House Keys

HOUSE KEYS is your go-to podcast for unlocking the world of real estate with clarity and confidence. Hosted by Rob “Birdman” Hephner and featuring trusted real estate expert Stephanie Crain of Mountain Retreat Realty Experts, this series breaks down the complex terms, processes, and decisions involved in buying and selling homes. With over 20 years of industry experience and a reputation for unmatched integrity, Stephanie brings practical insights, real-world examples, and straight-talk explanations that empower listeners at every stage of the real estate journey. Whether you’re a first-time buyer, a seasoned investor, or preparing to sell your home, HOUSE KEYS gives you the tools to navigate the market with ease and assurance.

Adjustable Mortgage 07/25/2025

Adjustable Mortgage An Adjustable-Rate Mortgage (ARM) is a type of home loan where the interest rate can change over time, usually in response to changes in a financial index (like the 1-Year Treasury rate or SOFR). ⸻ 🏠 Key Features of an ARM: 1. Introductory Fixed Rate Period • You get a low fixed interest rate for a set number of years (commonly 3, 5, 7, or 10). • Example: A 5/1 ARM means your rate is fixed for the first 5 years, then adjusts once per year afterward. 2. Adjustment Period • After the fixed period, the interest rate adjusts periodically (usually annually). • The new rate is based on: • A benchmark index (e.g., SOFR or LIBOR) • Plus a margin (set by the lender) 3. Rate Caps • Initial cap: Limits how much the rate can go up at the first adjustment. • Periodic cap: Limits increases at each adjustment. • Lifetime cap: Maximum the rate can rise over the life of the loan. ⸻ 📊 Example: 5/1 ARM • First 5 years: Fixed at 4.25% • After year 5: Adjusts annually • Let’s say the cap is 2/2/5 (initial/periodic/lifetime) • Year 6 rate could jump to 6.25% max • Later years could go up 2% per year, but never more than 5% above the original rate ⸻ ✅ Pros of an ARM: • Lower initial rate = lower monthly payments early on • Good if you plan to move or refinance before the adjustment kicks in • May qualify you for more home upfront ⚠️ Cons of an ARM: • Rates can rise—your monthly payment may go up significantly • Less predictable than a fixed-rate mortgage • Riskier in a rising interest rate environment ⸻ 💡 When Is an ARM a Good Choice? • You’re only staying in the home for a few years • You expect interest rates to stay the same or drop • You want lower upfront payments and can handle possible increases later House Keys is brought to you by Mountain Retreat Realty Experts /episode/index/show/330a5ac1-89ac-4ec4-829f-1823bf65b989/id/37551390

"As Is" Home Sale 07/25/2025

Buyer's Costs 07/25/2025

Buyer's Costs 🔑 Typical Buyer’s Costs in a Real Estate Transaction 1. Loan-Related Costs Origination fee: Charged by the lender for processing the loan (0.5%–1% of loan amount). Credit report fee: $25–$50. Appraisal fee: $300–$600 (paid to confirm the home’s market value). Underwriting fee: Charged by the lender for evaluating the loan application. Discount points (optional): Paid to reduce your mortgage interest rate. 2. Title and Escrow Fees Escrow fee: Charged by the escrow company for handling funds and documents. Title insurance (lender’s policy): Protects the lender from title issues. Recording fees: Paid to the county for recording the deed and mortgage. 3. Home-Related Expenses Home inspection: $250–$500 (optional but strongly recommended). Pest inspection: Often required by lenders (especially VA loans). Survey fee (in some states): Verifies property boundaries. 4. Prepaid Costs (Impounds) Homeowners insurance premium (first year paid upfront). Property taxes: A portion may need to be prepaid at closing. Prepaid interest: Covers the interest from closing day to the first mortgage payment. Escrow/reserve accounts: Lender may require reserves for taxes and insurance. 5. Other Potential Costs HOA transfer fees: If buying in a homeowners association. Attorney fees (in states where attorneys handle closings). Courier or wire transfer fees. 💵 How Much Are Buyer’s Costs? Typically range 2%–5% of the home’s purchase price. For a $300,000 home, expect $6,000 to $15,000 in buyer’s closing costs. 🤝 Can These Costs Be Negotiated? Yes. Buyers can: Negotiate with the seller to pay some or all closing costs. Shop lenders for better rates and lower fees. Apply for buyer assistance programs in certain states or localities. House Keys is brought to you by Mountain Retreat Realty Experts /episode/index/show/330a5ac1-89ac-4ec4-829f-1823bf65b989/id/37551340

Welcome to House Keys 07/25/2025

House Keys

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