Coming Soon (Sunday) to a San Francisco Chronicle Near You

Yours truly will be featured for the fifth time in the San Francisco Chronicle's Real Estate Sound Off where the following will likely be edited down to fit in the space allotted. But just for you, here's my full thoughts on paying off your mortgage versus refinancing.

 When considering how to approach the mortgage on your home there are a few things to consider: How long do you plan to live there? What kind of loan do you have and how does it fit into your long term plans? How much equity do you have in the property? What is your interest rate compared to current rates?

Because of the lending fiasco of the early and mid-2000’s many people think that refinancing their home means pulling money out, but that’s not always the case. If your interest rate is higher than the current rates for a comparable loan, why not refinance and reduce your interest rate? As long as the fees to do so don’t outweigh the long-term benefit there’s no reason not to keep more money in your pocket each month. If your plans changed and the length of time you will stay in your home has lengthened (or shortened) making a different loan a better fit for your new plan, talk to a mortgage broker to see if there are ways to lower your monthly payment or restructure your loan for greater long-term stability.

If you decide to pull some money out of your home, carefully consider what that money is going to be put toward. Will you use it to do home improvements and increase the overall value of your home? Like reinvesting dividends, that could be a good use of your money. Finally, if you plan to spend some of your equity but are happy with your loan, consider a home equity line of credit which will preserve your primary loan and won’t draw on your equity until you actually spend the money.

Rents on the Rise (Again!)

According to this post on sfgate, rents in San Francisco have gone up yet again and now average $3,458/month for a one-bedroom unit.

Most people continue to rent because they don't think they have the money for the downpayment -- 20% of the rising sales prices. But you don't need 20% down to buy a house! Did you know that you can buy a home with as little a 3% down?

If you rent an apartment for $3,000/month, you could own a $417,000 condo for $2,700/month -- that leaves you with an extra $300/month for your utilities and other expenses.

As both rents home prices continue to rise, doesn't it make sense to spend the same amount per month on a property whose increasing value means money in your pocket -- not your landlord's?

Are you concerned you'll have trouble finding a property for under $450,000? Trust me, there's more out there than you think -- email me for a list. Still, if you find your tastes are a bit more expensive, you still have the ability to purchase with only 10% down (up to $1m purchase price!).

There are creative ways to put together your downpayment and closing costs; with a professional history in mortgage lending I can give you some ideas to get you started.

So, what's your excuse? 

Sounding Off in the SF Chronicle

This past week I was asked to answer the question, "How can you determine fact from fiction in online Realtor reviews?" for the San Francisco Chronicle. While they've yet to update the Sound Off section in the sfgate.com, the text below is what I submitted as my answer. Due to space restrictions I had to leave out a couple additional points, so you'll have to ask me what they are if you are curious.

When reviewing Realtor profiles & reviews online you should look deeper than the information being presented to the way it's being presented. As this SFGate blog post from April 20th discusses, buzz words can make a difference in home sales prices; likewise buzz words can make a difference in the impression you have when reading about an agent. What do those commonly found descriptors like “premiere” and “top producer” actually mean?

Most agents, especially those who have been in the industry for many years, will represent themselves accurately and will have a good sampling of reviews from which a discerning reader can pull valuable information. Consistently mentioned personality and professional traits can offer reliable information about an agent. Also look for a consistent voice in an agent’s website or blog; does that voice match what the reviews say? When reading online reviews, remember that if a person has a negative experience they tend to share it, so if an agent has all positive reviews on reputable sites, it's safe to say they're doing a good job for their clients.

Finally, use all the resources at your fingertips. There are many sites you can look to for reviews and sales information; Yelp, Realtor.com, Zillow, Trulia, and LinkedIn all offer platforms for client-written reviews. With over than 15 years in the business, I can say that the cream does rise to the top, and agents who act unprofessionally or unethically don’t stick around long regardless of what buzz words they use.