Blog - Michael Inkman

How Your Home Equity Can Help You Reach Your Retirement Goals

April 24, 2024 by Michael Inkman

How Your Home Equity Can Help You Reach Your Retirement Goals If you plan on retiring soon, you are probably looking at a few options that can get you over the hump. You are probably excited to start a new phase of life. With a record number of people closing in on their retirement age, many are starting to assess their resources to make sure they have enough money to last them for the rest of their lives. If you already own a home, you might be able to tap into your home equity to help you fuel your retirement.

Your Home Has Probably Gone Up In Value

Your house is an investment and now is your opportunity to capitalize on that investment. There is a great chance that the value of your home has significantly increased since you first bought it. Furthermore, if you have been in your house for a long time, your mortgage may have been completely paid off. This means that just about all of your home’s value could be yours to keep. Your house could be worth hundreds of thousands of dollars, which you can put towards your retirement.

How To Use Your Home Equity For Your Retirement

Of course, you still need a place to live, but there are ways for you to tap into your home equity for your retirement. If you have children who have already moved out, you might be ready to downsize. As a result, you could sell your house and use the cash from the sale of your house to purchase a smaller home. Then, you can use the money left over to fund your retirement. It might not be enough to cover your retirement completely, but it could be enough to get you over the hump if you are wondering when you can retire.

Consider The Implications Of Selling Your Home

When you sell your home, there is a chance that you may have to pay taxes on the capital gains stemming from the value of your home. On the other hand, you might be able to shield some of those gains if you use the money to buy another house quickly. You should reach out to a professional who can help you understand the tax implications of selling your home.

The Fundamental Role of Title Insurance

April 23, 2024 by Michael Inkman

Title insurance is a necessary component of real estate transactions, playing a pivotal role in safeguarding the interests of buyers, sellers, and lenders. While it might not be as prominent as other aspects of the real estate process, its significance cannot be overstated. We will examine the essential role of title insurance and explore why it is a vital component of real estate transactions.

Understanding Title Insurance:

Title insurance is a specific type of insurance that provides protection against financial loss due to defects in a property’s title. The title of a property is the legal evidence that the owner has the right to possess and use it. It is important to note that legal ownership can be jeopardized by various issues, including outstanding liens, unresolved legal disputes, or errors in public records.

Why Title Insurance Matters

1. Protecting Against Hidden Defects:

Title insurance acts as a shield against hidden defects in the property’s title. These defects could include undisclosed heirs, forged documents, or mistakes in public records. If any such issues arise after the property is purchased, title insurance provides coverage for legal expenses and potential financial losses.

2. Ensuring a Clean Title:

A clean title is essential for a smooth real estate transaction. Title insurance ensures that the buyer receives a property with a clear and marketable title, free from any encumbrances or claims that could affect ownership rights.

3. Lender Protection:

Lenders often require title insurance to protect their investment in a property. This protection ensures that the lender’s security interest is valid and enforceable, reducing the risk associated with financing a real estate transaction.

4. Peace of Mind for Buyers:

For buyers, knowing that they are protected against unforeseen title issues brings peace of mind. It allows them to make one of the most significant financial investments of their lives with confidence, knowing that they won’t face legal complications related to the property’s title.

5. Resolving Title Issues:

If a title issue arises, title insurance facilitates the resolution process. The insurance company will typically cover legal expenses to defend the buyer’s or lender’s interests and may compensate for financial losses if the title defect cannot be resolved.

The Closing Process and Beyond:

Title insurance becomes especially critical during the closing process. Before closing on a property, a thorough title search is conducted to identify and address any potential issues. The insurance policy is then issued, providing protection from that point forward.

After the transaction is complete, the title insurance policy remains in effect for as long as the insured or their heirs own the property. This long-term protection is invaluable, as title issues may surface long after the initial purchase.

While title insurance may add an extra layer of cost to the real estate process, the security, and peace of mind it provides make it an indispensable investment in the world of real estate. As the saying goes, “An ounce of prevention is worth a pound of cure,” and in real estate, title insurance is the preventative measure that ensures a sound and secure investment.

What’s Ahead For Mortgage Rates This Week – April 22nd, 2024

April 22, 2024 by Michael Inkman

Last week, the largest report was the Federal Reserve’s Beige Book, leading into chairman of the Federal Reserve Jerome Powell speaking on the current state of the economy and the stance of the Federal Reserve. While the Beige Book has indicated some positive movement towards a strong economy, there have been many indicators from all inflation data that inflation has yet to be tamed to the standards of the Federal Reserve.

This was punctuated by Jerome Powell, as he discussed at length the Federal Reserve has yet to feel inflation is under control. This has dispelled all notion there will be a rate cut in the future and likewise a strong reaction from lending partners and markets across the economy.

Beige Book

The U.S. economy grew slightly faster in the early spring and businesses added more workers, a Federal Reserve survey found, but there was little progress in lowering inflation.

The latest findings in the so-called Beige Book match the assessment of top Fed officials, who in recent weeks pointed to a strong economy and still-elevated inflation as a reason not to cut U.S. interest rates soon.

Jerome Powell on Inflation

Most recent data shows a lack of progress this year on reaching the Federal Reserve’s inflation goal, indicating that more time is needed before it can lower interest rates, Federal Reserve Chair Jerome Powell said Tuesday.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates are seeing an increase by 0.23% with the current rate at 6.39%
• 30-Yr FRM rates are seeing an increase by 0.22% with the current rate at 7.1%

MND Rate Index

• 30-Yr FHA rates are seeing a 0.22% increase for this week. Current rates at 6.92%
• 30-Yr VA rates are seeing a 0.22% increase for this week. Current rates at 6.94%

Jobless Claims

Initial Claims were reported to be 212,000 compared to the expected claims of 215,000. The prior week landed at 212,000.

What’s Ahead

Three reports are set to take center stage. Another strong inflation indicator in the PCE Index & Prices, Consumer Sentiment from Univ. of Michigan, and Manufacturing PMI data. All which should give the final decision on whether the next Federal Reserve Rate Decision meeting will include a rate cut. There is very little expectation there will be a rate cut at this juncture.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

How Your Home Equity Can Help You Reach Your Retirement Goals

The Fundamental Role of Title Insurance

What’s Ahead For Mortgage Rates This Week – April 22nd, 2024

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