This month’s questions:
How much should I budget for a down payment?
What are the advantages of a VA loan compared to a traditional mortgage?
What is the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?
What can I do to improve the saleability of my home?
How much should I budget for a down payment?
There are certainly mortgage programs out there that allow for as little as zero down payment when purchasing a home, however the more you’re able to put down up front the lower your monthly payment will be. According to NAR (National Association for Realtors), in 2022 the average down payment for first time home buyers is 6%. This really depends case by case, let’s connect so I can get you connected with a professional to help you explore loan options.
Derek Plumb
616 REALTY
REALTOR®
What are the advantages of a VA loan compared to a traditional mortgage?
| Conventional Loan | VA Loan | |
| Application to Close | 43 days | 32 days |
| Loan Denial Rate | 11.2% | 7.2% |
| Appraisals | 80% at or above value | 93% at or above value |
| Turn Time on Appraisal | 11 days | 5 days |
VA is the only loan program with 2 methods of gaining value back. Tidewater and Reconsideration of Value ROV. ROV is reporting a 79% approval rating, equating to an average increase of $29,000. The appraisal is owned by the Veteran Homebuyer. If the transaction falls apart, it goes with the veteran. It does NOT stay with the property. The veterans buyer CAN pay for the pest inspection as referenced in VA Circular 26-22-11 on June 15, 2025
These facts came from Brad Stinson, The Mortgage Marine
THE most important reason to accept a VA offer is to show the veteran your appreciation for their sacrifice to keep America safe and free. In other words, if the homeowner is NOT a veteran, it is a way for them to serve their country!
Theresa Robinson is a United States Navy veteran. The Theresa Robinson Group supports and honors veterans always.
Group members Katie Petersen and Marie Olsen are Theresa’s daughters.
What is the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?
Fixed-Rate Mortgage (FRM):
In a fixed-rate mortgage, the interest rate remains constant throughout the entire term of the loan. Monthly payments are predictable and remain the same, providing stability and ease of budgeting. Generally, FRMs come in 15-, 20-, or 30-year terms, with the most common being 30 years. This type of mortgage is suitable for individuals who prefer consistent payments and want to hedge against potential interest rate increases in the future.
Adjustable-Rate Mortgage (ARM):
With an ARM, the interest rate is typically fixed for an initial period, usually ranging from one to ten years. After this initial period, the interest rate adjusts periodically, usually annually, based on a predetermined index (e.g., LIBOR or Treasury rates) plus a margin set by the lender. Monthly payments can fluctuate over time depending on changes in interest rates, making budgeting more challenging and potentially increasing the risk of payment shock. ARMs often have lower initial interest rates compared to fixed-rate mortgages, which can make them attractive to borrowers who expect to move or refinance before the initial fixed-rate period expires. This type of mortgage is suitable for borrowers who anticipate changes in their financial situation or plan to sell or refinance their home before the initial fixed-rate period ends.
The key difference between a fixed-rate mortgage and an adjustable-rate mortgage lies in the stability of the interest rate and monthly payments. A fixed-rate mortgage offers consistent payments throughout the loan term, while an adjustable-rate mortgage provides an initial fixed-rate period followed by adjustments based on market conditions.
What can I do to improve the saleability of my home?
To improve the saleability of your home we look at things like staging, pricing, marketing & condition. Staging is highly underestimated & helps sellers optimize maximum top dollar. Having fresh furniture or having the furniture you already have positioned properly can really convey rooms in their best light. Especially when photos will be the first chance to sell your home to buyers before they come in person. Curb appeal is an another important factor. How does the outside of your home present? Having fresh landscaping going into the Spring & Summer season makes your home shine to look that much more attractive in photos. In addition it’s important to note that if your home is well taken care of, it will show a pride of ownership. Showing a pride of ownership can help put a buyer at ease who is thinking of making an offer. These are just a few important things to keep in mind when getting your home ready to list. We offer many services to help our sellers prepare & get ready. After all, this is your biggest investment & we want to capitalize on every dollar for you.
