3 Ways to Take Advantage of This Spring’s Housing Market

When warm weather approaches, many people get excited about buying a home. Longer days and nicer temperatures create the perfect atmosphere for house hunting.

The summer and spring months are peak home selling seasons. So, if you’re looking to get in on the action, now’s the time to start planning. And if you don’t have plans to move, you might consider a mortgage refinance.

Here’s a look at three ways you can take advantage of this spring’s housing market—whether you’re buying, selling, or staying put.

1. Buy your first home with a cheaper mortgage rate

If you’re thinking about buying your first property, interest rates are currently at historic lows.

Most people buying their first place want to keep their mortgage payment as low as possible, and taking advantage of low rates is one way to do this.

Mortgage rates fluctuate. When rates drop, this not only allows borrowers to get more house for their money. Lower rates also reduce how much they pay on a monthly basis and over the life of their loan.

Because interest rates are expected to remain low, some housing experts predict tight inventory this upcoming spring. This can result in more competition and more bidding wars among buyers.

To stay ahead of the competition, speak with a loan expert at Blue Spot Home Loans and get pre-approved for a mortgage before shopping. This way, you know the maximum you can afford. And once you find the perfect property, you can move quickly and put in your offer.

If a home seller has to choose between two buyers, they are likely to select the buyer with a pre-approved mortgage loan.

2. Sell your home faster

If you own a property and you’re thinking about upgrading or downsizing, tight inventory this spring could mean a faster sale of your current home.

And if buyers compete for your house, this could drive up your sale price, allowing you to walk away with slightly more profit. The more money you get from the sale, the more cash you can put down on your next place.

In addition, if you’re thinking about upgrading to a bigger home, a lower interest rate may help you get more square footage, while only increasing your monthly mortgage payment by a small percentage.

3. Refinance your mortgage

With rates predicted to remain historically low, this spring is also an excellent time to refinance your current home loan.

You can apply for a rate-term refinance, which allows you to shorten or lengthen your mortgage term while taking advantage of today’s low mortgage rates. A lower rate can reduce your monthly housing payment, freeing up cash for other purposes.

You can put the extra money toward paying off other debt, saving for retirement or building your emergency fund.

If you have plenty of equity in your home, you might qualify for a cash-out refinance. With this process you’ll receive a lump sum of money to be used for many purposes. Some people use money from a cash out transaction to renovate their home, consolidate debt*, pay for college or take care of other personal expenses.

To qualify for refinancing, though, you must complete a new home loan application and go through the approval process, again. Refinancing replaces your existing mortgage with a new one.

Explore Your Mortgage Options with One of Our Experts

The spring and summer selling season will come and go quickly. So if you’re thinking about buying your first home, buying another property, or refinancing your existing home loan, now’s the time to act.

Give the loan experts at Blue Spot Home Loans a call to discuss your options. We can answer any questions you have about the home loan process, mortgage programs, credit requirements and more. The sooner you contact us, the sooner you can start the process and take advantage of low mortgage rates before they increase.

• Debt consolidation does not pay off the debt, please consult a financial advisor regarding the effect of consolidating short-term debt into long-term debt.