🤠🏡 Selling Austin #4

Hi everyone, happy Friday! I am so excited to have you here! Pay special attention to hidden PMI fees (knowing this will save you 💵 💰️).

Ready? Let’s dive in.

What's Inside 👀

• HIDDEN PMI FEES YOU HAVE TO KNOW ABOUT:

• WHAT’S HAPPENING IN TOWN:

• DEALS (FOR SALE NOW):

• WHAT THIS INFORMATION MEANS FOR YOU:

💰️ HIDDEN PMI FEES YOU HAVE TO KNOW ABOUT: 

This is the most important thing I want you to take away from this newsletter

Let’s start with definitions:
If you are buying a house and do not put down 20% you pay PMI. PMI is a mortgage insurance that protects the lender.
PMI ranges from 0.5-3% of the loan amount per year.

This rate depends on 2 factors:

1. Total loan amount: PMI expenses are higher for larger mortgages.

2. Credit score: Lenders typically charge borrowers with high credit scores lower PMI %

Let’s say 2% PMI on a $500,000 loan. You’re paying $10,000 in fees per year. I said you pay PMI if you don’t put 20% down, you would assume once you reach 20% ownership PMI will disappear, right? W R O N G.

You don’t need to pay PMI after 20% BUT lenders are only legally required to remove PMI after you get to 22%. This means additional fees, for no reason.

HOW TO SAVE MONEY:

1. Request PMI cancellation when your mortgage balance reaches 80% (you have to be proactive here!)

2. Cancellation request must be in writing

3. Be current on mortgage payments

🤠 WHAT’S HAPPENING IN TOWN:

There is a lot of money and foreign investments coming into Austin - not all of it is being handled ethically.

Here’s the story of a $2B portfolio that’s going to 0. With more twists and turns than a reality show - (raised $6.7 from investors for a property they never bought, gross negligence and lawsuits…)

Interested? Check it out:

🏠️ DEALS (FOR SALE NOW):

These are homes currently for sale that I’ve evaluated based on neighborhood trends, historical data, price per square foot (ppsqft) & home quality/updates. This is peek into how I walk my buyers through the process -

1. Windsor Park

   2101 Columbia Cv, Austin, TX 78723

   1936 square feet
   Single Family home
   3 bedrooms and 2 bathrooms

   www.zillow.com/homedetails/2101-Columbia-Cv-Austin-TX-78723/29410064_zpid

   

   price per square foot: $297
   average ppsqft in Windsor Park for the last 3 years: $380
   current price: $574K
   Kirtana’s suggestion: $525K

2. South Austin Gem

   4007 Clawson Rd #1, Austin, TX 78704

   2116 square feet
   Single Family home
   3 bedrooms and 4 bathrooms

   www.zillow.com/homedetails/4007-Clawson-Rd-1-Austin-TX-78704/339460591_zpid

   

   starting price: $1.399M
   current price: $950K (450K reduction)
   Kirtana’s suggestion: $900,000

❓️ WHAT THIS INFORMATION MEANS FOR YOU:

If you’re a buyer/seller/renter or just interested in real estate - this weekly newsletter will help guide you decision making and help you to better understand the current market trends.

Thank you so much for being here! Reply to this email if you need anything from me or just to say hello! 👋 

P.S. If you think your friends would like this newsletter, I’d love for you to share it with them!