Danette’s Real Estate Corner

If you've been sitting on the sidelines, waiting for mortgage rates to drop back below 4% before making a move, it's time for a reality check. While we all loved the historically low rates of 2020 and 2021, those numbers were driven by extraordinary global circumstances, not typical market trends. And expecting them to return any time soon could lead to missed opportunities that may cost you far more in the long run. During the height of the pandemic, global economic uncertainty prompted aggressive action from the Federal Reserve, which helped drive mortgage rates to record lows. In January 2021, the 30-year fixed rate bottomed out at 2.65%, the lowest in Freddie Mac's recorded history, which dates back to 1971. But that wasn't a normal market. It was a response to an emergency. Looking at the big picture, the average 30-year mortgage rate over the last 60+ years has hovered around 7.74%. Even today's rates, currently in the mid 6% range, are below that ...

"What if your next home came with built-in income? Discover how living in one unit and renting out the others could slash your housing costs and build your wealth at the same time." When most people think about buying a home, they picture a single-family house. But there's another option that could make homeownership more affordable and help you build wealth faster, buying a small multi-unit property. FHA, VA, and conventional lenders allow qualified buyers to purchase up to a four-unit property if they live in one of the units. That means you could buy a duplex, triplex, or fourplex, move into one unit, and rent out the others. The rental income from your tenants can help offset your monthly mortgage payment, often making your housing cost less than if you bought a single-family home. This can be a game-changer because of: Lower monthly cost: Rental income helps cover your mortgage, taxes, and insurance. Forced savings: Part of every payment reduces you...

There's a classic example used in behavioral psychology: the marshmallow test. In this experiment, children were given a choice: eat one marshmallow now, or wait a little while and get two. The lesson? Those who could delay gratification tended to experience greater success later in life. That same principle applies beautifully to homeownership. If your ultimate goal is to one day have your home completely paid off, the question becomes: are you willing to make small sacrifices now so you can reap bigger rewards later? Or will you choose comfort and consumption today and carry the financial burden of a mortgage into your retirement years? Making regular additional principal payments on your mortgage is one of the smartest forms of delayed gratification. It's not glamorous. It means driving the same car a little longer, skipping that expensive vacation, or resisting the urge to upgrade your lifestyle with every raise. But those steady, disciplined extra payments�...