REAL ESTATE NEWS Brought to you by Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS

What's the skinny on jumbo loans?

Let's talk about conforming loans vs. jumbo loans in the mortgage world. The Guidelines Each year in October, the Federal Housing Finance Agency, or FHFA, collects data on the national median home value and compares that number to October of the previous year. If there is an increase, the conforming loan limit will increase by the same amount. In October 2019, the year-over-year median home value increase was 5.38%. Therefore, the conforming loan limit for a single-family home in 2020 will rise to $510,400, up from $484,350. The loan limits on multi-unit properties will rise to $653,550, $789,950 and $981,700 for a duplex, triplex and fourplex, respectively. Loan Differences Loans amounts at or under these limits qualify as conforming loans. They "conform" to guidelines set forth by Fannie Mae and Freddie Mac. Conforming loans make up the majority of residential loans funded. Loan amounts that are above these limits are referred to as jumbo loans. With a conforming loan, lenders are able to sell the mortgage in the secondary market, replenishing their credit lines in order to make more loans. Jumbo loans have no such robust secondary market. When a lender approves a jumbo loan, it assumes the risk should the loan ever go into default. Naturally, this makes it more difficult to qualify for a jumbo loan. The minimum credit score for most conforming loans ranges from 580 to 620. Jumbo minimums range from 720 to 740. Some jumbo loans can require a lower score, but the rates and terms are much more stringent. Down payment requirements for jumbo loans are also much higher. A buyer can secure a conforming loan with a down payment of just 5% (or even 3% for special first-time programs) with the help of private mortgage insurance. Jumbo loans have no such insurance policies available and require a minimum down payment of 20% of the sale price of the home. Providing a down payment of 25% or more will make it easier to qualify. Wondering if a jumbo loan is the right move? Reach out! I can help you find the right loan for your next move or investment. Search for Homes @ http://www.islandhomelife.com/ If you would like more information on this call Neaulani 808-358-9700 Neaulani Kuamo'o-Peck (RA) RS-73536 Coldwell Banker Pacific Properties No tricks, just the treat when your home successfully sells.

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Inspections vs. Appraisals vs. AVMs

Inspections vs. Appraisals vs. AVMs

Inspections, appraisals, and automated valuation models, while related, all have different functions but can be easily confused. Let's take a closer look. Inspections: A property inspection is ordered by the buyer and is meant to be an unbiased look at the condition of the property. While not necessarily required by a lender, an inspection protects the buyer from purchasing a home that requires expensive repairs or otherwise doesn't live up to its list price. A property inspector will examine the condition of the property inside and out, running through a checklist of areas including, but not limited to, the roof, electrical panels, wiring, plumbing, appliances, doors and windows. If any issues pop up, the inspector makes note and provides the buyer with a report. Many reported issues will need some attention but won't affect financing. If major repairs are needed however, the lender might want to have those issues addressed before they provide any funding. Appraisals: Once the inspection has been completed and reviewed, the lender can order an appraisal. The appraisal will consider comparable homes in the area as well as other factors such as lot size, nearby schools and crime rates. The goal of the appraisal is to determine the true value of the property for the sake of the lender. The key difference between an inspection and an appraisal is that an inspection aims to assess the physical condition of a home itself, while an appraisal solely determines the market value of the real estate. AVMs: An automated valuation model is a digital evaluation of the value of a home. An AVM will quickly research the database of similar homes in the area and compare them with the value of the subject property. AVMs are often used to assess the value of a property portfolio, and have the advantage of saving time and money since no one physically visits the property. However, AVMs can't take into account the true condition of a property and often aren't enough to secure a conventional loan for a home buyer.

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Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS RS 73536 Coldwell Banker Pacific Properties RS 73536 808 358-9700

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USDA Loans

USDA Loans: They're Not Just for Homes in the Boonies Have you heard of USDA loans? If you're a low-to-moderate-income homebuyer who doesn't have a lot of money for a down payment and who needs lenient credit requirements, you (or your lender) are probably focused on FHA loans. But if you haven't taken a look at USDA loans, you may be missing out on an incredible opportunity. If you're saying to yourself, "But USDA loans are only for homes out in the sticks," that's understandable. It's true that the loans were designed to help buyers in rural areas. But "rural" is a broader term than you may realize. On the USDA website, you can enter an address in the search bar and check if it's eligible, or you can drop a pin in a location to find out whether USDA financing is available in the area. Consider these interesting results: Frisco, TX, currently the fastest-growing city in the nation, is not eligible for a USDA loan, but Prosper, just to the north and being called, "The next Frisco," is eligible. The popular Valencia, CA, north of Los Angeles is not eligible, but areas of Santa Clarita, the city in which Valencia is located, are eligible. There's no harm in looking, and you might find a real gem in an up-and-coming area.

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Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS RS 73536 Coldwell Banker Pacific Properties RS 73536 808 358-9700 Neaulani@islandhomelife.com http://www.alohainvesting.com/ Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Pacific Properties is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.

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Cleaning Tips & Tricks

Floor Cleaning Tips & Tricks Regardless of how tidy you are, your floors, rugs, and carpets get dirty. Between the dirt you track in on your shoes, the accidental spills, and the inevitable accumulation of dust, your floors can get quite grimy. Here are a few cleaning tips and tricks for all types of flooring. Natural Stone Floors One of the most important rules when it comes to cleaning natural stone, is to steer clear of acidic products like vinegar, ammonia, or bleach, as they can ruin the stone. Your best bet is to use a pH-neutral cleaner that won’t react with the minerals in your stone floor. Tile Floors Tile is easy to clean. Simply combine ¼ cup of vinegar and one drop of dish soap in a spray bottle. Fill the rest with water and mix well. Spritz the mixture onto your tile surface and wipe it down with a microfiber cloth or mop. Steaming the tiles and grout will provide a deep cleaning. Carpets Unlike other flooring surfaces, carpets have their own set of rules. For a deep clean, it’s best to steam clean your carpets. For regular cleaning, using a vacuum should suffice. Hardwood Floors Wood floors need a lot of attention. Start by determining whether your floor is sealed or not. If it’s unsealed, avoid using water and instead try mineral oil and periodic coats of wax. If the floor is sealed, a simple mix of hot water and soap is a safe bet. Linoleum Start by sweeping or vacuuming the floor to get rid of dust, hair, and dirt. Then add about six drops of mild detergent or dish soap to a gallon of warm or hot water. Dampen a mop with the mixture and use it to clean the floor in sections. Avoid getting the mop too wet, and make sure to dry the floors with a towel when you’re done. Standing water can damage linoleum.

QUESTIONS? VISIT http://www.alohainvesting.com/

Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS RS 73536 Coldwell Banker Pacific Properties RS 73536 808 358-9700 Neaulani@islandhomelife.com http://www.alohainvesting.com/ Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Pacific Properties is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.

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Investment Property

Why an Investment Property Should Be Your First Real Estate Purchase

Not ready to buy a home for yourself but want to take advantage of great market conditions? Consider buying an investment property! It's a trend that's taking over real estate, as savvy investors look to put their money in an appreciating asset. Here are five reasons to consider it.  1. Rates are crazy low. Lower rates mean more affordable lending, or more for your money if you choose to reach higher. 2. Because it will appreciate. According to CoreLogic, "The overall home price index (HPI) has increased on a year-over-year basis every month for seven years." The long-term price appreciation of real estate can provide one of the safest investments out there. 3. Because passive income is good. Yes, it's nice to know there will likely be appreciation over time, but the real key to success with investment properties is passive income. "The best part about rental properties is that they provide a stable income," said Mashvisor. "What would be better than having a check sent to you every month? In order to have positive cash flow, you have to make sure you invest in a profitable rental property." 4. To turn it into a short-term rental. The short-term rental market has opened up a new world of opportunity for investors. By buying in the right location—by the beach, near a ski resort, or in close proximity to a popular annual event like Coachella, you have the potential of making a significant return in a short period of time. Just be sure to check the local laws, as lots of cities have been cracking down on Airbnb and other services. 5. Because it can help you buy the home of your dreams down the line. "Buying an investment property before your first home does not imply that you won't have the funds to purchase your actual home at some point," said Mashvisor. "In fact, investment properties that have been purchased wisely and have grown in value can offer you a sizeable amount of wealth and equity." Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS RS 73536 Coldwell Banker Pacific Properties RS 73536 808 358-9700 Neaulani@islandhomelife.com http://www.alohainvesting.com/ Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Pacific Properties is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.

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Affordability Challenges Keep Millennials on the Sidelines By Suzanne De Vita

Affordability is fading fast—and although millennials are eager to enter the market, and succeeding, they're bearing the brunt of the challenge, according to recent research. Sixty-three percent of millennials under 29 are challenged by the cost of homeownership, according to a CoreLogic and RTi Research study. The expense, in fact, is their No. 1 reason for remaining a renter. "One-third of millennial renters reported feeling they cannot afford a down payment to buy a home," says Frank Martell, CEO/president of CoreLogic. "With home prices rising quickly over the past few years and supplies low, first-time homebuyers face ever-growing challenges to find and buy affordable entry-level homes." According to CoreLogic's June Home Price Index, prices rose 0.7 percent month-over-month and 6.8 percent year-over-year. Despite existing inventory in June perking up, demand keeps streaming in, and the imbalance is taking a toll. Additionally, affordability is beginning to encumber sales, says Dr. Frank Nothaft, chief economist at CoreLogic. "The rise in home prices and interest rates over the past year has eroded affordability and is beginning to slow existing-home sales in some markets," Nothaft says. "Further increases in home prices and mortgage rates over the next year will likely dampen sales and home price growth." The findings are in line with the results of several studies this year, including one by Freddie Mac which found that affordability challenges are contributing to a downtrend in young adult homeownership. "More needs to be done to help our first-time buyers join the homeownership class," Martell says. More information on Buying or Selling a Home Call Neaulani 808-358-9700 Neaulani Kuamo'o-Peck (RA) RS-73536 Coldwell Banker Pacific Properties Search for Homes http://www.islandhomelife.com/ Finding your new home has never been easier @ http://alohainvesting.com/

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Real Estate News - February

Six tips when considering a HELOC for Home Renovations

Homeowners looking to undertake home renovations can often use a home equity line of credit or HELOC to finance their projects. Here are six quick tips on how to shop for and manage a HELOC:

Shop around. Comparison shop to get the best rate. Ask about the margin. If you're offered a rate that's lower than the competition, it's probably just an introductory rate, so ask about the lender's margin. For example, if the introductory rate is 3.5 percent and your lender's margin is 2 percent, your final interest rate will be 5.5 percent. Consider a conversion clause. Some HELOCs allow you to convert a variable interest rate to a fixed rate, usually during the draw period (5-10 years). Watch out for balloon payments. Balloon payments mean that you must pay the balance in full when the draw period is up. Do not choose this option unless you have the financial means to handle it. Create a family plan. Decide what the money will be used for and who will handle the funds. Keep in mind, you can lose your home if the HELOC is not handled properly. Create a payback plan. Come up with a reasonable plan for how the loan will be paid back. More information on Buying or Selling a Home Call Neaulani 808-358-9700 Neaulani Kuamo'o-Peck (RA) RS-73536 Coldwell Banker Pacific Properties Search for Homes http://www.islandhomelife.com/ Finding your new home has never been easier @ http://alohainvesting.com/

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Bamboo Is Taking Home Decor by Storm

4 Reasons Why Bamboo Is Taking Home Decor by Storm Homeowners are often looking for home improvement options that strike the right balance between affordability, functionality, aesthetics and eco-friendliness. Bamboo has been marketed as something of a panacea—a kind of wonder wood that checks all the boxes. Designers, contractors and consumers have all taken note, as bamboo has made its way into homes as flooring, walls, window treatments, furniture and more. Here are the properties that are making this popular material a go-to green choice for interior design materials. Affordability Bamboo is a readily available wood…except for the fact that bamboo isn't a wood at all, but a grass! Therein lies the secret to bamboo's ascendant success as a housing material: It grows like a weed because it essentially is one. At a maximum of three feet per day, it is, in fact, the fastest growing plant on Earth. Versatility Just the one word "bamboo" doesn't do justice to the range of looks the material offers. It can vary greatly in shades and textures, making it a versatile option for decorators and designers. Durability Whether natural or manmade, few materials can match bamboo's physical properties pound for pound. Because bamboo grows in wet, tropical climates, it is well-suited to resisting rain and wind. In fact, this unassuming reed beats out hardwood, brick and concrete alike in terms of compressive strength, while rivaling steel in tensile strength. Sustainability As a growing number of homeowners look for eco-friendly materials in their decor, perhaps no single factor has contributed to bamboo's modern vogue in interior design more than its sustainability. As it is a grass rather than a tree, it can grow to a harvestable size (often over 100 feet) in a matter of months. This is in stark contrast to the years of water, fertilizer and pesticide required by other timber woods. QUESTIONS? VISIT http://www.alohainvesting.com/ Neaulani Kuamo'o-Peck (RA) RS 73536 CLS, CNAS RS 73536 Coldwell Banker Pacific Properties RS 73536 808 358-9700 neaulani@islandhomelife.com http://www.alohainvesting.com/ Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Pacific Properties is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.

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Coldwell Banker Pacific Properties | 4460 Kapolei Pkwy #310 | Kapolei | HI | 96707

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Real Estate News - August 2017

No AC? No Problem: 5 Cooling Tips for Summertime If air conditioning your home seems like a far-off dream, you’re not alone. Each summer, thousands of Americans battle the heat in their homes, especially at night. Below are a few helpful tips to help you stay cool all summer, sans AC.  Point that fan out. It might feel good to have air blow over you as you sleep, but to cool your room quicker without AC, grab a boxy window fan and point it out, not in. This will pull warm air from the room and push it outside. Reverse ceiling fans. In the summer, program your ceiling fans to run counter-clockwise. This will pull hot air up and out, instead of blowing the warm air on you. Choose the right bedding. When it comes to staying cool during those hot summer nights, cotton is the way to go. Choose a light sheet made of 100 percent cotton, and avoid polyester and synthetics at all costs.  Frosty bottle. You’ve heard of a hot water bottle, right? Well these helpful toe warmers can also keep you cool during the summer. Stick the bottle in the freezer, and slide it between your sheets before bed. Make use of your bathroom fan. Have a bathroom right off the bedroom? Turn on the overhead fan and leave the door open to let the fan pull the rising hot air out of your room as you sleep.   On Low Inventory: From Challenge Comes Opportunity Low inventory is the foremost issue in the housing market right now. Buyers face relentless demand for a scarce supply of reasonably priced homes. In a recent survey by the National Association of Mortgage Professionals (NAMB), fifty-eight percent of mortgage professionals cited low inventory as the biggest hurdle for homebuyers today.   The inventory dilemma has even overshadowed concerns about mortgage lending standards. These standards, which some still view as too strict, have relaxed since the early, strong-armed days post-recession. In fact, according to a recent survey by Fannie Mae, more lenders have taken steps to open up access to credit since the start of 2017, and more plan to continue to do so in the future. Coming up with enough money for a down payment has become less of a factor, according to the NAMB survey, but remains significantly tied to affordability. Having an experienced real estate agent is more important than ever to help buyers and sellers navigate this intensely competitive market. Undeniably, there are fewer homes on the market—but there are also many opportunities. How will you use today's environment to your advantage? QUESTIONS? VISIT www.islandhomelife.com Neaulani Kuamo'o-Peck (RA) SRES, CLS, CNAS  Coldwell Banker Pacific Properties RS 73536 808 358-9700 neaulani@islandhomelife.com www.islandhomelife.com Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Pacific Properties is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.

Connect with me on:

Coldwell Banker Pacific Properties | 4460 Kapolei Pkwy #310 | Kapolei | HI | 96707

Add neaulani@islandhomelife.com to your safe senders list. Click here for directions.

This message was sent on behalf of Neaulani Kuamo'o-Peck (RA) SRES, CLS, CNAS at Coldwell Banker Pacific Properties. Unsubscribe or manage account settings

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