In the heart of West Fresno, a quiet but powerful transformation has taken place. The Vazquez-Torrez family— once living in a cramped one-bedroom apartment with four people—now walks through the front door of their very own home. Each child has their own room. There’s space to breathe, grow, and dream. And with that space comes something even more profound: dignity.
Affordable housing isn’t just about walls and roofs. It’s about breaking generational barriers. It’s about giving families the opportunity to rewrite their stories. For the Vazquez-Torrez family, this home represents stability, privacy, and a sense of belonging. It’s a place where homework can be done at a desk instead of a kitchen table, where bedtime routines aren’t dictated by shared sleeping arrangements, and where children can imagine futures shaped by possibility rather than limitation.
This milestone wasn’t achieved alone. It was made possible through a powerful partnership—between city leaders, nonprofit advocates, builders, and community members who believe that everyone deserves a place to call home. When we come together with intention and compassion, we don’t just build houses—we build hope.
The ripple effect of one family’s new beginning is immeasurable. It inspires neighbors, strengthens communities, and reminds us that affordable housing is not a luxury—it’s a foundation for equity and opportunity.
Welcome home, Vazquez-Torrez family. Your journey is a testament to what’s possible when we invest in people, not just property.
Imagine the first place you lived as a
young adult. Now imagine trying to fit your life today into that space. Not
pretty, right?
For most of us, our housing needs are
cyclical.1 A newly independent adult can find freedom and
flexibility in even a tiny apartment. That same space, to a growing family,
would feel stifling. For empty nesters, a large home with several unused
bedrooms can become impractical to heat and clean. It’s no surprise that life
transitions often trigger a home purchase.
While your home-buying journey may not
look like your neighbor’s or friend’s, broad trends can help you understand
what to keep in mind as you house hunt. No one wants to regret their home purchase
and taking the time now to think about exactly what you need can save a lot of
heartache later.
The
Newly Married or Partnered Couple
The financial and legal commitment of
marriage has provided a springboard to homeownership for centuries, though
these days more couples are buying homes without exchanging rings. In the last
few decades, changing demographics have shifted the median age of first
marriage and buying a first home into the late 20s and early 30s, planting most
newly married or partnered buyers firmly in the millennial generation.2,3 But no matter your age, there some key factors that you should consider as you enter your first home purchase.
Affordability is Key
There is no doubt about it—with high
student loan debt and two recessions in the rearview mirror, many millennials
feel that the deck is stacked against them when it comes to homeownership. And it
is not just millennials—Americans of all ages are facing both financial
challenges and a tough housing market. But stepping onto the property ladder
can be more doable than many realize, especially in today’s low mortgage rate
environment.
While many buyers are holding out for
their dream home, embracing the concept of a starter home can open a lot of
doors.4 In fact, that is the route that most first-time homebuyers
take—the average home purchase for a 20-something is about 1,600 square feet.
While the average size increases to around 1,900 square feet for buyers in
their 30s, it is not until buyers reach their 40s that the average size passes
2,000 square feet.5
Chosen carefully, a starter home can be a
great investment as well as a launchpad for your life together. If you focus on
buying a home you can afford now with strong potential for appreciation, you
can build equity alongside your savings, positioning you to trade up to a
larger home in the future if your needs change.6
Taking Advantage of Low Mortgage
Rates
Mortgage rates are historically low, making
now the perfect time to purchase your first home together. A lower interest
rate can save you tens of thousands of dollars over the life of your loan,
which can significantly increase the quality of home you can get for your
money.
But what if both halves of a couple do not
have good credit? You may still have options. First, boosting a credit score
can be easier than you think—simply paying your credit cards down below 30% of
your limit can go a long way. But if that is not enough to boost your score,
you might consider taking out the mortgage in only the better-scoring partner’s
name. The downside is that applying for a mortgage with only one income will
reduce your qualification amount. And if you take that route, make sure you
understand the legal and financial implications for both parties should the
relationship end.
Commute and Lifestyle
Considerations
Whether you have lived in a rental together
for years or are sharing a home for the first time, you know that living
together involves some compromises. But there are certain home features that
can make life easier in the future if you identify them now. The number of
bathrooms, availability of closet space, and even things like kitchen layout
can make a big difference in your day-to-day life and relationship.
Your home’s location will also have a
significant impact on your quality of life, so consider it carefully. What will
commuting look like for each of you? And if you have different interests or
hobbies—say, museums vs. hiking—you will need to find a community that meets
both your needs. Need some help identifying the ideal location that fits within
your budget? We can match you with some great neighborhoods that offer the
perfect mix of amenities and affordability.
The
Growing Family
Having kids changes things fast. With a
couple of rowdy preteens and maybe some pets in the mix, that 1,600 square foot
home that felt palatial to two adults suddenly becomes a lot more cramped.
Whether you have just had your first child or are getting to the point where
your kids can’t comfortably share a bedroom any longer, there’s plenty to
consider when you’re ready to size up to a home that will fit your growing
family.
The Importance of School
Districts
For many parents, the desire to give
their kids the best education—especially once they are in middle and high
school— surpasses even their desire for more breathing room. In fact, 53% of
buyers with children under 18 say that school districts are a major factor in
their home buying decisions.7 Of course, better funded (and often
higher ranking) schools correspond to higher home prices. However, when push
comes to shove, many buyers with kids prefer to sacrifice a bit of space to
find a home in their desired location.
But when you’re moving to a new
community, it can be tough to figure out what the local schools are actually
like—and online ratings don't tell the whole story. That’s why talking to a
local real estate agent can be a gamechanger. We don’t just work in this
community; we know it inside and out.
Lifestyle Considerations
For many families, living space is a key
priority. Once you have teenagers who want space to hang out with their
friends, a finished basement or a rec room can be a huge bonus (and can help
you protect some quieter living space for yourself).
A good layout can also make family life a
lot easier. For example, an open plan is invaluable if you want to cook dinner
while keeping an eye on your young kids playing in the living room. And if you
think that you might expand your family further in the future, be sure that the
home you purchase has enough bedrooms and bathrooms to accommodate that
comfortably.
Functionality
Try to think about how each room will fit
into your day-to-day. Are you anticipating keeping the house stocked to feed
hungry teenagers? A pantry might rise to the top of the list. Dreading the
loads of laundry that come with both infants and older kids (especially if they
play sports)? The task can be much more bearable in a well-designed laundry
room. Imagine a typical day or week of chores in the house to identify which
features will have the biggest impact.
Chances are, you won’t find every
nice-to-have in one home, which is why identifying the must-haves can be such a
boon to the decision-making process. We can help you assess your options and
give you a sense of what is realistic within your budget.
The Empty Nesters
When we talk about empty nesters, we
usually think about downsizing. With kids out of the house, extra bedrooms and
living space can quickly become more trouble than they’re worth. While the
average buyer under 55 trades up to a larger home, buyers over 55 are more likely
to purchase a smaller or similarly sized but less expensive home. Even in the
highest age groups, the majority of home purchases fall in the single-family
category. According to research by the National Association of Realtors, by the
time buyers reach their 70s, the median home size drops to 1,750 square feet.5
But there’s plenty for empty nesters to think about besides square footage.
Maintenance and Livability
What factors are driving your decision to
move? Identifying those early in the process can help you narrow down your
search. For example, do you want to have space for a garden, or would you
prefer to avoid dealing with lawn care altogether? What about home maintenance?
In many cases, a newer home will require less maintenance than an older one and
a smaller one will take less time to clean. You may also want to consider
townhomes, condos, or other living situations that don’t require quite as much
upkeep.
Lifestyle Considerations
Many empty nesters have retired or are
nearing retirement age. This could be your chance to finally pursue hobbies and
passions that were just too hard to squeeze into a 9-5. If you’re ready to
move, consider how you’d like to spend your days and seek out a home that will
help make that dream a reality. For some, that might mean living near a golf
course or a beach. For others, being able to walk downtown for a nice dinner
out is the priority. And with more time to spend as you wish, proximity to a
supportive community of friends and family is priceless.
Ability to Age in Place
Let us face it—we cannot escape aging. If
you are looking for a home to retire in, accessibility should be front-of-mind.8
This may mean a single-story home or simply having adequate spaces on the first
floor to rearrange as needed. While buying a home that you plan to renovate
from the start is a viable option, being forced into renovations (because of
the realities of aging) a few years down the road could seriously dig into your
nest egg. Location matters, too—if your family will be providing support, are
they close by? Can you easily reach necessities like grocery stores and
healthcare? While it is tempting to put it out of our minds, a few careful
considerations now can make staying in your home long-term much more feasible.
Finding
the Right Home for Right Now
One thing is for sure life never stands
still. And your housing needs will not, either. In the United States, the
median duration of homeownership hovers around 13 years.9 That means
many of us will cycle through a few quite different homes as we move through
different life stages. At each milestone, a careful assessment of your housing
options will ensure that you are well-positioned to embrace all the changes to
come.
Whatever stage you are embarking on next,
we are here to help. Our insight into local neighborhoods, prices, and housing
stock will help you home in on exactly where you want to live and what kind of
home is right for you. I have worked with home buyers in every stage of life,
so we know exactly what questions you need to ask. Buying a home—whether it is
your first or your fifth—is a big decision, but we are here to support you
every step of the way.
Call/Text: 559 429-5478 or email:
Mirna@EnvisionFresno.com
I
support the Fair Housing Act and equal opportunity housing.
Join NAHREP Fresno 3-10-21 at 9:30 A.M. to connect with the Jerry Dyer the Mayor of Fresno, Chris Ferreira from Federal Home Loan Bank of San Francisco, Alondra Williams from Community Vision, and Noerena Limon from NAHREP National Goverment Affairs. They will address the housing and economy of Fresno.
With the ongoing chnges we are seeing in Fresno it is going to take all of us to take care of our community as we shift.
In July, the average 30-year fixed-rate mortgage fell below 3% for the first time in history.1 And while many Americans have rushed to take advantage of this unprecedented opportunity, others question the hype. Are today’s rates truly a bargain?
While average mortgage rates have drifted between 4% and 5% in recent years, they haven’t always been so low. Freddie Mac began tracking 30-year mortgage rates in 1971. At that time, the national average was 7.31%.2 As the rate of inflation started to rise in the mid-1970s, mortgage rates surged. It’s hard to imagine now, but the average U.S. mortgage rate reached a high of 18.63% in 1981.3
Fortunately for home buyers, inflation normalized by October 1982, which sent mortgage rates on a downward trajectory that would bring them as low as 3.31% in 2012.3 Since 2012, 30-year fixed rates have risen modestly, with the daily average climbing as high as 4.94% in 2018.4
So what’s causing today’s rates to sink to unprecedented lows? Economic uncertainty.
Mortgage rates generally follow bond yields, because the majority of U.S. mortgages are packaged together and sold as bonds. As the coronavirus pandemic continues to dampen the economy and inject volatility into the stock market, a growing number of investors are shifting their money into low-risk bonds. Increased demand has driven bond yields—and mortgage rates—down.5
However, according to National Association of Realtors Chief Economist Lawrence Yun, “the number one driver of low mortgage rates is the accommodating Federal Reserve stance to keep interest rates low and to buy up mortgage-backed securities.” According to Yun, “we will see mortgage rates stay near this level for the next 18 months because of the significance of the Fed’s stance.”6
HOW DO LOW MORTGAGE RATES BENEFIT CURRENT HOMEOWNERS?
Low mortgage rates increase buyer demand, which is good news for sellers. But what if you don’t have any plans to sell your home? Can current homeowners benefit from falling mortgage rates? Yes, they can!
A growing number of homeowners are capitalizing on today’s rock-bottom rates by refinancing their existing mortgages. In fact, refinance applications have surged over the past few months—and for a good reason.7 Reduced interest rates can save homeowners a bundle on both monthly payments and total payments over the lifetime of a mortgage.
The chart below illustrates the potential savings when you decrease your mortgage rate by just one percentage point. When it comes to refinancing, the bigger the spread, the greater the savings.
Estimated Monthly Payment On a 30-Year Fixed-Rate Mortgage
Loan Amount
4.0%
3.0%
Monthly Savings
Savings Over 30 Years
$100,000
$477
$422
$55
$20,093
$200,000
$955
$843
$112
$40,184
$300,000
$1,432
$1,265
$167
$60,277
$400,000
$1,910
$1,686
$224
$80,368
$500,000
$2,387
$2,108
$279
$100,461
Be sure to factor in any prepayment penalties on your current mortgage and closing costs for your new mortgage. For a refinance, expect to pay between 2% to 5% of your loan amount.8 You can divide your closing costs by your monthly savings to find out how long it will take to recoup your investment, or use an online refinance calculator. For a more precise calculation of your potential savings, we’d be happy to connect you with a mortgage professional in our network who can help you decide if refinancing is a good option for you.
HOW DO LOW MORTGAGE RATES BENEFIT HOME BUYERS?
We’ve already shown how low rates can save you money on your mortgage payments. But they can also give a boost to your budget by increasing your purchasing power. For example, imagine you have a budget of $1,500 to put toward your monthly mortgage payment. If you take out a 30-year mortgage at 5.0%, you can afford a loan of $279,000.
Now let’s assume the mortgage rate falls to 4.0%. At that rate, you can afford to borrow $314,000 while still keeping the same $1,500 monthly payment. That’s a budget increase of $35,000!
If the rate falls even further to 3.0%, you can afford to borrow $355,000 and still pay the same $1,500 each month. That’s $76,000 over your original budget! All because the interest rate fell by two percentage points. If you’ve been priced out of the market before, today’s low rates may put you in a better position to afford your dream home.
On the other hand, rising mortgages rates will erode your purchasing power. Wait to buy, and you may have to settle for a smaller home in a less-desirable neighborhood. So if you’re planning to move, don’t miss out on the phenomenal discount you can get with today’s historically-low rates.
HOW LOW COULD MORTGAGE RATES GO?
No one can say with certainty how low mortgage rates will fall or when they will rise again. A lot will depend on the trajectory of the pandemic and subsequent economic impact.
Forecasters at Freddie Mac and the Mortgage Bankers Association predict 30-year mortgage rates will average 3.2% and 3.5% respectively in 2021.9,10 However, economists at Fannie Mae expect them to dip even lower to an average of 2.8% next year.11
Still, many experts agree that those who wait to take advantage of these unprecedented rates could miss out on the deal of a lifetime. “With rates now at all-time historic lows, it’s hard to imagine that people may be holding out for something even better," warns Paul Buege, president and COO of Inlanta Mortgage.12 Positive news about a vaccine or a faster-than-expected economic recovery could send rates back up to pre-pandemic levels.
HOW CAN I SECURE THE BEST AVAILABLE MORTGAGE RATE?
While the average 30-year mortgage rate is hovering around 3%, you can do a quick search online and find advertised rates that are even lower. But these ultra-low mortgages are typically reserved for only prime borrowers. So what steps can you take to secure the lowest possible rate?
Consider a 15-Year Mortgage Term
Lock in an even lower rate by opting for a 15-year mortgage. If you can afford the higher monthly payment, a shorter mortgage term can save you a bundle in interest, and you’ll pay off your home in half the time.13
Give Your Credit Score a Boost
The economic downturn has made lenders more cautious. These days, you’ll probably need a credit score of at least 740 to secure their lowest rates.14 While there’s no fast fix for bad credit, you can take steps to help your score before you apply for a loan:15
Dispute inaccuracies on your credit report.
Pay your bills on time, and catch up on any missed payments.
Hold off on applying for new credit.
Pay off debt, and keep balances low on your credit cards.
Don’t close unused credit cards (unless they’re charging you an annual fee).
Make a Large Down Payment
The more equity you have in a home, the less likely you are to default on your mortgage. That’s why lenders offer better rates to borrowers who make a sizable down payment. Plus, if you put down at least 20%, you can avoid paying for private mortgage insurance.
Pay for Points
Discount points are fees paid to the mortgage company in exchange for a lower interest rate. At a cost of 1% of the loan amount, they aren’t cheap. But the investment can pay off over the long-term in interest savings.
Shop Around
Rates, terms, and fees can vary widely amongst mortgage providers, so do your homework. Contact several lenders to find out which one is willing to offer you the best overall deal. But be sure to complete the process within 45 days—or else the credit inquiries by multiple mortgage companies could have a negative impact on your credit score.16
READY TO TAKE ADVANTAGE OF THE LOWEST MORTGAGE RATES IN HISTORY?
Mortgage rates have never been this low. Don’t miss out on your chance to lock in a great rate on a new home or refinance your existing mortgage. Either way, we can help.
We’d be happy to connect you with the most trusted mortgage professionals in our network. And if you’re ready to start shopping for a new home, we’d love to assist you with your search—all at no cost to you! Contact us today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
Since the outbreak of the novel coronavirus
(COVID-19), many of us are spending a lot more time at home. We’re all being
called upon to avoid public spaces and practice social distancing to help slow
the spread of this infectious disease. While it can be understandably
challenging, there are ways you can modify your home and your lifestyle to make
the best of this difficult situation.
Here are a few tips for creating comfortable
and functional spaces within your home for work, school, and fitness. We also
share some of our favorite ways to stay connected as a community, because we’re
all in this together … and no one should face these trying times alone.
Begin
with the Basics
A basic home emergency preparedness kit is a
great addition to any home, even under normal circumstances. It should include
items like water, non-perishable food, a flashlight, first aid kit, and other
essentials you would need should you temporarily lose access to food, water, or
electricity.
Fortunately, authorities don’t anticipate any
serious interruptions to utilities or the food supply during this outbreak.
However, it may be a good time to start gathering your emergency basics in a
designated location, so you’ll be prepared now-—and in the future—should your
family ever need them.
Ready to start building an emergency kit for
your home? Contact us for a free copy
of our Home Emergency Preparation Checklist!
Working
From Home
Many employees are being asked to work
remotely. If you’re transitioning to a home office for the first time, it’s
important to create a designated space for work … so it doesn’t creep into your
home life, and vice versa. If you live in a small condominium or apartment,
this may feel impossible. But try to find a quiet corner where you can set up a
desk and comfortable chair. The simple act of separating your home and work
spaces can help you focus during work hours and “turn off” at the end of the
day.
Of course, if you have children who are home
with you all day (given many schools and daycares are now closed), separating
your home and work life will be more difficult. Unless you have a partner who
can serve as the primary caregiver, you will need to help manage the needs of
your children while juggling work and virtual meetings.
If both parents are working from home, try
alternating shifts, so you each have a designated time to work and to parent.
If that’s not an option, experts recommend creating a schedule for your
children, so they know when you’re available to play, and when you need to
work.1 A red stop sign on the door can help remind them when you
shouldn’t be disturbed. And for young children, blocking off a specific time
each day for them to nap or have independent screen time can give you a window
to schedule conference calls or work uninterrupted.
Homeschooling
Your Children
Many parents with school-aged children will be
taking on a new challenge: homeschooling. Similar to a home office, designating
a space for learning activities can help your child transition between play and
school. If you’re working from home, the homeschooling area would ideally be
located near your workspace, so you can offer assistance and answer questions,
as needed.
If possible, dedicate a desk or table where
your child’s work can be spread out—and left out when they break for meals and
snacks. Position supplies and materials nearby so they are independently
accessible, and place a trash can and recycling bin within reach for easy
cleanup. A washable, plastic tablecloth can help transition an academic space
into an arts and crafts area.
If the weather is nice, try studying outside! A porch swing is a
perfect spot for reading, and gardening in the backyard is a great addition to
any science curriculum.
In addition to creating an academic learning
environment, find age-appropriate opportunities for your children to help with
household chores and meal preparation. Homeschooling advocates emphasize the
importance of developing life skills alongside academic ones.2 And
with more meals and activities taking place at home, there will be ample
opportunity for every family member to pitch in and help.
Staying
Fit
With gyms closed and team sports canceled, it
can be tempting to sit on the sofa and binge Netflix. However, maintaining the
physical health and mental wellness of you and your family is crucial right
now. Implementing a regular exercise routine at home can help with both.
If you live in a community where you can
safely exercise outdoors while maintaining the recommended distance between you
and other residents, try to get out as much as possible. If the weather is
nice, go for family walks, jogs, or bike rides.
Can’t get outside? Fortunately, you don’t need
a home gym or fancy exercise equipment to stay fit. Look for a suitable space
in your home, garage, or basement where you can comfortably move—you’ll
probably need at least a 6’ x 6’ area for each person. Many cardio and strength
training exercises require little (or no) equipment, including jumping jacks,
lunges, and pushups.
And if you prefer a guided workout, search for
free exercise videos on YouTube—there are even options specifically geared
towards kids—or try one of the many fitness apps available.
Socializing
From a Distance
Even though we’re all being called upon to
practice “social distancing” right now, there are still ways to stay safely
connected to our communities and our extended families. Picking up the phone is
a great place to start. Make an effort to reach out to neighbors and loved ones
who live alone and may be feeling particularly isolated right now.
And while parties and playdates may be
prohibited, modern technology offers countless ways to organize networked
gatherings with family and friends. Try using group video conferencing tools
like Google Hangouts and Zoom to facilitate a virtual happy hour or
book club. Host a Netflix Party to watch (and chat about) movies
with friends. Or plan a virtual game night and challenge your pals to a round
of Psych or Yahtzee.
There are safe ways to connect offline, too.
Rediscover the lost art of letter writing. Drop off groceries on an elderly
neighbor’s porch. Or organize a neighborhood “chalk walk,” where children use
sidewalk chalk to decorate their driveways and then head out for a stroll to
view their friends’ artwork.
Of course, there’s one group of people who you
can still socialize with freely—those who reside in your home. Family dinners
are back, siblings are reconnecting, and many of us have been given the gift of
time, with commutes, activities, and obligations eliminated. In fact, some
families are finding that this crisis has brought them closer than ever.
YOU ARE
NOT ALONE
Even with all of the tools and technology
available to keep us connected, many of us are still feeling stressed, scared,
and isolated. However, you can rest assured that you are not alone. We’re not
only here to help you buy and sell real estate. We want to be a resource to our
clients and community through good times and bad. If you and your family are in
need of assistance, please reach out and let us know how we can help.
This amazing property was built in 1918 for John Euless and is zoned a Historic site with the City and County of Fresno. Most of the homes wood features and stained glass have been restored to their beautiful richness. We have added modern features like decorative tile flooring, glass chandeliers, new carpet, fully redesigned bathrooms and a chef's kitchen. This historic property is beautiful beyond belief and is ready for its new family to call it home!
