Things to Know and Consider when Buying a Home (Martini Buyer Guide | Winter 2022)

December 7, 2022 by Kevin Martini

If you are a first-time homebuyer or a repeat homebuyer, there are many things one needs to know and consider when buying a home. Certified Mortgage Advisor Kevin Martini and Senior Mortgage Strategist Logan Martini curated the Winter 2022 Martini Buyer Guide to simply explain the current real estate and mortgage markets plus vital information about buying a home and the process of getting a mortgage. The Winter 2022 edition of the Martini Buyer Guide has many informative articles that talk about things one needs to know about the current real estate and mortgage markets.

Winter 2022 Edition of Martini Buyer Guide

If you are buying real estate, if you are selling real estate, if you are refinancing a mortgage or if you work in the real estate arena then the Winter 2022 Martini Buyer Guide would be very helpful since it simply explains the current real estate and mortgage opportunity.

The Winter 2022 Martini Buyer Guide was curated to simply explain what is going on in the real estate and mortgage markets.
Logan Martini, Raleigh Mortgage Broker & Senior Mortgage Strategist

Contents of the Winter 2022 Martini Buyer Guide (things to know and consider when buying a home)

best raleigh mortgage broker logan martini

What is happening in the market?

With everything going on in the housing market right now, you may have a number of questions about what that means for you and your plans to buy a home. Here are three things that are likely top of mind for you.

Why did Raleigh mortgage rates rise so much in 2022?
What is happening with home prices in Raleigh?
Should I buy a home in Raleigh today?

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Expert insights for today’s homebuyers

If you want to buy a home today in Raleigh or anywhere for that matter, here are a few things experts say you should know about what to expect and why homeownership is so important.

raleigh mortgage lender martini mortgage group expert insight for todays homebuyers winter 2022 martini buyer guide

Trends that are good news for Raleigh homebuyers

As the Raleigh real estate market has cooled but still remains strong, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too! Here are four trends that may be beneficial when you go to buy a home today.

More homes to choose from
Bidding wars have eased
More negotiation power
Higher loan limits

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2/1 Buydown

Increasing Raleigh mortgage rates are presenting some challenges and opportunities not just for first-time homebuyers but also to repeat homebuyers too! Leap over the challenges and into the opportunity with a creative mortgage strategy offered by the Martini Mortgage Group called a Seller Paid Buydown.

raleigh mortgage broker kevin martini steer paid buydown winter 2022 martini buyer guide — FREE BUYDOWN CALCULATOR

In most markets in North Carolina, especially in the Triangle, homebuyers will find that sellers are more willing to negotiate on price or other terms more than they have been in recent years.
Logan Martini, Raleigh Mortgage Broker & Senior Mortgage Strategist

5 traps to avoid when buying a home

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Home shopping before a solid mortgage approval.
Not considering the costs of sale.
Overlooking the costs of improvements, utilities and maintenance.
Using the wrong down payment strategy.
Shopping for a mortgage vs. shopping for the right mortgage professional.

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Top reasons to own your home!

Personal Expression
Accomplishment
Investment
Comfort
Family
Community
Privacy
Stability

The non-financial benefits of homeownership

While you could see less competition and more room for negotiation, you may be wondering if now’s the best time to buy a home given Raleigh mortgage rates are higher than they were last year. While the financial aspects are important to consider, there are also powerful non-financial reasons it may make sense to become a homeowner. See the full article on page 16 of the Winter 2022 edition of the Martini Buyer Guide.

Things to avoid after applying for a mortgage!

Why buying a home makes better sense than renting

If there is a time to rent, that time is not now.
Kevin Martini, Certified Mortgage Advisor and Raleigh Mortgage Broker

The long-term benefit of homeownership

Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how you gain equity and wealth as home values grow with time.

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Things to Know and Consider when Buying a Home (Martini Buyer Guide Winter 2022)Download

Let’s chat…

I’m sure you have questions and thoughts about securing the proper mortgage with the lowest cost of borrowing and real estate process.

We’d love to talk with you about what you’ve read in the Winter 2022 Edition of the Martini Buyer Guide and help you on the path to buying your new home. Our number is (919) 238-4934 and we look forward to working with you.

Logan Martini

Senior Mortgage Strategist | NMLS 1591485

Logan@MartiniMortgageGroup.com

Kevin Martini

Certified Mortgage Advisor | NMLS 143962

Kevin@MartiniMortgageGroup.com

2023 Raleigh Conforming Loan Limits

November 30, 2022 by Kevin Martini

The 2023 conforming loan limits for the Raleigh, North Carolina and the Triangle of North Carolina by the Federal Housing Finance Agency (FHFA) have been established. 2023 will bring a $79,000 increase in conforming loan limits for a one-unit property in Raleigh, North Carolina and surrounding areas. The new 2023 conforming loan limit is $726,200.

Higher conforming loan limits benefit both a homebuyers and homeowners too! For a homebuyers, it opens more price points with lower down payments For homeowners, they can access more equity.

Kevin Martini

Raleigh Mortgage Broker & Certified Mortgage Advisor

Benefits from the 2023 Loan Limit Increase

BUY A HOME

It may make sense for you to consider a new home purchase using the higher loan amounts. This may be the perfect time for you to lock in your interest rate before interest rates move higher.

REFINANCE

It may be worth it to consider a home loan refinance if:

You currently have a home loan that is near the loan limit
You’d like to make some home improvements
You’d like to consolidate other debts into your home loan (such as home equity loans or credit cards)
You’re paying mortgage insurance and your home has increased in value from the time when you purchased the home
You anticipate a change in your cash flow situation in the coming months (college funding, retirement, elder care, etc.)

Raleigh, NC 2023 Conforming Loan Limits

One-Unit

Two-Unit

Three-Unit

Four-Unit

$726,200

$929,850

$1,123,900

$1,396,800

All cities and towns in Wake County to include Raleigh and Apex, Garner, Fuquay-Varina, Holly Springs, Knightdale, Morrisville, Roseville, Wendell, Zebulon.

History of Conforming Loan Limits in Raleigh

conforming loan limits in raleigh kevin martini 507 n blount st raleigh nc 27604 martini mortgage group raleigh mortgage broker

What are conforming loan limits?

Fannie Mae (a.k.a. Federal National Mortgage Association or FNMA) and Freddie Mac (a.k.a. Federal Home Loan Mortgage Corporation or FMCC) were created by Congress to provide liquidity, stability and affordability to the mortgage markets. Both Fannie Mae and Freddie Mac are government-sponsored entities not lenders instead, they offer access to funds and guarantees.

Loans guaranteed by Fannie Mae or Fredie Mac are commonly referred to as conforming loans since they conform to the Fannie Mae and Freddie Mac guidelines. Conforming loans are also referred to as agency or conventional loans.

Housing and Economic Recovery Act (HERA)

In response to events of 2008, HERA was a piece of legislation that requires a baseline conforming loan limit to be adjusted annually to properly reflect the changes in average home prices using data from the last four quarters from the FHFA House Price Index (a.k.a.FHFA HPI).

According to the most recent FHFA HPI, home price rose on average 12.4% from the third quarter of 2021 to the third quarter of 2022. In North Carolina, home prices rose 17.4%. The Raleigh – Cary metro area had a 16.7% year-over-year change and is ranked #18 of 100 top metros.

Be ready to make you move

Let’s connect so you can understand how higher conforming loan limits can help you and your family.

Raleigh Mortgage Broker Shares Creative Mortgage Strategy for Raleigh Homebuyers | Martini Mortgage Group

October 16, 2022 by Kevin Martini

For perspective, basically a year ago, Raleigh mortgage rates started with a 3 and now they start with a 7. The last time Raleigh mortgage rates were at this level was in Spring 2002 and that was 20-years ago! Many experts predict, Raleigh mortgage rates will starts with an 8 sooner than we will see home loan rates that starts with a 5.

The Fed’s past, and likely future, tightening actions are engineered to decrease demand in order to reduce inflation. The Fed’s action are working as it relates to the housing and mortgage markets market.

The Free Martini Mortgage Group at Gold Star Mortgage Buydown Calculator

Increasing Raleigh mortgage rates are presenting some challenges and opportunities not just to first-time homebuyers but also to repeat homebuyers too!

Raleigh Homebuyer Opportunity

Raleigh mortgage rates are not the only thing going up, rents are too! Sure, we are seeing a deceleration of appreciation and it is possible to see a month-over-month decline of home values however annual home values are not forecasted to decline since there remains a supply and demand imbalance with real estate that could take a decade to resolve.
In this market, buyers are finding unprecedented homeownership opportunities.
Logan Martini | Raleigh Mortgage Broker with Martini Mortgage Group

Raleigh Homebuyer Challenge

It’s just a fact! The sharp upward movement in home loan rates is making home buying more challenging. Affordability and buying power is impacted in the current environment. With elevated home loan rates impact home affordability. When home loan rates move upwards by 1%, buying power is reduced by 10%.
Kevin Martini | Raleigh Mortgage Broker with Martini Mortgage Group

Buydown Home Loan Programs | a Martini Mortgage Group creative strategy to help Raleigh homebuyers to leap over the challenges and take advantage of the Raleigh real estate opportunity to become a homeowners.

What is the Martini Mortgage Group buydown loan program (a.k.a. Seller-Paid Buydown)?

The Martini Mortgage Group Buydown Program offered by Logan Martini and Kevin Martini is where where the seller pays a fee at the closing to reduce the interest rate on the buyer’s mortgage temporarily. This results in temporarily lowering the buyer’s monthly cost and making the home more affordable for a homebuyer today.

A buydown reduces the homebuyer’s interest rate and monthly cost during the first few years(s) of homeownership, making the home more affordable for homebuyers. It has a much greater impact on the homebuyer’s monthly payment than reducing the list price of the home.

The Martini Mortgage Group, a Raleigh mortgage lender, Buydown Program has three options (i.e. 1-0 Buydown, 2-1 Buydown & 3-2-1 Buydown).

1-0 Buydown

Seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) to reduce the interest rate on the Raleigh homebuyer’s mortgage by 1% in year 1.

an example of the 1-0 buydown Program by Martini Mortgage Group, a Raleigh mortgage lender

For illustration ONLY: if homebuyer purchased $400,000 home and put 20% down with a 30-year fixed rate of 7%, they would have a P&I payment of $2,129. However, if the homebuyer requested (or the seller offered) at list price (e.g. $400,000) the Martini Mortgage Group 1-0 Buydown Program, the rate would be reduced by 1% for the first year (i.e. 6% in this example for illustration ONLY). The homebuyer would save $2,520 of P&I during the first year and that is a savings of $210 a month to the homebuyer.

2-1 Buydown

Seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rates on the buyer’s mortgage by 2% in year 1 and 1% in year 2.

an example of the 2-1 buydown Program by Martini Mortgage Group, a Raleigh mortgage lender

For illustration ONLY: if homebuyer purchased $400,000 home and put 20% down with a 30-year fixed rate of 7%, they would have a P&I payment of $2,129. However, if the homebuyer requested (or the seller offered) at list price (e.g. $400,000) the Martini Mortgage Group 2-1 Buydown Program, the interest rate would be reduced by 2% for the first year (i.e. 5% in this example for illustration ONLY).

During the first year of the 2-1 Martini Mortgage Group Buydown Program, the homebuyer would save $4,932 of P&I. That is a savings of $411 a month to the homebuyer during the first year.

During the second year of the 2-1 Martini Mortgage Group Buydown Program, the homebuyer would save $2,520 of P&I. That is a savings of $210 a month to the homebuyer during the second year.

3-2-1 Buydown

Seller pays a fee at closing (the fee must be within the Interested Parties Contribution based on the loan the homebuyer is securing) reduce the interest rates on the Raleigh homebuyer’s mortgage by 3% in year 1, 2% in year 2 and 1% in year 3.

an example of the 3-2-1 buydown Program by Martini Mortgage Group, a Raleigh mortgage lender

For illustration ONLY: if homebuyer purchased $400,000 home and put 20% down with a 30-year fixed rate of 7%, they would have a P&I payment of $2,129. However, if the homebuyer requested (or the seller offered) at list price (e.g. $400,000) the Martini Mortgage Group 3-2-1 Buydown Program, the rate would be reduced by 3% for the first year (i.e. 4% in this example for illustration ONLY).

During the first year of the 3-2-1 Martini Mortgage Group Buydown Program, the homebuyer would save $7,212 of P&I. That is a savings of $601 a month to the homebuyer during the first year.

During the second year of the 3-2-1 Martini Mortgage Group Buydown Program, the homebuyer would save $4,932 of P&I. That is a savings of $411 a month to the homebuyer during the second year.

During the third year of the 3-2-1 Martini Mortgage Group Buydown Program, the homebuyer would save $2,520 of P&I. That is a savings of $210 a month to the homebuyer during the third year.

Raleigh Homebuyers Consider Martini Mortgage Group Buydown Home Loan Program A Quasi Asset

At time of sale or refinance, the unused balance of the buydown is credited to the customer.

Is the Martini Buydown Program the Best Mortgage Loan Program if securing a home loan in Raleigh, North Carolina for a first-time or repeat homebuyer?

It depends! Sadly no mortgage company website can determine the clients best loan options. Obviously payments are more affordable temporarily not permanently with a buydown home loan program so, a customer needs to consider the length of time they will be in the home loan to determine the true benefit.

Since many industry experts and Fannie Mae are predicting a conventional interest rates will start with a 4 in late 2023 or early 2024, it is likely the loan program a customer gets today they will likely be refinancing in 12- to 18 months.

I have been in the financial services since the late 80’s and exclusively in the mortgage industry since 2006 in Raleigh, North Carolina. I have yet to meet two clients that have the same financial needs.
A home loan solution for a home purchase may be different than one that is for a refinance. Perhaps a FHA home loan is the proper home loan financing solution for a customer to buy a home with but a conventional is the proper lending solution to when refinancing.
Whether buying a home in Raleigh, NC or refinancing a mortgage, a customer needs to understand it is a process not an event to secure the proper home loan financing solution. The process does not need to be painful, it should be free and educational while providing the customer with price and cost clarity with certainty.
Kevin Martini | Raleigh Mortgage Broker with Martini Mortgage Group

Advantages AND disadvantages of Buydown loan options

With anything, when there are advantages, there are likely disadvantages and this sentiment is true with buydowns. Things to consider are: the prevailing rate, the amount of the loan, the amount of interest saved, how loan you are expecting to be in the loan and your future income.

Advantages of Buydown loan options

a temporary reduction of interest rate provides payment assistance to Raleigh homebuyers
the potential opportunity to purchase a home in Raleigh, North Carolina less than list price
the ability for a first time or repeat homebuyer to ease into a payment

disadvantages of Buydown loan options

once the temporary reduction of interest rate period is over, there is no more payment assistance
if thoughts of refinance do not materialize or income does not increase one could struggle the absence of payment assistance

Get trusted advice from a local expert that some call the best mortgage guys in Raleigh, NC. The Martini Mortgage Group offers local home loan programs such as Conventional Loans, FHA Loans, Jumbo Loans and USDA Loans to name a few. To contact loan officer Logan Martini or loan officer Kevin Martini for a financial review simply call (919)238-4934 or stop by the office since the Martini Mortgage Group is local and is located in downtown Raleigh, NC at 507 N Blount St, Raleigh, NC 27604.

Martini Mortgage Group Buydown Loan Program Can Be Combined with the Martini Mortgage Group ‘No Contract Lock’

The No Contract Lock (a.k.a. Lock & Shop) is where a clients can lock a loan program for a Conventional Loan, FHA Loan or VA loan for up to 90-days at no charge with a FREE float down option.

Future homeowners can shop for their next home worry-free in Raleigh, NC knowing their interest rate is protected for 90-days. For added purchase worry-free protection, if the interest rate rises their loan rate is protected. Plus, if the loan program interest rate drops, as a mortgage lender, we offer a free float-down option. This is a lending industry first.
Logan Martini | Raleigh Mortgage Broker with Martini Mortgage Group

There are many lenders in Raleigh but many believe the best mortgage company in the industry is the Martini Mortgage Group

See our online reviews on the service we offer and why a top rated in the lending programs and services we offer but also many believe we are the best mortgage company in Raleigh, North Carolina.