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Working from Home? Learn How to Create the Perfect Office with Any Spare Room

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Working from Home? Learn How to Create the Perfect Office with Any Spare Room

With the increasing flexibility of the modern workplace, there are many more businesses offering their employees the opportunity to work from home. While this shift in the job market has created many new options for freelance workers, it can also be a good reason to turn a spare room into a spanking new office. If you’re working from home, here are some tips for a stylish transition.

Prime It With Paint

Outside of lighting, the color and upkeep of the walls is going to have a huge impact on the way your spare office will look. Before even considering placing furniture or putting up pictures, decide on the perfect shade of paint that will keep you inspired and will go with the rest of your house. This will easily brighten the room, and prep it for its future purpose.

Start With Good Lighting

There are few things that will change the ambiance of a room like light, so make sure the room you are changing up has a great set of windows or the kind of fixture that will provide effective illumination. Since many people have a hard time focusing in the orange or bright light that can come in certain work settings, a well-lit place may make all of your work seem a little bit easier.

Decide On A Desk

Many people put any old clunker of a desk in their spare office since it will do the trick, but if you’re making the decision to renovate your spare room for work, it will be worth it to choose a desk you’ll want to work at. Before going desk shopping, measure out the length and width of your spare room so you can make a desk purchase that will work for your new office.

What’s On The Wall?

Beyond the supply of pens, paper and a computer, it might seem like the extras of your office situation can be kept out of the equation, but a few pictures can add a lot. While you may want to add some photos of family and friends, it might also be helpful for your work-time diligence to put up a picture that adds a shot of color and will inspire your best work.

There are a lot of great options for a spare room, but if you work from home, an office can be the ideal renovation. If you happen to be sprucing up your spare room to sell your home, you may want to contact one of your local real estate agents for more information.

Should We Fear the Surge in Cash-Out Refinances?

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Should We Fear the Surge in Cash-Out Refinances? | MyKCM

Freddie Mac recently released their Quarterly Refinance Statistics report which covers refinances through 2020. The report explains that the dollar amount of cash-out refinances was greater in 2020 than in recent years. A cash-out refinance, as defined by Investopia, is:

“a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash.”

The Freddie Mac report led to articles like the one published by The Real Deal titled, House or ATM? Cash-Out Refinances Spiked in 2020, which reports:

“Americans treated their homes like ATMs last year, withdrawing $152.7 billion amid a cash-out refinancing spree not seen since before the 2008 financial crisis.”

Whenever you combine the terms “spiked,” “homes like ATMs,” and “financial crisis,” it conjures up memories of the housing crash we experienced in 2008.

However, that comparison is invalid for three reasons:

1. Americans are sitting on much more home equity today.

Mortgage data giant Black Knight just issued information on the amount of tappable equity U.S. homeowners with a mortgage have. Tappable equity is the amount of equity available for homeowners to use and still have 20% equity in their home. Here’s a graph showing the findings from their report:In 2006, directly before the crash, tappable home equity in the U.S. topped out at $4.6 trillion. Today, that number is $7.3 trillion.

As Black Knight explains:

“At year’s end, some 46 million homeowners held a total $7.3 trillion in tappable equity, the largest amount ever recorded…That’s an increase of more than $1.1 trillion (+18%) since the end of 2019, the largest percentage gain since 2013 and – you guessed it – the largest dollar value gain in history, to boot. All in all, it works out to roughly $158,000 on average per homeowner with tappable equity, up nearly $19,000 from the end of 2019.”

2. Homeowners cashed-out a much smaller amount this time.

In 2006, Americans cashed-out a total of $321 billion. In 2020, that number was less than half, totaling $153 billion. The $321 billion made up 7% of the total tappable equity in the country in 2006. On the other hand, the $153 billion made up only 2% of the total tappable equity last year.

3. Fewer homeowners tapped their equity in 2020 than in 2006.

Freddie Mac reports that 89% of refinances in 2006 were cash-out refinances. Last year, that number was less than half at 33%. As a percentage of those who refinanced, many more Americans lowered their equity position fifteen years ago as compared to last year.

Bottom Line

It’s true that many Americans liquidated a portion of the equity in their homes last year for various reasons. However, less than half of them tapped their equity compared to 2006, and they cashed-out less than one-third of that available equity. Today’s cash-out refinance situation bears no resemblance to the situation that preceded the housing crash.

What Credit Score Do You Need for a Mortgage?

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What Credit Score Do You Need for a Mortgage? | MyKCM

According to data from the most recent Origination Insight Report by Ellie Mae, the average FICO® score on closed loans reached 753 in February. As lending standards have tightened recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores.

The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone’s score rises, they’re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO® score distribution of closed loans, as shown in the graph below:What Credit Score Do You Need for a Mortgage? | MyKCMIf your credit score is below 750, it’s easy to see this data and fear that you may not be able to qualify for a mortgage. However, that’s not always the case. While the majority of borrowers right now do have a score above 750, there’s more to qualifying for a mortgage than just the credit score, and there are still options that allow people with lower credit scores to buy their dream home. Here’s what Experian, a global leader in consumer and business credit reporting, says:

  • Federal Housing Administration (FHA) loans: “With a 3.5% down payment, homebuyers may be able to get an FHA loan with a 580 credit score or higher. If you can manage a 10% down payment, though, that minimum goes as low as 500.”
  • Conventional loans: “The most popular loan type typically comes with a 620 minimum credit score.”
  • S. Department of Agriculture (USDA) loans: “In general, lenders require a minimum credit score of 640 for a USDA loan, though some may go as low as 580.”
  • S. Department of Veterans Affairs (VA) loans: “VA loans don’t technically have a minimum credit score, but lenders will typically require between 580 and 620.”

There’s no doubt a higher credit score will give you more options and better terms when applying for a mortgage, especially when lending is tight like it is right now. When planning to buy a home, speaking to an expert about steps you can take to improve your credit score is essential so you’re in the best position possible. However, don’t rule yourself out if your score is less than perfect – today’s market is still full of opportunity.

Bottom Line

Don’t let assumptions about whether your credit score is strong enough put a premature end to your homeownership goals. Let’s connect today to discuss the options that are best for you.

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