Welcome to Chapin Real Estate Blog

Taking cash out of the equity of your home could be a legitimate way to fund a temporary cash crisis now or to have it on-hand if the need arises.  Most homeowners can pull out the difference in 80% of the fair market value of their home and what they currently owe. The most frequently cited reasons for refinancing are to lower the payment, eliminate the private mortgage insurance, combine mortgages, consolidate debt, convert an ARM to a fixed rate mortgage, remove a person from the loan or to take cash out for another reason. The option of using your equity to deal with unexpected living expenses or potential lost wages in the future could be a good reason for doing a cash-out refinance.  It is important to consider that it could increase your monthly payment instead of lowering it which would result in higher expenses during uncertain economic times. Some lenders have recently raised the minimum credit score requirement but borrowers with good credit and the ability to...

Everyone knows someone it has happened to or has heard a tragic story.   It could have been a fire, a flood, a burglary or some other disaster but to file a claim on their insurance, they need the receipts or a list for what is being claimed. Since you're at home anyway and may even have kids at home who need something to do, now is a great time to get a current home inventory done.   One of the easiest ways to accomplish this seemingly, daunting task is to put together a collection of pictures of every room in your home.      The more valuable, the more important it is to take a close-up picture.   It will be necessary to open the drawers and closets and, in some cases, to pull things out in order to show everything in the picture.   That's why having someone to help you makes it faster and easier. Not to get distracted from the job at hand, you may discover things that you had forgotten you had which is why you should do an inventory rathe...

The American bank robber, Willie Sutton, was asked why he robbed banks and his answer was "because that is where the money is."   During his 40-year career, he stole about $2 million but Internet scammers are stealing many times that amount in phishing schemes preying on unsuspecting home buyers. These crooks know where the money is because buyers have the down payment and closing costs and are expecting to transfer it to the close the sale of their home.   The FBI, in their 2018 Internet Crime Report, stated victims lost over $149 million and the CFPB estimates the losses at over $1 billion as a result of fraud in real estate transactions.      The scammers want to take advantage of the situation while it is still in the buyer's account. Commonly, during the closing process, scammers will send spoofed emails to homebuyers from someone they expect to hear from regarding the transaction like the real estate agent or the settlement agent.   They will incl...

While you're isolating at home, there are things you can do to help buy a home now or in the near future.   Instead of spending time surfing the Internet looking at homes, do the groundwork necessary to be able to purchase the home that you find. There is a lot of documentation necessary to qualify for a mortgage and to be approved.   This part of the homebuying process can be done in advance, long before you even start looking at homes much less finding the one that you want. Assemble all documents to make a pre-approval Photo ID Two months current pay stubs Last two years' W2s Complete copies of checking and savings statements for last three months Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc. Employment history for last two years with addresses and contacts Proof of commissioned or bonus income Residency history for last two years with addres...

During these unsettling times, sellers and buyers are concerned about staying healthy and virus-free as we all are.   To keep all parties safe, new procedures should be considered regarding the procedure for showing houses. Agents are reporting that they are selling homes where the buyers have not physically been in the home and base their decision on the virtual tour found online.   Some states have suspended showings because they are not considered essential services and other states have not addressed the subject. In the spirit of stepping up to do what is necessary, the following suggestions should be considered: Buyers should view the pictures online first to see if the home meets their needs.   Most listing agents upload enough pictures to get a good idea of what a home looks like. Buyers should ask their agent questions that the photos don't address.   Then, their agent can go through the listing agent to ask the seller direct. It may b...

You don't have to watch TV for long before Tom Selleck, Henry Winkler or Robert Wagner will tell you why seniors should consider a reverse mortgage.   However, there are a seniors who are resisting the conventional wisdom of having their home paid for and opting for a mortgage with payments on their home. In some cases, seniors will downsize into a smaller home and have a large amount of equity to pay cash for the new home.   In other situations, they may have their home paid for and decide to do a cash-out refinance which will require making payments. The logic behind either of these examples could be motivated by the fact that since mortgage rates are so low currently, the owners can reinvest the money at a higher yield and make money on their equity.   This will give them more money for their retirement income. A common question that is asked by owners considering such a strategy is whether they'll be able to qualify for the new mortgage since they may no longer ...

A lower rate will not only result in a lower payment, it will amortize the loan quicker.   A $250,000 mortgage at 4.5% for 30 years will have a $1,266.71 principal and interest payment.   At 4%, the same loan will have $1,193.54 payment saving $73.18 a month and the unpaid balance would be $1,776 lower at the end of five years. Mortgage lenders tend to price their mortgages based on the credit score of the borrower.   The higher the credit score, the lower the mortgage rate.   There is an inverse relationship that the lower the credit score, the higher risk and therefore, a higher rate is needed to balance the risk. In order to get a valid rate that will be available to you with your credit score, you need to be pre-approved. The process of making a loan application before you find a home, allows the lender to verify your credit, income, and ability to repay the loan.   Lenders usually only charge the cost of the credit report for this type of service. ...