Honolulu Real Estate: The Coconut Wireless

National homeowner equity grew in the fourth quarter of 2020 by $1.5 Trillion or 16.2% year-over-year based on a CoreLogic analysis.  The study was done on the six out of ten homeowners who have mortgages on their home. The fourth quarter of 2020 also saw the number of mortgaged residential homes with negative equity decrease by 8% from the third quarter.  Compared to the same quarter in 2019, negative equity decreased by 21%. Equity is defined as the value of the home less the mortgage owed.  Negative equity means that the homeowner's debt is more than the value of the home.  Appreciation is the dynamic that is moving homeowner's equity to the positive position. On a national basis, according to National Association of REALTORS®, annual price growth for the last ten years has been 6.4%.  In the last five years, it has grown at 7.3% annually.  According to the CoreLogic Home Price Index, home prices in December 2020 were up 9.2% from the year before. Frank Nothaft, Chie

For generations, people have begun their homeowner experience with a "starter" home.  Part of the  logic may be that by beginning with a smaller home, they can learn what it takes to run the home and discover some of the unexpected costs that come along with it.   A slightly longer view into the future could suggest a different strategy. As of March 4, 2021, the average 30-year mortgage rate according to Freddie Mac was 3.02%; up .37% from the week of January 7th this year.    At the same time, in 2020, the rate was 3.29% and in 2019, it was 4.41%.   That is a difference of 28 and 139 basis points. The principal and interest payment on a $300,000 mortgage would have been $236 higher two-years ago and $44 more one-year ago.   Today's low mortgage rates are saving buyers lots of interest especially when you factor in the median tenure for sellers is approximately ten years.   Even though prices have increased over the last two years, some people may be able to afford mo

One of the silver linings to filing your income tax return is finding out that you are going to receive a refund that could literally open the door to owning a home.   If you happen to be one of these fortunate taxpayers, your next decision is what to do with it.   With the average tax refund near $3,000, it could be the ticket to buying a home sooner rather than later.   Regardless of the size of your refund, it can be used toward the down payment or closing costs of the home. Most people think it takes 10% or more down payment to purchase a home, but actually, it is much less because of several low down payment mortgages .   There are VA and USDA mortgages that allow for no down payment for qualified buyers.   FHA has a 3.5% down payment program and FNMA and Freddie Mac have 3% down payment mortgages for qualified creditors as well as 5% down programs. Closing costs for originating new mortgages can easily range from two to three percent of the purchase price but most lenders w