A comparative guide to brokers and bankers and why knowing the difference between them matters In the world of home buying, we often find ourselves discussing the vital role of mortgage professionals. You’ve likely encountered two key players in this field: mortgage bankers and mortgage brokers. I’d like to shed light on these two distinct professions and explain why, in many ways, mortgage brokers are a superior choice for consumers. What’s the Difference Between a Mortgage Banker and a Mortgage Broker… Let’s start by defining the terms: A mortgage banker works for one specific financial inst ..read more

Home sellers reveal why they decided to bypass professional representation—and the mistakes they made without a trusted adviser. Homeowners who decline to use a real estate agent to sell their property are twice as likely to say they weren’t satisfied with the selling experience, according to a new survey from Clever Real Estate of 1,000 home sellers in 2022 and 2023. Survey respondents say they realize they likely made less money on their home sale and faced more stress by not having a professional representative. Those who didn’t use a real estate agent said before their transaction that the ..read more

More Americans are losing insurance coverage due to storms, lawsuits and other factors Many Americans should start planning now for the growing possibility that their home-insurance provider won’t renew their coverage. Damage from extreme weather, rising lawsuits and soaring costs of rebuilding have led some major insurance companies to stop renewing existing policies or issuing new ones. Homeowners in Florida, Louisiana and California have been particularly hard hit, but more homes across the country are at risk of losing coverage, say insurance companies. And the cost of coverage is rising f ..read more

How does real estate investing compare to riskier investments in stocks, bonds and crypto: Do it right and you can earn enormous returns Every time the stock market crashes, it reminds investors just how volatile equities are. Jittery investors end up pulling money out of the stock market — selling low and losing money. Real estate is inherently less liquid and therefore less volatile than stocks. Even in moments when real estate values decline, they don’t fall as fast or as deep as stock markets. That raises a question: If real estate is less volatile (and therefore less risky) than stocks, h ..read more

Soaring rates have revived interest in a product that fell out of favor after the financial crisis Carley Chase found her dream home in Chandler, Ariz., this summer: a three-bedroom ranch, close to work, with a pool and a backyard lined with palm trees. Soaring interest rates threatened to put it out of reach. Her lender suggested a temporary buydown that would lower her mortgage payment for the first three years.  “I don’t think I would have been able to afford it without the buydown,” Ms. Chase said.  Rising borrowing costs have dramatically increased the cost of buying a home this ..read more

The big run-up in home prices may have cooled, but the 2023 conforming loan limit will be increased by 12% to $727,200 in most parts of the country New markets require new approaches and tactics. Experts and industry leaders take the stage at Inman Connect New York in January to help navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here. Federal regulators gave mortgage giants Fannie Mae and Freddie Mac the green light to back mortgages of up to $726,200 in most parts of the country next year, and loans exceeding $1 million will be fair game in mo ..read more

Sales expected to drop to lowest level since 2008, and the growing lock-in effect — the financial disincentive to sell — ‘will remain in a way that has not occurred in over 40 years,’ economists say New markets require new approaches and tactics. Experts and industry leaders take the stage at Inman Connect New York in January to help navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here. Economists at Fannie Mae expect home sales to plummet next year to the lowest levels since 2008, before rebounding and helping lead the country out of a brief rec ..read more

The share of first-time buyers fell to 26 percent, plummeting to the lowest level in four decades, when a real estate trade association began tracking such data. First-time home buyers with moderate incomes are being pushed out of the real estate market in droves by buyers who can pay in cash. American home buyers are older, whiter and wealthier than at any time in recent memory, with first-time buyers accounting for the smallest share of the market in 41 years, the National Association of Realtors found in its annual profile of home buyers and sellers. White buyers accounted for 88 percent of ..read more

Just as you would research potential properties before purchase, take ample time to weigh the pros and cons of taking on a real estate investing partner. Second homes and investment properties fascinate investors. I’ll go deeper on everything from the latest at Airbnb and Vrbo to the changes investors are making to their portfolios in a shifting real estate market. With interest rates at historic lows during the pandemic, many new investors rushed into the real estate market to snap up a wide variety of properties. As rates begin to climb back up, those same investors (and others looking to di ..read more

A temporary buy-down provided by the seller allows the borrower to have more money available during the early years to handle furnishing and renovation costs. Higher mortgage rates — up nearly double over a year ago — cut into affordability and increase monthly payments for buyers. Rising rates are particularly challenging for buyers who may be struggling to afford their first home or those who hope to move up into a larger and more expensive property. While there are multiple strategies to manage higher mortgage rates, one option to consider if you have some extra cash is to buy down the inte ..read more