If you bought a home in the last few years, there is good chance you could save some money, starting now. Buyers who purchased with less than 20% down are often paying private mortgage insurance or PMI. The amount of PMI paid monthly depends on the size of the loan, but can be anywhere from $50-300+ of your monthly note.  And just in case you were wondering, no, PMI is not insurance for you. It’s insurance against you in case you default on your loan. Nice, right?

In all fairness, PMI allows borrowers to bring less money to closing. So if you don’t have the 20% chuck of change to get a conventional loan, PMI encourages banks to take the risk instead of just denying you loans. Additionally, the insurance drops off automatically, when your principle balance is at 78% of value. Wait, did I just say 78%? I thought the magic number was 80%?? It IS when you’re purchasing, but lenders are allowed to collect PMI until you contact them or until you reach that additional 2%. Whichever comes first. This matters because, depending on how much of your payment goes to principle, you could clock in 2-5 extra PMI payments. I bet you could find way better things to do with $1500.

What can you do???

1. Know your LTV. Loan-to-value ratio. In simple terms, this is loan principle you have remaining vs your original purchase price. For example:

You got a loan for $180,000, and your original sales price was $200,000. So the LTV is 90%.  

As you make monthly mortgage payments, the principle goes down. So in our example, let’s say in 2 years, your principle is now $160,000. We use your original sales price of $200,000. Now your LTV is 80%. Tada!

What to do if this is your scenario: Contact the lender and ask for the PMI to be removed.

2. Know your appraised value. Appraised value is the amount that your home would sell for in today’s market. For example:

You got a loan for $180,000, and your original sales price was $200,000. 

A year has passed and you still have principle of close to $180,000, but now the homes in your area seem to be selling for about 10% over last year.  Now your home’s value is $225,000. In that case the LTV is 80%. Tada tada!

What to do if this is your scenario: Contact the lender and ask for a new appraisal to be done. Once complete, the PMI can be removed.

3. Know your options. If your lender doesn’t seem to want to to help with either of the above, you can refinance your home. In this scenario, you will pay closing costs again, but you will be done with PMI. It will be important for you to review the potential savings with the new lender, to make sure the cost is worth it.  But if rates have shifted downward since you purchased, the additional savings or switch to a loan without PMI can make it worthwhile.

The good news is that home values are on the rise. So much so that if you purchased over 12 months ago, you could be in a good place to see about getting the PMI removed from your loan.  It will take some persistence, but use the steps above to get you on your way. And as always, we are here to help with comparable analysis to see what you home is worth in today’s market. 

XO

J

I love it when a client introduces me to a new-to-me neighborhood. Especially in Oak Cliff! That’s exactly what happened when we went on the hunt for a home for Shannon, one of the owners of Oil & Cotton. After a couple of close calls in Elmwood and El Tivoli neighborhoods, we ended up at an offer-market property in Ruthmeade Place. Never heard of it? Me either, but it is definitely worth a visit. Just south of 12th St, between Tyler and Zang, it’s a quick jog to Bishop Arts and all the great stuff popping up on Jefferson Blvd. The neighborhood itself is made up of smaller wood and brick cottages, with a few larger Victorians. 

As for Shannon’s home, it’s a great bungalow, with a cozy porch. And you better believe that she has a way with making a space look amazing. The photos below are before/after, and show what a difference good paint and floors can make. She also did wonders in her kitchen with a counter and backsplash refresh.

This hidden gem of an area has tons of potential, especially for homeowners like Shannon. Those with a little vision, plus a willingness to roll up sleeves. I wouldn’t be surprised to hear more about Ruthmeade Place in the near future. 

As we begin the second month of 2016 (what! already?), I wanted you to know about some happy changes on team jennisto. 

For starters, we have a new assistant, Stephen Holmes. He’s awesome! Husband, dad of two sweet boys, Winnetka Heights resident. Stephen comes from an accounting background. And, as I have already learned when he share a cool real estate podcast with me, he has a voracious appetite for knowledge. You may know him as DJ Mini Figs from the 2015 Boo Bash. And just in case there’s any question, he’s the one with the beard in the photo below. 

Next up…drum roll please…Emily Ruth has made the transition to Realtor. Full stop. So the team jennisto sales force has grown by 100% this year! She’s a woman of many talents (bread-baking, surfista, mom-extraordinaire, research maven), which she will of course bring to bear with her clients. And, as 2015 was our biggest year yet, this expanded capacity lets us serve you, your friends, and family, as we have now for 12 years. 

To celebrate these great changes, and to thank our clients, we are throwing a party THIS week. If you didn’t get your invite via email, let us know. We want to see you!

We are fast approaching the funnest, busiest weekend in Oak Cliff…Mardi Gras!

Things kick off with the Dash for the Beads on Saturday, February 6th. You can walk, jog or run to your heart’s content, with your dog, if you so choose! And there’s a bunch of entertainment pre- and post race. The starting line and stage are at Kidd Springs Park.

Then it’s fancy-time that night, at the Masquerade Ball. Put on your dancing shoes and your mask and meet up with friends and neighbors at the Kessler Theater. Always a blast to see the range of costumes, not to mention the awesome bands.  

The grand finale is the parade on Sunday. This year the start time is moved up to 2pm, for the football lovers out there. Be on the look out for the OCBC bicycle patrol, who start the whole thing off, followed by tons of homemade floats and neighborhood groups. The scooter-ing Elivs’ are always a hit. 

Whether you’re new to the area, or you’ve been here since George Kessler got his start, Mardi Gras weekend is not to be missed. And, you’ll know you’re a true fan if you make it to any of the neighbor’s parties (or throw your own) between events. 

Happy Mardi Gras y’all!

So great to see this great listing featured on Candy’s Dirt today!

Check out the write up, beautiful photos of this home and some great information on Dilbeck homes here.