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  • Paul Lichtenberg

Four Opportunities for Homeowners to Build Wealth Now!


Our favorite is #3 !



I’ve been noodling on this for a while now, but the real estate market has been so hot, I haven’t had time to tell everyone about it. Only my family members and recent clients have really heard about it and have acted. I need to get the word out because these opportunities are for all homeowners and pretty easy to take advantage of if you are aware.


Opportunity #1 - REFINANCE

We have many first time home buyers that purchased their home in the last 2-10 years. Some have mortgage rates in the 3.75% or higher range. Now is a good time to consider refinancing your home. Current 30 year rates are hovering around 3% and 15 year rates are about 2.5%. Consider that for every $100,000 financed a 1% drop in interest rate, your payment will be reduced by about $55 per month.


In addition to the principal and interest payment being reduced, you may be able to remove Private Mortgage Insurance (PMI). Typical PMI expenses can range depending on area, your credit score, and amount financed. For a first time home buyer, I find that a PMI payment of $50 to $75 per month is common. The good news is that home values have significantly increased in the last two years. In some areas values are up 15% in the last 12 months. If you purchased your home with a low down payment under 20% you are likely to be paying PMI. Now, with a new appraisal it is likely that you can show that you have more than 20% equity and can have PMI removed.


OPPORTUNITY #1 VALUE = Potentially $100 a month or more. Take action now and connect with our favorite lender, Tania Maples (810-844-2224) at Michigan United Mortgage: https://www.mumloans.com/contact-us/



OPPORTUNITY #2 - SELL AND BUY TO UPGRADE YOUR HOME

If you read about opportunity #1, you now know that you have some significant equity in your home. You can tap into this value when you sell your home and use it to purchase another helping you to upgrade your lifestyle, move to a more desirable location, or purchase a larger home to accommodate your growing family.


Already we have helped several families improve their living circumstances in the first quarter of 2021. Here’s a closer look at how this works. This month we are helping a family take advantage of opportunity #2. They purchased their first home in March 2017 with a 4%+ interest rate and PMI. They put their home on the market in March of 2021, sold it in one weekend and unlocked about $130,000 in equity to be used to purchase their next home. With the lower interest rates in place today, they’ll be able to significantly upscale their home to accommodate 4 children and pe

ts to an area with a stronger school district. Further, they will have a 20% down payment and will avoid PMI.


OPPORTUNITY #2 VALUE = Priceless, improved lifestyle and education for generations to come. Take action now and connect with us for a free home evaluation and home upgrade consultation by calling 810-923-4443. Check us out here: https://www.pnjhomes.com/aboutpaulandjulie


OPPORTUNITY #3 - PURCHASE 2nd HOME & RENT EXISTING HOME

Okay, this idea is not original as it is covered in many real estate investment books, however, now is a great time to take advantage of this method of wealth building due to the strong home appreciation in the market. To set yourself up, make sure you take advantage of Opportunity #1 to lower your interest rate, payment, and remove PMI on your existing home and prepare to become a landlord. We recommend refinancing to a 30 year mortgage so that you will maximize your cash flow on your rental. If needed and if available, you can take a little cash out to help with the new home purchase, but do not exceed an 80% loan to value ratio.


One of the advantages of this opportunity is that the mortgages that you use are for a primary residence - which offers the lowest rates available from lenders. Further, you benefit by keeping your first home because you are locked into the tax rate acquired at the time of purchase, adjusted to non-homestead use when you rent. Finally, the new home you purchase, you’ll get an interest rate for a primary residence as well as a homestead tax rate, which is better than the non-homestead or investor rate. Confusing? Don’t know how to be a landlord? We have a solution for you!


OPPORTUNITY #3 VALUE = Positive Cash Flow of $1,000’s per year, improve lifestyle, and leveraged wealth building! Take action now and connect with us for a free home evaluation, home upgrade consultation, and landlord tutoring by calling 810-923-4443. Check us out here: https://www.pnjhomes.com/aboutpaulandjulie


OPPORTUNITY #4 - MOVE OUT OF STATE

If you purchased a first home, chances are you were also new to your job. By now you should have been promoted or know where you are going with your career. If you are not satisfied, or you are drawn away by a new job or want to return to your roots, it may be time to sell and move on.


But wait, you learned so much when you purchased your home, which is also an investment. Your real estate agent did a pretty fair job in educating you about the process. Do you still trust him/her? Certainly! Give them a call to discuss the sale of your home even if you have a relocation package. Many relocation companies will allow you to work with your trusted agent. When you do speak with your agent, be sure to ask them for some help getting a great real estate agent in the town you will move to. Why? Because trust takes time to earn and a referred agent will be selected and coached on how to work with you saving you time and money.

OPPORTUNITY #4 VALUE = Time, money, and a new lifestyle awaits! Take action now and connect with us for a free home evaluation, and agent referral by calling 810-923-4443. Check us out here: https://www.pnjhomes.com/aboutpaulandjulie


Building wealth takes effort and timely action. Consider your family and career goals, which of these opportunities works best for you? Real estate is about YOU! Your lifestyle, Your family, Your investment, Your goals! We help YOU get it right!







Other articles on wealth:

https://www.stlouisfed.org/household-financial-stability/the-real-state-of-family-wealth


https://www.stlouisfed.org/household-financial-stability/the-real-state-of-family-wealth/educational-household-wealth-trends-and-wealth-inequality


https://www.stlouisfed.org/household-financial-stability/the-real-state-of-family-wealth/generational-and-age-household-wealth-trends-and-wealth-inequality


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