Home Buyers • January 13, 2023

Fixed-Rate Mortgage vs Adjustable-Rate Mortgage

by Scott Gleason

Over the past couple of years, mortgage rates hit their all-time lowest point. At that time, financial experts encouraged buyers to get a fixed-rate mortgage loan to purchase their properties. However, with interest rates on the rise these last few months, many buyers began looking at adjustable-rate loans instead. Which one should you consider for your next mortgage loan? It depends.

Fixed-Rate Mortgage vs Adjustable-Rate Mortgage

Fixed-Rate Mortgage

A fixed-rate mortgage is exactly what it says: one set rate for the life of the loan. Even so, your monthly payment could change depending on current property taxes and insurance rates. But the actual monthly mortgage payment remains the same the entire time. However, lenders charge more interest for fixed-rate loans than they do for adjustable-rate loans (usually around 3/4 to 1% more) in the beginning.

Adjustable-Rate Mortgage

With adjustable-rate mortgages (ARMs), the buyer pays a set rate for a specified term (typically seven to ten years). After that, the rate changes according to the rates at that time. And they could increase (sometimes substantially) every year thereafter. This could mean a huge jump in your monthly mortgage payment. And that can be quite jarring.

When Should You Choose a Fixed-Rate Loan?

Well, if you plan on staying in your Westfield area home for many years, a fixed-rate loan may be your best choice. Also, when rates run low (like they did for the past few years), locking in that rate makes sense. Finally, if your household budget runs pretty tight, a fixed rate makes more sense than an ARM because you do not have to worry about changes in the market affecting your mortgage payment.

When Should You Choose an Adjustable-Rate Loan?

Planning on only living in your home for two to five years? Then, the lower ARM may be the right choice. Also, since an ARM starts at a lower point than a fixed-rate mortgage, it makes it a little cheaper to purchase your home (in the beginning, at least). That may allow you to pay more toward your principal during the initial fixed-rate time period.

Always talk to your lender before deciding which loan works best for you. When you are ready to purchase your next Westfield area home, contact me.

Property Tax Appeal Seminar

Finally, have you signed up for the 2023 Property Tax Appeal Seminar yet? It takes place at the Coldwell Banker Realty’s Westfield East office on February 9th. We still have some seats available for anyone who’s interested. It’s provided absolutely free of charge. It will only cost you about 90 minutes or so of your time. You need to RSVP in order to reserve a spot. So, please do so today. Thank you.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Selling Your Home • January 6, 2023

Why Sellers Should Consider Getting a Pre-List Inspection

by Scott Gleason

When you decide to sell your Westfield area home, there are a few steps you need to take before it ever actually hits the market. First, find yourself a good REALTOR®. Second, start the decluttering and staging process. And third, fix the things you let fall by the wayside while living in your home. That’s where a pre-list inspection comes in handy. “But, Scott. I thought the buyer pays for a home inspection.” Yes. Many of them do. However, if you get a professional inspection before you list your property, it can save you time, money, hassle, and headaches. Plus, you might end up selling your property much more quickly.

Why Sellers Should Consider Getting a Pre-List Inspection

No Surprises

I don’t know about you, but I’m not a big fan of surprises…especially when it comes to real estate. Do you really want to wait until you are in the middle of escrow for a buyer to discover problems with the house that may jeopardize the sale? A pre-list inspection helps uncover any underlying issues you may not have known about. Then, it gives you the chance to fix them.

Money-Saver

They say that time is money. That definitely applies here. Getting an inspection done prior to listing grants you time to shop around for the best price on repairs. If the repair costs come in above your budget, you may want to factor that into your list price. Keep estimates from two or three contractors. You can present these to the buyer to show your due diligence and transparency.

Makes Your Property More Marketable

Speaking of transparency…buyers appreciate that. A pre-list inspection helps buyers trust you more as the seller. If you make a buyer feel more comfortable about the fact that what they see is really what they get and there isn’t a “big bad” lurking somewhere below the surface, then they are more likely to purchase the home.

Property Tax Appeal Seminar

Have you signed up for the 2023 Property Tax Appeal Seminar yet? It takes place at the Coldwell Banker Realty’s Westfield East office on February 9th. Seats are still available. You need to RSVP in order to reserve a spot. So, please do so today. Thank you.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Local Events • December 30, 2022

2023 Property Tax Appeal Seminar

by Scott Gleason

I hope everyone had a fantastic Christmas. With the new year upon us, you may want to start planning for your 2023 taxes. I know. Not the most fun topic. But Uncle Sam rests for no one. If you have questions about your property taxes, please sign up for the 2023 Property Tax Appeal Seminar hosted by Coldwell Banker Realty.

What: 2023 Property Tax Appeal Seminar
Where: Coldwell Banker Realty (209 Central Ave)
When: 7:30 pm on Thursday, February 9th, 2023
Admission: FREE
Contact: Scott Gleason (908) 698-2630

2023 Tax Property Appeal Seminar

Have you been in your Westfield area home for a while? Have you seen your property taxes skyrocket over the past couple of years? Moving soon? Then your property taxes may hit you even harder. The lower the property taxes, the more buyers can afford in mortgage payments. That also means more price power for you! And who couldn’t use a tax cut?

Sign up for the 2023 Property Tax Appeal Seminar being held at Coldwell Banker Realty at 7:30 pm on Thursday, February 9th. Jennifer Jacobus, Esq. with Jacobus & Associates, LLC specializes in property tax appeals. She has helped hundreds of New Jersey homeowners (including me, my clients, and many of my friends) reduce their assessments over the years. And she wants to pass along this helpful and very valuable information to you for free. It’s her passion!

Seating is limited. So you must RSVP to reserve a spot. Click here to reserve your seat at the 2023 Property Tax Appeal Seminar today.

Thank You for Your Support

Once more, I want to thank everyone who came out to this year’s Westfield Area Y Men’s Club Christmas tree lot. Our supplies sold out well before Christmas (again). All the money raised helps local charities. So, thank you and Happy New Year!

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Home Buyers • December 23, 2022

How to Get The Best Mortgage Rate

by Scott Gleason

2022 was quite a wild ride for mortgage rates. We started off the year at an average of 3.22% for a 30-year fixed-rate mortgage. By the end of October, rates peaked at 7.08%. After dipping slightly for a couple of weeks, they hit 7.08% again in early November. But since then, rates began to decline. As of the writing of this post, Freddie Mac puts the average at 6.27%. The higher your interest rate, the higher your mortgage payment. What should you do to get the best mortgage rate for your next home purchase? Follow these simple steps.

How to Get The Best Mortgage Rate

Whip That Credit Into Shape

Higher credit scores translate into lower interest rates. Start by visiting AnnualCreditReport.com for a free copy of your credit report. Look for any errors. Each reporting agency (Equifax, TransUnion, and Experian) offers a link to report these errors with its own rules for reporting. So, if you find errors on your credit report, visit the appropriate agency’s website and follow their requirements. Be prepared to provide proof of the error as well.

Pay Down Debt

Part of whipping your credit into shape includes paying down debt. The quickest way to increase your credit score is to pay down your revolving credit accounts. Borrowers should use no more than 30% of the limit on these. So, if your credit card has a $10,000 limit, your balance should not be more than $3000. If your balances rise above 30% of their limits, pay those down to 30% or below as soon as possible. Additionally, lenders like to see a lower debt-to-income ratio.

Increase Your Down Payment

Another way to lower your mortgage rate is with a higher down payment. Financial experts recommend 20% down whenever possible. This helps you qualify for better rates. It also prevents you from paying PMI, which lowers your monthly payment as well. However, if 20% down is not possible, that is OK. There are plenty of loan programs available that allow you to put far less down.

Buy Mortgage Points

Another way to lower than interest rate is to pay for points. They typically cost 1% of the mortgage loan amount for a 0.25% reduction in interest rate. For example, you borrow $750,000 for your Westfield area home. You qualify for 6.3% interest. To lower that to 6.05%, you need to come up with $7500. That is in addition to your down payment and closing costs. That saves you approximately $120 per month (over $1400 per year). This may be a motivating factor to pay down your points or you may choose to utilize that money in some other way.

Shop Around for Lenders and Loans

Do you always settle for the first car, first TV, first home, or first REALTOR® that you see? No. Most people shop around for these. You need to do the same with your lender and your loan. Compare lenders first. Find the one that offers the best rates with the best reputation. Then, talk to them about loan options. FHA? VA? Conventional? 30-year? 15-year? Fixed-rate? Adjustable-rate? Ask your lender about the pros and cons of each before making a final decision.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Market Reports • December 22, 2022

December 2022 Market Update

by Scott Gleason

Curious about your home’s value?

Please click below for the market update of interest to you:

Westfield by Grade School:

Scott Gleason scott@luxuryhomesnj.com

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Home Buyers • December 17, 2022

What’s the Difference Between Pre-Qualification and Pre-Approval?

by Scott Gleason

Most of the headlines lately talk about how the market has turned in the buyer’s favor. Well, that may be true in other areas of the country but not in the Westfield real estate market. Sellers still have the upper hand here. In fact, a five-bed/one-and-a-half bath Westfield property just sold recently for $36,000 over asking after just 20 days on the market. So, if you plan on buying a home in the Westfield area, you need to get your financing in order first. Should you get a pre-approval letter or will a pre-qualification work? What’s the difference?

What’s the Difference Between Pre-Qualification and Pre-Approval?

Pre-Qualification

First of all, pre-qualification only takes a matter of minutes. Your lender asks you about your income, your debt, and if you have any assets. Then, they take that information and estimate how much you can afford to spend. In a day or two, the lender sends you an official pre-qualification letter. However, they do not run a credit report. That can have a huge impact on whether or not they approve you for the loan and how much of an interest rate they charge. Therefore, pre-qualification really acts as more of a reference point for your price range rather than an actual approval.

Pre-Approval

Pre-approval on the other hand takes much longer. First, you fill out a mortgage application. Then, they pull your credit report. After that, you provide proof of income and assets (W2s, paycheck stubs, bank statements, tax documents, etc). They also verify employment. Once they perform their due diligence, the lender lets you know whether or not you are a good candidate for loan approval and for how much.

Most Westfield area sellers ask that buyers submit a pre-approval letter with their offer. In fact, they may not even consider an offer without one. But keep in mind that pre-approval does not equal final approval. You need to avoid making any major changes during the escrow process (buying a new car or furniture, opening up credit cards, changing jobs). Otherwise, you may find yourself denied a mortgage loan.

Between pre-qualification and pre-approval, I always suggest you get pre-approved. If possible, you may want to ask your lender about pre-underwriting. That is just the next step before final approval. It not only strengthens your offer in the seller’s eyes, but it also shortens your escrow time. That allows you to close on your new home even faster.

Westfield Area Y Men’s Club Christmas Tree Lot

Finally, I just wanted to say “thank you” to everyone who came to our Christmas tree lot. We sold out early again this year. You guys are amazing. We’ll see you again next year. Merry Christmas to you all!

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Local Events • December 9, 2022

Westfield Winter Wonderland 2022

by Scott Gleason

Brrr. The weather outside is frightful. But the holidays are so delightful. If you want to celebrate the season with the family, make Westfield Winter Wonderland 2022 your destination of choice.

What: Westfield Winter Wonderland 2022
Where: Foundation Park
When: December 18th, 12 pm to 4 pm

Westfield Winter Wonderland 2022

City officials transform Foundation Park into a Westfield Winter Wonderland on Sunday, December 18th. Let the kids warm up and get that excited energy out at Bouncy House Park. Watch magician Peter Juris perform two separate shows inside Acting Out Studios. And take a photo with Santa at Just a Soul Photography. Lots of fun for the entire family!

Menorah Lighting

The first day of Hanukkah also falls on December 18th this year. To celebrate, Rabbi Block officially lights the first candle of the 2022 menorah. If you want to watch, head over to the North Ave Train Station after you visit Westfield Winter Wonderland. He lights the menorah at 4:30 pm.

Westfield Christmas Trees for Sale

Yes. The Westfield Area Y Men’s Club Christmas Tree Lot is still open for business. Unfortunately, we had to shut down on Tuesday due to rain. But we are back up and running again. We still have a few trees left. However, you need to get here this weekend. I’m not sure how much longer supplies will last. Remember, if you see me, say “hello”.

Toys for Tots Westfield

Finally, the Westfield Police Department accepts new, unwrapped toys for their 2022 Toys for Tots campaign through December 14th. Just drop your donations off in the Toys for Tots bins located inside the police department lobby during normal business hours. Can’t make it to the office? That’s OK. You can also visit their Amazon website and purchase gifts directly from their wishlist. For answers to your questions, please contact Dominick Sandelli at (908) 789-6040. Thank you and happy holidays!

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Home Buyers • December 6, 2022

Homeowners Insurance vs Home Warranty

by Scott Gleason

When purchasing a new luxury NJ home, it is important to do in-depth research on all facets of the home buying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on homeowners insurance versus home warranty below to educate yourself on your options.

Homeowners Insurance vs Home Warranty

Homeowners Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. However, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to V Home Insurance, the average cost of a homeowners insurance policy for a Westfield NJ home runs about $1664 per year. The bank usually asks you to obtain a policy before they issue your mortgage. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it. Plus, it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster. According to Forbes Home, homeowners pay an average of $50 to $60 per month for a typical home warranty. Additionally, the warranty companies charge a fee whenever you call them out for service.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes

Local Events • November 26, 2022

Westfield Area Tree Lighting Ceremonies 2022

by Scott Gleason

Now that Thanksgiving is over, it is time to focus on the next big holiday: Christmas! But we cannot forget about Hanukkah (which begins on December 18th) or Kwanzaa (which runs from December 26th to January 1st). A couple of Westfield area tree lighting ceremonies take place over the next week to celebrate all of these holidays.

Westfield Area Tree Lighting Ceremonies 2022

Westfield Tree Lighting

Come to the North Ave Train Station tonight (November 26th) for fun and festivities. Beginning at 5 pm, nosh on cookies while listening to the DJ play classic holiday music. Our local fire department escorts Santa on one of their trucks at 5:30 pm. Once on stage, he promises to take pictures with the kids until 6 pm. At that time, the tree officially lights up.

However, before the Westfield tree lighting ceremony takes place, please come to the Westfield Area Y Men’s Club Christmas tree lot. Today marks the first day of business for our lot this year. That means that you have all of the inventory available to choose from right now. We tend to sell out of our entire stock pretty early on in the season. So, if you want a nice tree for your home this holiday season, today is a great day to get one. The lot opens at 9 am and closes at 6 pm. Look for me and say “hi” while you’re there.

Scotch Plains Tree Lighting

Next weekend, Scotch Plains officially lights up its tree for the holidays. Festivities begin at 1 pm at Augustine Village Green on Sunday, December 4th. Come drink hot chocolate, grab a bite to eat from one of the food trucks, take a horse-drawn carriage ride, and visit the petting zoo. Enjoy a live performance by members of Theatrical Artists Prep at 1:45 pm. Get your photo taken with Santa starting at 2:30 pm. And stick around for the grand finale…the tree lighting…at 5 pm.

Toys for Tots Westfield

The Westfield Police Department is currently accepting donations of new unwrapped toys for local boys and girls whose families face financial hardships this year. Simply drop off your donations in the marked bins located in their lobby at any time, day or night, before December 14th, 2022. If you would prefer, click on the Amazon Wish List they put together and have your items shipped directly to the WPD. Quick, easy, and efficient. Thank you.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes