The housing market is in under the microscope right now. Everyone is trying to predict when home values will peak and mortgage rates will be at their lowest.  Many industry experts think now is the time to maximize the benefits of both home appreciation and low mortgage interest rates!

Home values have been going up at a steady pace.  Since 2012, they have doubled!  Now is the time to take advantage of this growth.  You know what they say, what goes up must come down or at least level off.  To that point, home appreciation is projected to shift back toward normal over the next few years.  As noted in the latest Home Price Expectation Survey, (HPES) powered by Pulsenomics, the experts are saying that in 2020 and beyond, the annual appreciation rate will be closer to 3.2% as opposed to the 4.1% now seen in 2019.

Mortgage Rates are now the lowest they have been since 2016.  With mortgage interest rates at the lowest they have been in three years, it is a good time for everyone involved with the real estate market.  A lower interest rate means a lower monthly payment and the ability to afford more home for your money.

If you bought a home more than 2 or 3 years back and thought you didn’t want to move because you would never get that low rate again, now you can move up to a bigger home and still get a super low rate.

It is also a great time to consider a refinance.  If you already own a home and don’t want to move, you should contact a loan officer to review your current rate and term to see what opportunities are out there for you.  Many homeowners are refinancing into a lower mortgage interest rate and shortening the term of their loans.  There is a significant advantage to paying your mortgage off sooner!

Contact us at meploans.com to apply online or request a free consultation with a professional loan officer.

Take the advice of Two Local North of Boston Experts!

Tom Patch, Loan Officer at Mortgage Equity Partners in Lynnfield and Geri Farrelly, Broker/Owner of Farrelly Realty Group in North Reading know the local market and want you to be in the know too!

“Everyone can benefit from low mortgage interest rates right now!” said Tom Patch.

You don’t want to miss out on the opportunities available right now in the housing market. Mortgage interest rates are the lowest they have been since October 2016. Everyone can benefit whether you want to buy a home, sell a home, or refinance your current home. It is a unique time in history where no matter where you fall in the housing market, everyone can benefit.

Home values have been appreciating for several years now. The annual appreciation rate has nearly doubled since 2012. It is projected to dip beginning 2020 and not come back up until 2023, according to Home Price Expectation Survey 2019 2Q.  That means it is an excellent time to sell if you want to get the most for your home.

Mortgage Interest Rates are the lowest they have been in 3 years. That means it is a good time to buy, sell, or refinance. A lower interest rate means a lower monthly payment and the ability to afford more home for your money!

If you bought a home more than 2 or 3 years back and thought you didn’t want to move because you will never get a rate that low again, now you can move up to a bigger home and still get a super low rate.

If you already own a home and you don’t want to move, you should review your current interest rate. It has been widely shared that 8.2 million homeowners now have refinance opportunities. Anyone who owns a home right now should be contacting a loan officer. If you have a rate that is higher than 4.25% you can save money even with closing costs and the other charges associated with closing a loan, in most cases.

 “Rates of 4% and, in some cases, even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”
~ Doug Duncan, Chief Economist for Fannie Mae

Geri Farrelly, Broker/Owner of Farrelly Realty Group believes that the data (specific to North Reading) continues to show a very strong housing market.

The North Reading Transcript has recently had several articles about the Real Estate market in general, but how does our Hometown North Reading market look? The market from Jan 2018 to July 31^st, 2018 to the 2019 market in the same time period was surprisingly similar.

From January 2018 to July 31^st, 2018 there were 96 homes sold, and 30 condominiums sold.

From January 2019 to July 31^st, 2019 there were 101 homes sold, and 30 Condominiums sold.

The average days on market for single families in 2018 was 45.41.

The average days on market for single families in 2019 it was 68.27.

There was a significant increase to the days on market this year. The reason for this is twofold. List prices have started a little higher this year coming off such a successful and robust market from last year. Secondly, buyers were willing to sit back and wait for price decreases if they felt the property was priced on the higher end of the market. Also, buyers continue to be savvy, studying the internet, and determining the home’s value before ever stepping foot in the property.

“HOME PRICES ARE RISING!”-Geri Farrelly

In 2018 the average list price was $589,724.00 for single-family homes.

In 2019 the average list price was $617,602.00 for single-family homes. The average list price increased by approximately $28,000.00

In 2018 the average sale price was: $591,156.00

In 2019 the average sale price was: $622,168.00

An increase of $31,012.00, the increase appeared to be a steady climb as compared to last year as the prices were increasing at a much more rapid rate. A steady increase is much healthier for our community’s economic outlook.

The award-winning school system, amazing park system, the proximity to Boston and North Shore/New Hampshire Beaches, as well as the reputation of being such a great community which offers an excellent quality of life for its residents. North Reading housing inventory continues to be low which leads to a seller’s market, as of today there is 1.76 months’ worth of inventory. The market is balanced when there is 4-5 months’ worth of inventory on the market.  So, you can see we are significantly below the balanced market, which indicates it is an opportune time to sell if you are thinking about doing so.

The combination of interest rates at the lowest they have been in years and a strong, healthy real estate market make both experts say the answer is YES to the question, “Is it the right time to buy or sell your home?”  The good news is there’s still time to make a move before the school year starts and the fall weather arrives. Maybe it’s time to make that change. Reach out to your realtor and mortgage loan officer today to get things moving in the right direction.

Tom Patch, MLO#142695, is a mortgage professional at Mortgage Equity Partners, NMLS#1936. 

Geralyn Farrelly is the Broker/Owner of Farrelly Realty Group, North Reading, MA License # 9533996

There is no denying that Social Media is necessary for a company or service provider to be in business in 2019. It is here to stay, and it will continue to evolve. But, it can be fun and could end up being your best friend if you can figure out how to harness its powers to generate some business. It is a lot easier than knocking on doors and cold calling.

What is Social Media Marketing? It is a hybrid definition of two important things Marketing and Social Media!

One definition of marketing is communicating the value of a product, service, or brand to customers to promote or sell that product, service, or brand.

Marketing blends art and behavioral sciences, such as psychology and sociology, and makes use of information technology to interpret the data.

Social Media Marketing focuses efforts to create content that attracts attention and encourages readers to share across their social networks; the message spreads from user to user as opposed to the brand or company itself. This form of marketing is also referred to as “earned” media.

Digital Marketing uses electronic devices to engage with users; includes platforms such as website, email, apps and social networks as well as non-internet channels like TV, radio, and SMS, also referred to as online marketing, internet marketing or web marketing.

If you combine this all together, it is Social Media Marketing. What has changed are the methods to communicate our messages and the devices we are using to consume the information, but in the end, it is all about ROI. We are trying to influence people to buy our product, service, or brand.

The major Social Media channels for mortgage professionals to use for marketing are:

LinkedIn-a professional networking channel. The intention is to learn, grow, and connect. Content should be formatted for busy professionals on their lunch break or coffee break. LinkedIn is where mortgage professionals should be going to impress and inform realtors and business partners, as well as prospects with well-researched informational content.

Twitter-a conversational networking channel. The intention is to speak to each other and gather information as quickly as possible. Communication on Twitter is much faster than other platforms. Content should be concise and frequent.

What people want on Twitter:

• Talk with people not at them
• Add photos and videos
• Time is everything
• More is more

Facebook-The intention is to be entertained and stay in touch with friends and family. Content should be visually impactful and use storytelling.

• Join groups to generate opportunities
• Answer questions
• Create a community around your service
• Establish authority
• Network digitally

YouTube-The intention is to learn new skills or be entertained. Content should be edited and stylized to stand out with a consistent theme and target audience.

Instagram-The intention is to be inspired and motivated. Content should be visually impactful. Storytelling is also super effective here.

In general, Social Media is highly visual. So, when you post, use images of people or places instead of things. Research finds that images of people get more engagement. While we love to show pictures of the beautiful homes for which we have provided funding, we should also take pictures of the people that are thrilled to be moving into that home!

Take photos of folks at your company. They help potential customers learn more about your brand and culture at your company. Anything fun and quirky works! Don’t be afraid to let your co-workers shine. Remember, your customers might not ever see the great processor that worked tirelessly on their loan in person, but they might love seeing him or her enjoying pizza Friday or Rex Sox day at the office!

Make sure your images represent the world around you, too. Don’t forget about diversity and inclusion; this creates a Social Media image to which everyone can relate!

When you create content, the intention is supposed to be to inform or entertain with the result being engagement. Engagement can be “liking” your content, which is fine, but what you want are comments and sharing. You want borrowers, realtors, and referrals partners to ask questions or even disagree with what you have posted so you can explain your point of view. You want interaction.

So, by now, I think we all agree that you need to be on Social Media. That also means that you have to create content. I believe the best content for mortgage marketing has to come from someone who knows the industry. There are companies that create content for mortgage and real estate professionals, but you must read and review the content carefully. Content creation is an industry in itself, and the content is sometimes made to be sold to as many users as possible. Therefore, you need to review it to make sure it is consistent with your brand and your companies’ core values.   You don’t want to pay for generic content that mentions a competitor, links to a competitor’s website, or is filled with inaccuracies.

There are also companies that you can use to give you ideas of what type of content to create. I tried one that assured me they could provide me up to 100 ideas for articles related to mortgage topics. The joke was on me! It was a program that inserted a keyword into the same set of titles for everyone no matter what your industry. (Think Mad Libs with every answer being mortgage).

Here are some of the topics I received:

• 15 undeniable reasons to love mortgage
• Addicted to mortgage? Us too. 6 reasons we just can’t stop
• 17 reasons why you should ignore mortgage
• Forget Mortgage: 10 reasons why you no longer need it!

I can tell you it would not be easy to write these articles. As you can guess, these titles were generated by a program that substituted in the word “Mortgage.” This company wanted me to pay for these “content ideas.”

You have to be careful of all the Social Media marketing companies out there trying to sell products to professionals like loan officers who are often so busy pushing loans through the pipeline that they don’t have time to stay on top of Social Media trends.

You also need to be an active participant in your marketing at some level. If you hand over the keys to someone else, you might not be in control of where you end up! If you decide to let someone else handle it, you should pay close attention to the things they are posting for you. But again, there is no replacing the Loan Officer. Loan Officers are licensed and are the only ones that can talk about rates and programs so if you get a good marketer that makes the phone ring or gets a conversation going you have to be ready to be engaged with customers. “Business engagement positions you as the expert in the eyes of others which lead to referrals,” According to Eric LaFleur, Branch Manager at Mortgage Equity Partners. Social Media creates new opportunities to get in front of a whole new audience from the comfort of your very own office!

Organic vs. paid advertising is a different discussion. We would all love it if organic (non-paid) advertising worked, and it does to some degree. I have heard that only 10% of your followers or friends ever see a post you make on Facebook due to algorithms. If that is the case and you really want to know who is seeing your posts and who is engaging with them, then you have to pay to play. Facebook Ad Manager is a great way to create ads and track their effectiveness. But, you have to put your credit card down, and you have to set realistic expectations. If you expect to get 100% qualified leads immediately, you are going to be disappointed. It is a process of trial and error to develop the right message, to design the best graphic, and to cultivate your ideal target audience. But, once you do, it proves to be a very effective method of lead generation.

“With the advent of Millennials entering the buying sphere, we find ourselves relying more and more on Social Media. This is undoubtedly the best way to reach them,”, said David Holding NorthEast Regional Sales Manager for Mortgage Equity Partners. And, after the Millennials is a new group that will have never known life without Social Media or life without an iPhone. We have to be ready for them as well. “For companies to be successful in the future, they have to embrace Social Media and continue to invest resources in all aspects of technology,” said David. Let’s hope that we can come up with the correct balance of customer contact and non-personal relationships because Social Media is here to stay and you can love it or hate it, but it is the way to do business today and into the future.

Congratulations! You’ve decided it is time to buy your very first home! Soon you will have the key in hand, rooms ready to be made cozy, bones ready to settle in. But, you may discover you need to pay thousands for fixes you didn’t know about. You will run out of eggs one morning, and “oh no!” the closest grocery store is 7 miles away! And, your new friend living down the street somehow got a much better mortgage rate than you! What could I have done differently to avoid these hassles? What did I not know?

The first thing you need to know when buying a home is that an open mind and realistic expectations are going to make you the happiest. While many people do find a place that they love, no home is perfect. But going into the process well-informed will make it easier, not to mention more enjoyable. Here are some of the best tips for any first-time homebuyers looking to find an abode to adore!

1. Be prepared to buy a home before you look for one. Does this mean no street shopping or Zillow browsing? When you genuinely want to find a home, there are so many avenues to consider, especially finance-wise. What is your income? Total debt? Unfortunately, those student loans and car payments won’t just disappear. Do you have a decent credit score that will get you the best mortgage rate? And, of course, the down payment… without a small (or large depending on what you can afford) stash of funds set aside, the chances of qualifying for loans are slim. If you have been working on this already, you’re heading in the right direction!
2. Secure a pre-approval letter. Not only does this tell sellers that you are seriously searching for a home, but it also assures them that you can pay for one. You get an idea of the interest rate for which you qualify and a mortgage estimate which will detail the total costs. Better to jump in knowing what to expect!
3. Make a list of your top priorities in a home. This one can be fun! Go to a café, talk about your wishlist, and decide what your ideal home would look like. What is essential here is to determine what is a necessity and what is not.

Pro Tip: consider the neighborhood as a high priority! Or at least make sure the grocery store is accessible, so you don’t have to run a marathon for your breakfast. The home itself is the main event, but the location can make or break both your happiness and the resale profits.

4. Find a local realtor. Someone who knows the area you are looking to buy in like the back of their hand will be able to recommend everything from the best plumbing service to the restaurant you should go to celebrate! The best realtors will guide you step by step to assure you don’t miss a thing and will advise you honestly and sincerely.
5. Look at all of your mortgage options. You have the right to shop for a mortgage loan consultant and a mortgage program. Never settle for the first offer you receive if you are not 100% confident about everything. You should review the costs, terms, and consider your relationship with the loan officer. If you have a good relationship with your loan officer, you have a much better chance of having a smooth transaction!

Pro Tip: Be wary of having your credit report pulled too many times; this could hurt your credit score and is unnecessary to do with every mortgage professional you meet.

With the right knowledge and people behind you, running out of eggs in the morning will never leave you walking seven miles you didn’t know it took to get to the nearest store. Go into the buying process excited and prepared to come out with a (nearly) perfect home!

This article was written for MEP by our guest blogger Susan Register. Susan is student at St. Lawrence University majoring in Liberal Arts and Global Studies.

In the wake of the mortgage crisis, millions of homeowners were forced to go into foreclosure. As a result, the banks had to take back ownership of their properties, which were often in disrepair.  Lenders don’t like this!  They want borrowers to pay their mortgages on time every month.

The paperwork verifies, as accurately as possible, that borrowers can afford the loan amount for which they are applying, pay their other expenses AND still be able to go out and have fun with a little bit of spending money left over, too!

Some of the documentation you may be asked for when applying for a mortgage includes:

• Legible copies of Drivers License or passport
• Paystubs covering the last 30 days
• Last two years of W2’s or 1099’s
• Last two years Federal Tax Returns
• Most recent two-months checking/savings statements
• Copy of divorce decree, alimony/child support order, bankruptcy documents (if applicable)

If you are planning to purchase a home, keep copies of these documents to make the process easier down the road.  And, when you are within a few months of purchasing you should take the documentation to your lender and get a pre-approval this way when you do find your home, you will be half-way there with your mortgage!

Reach out today for more information or to start the pre-approval process.

What causes mortgage rates to change?

1. Bond Market – Bonds have a strong influence on interest rates. In a strong economy, more people buy stocks and fewer buy bonds, driving down bond value and their price. When that happens, the yields must increase so the bond will have the proper payout. In turn, interest rates increase, including mortgage interest rates. So, in a stable economy with a strong stock market, you’ll pay higher interest on your home loan. When the stock market is weak typically rates are lower.
2. Economic Influences – The Federal Reserve, unemployment rates, home sales and consumer confidence all indirectly play a part in setting interest rates.

What determines the rates offered by a lender?

1. Down payment – The more money you have saved for a down payment on your home, the lower the interest rate.
2. Credit history – Consumers with higher credit scores have access to more competitive interest rates.
3. Loan term – Loan terms less than 30 years have lower interest rates.
4. Property type – The best rates are for single family homes used as a primary residence.
5. Loan size – The loan limit for a conforming loan in 2019 is $484,350. Loan amounts over that amount are considered high balance or jumbo loans which have higher interest rates*.
6. Points – You can pay a percentage of the mortgage amount upfront in the form of points. By paying this fee upfront, you can buy down the interest rate.
7. Mortgage Program – A fixed rate loan has a rate that is higher than the initial rate available with an Adjustable Rate Mortgage. There are other considerations with an ARM that should be discussed with a loan officer to see if this program is right for you.

If you think you are ready to purchase you should consider locking in a rate now, especially since the pattern is that rates will continue to rise. Remember, even if rates go up you can play a part in getting the best rate. You should focus on managing your credit, saving for a larger down payment and buying a home you can afford and not overextending yourself.

Providing you with an accurate rate quote depends on many variables. Contact a loan officer today to understand how these factors affect your financial future, as well as, what steps can be taken to help you find the best loan available for your unique situation.

Call us today at: 877-866-4511

*loan limits may be higher in some counties. See 2019 Loan Limits

“Our focus is to continue to grow our company by maintaining our service level, building our outstanding product portfolio and keeping it local,” said Manieri, who has been in the mortgage industry since 2000 as an originator, sales leader and entrepreneur. “As we continue to grow, we continue to hire local people that can make decisions based on the needs of their customers.”

MEP partners with its customers to provide the best possible home financing experience through customer service, education and technology.

“We are rolling out some exciting new technology to keep our loan officers relevant and current with the most efficient practices,” said Driscoll. “We are making significant investments in infrastructure to give our loan officers the tools they need to best serve our customers.”

You can struggle for years to save money for a down payment and put off buying only to find that prices of homes have gone up and so have mortgage rates. Every month that you don’t pay your own mortgage, you are paying someone else’s mortgage. You are contributing to building wealth for someone other than yourself. When you are paying a mortgage, you are building equity. Also, if you own your own home and it appreciates good for you, but if you wait to buy and homes appreciate that’s not good for you!

Appreciation and equity are the biggest considerations, but other financial factors may influence your decision to buy a home, such as:

• Rent Increases
• Other regular costs associated with renting, like parking and pet fees, laundry and renter’s insurance
• Other regular costs associated with buying a home, like maintenance, taxes, and insurance
• Closing costs
• Life Events
• Other saving goals
• The cost of new appliances, furniture or lawn care equipment
• Resale potential

These are all practical reasons to examine when considering buying a home. Even though many experts advise using practical logic and not letting your emotions get in the way when choosing the time to buy, emotions are very hard to ignore.

So, if you are struggling with the decision, it is good to know that there are practical financial options available even if you don’t have a lot of money for the down payment. There are programs which offer down payment assistance in most counties in the US. Many of these programs are unknown to eligible borrowers. For example, many of the “millennials” who are renting now that have a good income and good credit would benefit greatly from a down payment assistance program.

An FHA loan has the option of putting a low 3.5% down payment. FHA loans are more flexible with credit scores as well if that is an issue. Conventional loans such as; a 30-year fixed rate loan, have a 3% down payment option. They require PMI (private mortgage insurance), which can be included in the monthly payment. And finally, if you are a veteran, there is a 0% down payment option for you!

Mortgage rates are at two year low, so now might be the time for you to make a purchase!

It makes sense to reach out to a lender to find out more about these down payment assistance programs and low down payment options. You may be closer to buying a home than you think.

Buying a home can greatly improve the quality of your life as it can fulfill your desires for stability, privacy, freedom, more space for family and pets, or just having a place of your own. Take the first step and let Mortgage Equity Partners to Lead You Home!

The key to starting a successful home buying process is first to have a solid understanding of what kind of home you are looking for and how much you can afford. If you have been thinking of buying a home for a while, you have probably come up with a list of things you would love to have in your home. Maybe you have probed the internet or fantasized about what you have seen on the home makeover television shows, Instagram, or Pinterest. But don’t confuse must-haves with your wish list!

During the home buying process, it is crucial that you are optimistic but also practical because sometimes not everything you want fits within your budget.  A solid home with good bones that you can customize as the years go by is an excellent option for first-time home buyers or buyers with limited funds.

Getting pre-approved for your mortgage will help you understand how much house you can afford.  Once you know this, then you will be able to successfully figure out how much you have left to spend on the fun stuff like furniture and interior decorating.

Realtors and mortgage loan officers advise that home buyers create a list of all the features they would like to see in a home and qualify them in the ways listed below…but before making your lists ask yourself a few questions.  Could the “she shed” be a future renovation project instead of a make or break now? Do I really need the walk-in closet to be happy? Would a two-car garage be a convenience or a necessity?

• The “Must-Haves” – The things you absolutely need to have, you need these things, period. If this property does not have these items, then it should not even be considered (ex: distance from work/family, number of bedrooms, yard).
• The “Should-Haves” – The things you know you should probably have.  The things that are considered somewhat of a priority, but you could live without them for the short-term.  If the property hits all the “must-haves” and some of the “should-haves,” it stays in the running, (ex. number of bathrooms, central AC, new roof, new windows, fenced yard).
• The “Wish-List” – The things you would love to have but are not necessarily a priority. You can live without them, and you will not be upset if you do not have them right away, (ex. his and her sinks in the large master bathroom, heated tile floors, barn doors, farmhouse sink, and fully stocked outdoor kitchen).  If you find a property in your budget that has all the “must-haves,” most of the “should-haves” and any one of these, it is time to make an offer.

Creating these three lists can keep you on the right track. If you find yourself at a crossroads, you can always go back to your lists as a guide. Your realtor and mortgage loan officer will love you for having these lists fleshed out beforehand. It will help give them a clear understanding of what you are looking for so that you can avoid looking at homes in which you have no interest or can’t afford.

Completing these lists are in any home buyers’ best interest. Buying a home is probably one of the most important purchases you will make in your life; it is helpful to get organized right away so that you spend your time and money wisely.

The best way to set appropriate expectations for what your home buying process might look like is to partner with local professionals who know the real estate industry inside and out.

A local realtor knows the community better than anyone. A well-connected realtor might have inside information on a home that is coming on the market very soon. They might have the “inside scoop” on why a seemingly perfect house has been on the market for more than a year and still not sold.

You also need a local mortgage loan officer. There are specific loan programs that vary by region, so having someone with experience in the communities in which you are searching gives you an advantage when it comes time to get financing for your new home. Local loan officers also work with other local professionals involved in the process, such as the home inspector, appraisers, and closing agents. The value of these established relationships is that they help the process go more smoothly. However, you should never allow yourself to be pressured into using a specific service provider.

In addition to partnering with local pros, here are five tips to help you find your dream home and enjoy the process at the same time!

1. Hire a local real estate agent-As stated before; a local realtor can be invaluable in your home search. A great realtor knows the community and even the background on homes and previous owners. The best realtors get their business via “word of mouth.” A realtor who is invested full-time in their community will work much harder to make sure their buyers are happy!
2. Get pre-approved for a mortgage before you start looking for your dream home-Getting a valid pre-approval involves an examination of income, assets and credit documents. A pre-approval makes you more competitive when you make an offer on a home, but it also helps you to be realistic about what kind of home you can afford. So, it is crucial that you get it done first.
3. Narrow down the communities in which you want to live- Are the schools important to you? Do you want to live in a densely settled area or do you want to live in a more rural area? Where do you work, and what will the commute be like for you? Also, you may love a city or town, but not yet be able to afford the prices of the homes in that community.
4. Pick your favorite property style – This is the fun part! If you must have new construction knowing this up front will eliminate unnecessary visits to unsuitable properties. If you love the idea of restoring a historic home, then it wouldn’t make sense to visit a new development area.   To maximize the time you spend out in the field searching for your dream home, think carefully about the type of home in which you want to spend the next 30 years, (presumably)!
5. Be patient-Set a realistic time expectation for completing your move. The right loan officer and mortgage company can close your loan, in some cases, within 15 days; finding the right home may take quite a bit longer. Give yourself time to find what you really want!

If you know in advance what to expect and what the process entails, you will be better prepared to deal with the ups and downs along the way. It is still a very competitive housing market, but with the right information and guidance from your partners, it can be a fun and exciting experience.