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Sept 28 2022

The Broker Advantage -Shifting Markets- Like Colorado Springs, CO

There’s a lot of talk going around right now about skyrocketing interest rates. It’s true that interest rates have risen but they’ve also fallen, rates rollercoaster like the stock market. What you think you know about rates, may or may not be true, but there is someone who does know the current state… Your Mortgage Broker. Brokers constantly price out new loans nearly everyday. Since brokers know the actual daily cost of borrowing money, checking in with them from time to time is a wise practice.

The news LOVES to capitalize on things that catch the eye of majority interest, so don’t be surprised if buying, selling, or refinancing a home sounds impossible. Usually when one or two of those three options is a great choice, the media will focus on the doomsday scenario. (…gotta love them ratings!)

Understanding What a Comparison Appraisal is – a “Comp

 A Comp (or Comparison Appraisal) typically takes three homes that sold within the past 6 months and reside within a ½ mile radius of the subject property. This Investopedia Link goes into further detail on understanding a Comparison Appraisal, or “Comp.” This means that when a house sells in a neighborhood, that home becomes the most recent comparison used in the next appraisal.

How Interest Rates Affects Market Shifts in Places Like Colorado Springs, CO

Interest rates can impact the price of home sales by limiting or increasing the number of buyers in each market. When a market like Colorado Springs has few houses available, Selling Prices will increase since the demand to buy increases. However, when interest rates rise, lower income individuals that can’t afford to buy homes fall out of the buyer pool, which can lower the demand to buy houses.

As rates rise and more homes become available, sellers may consider offering incentives to help sell their home or even drop their asking price. As you can imagine, as homes sell for more or less over time, the price of your home will be different in 6 months than it is now.

Getting a Mortgage Refresh From Your Mortgage Broker

Unlike Banks, Mortgage Brokers work with many lenders and will take the extra steps to find out what options are available for you. Because of this, brokers love to stay in touch with their borrowers. A broker can easily take your current mortgage statement and shop different lenders to discover what new mortgage options are available for you. This is a great option to consider for either a Refinance or a New Home Purchase.

I mention the Mortgage Refresh because as the media “educates” the public on skyrocketing interest rates, home sales, or whatever cataclysmic mortgage disasters are looming, mortgage brokers see interest rates all day long, day in and day out. I mentioned an example in the video of how real estate agents and the general public recently viewed interest rates as AsTrOnOmIcAlLy HIGH… and yet I had found great VA and FHA options for an Open House that I participated in

Staying in Touch With Your Colorado Mortgage Broker

Whether you live here in Colorado, Texas, or any other state in the nation, stay in touch with your mortgage broker. If something sounds surprising, give him or her a call and ask them what they are seeing. I do this frequently with many Real Estate Agents that I know, and I am commonly surprised by what I hear… BECAUSE THEY ARE THE HOME SELLING AND BUYING EXPERTS, and they see what happens week-in and week-out.

Remember, whatever your situation, there’s a Juicy Solution waiting for you. I continue to grow in the mortgage industry and now that I am part of an awesome team at Freedom Home Loans, I have an even bigger pool of resources to help you. Feel free to look around the website for more helpful tips and resources.

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