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Relief for Homeowners Affected by Coronavirus

I hope you're staying hydrated, well-rested, and you're exercising moderately every day!  Whew.  It's a tall order, but it's good work.  

Thought you might like to know of some resources available to you if you have the need. If I've omitted any resources that you know of, feel free to get in touch w me and I'll pass along the info.  (Extra points for you if you call me:  I'm contact-starved, and I'd love to hear your voice!)

The Federal Housing Financing Agency (FHFA) and Housing and Urban Development (HUD) have announced a moratorium on foreclosures and evictions for at least the next 60 days.   Here's a link: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042 .  Homeowners who are struggling financially as a result of coronavirus may postpone their mortgage payments for up to 12 months. Fannie Mae and Freddie Mac and their servicers have been instructed to be proactive in providing assistance to homeowners and to provide forbearance on their loans.  Mortgage payments will be paused with no impact to credit.   Here are some links to Fannie Mae and Freddie Mac assistance sites:   https://www.knowyouroptions.com/covid19assistance  and https://myhome.freddiemac.com/mortgage-help/contact.html 

Additionally banks have posted their own policies and ways for consumers to contact them directly for assistance.  Here's more info:  

Bank of America:  https://about.bankofamerica.com/promo/assistance/latest-updates-from-bank-of-america-coronavirus; Capital One:  https://www.capitalone.com/coronavirus/; Chase Bank:  https://www.chase.com/digital/resources/coronavirus; Truist Bank:  https://www.truist.com/coronavirus-response/banking-solutions; US Bank:  https://www.usbank.com/splash/covid-19.html; Wells Fargo: https://newsroom.wf.com/press-release/corporate-and-financial/wells-fargo-announces-aid-customers-and-communities-impacted; Mr. Cooper (mortgage servicer): https://www.mrcooper.com/blog/2020/03/20/coronavirus/ and Flagstar (mortgage servicer):  https://www.flagstar.com/promo/update.html.

The Consumer Financial Protection Bureau (CFPB) is urging consumers to protect their credit during this time.   https://www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/.  This site is a good source of info:  they have a number of resources focused on short-term and long-term financial protection -- for instance how to manage bill-paying in the near future, how to manage student loans, and how to negotiate debt collections.

For the latest updates and public health policies, here's a link to the Centers for Disease Control's COVID-19 site:  https://www.cdc.gov/coronavirus/2019-ncov/index.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2Findex.html.  And you might also be interested in checking in to the EPA's website concerning coronavirus.  The Good News is at the current time they haven't found the

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Home Affordability?!

 

Rates are on their way down again -- you'll want to be in touch after you read this article.  Never been a better time to buy.  

Jen Walsh (406) 570-1653

 

The Ultimate Truth about Housing Affordability

The Ultimate Truth about Housing Affordability | MyKCM

There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.

On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:

The Ultimate Truth about Housing Affordability | MyKCM

It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.

Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes are more affordable right now than any other time besides the time following the housing crisis.

With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home today than it was last year!

Bottom Line

With

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How Rising Prices Will Help You Build Family Wealth in 2018

How Rising Prices Will Help You Build Family Wealth in 2018

How Rising Prices Will Help You Build Family Wealth in 2018 | MyKCM

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Rising Prices Will Help You Build Family Wealth in 2018 | MyKCM

Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

 

Here's to a wonderful 2018! 

Cheers!  Jen Walsh 570.1653

 

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