Our operations manager, Ben, working on his yard at his home in Stanton Heights.
Whether you bought your home two weeks ago or two years ago, there’s nothing quite like your mortgage statement arriving in the mail to remind you how significant your responsibility is as a homeowner right now. Here are some of the more pressing questions homeowners may be wrestling with.
I’ve been financially impacted by the virus. What resources are out there for me?
Housing Alliance of Pennsylvania has one of the most succinct lists of resources for homeowners.
United Way makes it easy to call or chat with them to connect to the best resources for your personal needs. From unemployment to mortgage deferment, they can connect you to available services.
Trellis Pittsburgh is a local legal firm that specializes in non-profits and small businesses, and it provides affordable, accessible legal services. They have outlined some great resources for those looking at applying for unemployment and small business loans.
I bought my home recently and I don’t have much equity. Now I’m scared I could be “underwater” on my home.
First, let’s define a few terms. “Equity” is the difference in Market Value (what a buyer would be willing to pay for your home) minus Principal (the amount you owe the bank). Often, first-time buyers purchase a home with as little as 3.5% down. This is great when you’re buying, but tough if you need to refinance or sell. If the market goes down, you may owe more on your home than what a buyer is willing to pay for it. An “Underwater Mortgage” is when you owe more money than your house is worth.
As we watch the financial market change, there is a lot of anxiety that we’ll see the next “2008” with a housing market crash as well. While some short and medium-term dip in home values is possible and likely, we are lucky in Pittsburgh to have the anchors of our local economy in Healthcare and Technology, which are less likely than economies based on industries such as tourism to take a huge hit (#EternalOptimist).
Remember that, just like stock values, your home’s value is only real when you sell it or refinance your mortgage. If you’re planning to stay for a while and you aren’t trying to pull equity out, sit tight for now.
Julie painting the living room at our new house.
My home doesn’t fit my needs anymore, but I don’t want to move right now. What are my options?
If we’ve learned one thing, it’s that life changes quickly, and when you least expect it! Here are a few scenarios that may create a need to adjust your current living situation, and ideas on how to make your current space work for you.
If the space in your house is comfortable in your house, but you’re looking to reduce your monthly expenses, consider refinancing your mortgage payment. Interest rates are still incredibly low, and if you’re planning to stay in your house for a while, you may save a lot of money by refinancing. As realtors, we can help you assess the current market value for your home, and we can recommend some great lenders to help you navigate the process.
If your family is growing, and you need more space to accommodate, consider refinancing with a renovation loan. Whether you have family members moving in because they’ve been financially impacted by the market, or you’re celebrating the birth of a little one, some big changes require larger renovations. As agents, we can help you understand your current home value, and help you weigh the costs and benefits of renovating your home vs. moving into a larger one. Julie and Ted have gone through this process themselves, and we can also help connect you with lenders and contractors that specialize in renovation financing.
If you’re tight on space but don’t want to make a major change, we can help you to problem-solve to maximize your home’s potential. Currently, Julie and Ted (and our four kids) are sharing a two-bedroom house with Julie’s parents, while we work from home, homeschool, and entertain our toddler. We are masters of creatively using space, and are happy to share our insights to make your home work for you!
I have extra time on my hands and want to work on my house. Where should I start?
This depends on your goals. Do you want to improve it to rent, to sell, or to enjoy for yourself? The best place to start is a casual conversation with the Blocks or Lillian to talk about your goals and work on a plan. We are offering free virtual consultations, and are always happy to be a resource for your questions as they come up!