will decline
“The anticipation of a Fed rate cut in September has largely been factored into existing mortgage rates. However, if incoming data is weaker than expected, implying more aggressive rate cuts, there could be additional downward pressure on mortgage rates. Conversely, if the data demonstrates economic resilience and labor market strength, rates may stabilize or even rise. Some week-to-week volatility is expected as investors adjust their expectations based on new information, but we should see the 10-year Treasury yield at least stabilize or continue on a downward trend, leading to a gradual decline in mortgage rates throughout the rest of the year.”
Ralph McLaughlin, senior economist at Realtor.com
Prediction: Rates will moderate
“We expect mortgage rates to bounce around a bit over the next several weeks before falling to around the 6.4% mark by mid-to-late September. The short term volatility in rates will be due to expectations around the July PCE and August jobs report, but ultimately we expect rates to fall by 5-10 basis points as we approach the Fed meeting in September.”
Rick Sharga, founder and CEO at CJ Patrick Comapny
Prediction: Rates will moderate
“It seems that the market is already pricing in a Fed rate cut at its September meeting, so it’s unlikely that we’ll see mortgage rates fall dramatically if or when that happens. Rates have already come down by almost a full point after hitting a recent high of just over 7.5%; so a quarter-point cut by the Fed probably won’t result in mortgage rates immediately plummeting. If the Fed doesn’t cut rates, on the other hand, we could see mortgage rates spike back up over 7% almost instantly.
Longer term, the spread between 10-year Treasury yields and rates on the 30-year mortgage are still much higher than usual - about 2.7 points, compared to the usual range of 1.5-2.0 points. This means that there’s room for rates to come down meaningfully once the market is convinced that the Fed Funds rate will continue to go down over the next year. But the decline in mortgage rates is still more likely to be gradual than dramatic and sudden.”
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Mortgage interest rates forecast next 90 days
As inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to the average 30-year fixed-rate mortgage spiking in 2023.
With inflation gradually cooling, the Fed adjusted its policies with skipped hikes and cuts are expected this year. Additionally, the economy showing signs of slowing has many experts believing mortgage interest rates will gradually descend in 2024.
Find your lowest mortgage rate. Start here (Aug 22nd, 2024)
Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy.
Mortgage rate predictions for 2024
The 30-year fixed-rate mortgage averaged 6.46% as of Aug. 22, according to Freddie Mac. Only one of the five major housing authorities we looked at project 2024’s third quarter average to finish under that.
Wells Fargo sits at the low end of the group, predicting the average 30-year fixed interest rate to settle at 6.4% for Q3. Meanwhile, the National Association of Realtors had the highest forecast of 6.9%.
Housing Authority
30-Year Mortgage Rate Forecast (Q3 2024)
Wells Fargo
6.40%
Mortgage Bankers Association
6.70%
Fannie Mae
6.80%
National Association of Home Builders
6.80%
National Association of Realtors
6.90%
Average Prediction
6.72%
Current mortgage interest rate trends
Mortgage rates sit at their lowest level since May 2023.
The average 30-year fixed rate decreased from 6.49% on Aug. 15 to 6.46% on Aug. 22. Similarly, the average 15-year fixed mortgage rate dropped from 5.66% to 5.62%.
Get started shopping for mortgage rates (Aug 22nd, 2024)
Month
Average 30-Year Fixed Rate
July 2023
6.84%
August 2023
7.07%
September 2023
7.20%
October 2023
7.62%
November 2023
7.44%
December 2023
6.82%
January 2024
6.64%
February 2024
6.78%
March 2024
6.82%
April 2024
6.99%
May 2024
7.06%
June 2024
6.92%
July 2024
6.85%
Source: Freddie Mac
After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023. Many experts and industry authorities believe they will follow a downward trajectory into 2024. Whatever happens, interest rates are still below historical averages.
Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong credit.
Just make sure you shop around to find the best lender and lowest rate for your unique situation.
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Source: Lender Loan Volume from 2023 Home Mortgage Disclosure Act data via CFPB.
Mortgage rate trends by loan type
Many mortgage shoppers don’t realize there are different types of rates in today’s mortgage market. But this knowledge can help home buyers and refinancing households find the best value for their situation.
Find your lowest mortgage rate. Start here (Aug 22nd, 2024)
Which mortgage loan is best?
The best mortgage for you depends on your financial situation and your goals.
For instance, if you want to buy a high-priced home and you have great credit, a jumbo loan is your best bet. Jumbo mortgages allow loan amounts above conforming loan limits, which max out at $766,550 in most parts of the U.S.
On the other hand, if you’re a veteran or service member, a VA loan is almost always the right choice. VA loans are backed by the U.S. Department of Veterans Affairs. They provide ultra-low rates and never charge private mortgage insurance (PMI). But you need an eligible service history to qualify.
Conforming loans and FHA loans (those backed by the Federal Housing Administration) are great low-down-payment options.
Conforming loans allow as little as 3% down with FICO scores starting at 620. FHA loans are even more lenient about credit; home buyers can often qualify with a score of 580 or higher, and a less-than-perfect credit history might not disqualify you.
Finally, consider a USDA loan if you want to buy or refinance real estate in a rural area. USDA loans have below-market rates — similar to VA — and reduced mortgage insurance costs. The catch? You need to live in a ‘rural’ area and have moderate or low income to be USDA-eligible.
Mortgage rate strategies for September 2024
Mortgage rates continue to display their famous volatility in 2024. Anticipated Fed cuts provide optimism for descending rates, but ongoing inflation battles keep them in check.
Find your lowest mortgage rate. Start here (Aug 22nd, 2024)
The central bank held off on a rate hike in its past eight meetings, preferring to see if the economy would keep cooling organically. At the most recent meeting in July, the FOMC projected cuts starting as early as September. As always, the committee said it would adjust its policies as necessary — which could mean additional hikes or possibly none at all.
Here are just a few strategies to keep in mind if you’re mortgage shopping in the coming months.
Be ready to move quickly
Indecision can lead to failure or missed opportunities. That holds true in home buying as well.
Although the housing market is becoming more balanced than the recent past, it still favors sellers. Prospective borrowers should take the lessons learned from the last few years and apply them now even though conditions are less extreme.
“Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. Buyers should get pre-approved (not pre-qualified) for their mortgage, so that the seller has some certainty about the deal closing. And be ready to close quickly — a long escrow period will put you at a disadvantage.
And it’s definitely not a bad idea to work with a real estate agent who has access to “coming soon” properties, which can give a buyer a little bit of a head start competing for the limited number of homes available,” said Rick Sharga.
Buyer demand is lower than a typical year, but the market usually heats up in spring and summer. Being decisive (and prepared) should only play to your advantage.
Shopping around isn’t only for the holidays
Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost.
Lenders charge different rates for different levels of credit scores. And while there are ways to negotiate a lower mortgage rate, the easiest is to get multiple quotes from multiple lenders and leverage them against each other.
“For potential home buyers, it’s important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period,” said Odeta Kushi.
As the mortgage market slows due to lessened demand, lenders will be more eager for business. While missing out on the rock-bottom rates of 2020 and 2021 may sting, there’s always a way to use the market to your advantage.
How to shop for interest rates
Rate shopping doesn’t just mean looking at the lowest rates advertised online because those aren’t available to everyone. Typically, those are offered to borrowers with great credit who can put a down payment of 20% or more.
The rate lenders actually offer depends on:
- Your credit score and credit history
- Your personal finances
- Your down payment (if buying a home)
- Your home equity (if refinancing)
- Your loan-to-value ratio (LTV)
- Your debt-to-income ratio (DTI)
To figure out what rate a lender can offer you based on those factors, you have to fill out a loan application. Lenders will check your credit and verify your income and debts, then give you a ‘real’ rate quote based on your financial situation.
You should get three to five of these quotes at a minimum, then compare them to find the best offer. Look for the lowest rate, but also pay attention to your annual percentage rate (APR), estimated closing costs, and ‘discount points’ — extra fees charged upfront to lower your rate.
This might sound like a lot of work. But you can shop for mortgage rates in under a day if you put your mind to it. And shaving just a few basis points off your rate can save you thousands.
Compare mortgage and refinance rates. Start here (Aug 22nd, 2024)
Mortgage interest rate FAQ
What are current mortgage rates?
Current mortgage rates are averaging 6.46% for a 30-year fixed-rate loan and 5.62% for a 15-year fixed-rate loan, according to Freddie Mac’s latest weekly rate survey. Your individual rate could be higher or lower than the average depending on your credit score, down payment, and the lender you choose to work with, among other factors.
Will mortgage rates go down next week?
Mortgage rates could decrease next week (August 26-30, 2024) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve taking measures to counteract inflation or if a global event brings economic uncertainty.
Will mortgage interest rates go down in 2024?
If inflation continues to dissipate and the economy cools or goes into a recession, it’s likely mortgage rates will decrease in 2024. Although, it’s important to remember that interest rates are notoriously volatile and are driven by many factors, so they can rise during any given week.
Will mortgage interest rates go up in 2024?
Mortgage rates may continue to rise in 2024. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022 and 2023. However, if the U.S. does indeed enter a recession, mortgage rates could come down.
What is the lowest mortgage rate right now?
Freddie Mac is now citing average 30-year rates in the 7% range. If you can find a rate in the 5s or 6s, you’re in a very good position. Remember that rates vary a lot by borrower. Those with perfect credit and large down payments may get below-average interest rates, while poor-credit borrowers and those with non-QM loans could see much higher rates. You’ll need to get pre-approved for a mortgage to know your exact rate.
Will there be a housing crash?
For the most part, industry experts do not expect the housing market to crash in 2023. Yes, home prices are over-inflated. But many of the risk factors that led to the 2008 crash are not present in today’s market. Low inventory and massive buyer demand should keep the market propped up next year. Plus, mortgage lending practices are much safer than they used to be. That means there’s not a subprime mortgage crisis waiting in the wings.
What is the lowest mortgage rate ever?
At the time of this writing, the lowest 30-year mortgage rate ever was 2.65%. That’s according to Freddie Mac’s Primary Mortgage Market Survey, the most widely used benchmark for current mortgage interest rates.
Should I lock my rate now or wait?
Locking your rate is a personal decision. You should do what’s right for your situation rather than trying to time the market. If you’re buying a home, the right time to lock a rate is after you’ve secured a purchase agreement and shopped for your best mortgage deal. If you’re refinancing, you should make sure you compare offers from at least three to five lenders before locking a rate. That said, rates are rising. So the sooner you can lock in today’s market, the better.
Is now a good time to refinance?
That depends on your situation. It’s a good time to refinance if your current mortgage rate is above market rates and you could lower your monthly mortgage payment. It might also be good to refinance if you can switch from an adjustable-rate mortgage to a low fixed-rate mortgage; refinance to get rid of FHA mortgage insurance; or switch to a short-term 10- or 15-year mortgage to pay off your loan early.
Is it worth refinancing for 1 percent?
It’s often worth refinancing for 1 percentage point, as this can yield significant savings on your mortgage payments and total interest payments. Just make sure your refinance savings justify your closing costs. You can use a mortgage calculator or speak with a loan officer to crunch the numbers.
How do I shop for mortgage rates?
Start by choosing a list of three to five mortgage lenders that you’re interested in. Look for lenders with low advertised rates, great customer service scores, and recommendations from friends, family, or a real estate agent. Then get pre-approved by those lenders to see what rates and fees they can offer you. Compare your offers (Loan Estimates) to find the best overall deal for the loan type you want.
What are today’s mortgage rates?
Mortgage rates are rising, but borrowers can almost always find a better deal by shopping around. Connect with a mortgage lender to find out exactly what rate you qualify for.
Time to make a move? Let us find the right mortgage for you (Aug 22nd, 2024)
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By: Ralph DiBugnara on August 21, 2025 By Erik Martin Published on July 28, 2025 https://www.bankrate.com/real-estate/escrow-process/ Understanding Escrow in Homebuying: A Beginner’s Guide If you’re in the process of buying a home — or even just thinking about it — you’re likely being introduced to a flood of unfamiliar terminology. One of the most important concepts to wrap your head around early on is escrow. It's not just another real estate buzzword; escrow is a critical part of nearly every home purchase, and it protects both buyers and sellers during what’s often the largest financial transaction of their lives. So what exactly is escrow, and why does it matter so much? Whether you're a first-time buyer or just a little rusty on the process, this guide will walk you through what escrow is, how it works at each stage of the homebuying journey, and how it continues to impact your finances even after you move in. What Is Escrow, and Why Do We Use It? At its core, escrow is a legal arrangement in which a neutral third party temporarily holds money or property until a particular condition has been met. In real estate, this is typically an escrow account where funds — usually from the buyer — are kept safe while all the terms of the home sale are completed. Think of it as a way to make sure that no money changes hands prematurely. The seller knows you’re serious because you’ve placed money into escrow, and you as the buyer are protected because the seller doesn’t receive those funds unless all contract terms are satisfied. How Escrow Works During a Home Purchase The escrow process begins as soon as your offer is accepted and the purchase contract is signed. This kicks off a series of steps where funds are held in trust and multiple conditions must be met — including inspections, appraisals, and legal paperwork — before money is released and ownership is transferred. Let’s break down the phases of escrow in a typical real estate transaction: Step 1: Opening the Escrow Account Once the purchase contract is signed, it’s time to deposit your earnest money into an escrow account. This is a good-faith deposit, typically 1% to 2% of the home’s purchase price. “Once an offer is made and accepted, the contract will stipulate when the escrow deposit is due,” says Ralph DiBugnara, president of Home Qualified. “In most cases, the deposit is split into two parts — first an initial, good-faith deposit followed by the remainder of the deposit.” This initial deposit is typically due within 7 to 10 days of signing. It's not an extra fee — it will later be applied toward your down payment or closing costs if the deal goes through. The escrow account itself is usually held by a title company, real estate attorney, or escrow agent — depending on local laws and customs. Their job is to stay neutral and ensure that all money and documents are handled correctly. Step 2: Appraisal and Inspection Once your offer is in escrow, your lender will require a home appraisal to confirm that the property's value matches the agreed purchase price. If the appraisal comes in low, you may need to renegotiate the price or cover the difference out of pocket. At the same time, you’ll have the opportunity to inspect the home. This is your chance to uncover hidden issues with the plumbing, roof, electrical systems, or structural integrity. If significant problems are discovered, you can either request repairs, negotiate a credit, or — in some cases — walk away from the deal (usually without losing your earnest money, as long as it's within your contractual rights). Step 3: Title Search and Insurance Your escrow officer will also coordinate a title search to ensure that the property is legally owned by the seller and free of claims or liens. As a buyer, you’ll be required to purchase lender’s title insurance — and optionally, owner’s title insurance — to protect against future legal issues. At this stage, your lender will also require you to secure homeowners insurance, which protects the property (and their investment) in the event of fire, theft, or other damage. Step 4: Final Walkthrough A day or two before closing, you’ll conduct a final walkthrough of the home to ensure it’s in the agreed-upon condition. This is not a second inspection, but a chance to verify that any negotiated repairs have been completed and nothing has changed since your last visit. If the seller agreed to leave appliances or fix something, now’s your chance to confirm it was done. Step 5: Closing the Deal About three business days before closing, your lender will provide a Closing Disclosure, outlining all final costs including escrow amounts, taxes, fees, and loan terms. Review it carefully to ensure everything matches what you expected. On closing day, you’ll sign your documents, provide your remaining down payment and closing costs (typically via cashier’s check or wire transfer), and the escrow agent will file the title with the county and release funds to the seller. Congratulations — you’re now a homeowner! But Wait — Escrow Doesn’t End There Even after the deal is done, escrow continues to play a role in your financial life — just in a different form. Now that you own the home, your lender or loan servicer will typically set up an escrow account to manage future payments for: Property taxes Homeowners insurance Mortgage insurance (if required) Instead of paying these large bills separately a few times per year, they’re divided into monthly amounts and included in your mortgage payment. Your lender collects these funds and pays the bills on your behalf when due. This setup can be incredibly convenient, helping you avoid late payments and budget more effectively throughout the year. Do I Have to Use an Escrow Account? Whether escrow is optional or required depends on several factors: If you’re using a government-backed loan (like FHA or USDA), escrow is typically mandatory. If you’re putting down less than 20% on a conventional loan, your lender will likely require an escrow account. If you’re putting down 20% or more, you may have the option to waive escrow — but not all lenders allow it. Even if it’s not required, many buyers choose to keep an escrow account for the ease of budgeting and peace of mind. Can I Cancel My Escrow Account Later? In some cases, yes. If you’ve built enough equity or meet specific conditions set by your lender, you might be able to close your escrow account. But there may be fees or restrictions, and not all lenders allow it. Always check with your lender directly before making any decisions. Final Thoughts: Why Escrow Matters Escrow isn’t just a technicality — it’s a safeguard that ensures fairness, security, and smoothness in your homebuying process. From protecting your deposit to managing future expenses, escrow plays a behind-the-scenes role that makes the complex process of buying (and owning) a home much more manageable. As Ralph DiBugnara explains, “The initial deposit is typically due within seven to 10 days of signing the contract. This earnest money will eventually be applied to your overall down payment on the home.” Knowing how and why that money is handled through escrow helps you stay in control of your purchase. So next time you hear someone mention “escrow,” you can smile confidently — because now, you get it. Key Takeaways Escrow protects both buyer and seller during a home sale by safely holding funds until conditions are met. Your earnest money deposit is a critical part of the escrow process and shows you're serious about the purchase. After buying, escrow helps you budget by including taxes and insurance in your monthly mortgage payments. While escrow accounts are sometimes required, they can also be a helpful tool even when optional. Looking for more homebuying tips? Let me know if you'd like a guide on inspections, appraisals, or mortgage pre-approval next!
By: Ralph DiBugnara on August 12, 2025 By Erik Martin Published on July 22, 2025 https://www.bankrate.com/mortgages/joint-mortgage/ Considering a Joint Mortgage? Here’s What You Need to Know Buying a home is a big step—and for many, joining forces with a trusted partner, friend, or family member can make it much more achievable. That’s where joint mortgages come into play. Whether you're looking to increase your purchasing power or simply want to share financial responsibility, a joint mortgage might be the right move. But it also comes with unique considerations you’ll want to understand before signing on the dotted line. Let’s break down the basics. What Is a Joint Mortgage? A joint mortgage is when two or more people apply for a mortgage together, combining their incomes and assets to strengthen their application. This is most common among spouses, partners, friends, or family members. “It commonly involves two people — usually spouses, joint partners, friends or family members — who pool their income and assets together to buy a home,” says Ralph DiBugnara, President of Home Qualified. It’s important to note: a joint mortgage doesn’t automatically mean joint ownership of the home. Only the names listed on the property title determine who legally owns the home. How It Works In a joint mortgage, all borrowers are equally responsible for repaying the loan. That means if one person misses a payment, the lender will expect the other borrower(s) to cover it. Credit scores for all applicants are reviewed, and while some lenders may emphasize the highest score, others could raise interest rates if one score is significantly lower. Requirements for a Joint Mortgage Each lender has its own criteria, but generally, all applicants must: Be at least 18 years old Meet debt-to-income (DTI) and loan-to-value (LTV) ratio requirements Provide steady proof of income and employment Meet minimum credit score thresholds Pros & Cons of Joint Mortgages ✅ Pros: More Buying Power: “The main benefit is the ability to purchase more of a home than you would be able to buy on your own,” says DiBugnara. “More income and/or assets equals the ability to borrow more money.” Shared Costs: Joint mortgages allow you to split monthly payments, making it easier to manage your budget and save for future goals. 🚫 Cons: Shared Risk: If one party can’t pay, the others are still liable. Credit Impact: Your borrowing ability for future loans could be affected. Complex Exit Strategies: If one person wants out, refinancing or selling may be necessary. When Joint Mortgages Make Sense A joint mortgage could be a good fit if: You’re married or in a long-term, financially committed relationship You’re buying with someone you trust completely You’re cohabitating and sharing responsibility for property upkeep Avoid joint mortgages with people you barely know or don’t fully trust financially—this is a long-term legal commitment. What Happens If… One co-borrower wants out? They’ll need permission from the others to sell their share or force a sale through legal means. A co-borrower passes away? Remaining borrowers still owe the full mortgage. The home may go through probate if ownership isn’t clearly outlined. Someone stops paying? Everyone’s credit could suffer, and the home could go into foreclosure if payments lapse. Ready to Apply? Applying for a joint mortgage requires: Filling out an application for each borrower Submitting documentation (income, debt, employment history, etc.) Signing loan paperwork at closing—all parties must be present Heads-up: joint mortgage processing can take longer than individual loans, so patience is key. Final Thought If you're confident in your financial partnership and want to boost your homebuying power, a joint mortgage can be a smart move. “With more income and assets combined, you’re in a stronger position to qualify for a mortgage and afford the kind of home you really want,” says DiBugnara. Still unsure? Let’s talk through your options together. Whether you’re planning to buy solo or with someone else, we’re here to guide you every step of the way.
By: Ralph DiBugnara on August 8, 2025 By Michael Letendre Published: July 14, 2025 https://www.newhomesource.com/learn/how-to-choose-a-home-builder/ Choosing a home builder isn’t just about selecting a company to construct your house—it’s about hiring a trusted partner to guide you through one of the most important financial and emotional journeys of your life. From construction quality to communication styles, the builder you choose will shape everything from your budget to your stress level. Here are eight essential questions every buyer should ask before signing on the dotted line. 1. What’s Their Track Record and Experience? Not all builders are created equal. A builder’s history with similar projects can be a strong predictor of how yours will go. You want to see more than a flashy website or a pretty brochure—you need proof of performance. Ask about completed projects that match your home’s size, style, or level of customization. A well-established builder should have a portfolio of comparable work and be comfortable providing references. 2. Can You Tour an Active Job Site? Model homes are great—but they’re also staged to perfection. The real insight comes from seeing how a builder manages an actual construction site. Is it clean? Are materials protected? Is work being done efficiently? How a builder runs a job site can tell you a lot about their priorities, especially when it comes to quality control and organization. Don’t settle for a showroom when you can observe the real process in action. 3. How Is the Payment Schedule Structured? Not all builders follow the same payment timelines. Some request significant upfront deposits; others tie payments to specific construction milestones. Ask for a detailed schedule that outlines when each payment is due and what it corresponds to. A milestone-based payment plan ensures that your money is going toward actual progress—not just promises. 4. What Are the Full Financial Terms? The list price on a new home doesn’t always reflect the full cost of ownership. Financing offers, interest rate buydowns, closing cost assistance, and even inflated rates disguised by "discounted" pricing can all impact your bottom line. Don’t just focus on the price tag—dig into what you'll actually pay each month and over time. 5. How Much Customization Is Possible? Some builders stick to rigid packages. Others allow for nearly full customization. Knowing how flexible your builder is upfront can save you time, money, and disappointment. Before committing, ask what options you’ll have when it comes to layout, finishes, and upgrades. Can you move a wall? Add a window? Change the flooring? Small changes can have a big impact on your satisfaction. 6. What Do Past Clients and Local Agents Say? Online reviews can be helpful, but they rarely give you the full story. Instead, talk to people who work with builders regularly—especially local real estate agents. "Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder," said Ralph DiBugnara, President of Home Qualified. Agents often have inside knowledge of how a builder handles problems and whether they deliver consistent quality. If several agents say the same thing—good or bad—pay attention. 7. How Do They Compare to Other Builders? No single builder is perfect for everyone. Take the time to shop around. Ask the same questions to multiple builders and compare their answers, pricing, flexibility, and included features. One builder might offer more long-term value—like pre-plumbing a basement for future expansion—while another might have a smoother process or better warranty terms. 8. What’s in the Contract? Don’t wait until closing day to review the fine print. Request a sample contract early in the process and go through it line by line. Look for clarity on change orders, warranties, timeline expectations, and penalties for delays. Contracts that are vague or overly one-sided are red flags. Final Takeaway Buying a new home is more than picking out floor plans and finishes. It’s a long-term relationship with a builder who will either make the experience smooth—or stressful. Do your due diligence. Ask hard questions. And don’t rush into anything without a full understanding of what’s ahead. As Ralph DiBugnara put it best: “Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder.” Take your time, ask the right questions, and invest in the builder that’s right for you. The peace of mind is worth it.
By: Ralph DiBugnara on August 8, 2025 By Michael Letendre Published: July 14, 2025 https://www.newhomesource.com/learn/how-to-choose-a-home-builder/ Choosing a home builder isn’t just about selecting a company to construct your house—it’s about hiring a trusted partner to guide you through one of the most important financial and emotional journeys of your life. From construction quality to communication styles, the builder you choose will shape everything from your budget to your stress level. Here are eight essential questions every buyer should ask before signing on the dotted line. 1. What’s Their Track Record and Experience? Not all builders are created equal. A builder’s history with similar projects can be a strong predictor of how yours will go. You want to see more than a flashy website or a pretty brochure—you need proof of performance. Ask about completed projects that match your home’s size, style, or level of customization. A well-established builder should have a portfolio of comparable work and be comfortable providing references. 2. Can You Tour an Active Job Site? Model homes are great—but they’re also staged to perfection. The real insight comes from seeing how a builder manages an actual construction site. Is it clean? Are materials protected? Is work being done efficiently? How a builder runs a job site can tell you a lot about their priorities, especially when it comes to quality control and organization. Don’t settle for a showroom when you can observe the real process in action. 3. How Is the Payment Schedule Structured? Not all builders follow the same payment timelines. Some request significant upfront deposits; others tie payments to specific construction milestones. Ask for a detailed schedule that outlines when each payment is due and what it corresponds to. A milestone-based payment plan ensures that your money is going toward actual progress—not just promises. 4. What Are the Full Financial Terms? The list price on a new home doesn’t always reflect the full cost of ownership. Financing offers, interest rate buydowns, closing cost assistance, and even inflated rates disguised by "discounted" pricing can all impact your bottom line. Don’t just focus on the price tag—dig into what you'll actually pay each month and over time. 5. How Much Customization Is Possible? Some builders stick to rigid packages. Others allow for nearly full customization. Knowing how flexible your builder is upfront can save you time, money, and disappointment. Before committing, ask what options you’ll have when it comes to layout, finishes, and upgrades. Can you move a wall? Add a window? Change the flooring? Small changes can have a big impact on your satisfaction. 6. What Do Past Clients and Local Agents Say? Online reviews can be helpful, but they rarely give you the full story. Instead, talk to people who work with builders regularly—especially local real estate agents. "Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder," said Ralph DiBugnara, President of Home Qualified. Agents often have inside knowledge of how a builder handles problems and whether they deliver consistent quality. If several agents say the same thing—good or bad—pay attention. 7. How Do They Compare to Other Builders? No single builder is perfect for everyone. Take the time to shop around. Ask the same questions to multiple builders and compare their answers, pricing, flexibility, and included features. One builder might offer more long-term value—like pre-plumbing a basement for future expansion—while another might have a smoother process or better warranty terms. 8. What’s in the Contract? Don’t wait until closing day to review the fine print. Request a sample contract early in the process and go through it line by line. Look for clarity on change orders, warranties, timeline expectations, and penalties for delays. Contracts that are vague or overly one-sided are red flags. Final Takeaway Buying a new home is more than picking out floor plans and finishes. It’s a long-term relationship with a builder who will either make the experience smooth—or stressful. Do your due diligence. Ask hard questions. And don’t rush into anything without a full understanding of what’s ahead. As Ralph DiBugnara put it best: “Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder.” Take your time, ask the right questions, and invest in the builder that’s right for you. The peace of mind is worth it.
By: Ralph DiBugnara on August 1, 2025 By: Paul Centopani July 31, 202 https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional Mortgage shoppers may have something to smile about heading into August. The average 30-year fixed mortgage rate dropped slightly to 6.72% at the end of July, marking the second straight week of declines and continuing a 28-week streak of staying below 7%. While that’s a promising sign, most housing experts aren’t predicting a dramatic drop anytime soon. Instead, the outlook for August suggests rates will hold steady or inch downward as inflation data and economic indicators continue to evolve. Mortgage Rate Recap - Where We Stand According to Freddie Mac: 30-Year Fixed Rate (July 31): 6.72% (down from 6.74% the week prior) 15-Year Fixed Rate: 5.85% (down from 5.87%) This modest decline comes despite a 3.8% drop in mortgage applications, signaling continued uncertainty and caution from prospective homebuyers. Will Rates Fall in August? Most industry experts agree: rates will likely remain stable or trend slightly lower this month. The market is waiting on several critical factors, including: Inflation data from July (to be released mid-August) Labor market trends and wage growth Federal Reserve sentiment about rate cuts Tariff developments and global supply chain risks Though some experts are optimistic, most believe any downward movement in rates will be gradual, not dramatic. Ralph DiBugnara, President, Home Qualified Prediction: Rates will moderate "July’s Fed meeting will most likely show us more of the same strategy we have seen this year—which is hold interest rates and no raise or cut. The Fed Chairman seems to want to see a significant drop in inflation before he agrees to cut. But there is a chance he can reverse course slowly to a cutting strategy because of the immense amount of pressure he is receiving. Not only is the President calling for a cut but the world economy has seen multiple countries cut rates over 2025." "If he does cut, I do not think it will be fast and probably will bleed over into 2026." Summary of Other Expert Outlooks Danielle Hale (Realtor.com) believes a cooling inflation print in August could help bring rates closer to 6.4% by year-end. Selma Hepp (Cotality) expects the Fed to stay on hold this month, citing mixed employment signals and weak homebuyer demand. Sam Williamson (First American) points to tariff-related price pressures and a cautious Fed stance, predicting rates will hover in the upper 6% range. Tony Julianelle (Atlas Real Estate) expects rates to stay “range-bound,” with no sharp moves unless inflation or employment data surprises the market. Marc Halpern (Foundation Mortgage) notes sluggish consumer confidence and low home sales are limiting rate movement for now. Kelly Zitlow (Cornerstone Capital Bank) points out that the Fed remains cautious, and geopolitical and trade risks continue to cloud the outlook. Mortgage Rate Trends: Where We're Headed in 2025 Although rates are higher than they were during the pandemic years, they remain below historic averages—and may trend slightly lower in the coming months. Month Avg 30-Year Rate July 2024 - 6.85% August 2024 - 6.50% September 2024 - 6.18% October 2024 - 6.43% November 2024 - 6.81% December 2024 - 6.72% January 2025 - 6.96% February 2025 - 6.84% March 2025 - 6.65% April 2025 - 6.73% May 2025 - 6.82% June 2025 - 6.82% July 2025 - 6.72% The National Association of Realtors predicts the third-quarter average could settle around 6.4%, while the Mortgage Bankers Association forecasts 6.8%. Either way, rates appear to be trending slightly lower heading into the fall. Though higher than the ultra-low rates of 2020 and 2021, today’s rates remain well below the 50-year historical average of 7.8%. That means buyers with good credit can still secure a competitive rate by historical standards. Strategies for Mortgage Shoppers in August 1. Get Pre-Approved, Not Just Pre-Qualified This helps you move faster when making an offer and shows sellers you’re a serious buyer. 2. Have Your Financial Documents Ready With rates still fluctuating, speed is critical. Being prepared can help you lock in a favorable rate when opportunity strikes. 3. Shop Around for Lenders Rates can vary significantly between lenders, especially during uncertain periods. Getting 3–5 quotes can save you thousands. 4. Choose the Right Loan for Your Situation VA Loans: Ideal for eligible veterans and service members. No PMI, competitive rates. FHA Loans: Great for lower credit scores or minimal down payments. Conforming Loans: Flexible with just 3% down and good credit. USDA Loans: For rural buyers with low to moderate income. Jumbo Loans: Best for high-priced homes exceeding conforming loan limits. 5. Monitor Inflation and Economic Data The mortgage market is data-driven. If inflation readings and job numbers come in cooler than expected, you may see rates ease. But a surprise spike could cause an upward reversal. Final Thoughts: Be Prepared, Not Reactive While August may not bring a major drop in rates, the signs are pointing toward eventual relief later this year. The Fed continues to monitor inflation and economic signals, and although immediate cuts aren’t likely, a downward bias is building into fall. If you're planning to buy or refinance, staying informed, getting pre-approved, and actively comparing lenders will put you in the best position—no matter which way rates move in the short term. Looking to lock in the best rate today? Start comparing lender offers to find the most competitive deal for your situation.
By: Ralph DiBugnara on July 17, 2025 By Paul Centopani Reviewed By Aleksandra Kadzielawski July 11, 2025 https://themortgagereports.com/121026/first-time-home-buyer-advice-q3-2025 Mortgage shoppers may have something to smile about heading into August. The average 30-year fixed mortgage rate dropped slightly to 6.72% at the end of July, marking the second straight week of declines and continuing a 28-week streak of staying below 7%. While that’s a promising sign, most housing experts aren’t predicting a dramatic drop anytime soon. Instead, the outlook for August suggests rates will hold steady or inch downward as inflation data and economic indicators continue to evolve. Mortgage Rate Recap - Where We Stand According to Freddie Mac: 30-Year Fixed Rate (July 31): 6.72% (down from 6.74% the week prior) 15-Year Fixed Rate: 5.85% (down from 5.87%) This modest decline comes despite a 3.8% drop in mortgage applications, signaling continued uncertainty and caution from prospective homebuyers. Will Rates Fall in August? The expert consensus leans toward stability, with some potential for gradual downward movement depending on inflation reports, labor market trends, and the Fed’s next moves. Ralph DiBugnara, President, Home Qualified Prediction: Rates will moderate "July’s Fed meeting will most likely show us more of the same strategy we have seen this year—which is hold interest rates and no raise or cut. The Fed Chairman seems to want to see a significant drop in inflation before he agrees to cut. But there is a chance he can reverse course slowly to a cutting strategy because of the immense amount of pressure he is receiving. Not only is the President calling for a cut but the world economy has seen multiple countries cut rates over 2025." "If he does cut, I do not think it will be fast and probably will bleed over into 2026." Other Expert Predictions Danielle Hale (Realtor.com): Expects mortgage rates to gradually fall as inflation data improves, possibly reaching the 6.4% range by year-end. Selma Hepp (Cotality): Anticipates no Fed rate cut in August but sees growing pressure for action in September due to mixed employment and housing data. Tony Julianelle (Atlas Real Estate): Believes rates will stay in a tight range unless there's a significant shift in inflation or labor figures. Sam Williamson (First American): Projects mortgage rates to remain in the upper 6% range until a clearer disinflation trend emerges. Kelly Zitlow (Cornerstone Capital Bank): Cites Fed caution and global instability as key reasons for continued rate moderation. Matt Pettit (Mountain West Financial): Notes that while optimism remains for future rate cuts, the timeline appears delayed. Mortgage Rate Trends: Where We're Headed in 2025 Although rates are higher than they were during the pandemic years, they remain below historic averages—and may trend slightly lower in the coming months. Month Avg 30-Year Rate July 2024 - 6.85% August 2024 - 6.50% September 2024 - 6.18% October 2024 - 6.43% November 2024 - 6.81% December 2024 - 6.72% January 2025 - 6.96% February 2025 - 6.84% March 2025 - 6.65% April 2025 - 6.73% May 2025 - 6.82% June 2025 - 6.82% July 2025 - 6.72% The National Association of Realtors predicts the third-quarter average could settle around 6.4%, while the Mortgage Bankers Association forecasts 6.8%. Either way, rates appear to be trending slightly lower heading into the fall. Strategies for Mortgage Shoppers in August 1. Get Pre-Approved, Not Just Pre-Qualified This helps you move faster when making an offer and shows sellers you’re a serious buyer. 2. Have Your Financial Documents Ready With rates still fluctuating, speed is critical. Being prepared can help you lock in a favorable rate when opportunity strikes. 3. Shop Around for Lenders Rates can vary significantly between lenders, especially during uncertain periods. Getting 3–5 quotes can save you thousands. 4. Choose the Right Loan for Your Situation 5. Monitor Inflation and Economic Data The mortgage market is data-driven. If inflation readings and job numbers come in cooler than expected, you may see rates ease. But a surprise spike could cause an upward reversal. VA Loans: Ideal for eligible veterans and service members. No PMI, competitive rates. FHA Loans: Great for lower credit scores or minimal down payments. Conforming Loans: Flexible with just 3% down and good credit. USDA Loans: For rural buyers with low to moderate income. Jumbo Loans: Best for high-priced homes exceeding conforming loan limits. Final Thoughts: Be Prepared, Not Reactive While August may not bring a major drop in rates, the signs are pointing toward eventual relief later this year. The Fed continues to monitor inflation and economic signals, and although immediate cuts aren’t likely, a downward bias is building into fall. If you're planning to buy or refinance, staying informed, getting pre-approved, and actively comparing lenders will put you in the best position—no matter which way rates move in the short term. Looking to lock in the best rate today? Start comparing lender offers to find the most competitive deal for your situation.
By: Ralph Dibugnara July 29, 2025 n this power-packed episode of the Real Estate Talk Podcast, hosts Rob Kyleman and Joshua Britt sit down with Ralph DiBugnara—president of HomeQualified and VP at New American Funding. With over $40 billion in closed loans and decades of real estate and mortgage experience, Ralph dives deep into the evolving housing market, the future of credit scoring, rising costs, Airbnb oversaturation, crypto’s role in real estate, and the generational shifts reshaping buyer behavior. Whether you’re a first-time homebuyer, agent, or investor, this episode is a masterclass in surviving—and thriving—in today’s unpredictable market. Key Takeaways: 1. The Market Is Local—Really Local “It’s almost like dealing with different countries. ”Ralph emphasizes that the housing market is no longer just cyclical—it’s fragmented. With wildly different inventory, pricing, and demand across states, agents and buyers must now adopt hyper-local strategies. 2. Rising Costs Are the Real Barrier “Interest rates are high, taxes are high, insurance is high, cost of goods is high. "Affordability in 2025 is being attacked from all angles. Between a 6-million-unit housing deficit, multiple-offer bidding wars, and inflation across the board, Ralph stresses that buyers need patience—and strategy—to win. 3. Value Lies in the Fixer-Upper “You either have to buy something older and do the work, or find something that needs to be reconstructed and do the work. "With turnkey homes out of reach for many, Ralph advocates for long-term investment in value-add properties. While rehab costs are also rising, the opportunity lies in sweat equity. 4. Time Is the Great Equalizer in Real Estate “If you can hold on for five years, you can outrun a bad investment. "Ralph shares a personal story of a condo he held through the 2008 crash and sold 20 years later for a profit—highlighting real estate’s resilience versus volatile investments like stocks or crypto. 5. Social Media Is a Tool—If You Stay Real “I’m not trying to be a market predictor. I just show what I’m actually going through. "For agents or investors looking to build a brand in 2025, Ralph suggests using platforms like Instagram and YouTube to share real, unfiltered experiences—not just glossy wins. 6. The New Investor Trap: Chasing Shiny Objects “Social media can speed up a process that shouldn’t be sped up. "The Growth Trap,” as Ralph calls it in his book, describes when people stall without realizing it. In real estate, that often comes from trying to skip steps. His advice? Partner with experienced investors and learn from their pain. 7. Vantage 4.0: A Double-Edged Sword? “The credit score model may look better for younger generations—but banks will still adjust their risk standards. "Vantage 4.0 may give credit for non-traditional habits like Afterpay or rent payments, but Ralph warns it won’t replace due diligence or underwriting fundamentals. 8. Airbnb: Not What It Used to Be “The market got flooded, regulations tightened, and now you’re competing with corporations. "Ralph notes that while Airbnb was once a goldmine, it’s become saturated, over-regulated, and competitive—especially in non-tourist towns. Viable short-term rental markets remain, but they’re rare and hyper-regulated. 9. Crypto Is Coming… But Not How You Think “Most lenders see it like stocks—real, but you’ll need to liquidate it to use it.”While crypto is gaining acceptance, it won’t fully enter mainstream mortgage underwriting until privatization of Fannie/Freddie or non-QM lenders step in. 10. 2025 Forecast: No Major Rate Drops Yet “We might see a symbolic cut, but it won’t move the needle much.”With global pressure mounting and recession shadows growing, Ralph predicts minor rate cuts in the near term but warns that substantial relief likely won’t come until Jerome Powell exits the Fed in 2026. Standout Quotes from Ralph DiBugnara :“Real estate, long-term, will outrun all the bad investments you make in it.”“Every loss I take in this business, I treat as an expensive education. ”The only way I see value in buying real estate right now is buying older or distressed and doing the work.”“Social media is reality TV—just show your actual reality and you’ll connect. ”Crypto is a real asset now—but you’ll still need to liquidate to use it in most lending situations.” Final Thoughts: Ralph’s blend of street-smart experience and big-picture insight makes this episode a must-watch for anyone navigating today’s housing market. His honesty, resilience, and forward-thinking approach remind us: the rules of the game may change, but fundamentals—patience, knowledge, and community—never go out of style. Watch the full episode: Disruptors Network YouTube Channel Get Ralph’s book: The Growth Trap – Available on Amazon Explore Ralph’s platform: HomeQualified.com. For a visual overview and additional insights, you can watch the full video here: https://www.youtube.com/watch?v=tkc2Hvmh6F4
By: Ralph DiBugnara on July 17, 2025 By Paul Centopani Reviewed By Aleksandra Kadzielawski July 11, 2025 https://themortgagereports.com/121026/first-time-home-buyer-advice-q3-2025 Thinking About Buying a Home? Read This First. Navigating the housing market can feel overwhelming—especially if you’re buying for the first time. With fluctuating rates, changing inventory levels, and mixed signals in the economy, it’s no surprise that many would-be buyers are unsure whether to jump in or wait it out. But here’s the good news: Quarter 3 of 2025 is shaping up to be surprisingly favorable for first-time buyers—if you know how to move smart. ________________________________________ What Makes Q3 2025 Different? Across the country, inventory is increasing, concessions are becoming more common, and prices in overheated markets are starting to cool. Some areas, like parts of Florida and Texas, are seeing oversupply, while others remain highly competitive. That’s why understanding your local market is key. According to housing expert Ralph DiBugnara, president of Home Qualified, the real advantage for first-time buyers this quarter lies in access to support. “What new home buyers are getting the benefit of is much more down payment assistance and grant programs than have been available over the last 15 years,” Ralph says. “This has been a major positive in helping new buyers.” ________________________________________ How to Navigate the Chaos Even with uncertainty around the economy and government policy, Ralph emphasizes the importance of staying grounded and disciplined. “The best thing a new home buyer can do in today’s market is create a personal budget and stick to it,” he advises. “High rates, high insurance costs, and possible bidding wars can always make it seem like spending more is necessary. I believe having a budget that includes what housing payment is affordable can keep buyers out of making a bad investment.” In other words, you don’t need to chase perfection—you need to pursue what’s right for you. ________________________________________ Opportunity + Strategy = Advantage If you’re a first-time buyer in Q3 2025, you’re in a unique position: • There are more homes on the market than we’ve seen in years. • Sellers are offering rate buydowns, concessions, and flexibility. • You may now qualify for programs that can significantly reduce upfront costs. It’s a window that rewards preparation and patience. And the buyers who win are the ones who know their numbers, understand their needs, and act when the right opportunity appears. ________________________________________ The Bottom Line It’s not about waiting for the market to be perfect—it’s about being ready when it’s good enough for your goals. Q3 2025 might just be that moment. If you’re serious about buying your first home, now’s the time to align your finances, lean on trusted professionals, and make your move with confidence. Need help understanding your options? Let’s talk down payment programs, current rates, and how to get pre-approved. Shoot me a message, and let’s get you one step closer to the keys
By Ralph Dibugnara March 13, 2025 March 8, 2025 By Martin Dasko According to a recent Realtor.com report, the median asking rent price for the 50 largest metropolitan areas was down 0.2% annually in January, making the cost of living that bit easier to afford. The research found that even though the median rent increased from $1,695 in December to $1,703 in January, it was the 18th consecutive month where rents fell on an annual basis. The positive for renters is that there are numerous major metro areas where the rent is more affordable now. These are the top metros where rent is more affordable than last year. The list is organized by percentage price drop year over year. The rent prices are for any unit, from a studio to a two-bedroom condo. Denver-Aurora-Centennial, Colorado Year-over-year rental price change: -5.6% Median monthly rent: $1,796 Income spent on rent: 20.2% Income spent on buying: 33.4% Austin-Round Rock-San Marcos, Texas Year-over-year rental price change: -4.8% Median monthly rent: $1,467 Income spent on rent: 17.2% Income spent on buying: 30.3% San Diego-Chula Vista-Carlsbad, California Year-over-year rental price change: -4.8% Median monthly rent: $2,695 Income spent on rent: 31.4% Income spent on buying: 57.7% Memphis, Tennessee-Mississippi-Arkansas Year-over-year rental price change: -4.3% Median monthly rent: $1,177 Income spent on rent: 21.1% Income spent on buying: 30.8% Riverside-San Bernardino-Ontario, California Year-over-year rental price change: -4.1% Median monthly rent: $2,065 Income spent on rent: 28.8% Income spent on buying: 43.6% Chicago-Naperville-Elgin, Illinois-Indiana Year-over-year rental price change: -3.6% Median monthly rent: $1,776 Income spent on rent: 24.6% Income spent on buying: 24.8% Dallas-Fort Worth-Arlington, Texas Year-over-year rental price change: -3.5% Median monthly rent: $1,445 Income spent on rent: 19.5% Income spent on buying: 29.3% Phoenix-Mesa-Chandler, Arizona Year-over-year rental price change: -3.5% Median monthly rent: $1,488 Income spent on rent: 20.4% Income spent on buying: 36.6% San Francisco-Oakland-Fremont, California Year-over-year rental price change: -3.3% Median monthly rent: $2,708 Income spent on rent: 24.3% Income spent on buying: 41.4% Atlanta-Sandy Springs-Roswell, Georgia Year-over-year rental price change: -2.9% Median monthly rent: $1,565 Income spent on rent: 21.4% Income spent on buying: 28.4% Does Buying in These Areas Still Make Financial Sense? With rental prices dropping, it’s worth exploring if it still makes sense to purchase a home in one of these areas. Here are a few key points to consider before making a decision. Low Rents Could Be an Opportunity To Enter the Real Estate Market Lindsey Harn, a real estate agent at Christie’s International Real Estate, said she’s a big believer in buying when the right opportunity comes along. She added, “If rents are lower, landlords may finally be ready to sell their properties, which means you have more inventory and more options to consider when buying.” If you’re looking for a place to live, this may be an excellent opportunity to get your foot in the door without competing with as many cash investors. Low rental rates could indicate that the local landlords aren’t making as much in profit and may be looking to liquidate their assets. This could be an ideal time to browse through listings to see if you could purchase a home for a lower listing price. Buying May Help Stabilize Your Monthly Payments Ralph DiBugnara, a real estate expert and president of Home Qualified, pointed out that renting has been cheaper than owning in major cities for longer than anyone expected. He explained, “Even though this has been great news for renters, long-term rental will continue to rise, and the only way to fix your housing payment is to have financing or own real estate.” DiBugnara believes your mortgage payment will be lower than rent payments in five years, which would help stabilize your monthly housing expenses. He also mentioned that renters will struggle to lower costs without downsizing their space, while homeowners could refinance at a lower rate in the future to bring down how much they’re spending. DiBugnara said, “I believe owning will always be more advantageous than renting for long-term financial health.” Consider Your Personal Situation Even though rent prices are slowly decreasing in many major metros across the country, this doesn’t necessarily reflect your financial situation. As always, you should take into account your own personal situation before deciding on a significant investment like a home. You’ll want to think about some of these factors before deciding if it makes sense to buy or rent: Your job stability: If your job isn’t stable or if you’re concerned about potential layoffs, you don’t want to commit to homeownership, because the expenses could quickly pile up. Your savings and debt: If you have consumer debt or if your savings account isn’t where you want it to be, you’ll want to continue focusing on saving up until you’re ready to commit to homeownership. Your lifestyle: If you’re looking to start a family or just want some stability in your life, purchasing a home may make sense. It’s clear that the market is going through some changes. You want to ensure that you review all possible options with your living situation so that you make a decision that aligns with your needs and goals.
By: Ralph DiBugnara on July 10, 2025 By Erik J. Martin | Updated July 8, 2025 | Reviewed by Aleksandra Kadzielawski Published on 🔗https://themortgagereports.com/54100/how-soon-can-i-refinance-after-i-close-on-my-mortgage Refinancing your mortgage doesn’t always require a long wait. Depending on the type of loan you have—and sometimes the lender—it may be possible to refinance immediately after closing, or in as little as six months. The article provides a comprehensive breakdown of timelines, eligibility requirements, and strategic reasons to refinance, including lowering monthly payments or accessing home equity. What the Experts Say Ralph DiBugnara, President of Home Qualified, encourages homeowners to look beyond just interest rates: “What’s most important to focus on is, what are the monthly and lifetime savings of the loan? What are the costs? And how long will it take you to recover those costs with the savings you’ll earn?” This underscores the importance of doing a cost-benefit analysis before jumping into a refinance. It’s not just about qualifying—it’s about making the refinance work for you over time. Minimum Wait Times by Loan Type Conventional Loan: Immediately (but often 6 months if using the same lender) FHA Loan: 6–12 months depending on refinance type VA Loan: 210 days or 6 on-time payments, whichever is longer USDA Loan: Usually 12 months of on-time payments Jumbo Loan: No federal rules—wait depends on lender policies Top Reasons to Refinance Lower Interest Rate Reduce your monthly mortgage payment and save on total interest costs over time. Shorten Loan Term Move from a 30-year to a 15- or 20-year loan to pay off your home faster and pay less interest overall. Switch to Fixed Rate If you have an adjustable-rate mortgage (ARM), switching to a fixed-rate loan locks in stability and predictability. Tap into Home Equity Use a cash-out refinance to fund home improvements, consolidate debt, or cover large expenses like college tuition. Remove Mortgage Insurance FHA borrowers can eliminate mortgage insurance premiums (MIP) by refinancing into a conventional loan—often once they’ve built 20% equity. Manage Divorce Settlements Refinancing allows one partner to remove the other's name from the mortgage, ensuring clean ownership during a property settlement. Refinancing Costs & Considerations Closing Costs: Usually 2%–5% of the loan amount Credit Score: Impacts approval and interest rate offers Loan Term Trade-Offs: Longer terms lower your payment but increase interest paid over time Prepayment Penalties: Check your current mortgage terms Impact on Equity: Refinancing resets your loan, which may delay equity growth if you’re extending the term When Should You Refinance? The right time is a balance between market trends and personal financial readiness: Have interest rates dropped since your last loan? Has your credit improved or your home value increased? Do you have a clear goal—lower payment, faster payoff, access to cash? If so, a refinance could offer long-term financial benefits. Use online calculators to find your break-even point—the moment your refinance savings outweigh the costs. How to Refinance – Step-by-Step Prepare Documents (pay stubs, W-2s, current mortgage statements) Compare Lenders (get quotes from at least 3) Apply for a Loan (be ready to explain your refinance goals) Complete Underwriting (may involve a home appraisal) Close the New Loan (review final terms, sign documents) Final Insight If you bought your home just a few months ago, refinancing might already be on the table. And with the right timing and financial strategy, it can save you thousands over the life of the loan. Just make sure you’re not focusing solely on a shiny interest rate—analyze the full cost and long-term savings, just as Ralph DiBugnara advises.
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