Kelly Broaddus |  eXp Realty | 888.446.5602 | Contact Kelly

Deciding whether to jump into the Northern Arizona housing market or rent instead is rarely an easy decision – especially if you’re a first-time homebuyer. But in today’s whirlwind market, you may find it particularly challenging to pinpoint the best time to start exploring homeownership. 

A real estate boom during the pandemic pushed Flagstaff home prices to an all-time high.¹ Add higher mortgage rates to the mix, and some would-be buyers are wondering if they should wait to see if prices or rates come down.

But is renting a better alternative? Rents have also soared along with inflation – and are likely to continue climbing due to a persistent housing shortage.² And while homebuyers can lock in a set mortgage payment, renters are at the mercy of these rising costs for the foreseeable future.

So, what's the better choice for you? There’s a lot to consider when it comes to buying versus renting. Luckily, you don’t have to do it alone. Reach out to schedule a free consultation and we'll help walk you through your options. You may also find it helpful to ask yourself the following questions:

1. How long do I plan to stay in the home?

You'll get the most financial benefit from a home purchase if you own the property for at least five years.³ If you plan to sell in a shorter period of time, a home purchase may not be the best choice for you.

There are costs associated with buying and selling a home, and it may take time for the property’s value to rise enough to offset those expenditures.

Even though housing markets can shift from one year to the next, you’ll typically find that a home’s value will ride out a market’s ups and downs and appreciate with time.⁴ The longer you own a property, the more you are likely to benefit from its appreciation.

Once you’ve found a community that you’d like to stay in for several years, then buying over renting can really pay off. You’ll not only benefit from appreciation, but you’ll also build equity as you pay down your mortgage – and you’ll have more security and stability overall.

Also important: If you plan to stay in the home for the life of the mortgage, there will come a time when you no longer have to make those payments. As a result, your housing costs will drop dramatically, while your equity (and net worth) continue to grow.

2. Is it a better value to buy or rent in Flagstaff?

If you know you plan to stay put for at least five years, you should consider whether buying or renting is the better bargain in your area.

One helpful tool for evaluating your options is a neighborhood’s price-to-rent ratio: just divide the median home price by the median yearly rent price. The higher the price-to-rent ratio is, the more expensive it is to buy compared to rent.⁵ Keep in mind, though, that this equation provides only a snapshot of where the market stands today. As such, it may not accurately account for the full impact of rising home values and rent increases over the long term.

According to the National Association of Realtors, a typical U.S. homeowner who purchased a single-family existing home 10 years ago would have gained roughly $225,000 in equity — all while maintaining a steady mortgage payment.⁶

In contrast, someone who chose to rent for the past 10 years would have not only missed out on those equity gains, but they would have also seen U.S. rental prices increase by around 66%.⁷

So even if renting seems like a better bargain today, buying could be the better long-term financial play.

Ready to compare your options? Then reach out to schedule a free consultation. As local market experts, we can help you interpret the numbers to determine if buying or renting is the better value in your particular neighborhood.

3. Can I afford to be a Flagstaff homeowner?

If you determine that buying a home is the better value, you’ll want to evaluate your financial readiness.

Start by examining how much you have in savings. After committing a down payment and closing costs, will you still have enough money left over for ancillary expenses and emergencies? If not, that’s a sign you may be better off waiting until you’ve built a larger rainy-day fund.

Then consider how your monthly budget will be impacted. Remember, your monthly mortgage payment won’t be your only expense going forward. You may also need to factor in property taxes, insurance, association fees, maintenance, and repairs.

Still, you could find that the monthly cost of homeownership is comparable to renting, especially if you make a sizable down payment. Landlords often pass the extra costs of homeowning onto tenants, so it’s not always the cheaper option.

Plus, even though you’ll be in charge of financing your home’s upkeep if you buy, you’ll also be the one who stands to benefit from the fruits of your investment. Every major upgrade, for example, not only makes your home a nicer place to live; it also helps boost your home's market value.

If you want to buy a home but aren’t sure you can afford it, give us a call to discuss your goals and budget. We can give you a realistic assessment of your options and help you determine if your homeownership dreams are within reach.

4. Can I qualify for a mortgage?

If you’re prepared to handle the costs of homeownership, you’ll next want to look into how likely you are to get approved for a mortgage.

Every lender will have its own criteria. But, in general, you can expect a creditor to scrutinize your job stability, credit history, and savings to make sure you can handle a monthly mortgage payment.

For example, lenders like to see evidence that your income is stable and predictable. So if you’re self-employed, you may need to provide additional documentation proving that your earnings are dependable. A lender will also compare your monthly debt payments to your income to make sure you aren’t at risk of becoming financially overextended.

In addition, a lender will check your credit report to verify that you have a history of on-time payments and can be trusted to pay your bills. Generally, the higher your credit score, the better your odds of securing a competitive rate.

Whatever your circumstances, it’s always a good idea to get preapproved for a mortgage before you start house hunting. Let us know if you’re interested, and we’ll give you a referral to a local loan officer or mortgage broker who can help.

5. How would owning a home change my life?

Before you begin the preapproval process, however, it’s important to consider how homeownership would affect your life, aside from the long-term financial gains.

In general, you should be prepared to invest more time and energy in owning a home than you do renting one. There can be a fair amount of upkeep involved, especially if you buy a fixer-upper or overcommit yourself to a lot of DIY projects. If you’ve only lived in an apartment, for example, you could be surprised by the amount of time you spend maintaining a lawn.

On the other hand, you might relish the chance to tinker in your very own garden, make HGTV-inspired improvements, or play with your dog in a big backyard. Or, if you’re more social, you might enjoy hosting family gatherings or attending block parties with other committed homeowners.

The great thing about owning a home is that you can generally do what you want with it – even if that means painting your walls fiesta red one month and eggplant purple the next.

The choice – like the home – is all yours.  

HAVE MORE QUESTIONS? WE’VE GOT ANSWERS

The decision to buy or rent a Flagstaff home is among the most consequential you will make in your lifetime. We can make the process easier by helping you compare your options using real-time local market data. So don't hesitate to reach out for a personalized consultation, regardless of where you are in your deliberations. We'd be happy to answer your questions and identify actionable steps you can take now to reach your long-term goals. Call 888.446.5602 or email kelly.broaddus@exprealty.com.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. CNN -
   https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html
2. NPR - https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l
3. Bankrate -
   https://www.bankrate.com/mortgages/5-year-real-estate-rule/
4. Federal Reserve Bank of St. Louis -
   https://fred.stlouisfed.org/series/MSPUS
5. National Association of REALTORS - https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019
6. National Association of REALTORS -
   https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years
7. Statista -
   https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/

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Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

Fortunately, there are plenty of creative ways to deal with rising interest rates, and I’d like to share three of them with you today

1. Improve your credit. You may think your credit score is already as good as it can be, but there is always room for improvement. Start by paying off your debt little by little. This will lower your debt-to-income ratio, which is what lenders use to determine your creditworthiness. You don’t want to pay off everything all at once because this will only negatively affect your credit. Talk to your credit counselor or preferred lender for the best way to pay off your debt.

"Mortgage points are fees you can pay to lower your interest rate."

You should also save as much money as you can. As a general rule, the more money you have for the down, the better it is for your situation. Try to be disciplined and set money aside. 

2. Lock in your mortgage rate when it makes sense. If your lender is offering you a good rate, consider locking it in. Rates are expected to continue rising to combat inflation, but you won’t have to worry about that if your rate is locked in. Just remember that it only makes sense to lock in your rate when you’re almost to closing. Most rates only stay locked in for one to two months.

3. Pay mortgage points at closing. Also known as “discount points,” mortgage points are fees you can pay to lower your interest rate. You can do it yourself, or you can ask your seller to contribute closing costs to pay down your interest rate. One point typically costs 1% of your loan, so a point on a $400,000 mortgage would cost $4,000. A nice perk of mortgage points is that they might be tax-deductible. If you can deduct your mortgage interest, chances are you can deduct the cost of your mortgage points as well. 

4. Check if your jumbo rate or adjustable-rate mortgage is more affordable. If your jumbo loans are more affordable than the conventional rate, consider getting one instead. You may also want to check other programs such as the adjustable-rate mortgage if it best fits your needs.

There are still plenty of opportunities in our market. If you have any questions about interest rates or purchasing a home, please call or email me. I am always willing to help!

Flagstaff AZ Real Estate Market Data Provided by The Broaddus Properties Group Brokered by eXp / by Joselyn Uy

 August Flagstaff Home Sales Slow Down, Posts 25% Decline Year  Over Year 

After a long stretch strongly favoring sellers, the market appears to be rebalancing at last. Inventory is continuing to grow – good news for buyers! – while home price appreciation slows.  Here's our latest update.

FLAGSTAFF HOME SALES

The US Existing-Home Sales Slipped 0.4% in August from July while Greater Flagstaff's housing market posted a 17.3% decline according to data provided by the Northern Arizona MLS. There was a total of 163 homes sold, 25.2% lower than a year ago.  This is the second lowest August since 2012.

"The softness in home sales reflects this year's escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago," National Association of Realtors Chief Economist Lawrence Yun.

In the month of August, the Broaddus Properties Group Brokered by eXp listed and sold three properties in Flagstaff valued at over $2.7 Million. Last year we helped buy and sell 8 homes worth $4.8 Million+!

FLAGSTAFF MEDIAN HOME PRICE

"The median list-to-sales ratio for this area is 103.1%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property. 

Flagstaff's August median sold price declined 13.7% vs last month, however it is still up 5% year over year to $630,000, highest in more than a decade. Homes remained on the market for 56 days (median). This is slower than the 53 days we saw in July and the year prior.

"The market is still suffering the effects of unusually low affordability. Interest rates are much higher than they were at the start of the year and even if prices drop to the level they had in January, homes will still be less affordable due to these higher rates," 

Michael Orr of the Cromford Report. 

DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE

AUGUST 2022 Flagstaff Market Watch Summary

Total Home Sales - 163 homes, down 25.2 % vs July 2021.

Median Sale Price - $630,000 up 5% vs August 2021, highest in more than a decade

Mortgage rates - The 30-year fixed-rate mortgage rate averaged 6.02% as of September 15, up from the first week when it averaged 5.89%. A year ago at this time it averaged 2.86%.

Longest days on market (SF): 818 days This is a single level, brand new rustic mountain home in Anazasi Ridge with 4 bedrooms and 3.5 baths

CDOM The acronym CDOM (Cumulative Days on Market) is used by the Flagstaff MLS to describe how many days a property has been available for sale. A property must be off the MLS for at least 90 days for the CDOM to restart, even if a different agent lists it. We report the average days on the market for properties sold based on CDOM.

The number of days a home sits on the market can tell us a lot about pricing. A high CDOM is commonly a strong indicator that the home is overpriced. 

FLAGSTAFF LUXURY HOME SALES

The luxury benchmark price for Flagstaff single-family homes is $975,000,  set by The Institute for Luxury Home Marketing.  LUXURY BENCHMARK PRICE is the price point that marks the transition from traditional homes to luxury home.

• The Flagstaff single-family luxury market is a Seller's Market with a 29% Sales Ratio.
• Homes sold for a median of 100.00% of list price in August 2022.
• The most active price band is $975,000-$999,999, where the sales ratio is 71%.
• The median luxury sales price for single-family homes is $1,272,500.
• The median days on market for August 2022 was 50 days, down from 60 in August 2021.

FLAGSTAFF'S PRICIEST HOMES SOLD in AUGUST 2022

Photo courtesy of Symmetry Realty Brokerage, Deana Keck

• The highest-priced single-family Flagstaff home that sold in August was a $3,600,000 four-bedroom luxury mountain home in The Estates at Pine Canyon 
• The highest-priced Flagstaff townhome sale was a $990,000 2-bedroom, 1,526 sqft single-level luxury townhouse in Pine Canyon that boasts upgraded features including upgraded stainless steel Viking appliances in the chef's kitchen.
• The highest-priced Flagstaff condominium sale was a $935,636 three-bedroom, new construction in Pine Canyon with large covered balcony and built-in BBQ . The bedrooms each include an en-suite private bath.   

THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in AUGUST 2022

Photo courtesy of Linton Real Estate, Jean Bonderud

• The lowest-priced single-family Flagstaff home that sold in August was a $180,000 home in Sunnyside. The house has three bedrooms and sold in As-is Condition. Cash sale.
• The lowest-priced Flagstaff townhome sale last month was a $187,500 two-bedroom townhome in Rio Homes. This home is part of the Flagstaff Affordability Program. It is deed restricted and is a land lease.
• The lowest-priced Flagstaff condominium sold was a $200,900  one bedroom, energy efficient attainable unit by Miramonte at Ponderosa Parkway, located in the Switzer Mesa area

Flagstaff Home Buyer Advice

Homes aren’t selling as quickly, and buyers are less pressured to bid well above asking price to secure their offer. 

"For many of today's buyers, the uptick in for-sale home options is taking away the sense of urgency that they felt during the past two years, when inventory was scarce. As a result of this shift coupled with higher mortgage rates, competition continued to cool in August, with listing price trends indicating that home sellers are noticing shoppers tightening their purse strings," said Danielle Hale, Chief Economist for Realtor.com®

At the end of August we had 48% more active listings compared to the same period last year, but still lower by 6% year to date compared to last year. 

IS IT A GOOD TIME TO BUY?

Though mortgage rates have steadily risen over the last few months, it may still be a good time to think about taking advantage of rising home inventories and buying a new home. 

Rental prices have continued to rise, and home building has yet to catch up to market demand, so there is no real way to avoid the rising cost of housing going forward. At least when you buy a home, you get to lock in a mortgage payment you can afford - and start building your equity, rather than your landlord's.

If you’d like to look at what’s available on the market today, you can view the homes that are available in the Northern Arizona MLS right now:

Click here to see all Flagstaff homes for sale

Search Northern Arizona Homes For Sale

Home Buying Tips Our home buyer's blog will help you plan and prepare for your successful home purchase and avoid headaches and surprises that may arise during the process.

Sign up for free to receive our updates about coming soon properties and homes for sale not listed on the MLS. I can set up a customized search so you’ll get notified when new listings that meet your criteria hit the market.

Flagstaff Home Seller Advice 

Seller sentiment has shifted, suggesting that today's homeowners feel like they missed the boat on peak pricing, while others could be concerned about the cost of buying their next home. 

“Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.” Sam Khater, Freddie Mac’s Chief Economist

IS IT A GOOD TIME TO SELL?

YES! Inventory is still firmly in Seller’s Market territory. Flagstaff homes for sale under $800,000 strongly favors sellers with less than 3 months of supply. 

Waiting is unlikely to reveal better conditions. By the end of the year we could start to approach a more balanced market condition if inventory growth continues at the current level. 

If you’re curious about what your home is worth in today’s market, click the image below then enter your address to instantly calculate your home’s value in today’s market based on recent Flagstaff home sales

Home Selling Tips Our blog for home sellers has tons of tips to help sell your home faster and add thousands of dollars to your bottom line. Check it out. 

We at The Kelly Broaddus Team with eXp Realty know that the only result that ultimately matters is that your home gets sold — and sold for the right amount. Satisfied clients say it all. Check out our 5 Star Reviews. 

If you have any questions about our market or are thinking about buying or selling in Flagstaff, don’t hesitate to call us at 888.446.5602 or email us at kelly.broaddus@exprealty.com. We’re out in the market every day helping clients to buy and sell in Northern Arizona, and we do research so we have the best advice to give you, no matter your situation.

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Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

Sold! Discover Coconino Country Club's Hidden Gem: a Beautiful Updated Townhome with a Huge Deck

  3 Beds |  2 Baths | $624,850

Don't miss out on this hidden Gem! This small townhome development has only 8 units. VERY desirable location and secluded. Great floor plan with a huge deck backing tall trees (HOA owned land). Relax or entertain in this desirable home! Much of this home was recently remodeled, new appliances and flooring. Enjoy membership to the Continental Country Club, including Pool, Tennis Courts and Golf.

Photos and more information here:

Northernarizonafinehomes.com/property/191312/

Take a Virtual Tour of 2019 N Chipmunk Court

LOCATION

2019 North Chipmunk Court

Car-Dependent

Learn more about Coconino Country Club Flagstaff

 Take Route 66 to Country Club Dr, follow Country Club Dr for 2.3 miles, turn right on Chipmunk Court. Home is in cul-de-sac

Amusement & Recreation 

• Lowell Observatory- Astronomical observatory where the planet Pluto was discovered. Great place to go if you want to enhance your knowledge about astronomy, time with the stars on the horizon explained, and a chance to look through the giant telescope.
• Hal Jensen Recreation Center - Is designed for family fun and fitness with a variety of drop-in hours.
• Thorpe Park Center - Great place for the whole family including the furry ones. There are plenty of activities for the kids, playground area, picnic tables, lots of grass areas, sports fields, a dog park, adequate parking.  

Dining Nearby

Nearby restaurants include Nomads Global Lounge, if you are looking for an unusual menu with a great range of flavors this is a great place for you. You can also drop by at Tinderbox Kitchen and enjoy the good food and Flagstaff's authentic vibe. Satchmo’s is also a great place for dinner with a group. If you're looking for crafted BBQ and Cajun cooking it's just a small detour from the main road.

Nearby Schools

• Thomas M Knoles Elementary School
• Mount Elden Middle School
• Coconino High School

Coconino Country Club Neighborhood Information 

Visit the Coconino Country Club community page for more information about this southeast city Flagstaff community.

Contact Kelly Broaddus at kelly.broaddus@exprealty.com  or call 888-4465602 to see other houses and condos for sale in Flagstaff.

Search for Homes in Flagstaff, Arizona

Flagstaff Homes for Sale Under $400,000

Flagstaff Homes for Sale $400,000 - $500,000

Flagstaff Homes for Sale $500,000 - $600,000

Flagstaff Homes for Sale $600,000 - $700,000

Flagstaff Homes for Sale $700,000 and above

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

Did you know that there have been some fundamental changes to our Continental Country Club recently? I have a lot of paperwork detailing these changes, and I’m here to share them with you. If you want copies of this paperwork, call or email me, and I’d love to share it with you! In the meantime, here is a summary. 

You can hear all the details by watching the video above or skip to individual topics using these timestamps: 

0:00 — Introduction 

0:52 — Explaining the two votes 

1:40 — The VRBO situation 

3:00 — Why people might be happy about this situation 

3:48 — Explaining our housing market 

4:10 — Loan possibilities and refinancing 

4:38 — Wrapping up 

I hope this information was helpful, and let me know if you have any questions! Call or email me, or visit my website. I look forward to hearing from you.

Kelly Broaddus |  eXp Realty | 888.446.5602 | Contact Kelly

The US Mortgage rates have been on a roller coaster ride this year, rising and falling amid inflationary pressures and economic uncertainty. And even the experts are divided when it comes to predicting where rates are headed next.¹

This climate has been unsettling for some homebuyers and sellers. However, with proper planning, you can work toward qualifying for the best mortgage rates available today – and open up the possibility of refinancing at a lower rate in the future.

How does a lower mortgage rate save you money? According to Trading Economics, the average new mortgage size in the United States is currently around $410,000.² Let’s compare a 5.0% versus a 6.0% fixed-interest rate on that amount over a 30-year term.

With a 5% rate, your monthly payments would be about $2,201. At 6%, those payments would jump to $2,458, or around $257 more. That adds up to a difference of almost $92,600 over the lifetime of the loan. In other words, shaving off just one percentage point on your mortgage could put nearly $100K in your pocket over time.

So, how can you improve your chances of securing a low mortgage rate in Flagstaff? Try these eight strategies:

1. Raise your credit score.

Borrowers with higher credit scores are viewed as “less risky” to lenders, so they are offered lower interest rates. A good credit score typically starts at 690 and can move up into the 800s.³ If you don’t know your score, check with your bank or credit card company to see if they offer free access. If not, there are a plethora of both free and paid credit monitoring services you can utilize.

If your credit score is low, you can take steps to improve it, including:⁴

• Correct any errors on your credit reports, which can bring down your score. You can access reports for free by visiting AnnualCreditReport.com.
• Pay down revolving debt. This includes credit card balances and home equity lines of credit.
• Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.
• Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.
• Limit your credit applications to avoid having your score dinged by too many inquiries. If you’re shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a short period, usually 14 to 45 days.⁵

Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate.

2. Keep steady employment.

If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.

When you apply for a mortgage, lenders will typically review your employment and income over the past 24 months.⁵ If you’ve earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.

That doesn’t mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from W-2 to 1099 (independent contractor) income, could throw a wrench in your home buying plans.⁶

3. Lower your debt-to-income ratios.

Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That’s where your debt-to-income (DTI) ratios will come into play.

There are two types of DTI ratios:⁷
 

1. Front-end ratio — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, taxes, insurance, and dues or association fees)?
2. Back-end ratio — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?

What’s considered a good DTI ratio? For better rates, lenders typically want to see a front-end DTI ratio that’s no higher than 28% and a back-end ratio that’s 36% or less.⁷

If your DTI ratios are higher, you can take steps to lower them, like purchasing a less expensive home or increasing your down payment. Your back-end ratio can also be decreased by paying down your existing debt. A bump in your monthly income will also bring down your DTI ratios.

4. Increase your down payment.

Minimum down payment requirements vary by loan type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.⁸

Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That’s why conventional lenders often require borrowers to purchase private mortgage insurance (PMI) if they put down less than 20%.

A larger down payment will also lower your overall borrowing costs and decrease your monthly mortgage payment since you’ll be taking out a smaller loan. Just be sure to keep enough cash on hand to cover closing costs, moving expenses, and any furniture or other items you’ll need to get settled into your new space.

5. Compare loan types.

All mortgages are not created equal. The loan type you choose could save (or cost) you money depending on your qualifications and circumstances.

For example, here are several common loan types available in the U.S. today:⁹

• Conventional — These offer lower mortgage rates but have more stringent credit and down payment requirements than some other types.
• FHA — Backed by the government, these loans are easier to qualify for but often charge a higher interest rate.
• Specialty — Certain specialty loans, like VA or USDA loans, might be available if you meet specific criteria.
• Jumbo — Mortgages that exceed the local conforming loan limit are subject to stricter requirements and may have higher interest rates and fees.¹⁰

When considering loan type, you’ll also want to weigh the pros and cons of a fixed-rate versus variable-rate mortgage:¹¹

• Fixed rate — With a fixed-rate mortgage, you’re guaranteed to keep the same interest rate for the entire life of the loan. Traditionally, these have been the most popular type of mortgage in the U.S. because they offer stability and predictability.
• Adjustable rate — Adjustable-rate mortgages, or ARMs, have a lower introductory interest rate than fixed-rate mortgages, but the rate can rise after a set period of time — typically 3 to 10 years.

According to the Mortgage Bankers Association, 10% of American homebuyers are now selecting ARMs, up from just 4% at the start of this year.¹² An ARM might be a good option if you plan to sell your home before the rate resets. However, life is unpredictable, so it’s important to weigh the benefits and risks involved.

6. Shorten your mortgage term.

A mortgage term is the length of time your mortgage agreement is in effect. The terms are typically 15, 20, or 30 years.¹³ Although the majority of homebuyers choose 30-year terms, if your goal is to minimize the amount you pay in interest, you should crunch the numbers on a 15-year or 20-year mortgage.

With shorter loan terms, the risk of default is less, so lenders typically offer lower interest rates.¹³ However, it’s important to note that even though you’ll pay less interest, your mortgage payment will be higher each month, since you’ll be making fewer total payments. So before you agree to a shorter term, make sure you have enough room in your budget to comfortably afford the larger payment.

7. Get quotes from multiple lenders in Flagstaff.

When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.

Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. However, if you use a broker, make sure you understand how they are compensated and contact more than one so you can compare their recommendations and fees.¹⁴

Don’t forget that we can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, we can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.

8. Consider mortgage points.

Even if you score a great interest rate on your mortgage, you can lower it even further by paying for points. When you buy mortgage points — also known as discount points — you essentially pay your lender an upfront fee in exchange for a lower interest rate. The cost to purchase a point is 1% of your mortgage amount. For each point you buy, your mortgage rate will decrease by a set amount, typically 0.25%.¹⁵ You’ll need upfront cash to pay for the points, but you can more than make up for the cost in interest savings over time.

However, it only makes sense to buy mortgage points if you plan to stay in the home long enough to recoup the cost. You can determine the breakeven point, or the period of time you’d need to keep the mortgage to make up for the fee, by dividing the cost by the amount saved each month.¹⁵ This can help you determine whether or not mortgage points would be a good investment for you.

Getting Started

Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today’s 30-year fixed rates still fall beneath the historical average of around 8% — and are well below the all-time peak of 18.45% in 1981.^{16, 17}

And although higher mortgage rates have made it more expensive to finance a home purchase, they have also eliminated some of the competition from the market. Consequently, today’s buyers are finding more homes to choose from, fewer bidding wars, and more sellers willing to negotiate or offer incentives such as cash toward closing costs or mortgage points.

If you’re ready and able to buy a home, there’s no reason that concerns about mortgage rates should sideline your plans. The reality is that many economists predict home prices to continue climbing.¹⁸ So you may be better off buying today at a slightly higher rate than waiting and paying more for a home a few years from now. You can always refinance if mortgage rates go down, but you can’t make up for the lost years of equity growth and appreciation.

If you have questions or would like more information about buying or selling your Flagstaff home, reach out to schedule a free consultation at 888.446.5602 or email kelly.broaddus@exprealty.com. We’d love to help you weigh your options, navigate this shifting market, and reach your real estate goals!

Sources:

1. Washington Post -
   https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/
2. Trading Economics -
   https://tradingeconomics.com/united-states/average-mortgage-size
3. NerdWallet -
   https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score
4. Debt.org -
   https://www.debt.org/credit/improving-your-score/
5. The Balance -
   https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544
6. Time -
   https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/
7. Bankrate -
   https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/
8. NerdWallet -
   https://www.nerdwallet.com/article/mortgages/payment-buy-home
9. Consumer Financial Protection Bureau -
   https://www.consumerfinance.gov/owning-a-home/loan-options/
10. NerdWallet -
    https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know
11. Bankrate -
    https://www.bankrate.com/mortgages/arm-vs-fixed-rate/
12. MarketWatch -
    https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665
13. Consumer Financial Protection Bureau -
    https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe
14. Federal Trade Commission -
    https://consumer.ftc.gov/articles/shopping-mortgage-faqs
15. Bankrate -
    https://www.bankrate.com/mortgages/mortgage-points/
16. CNBC -
    https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/
17. Rocket Mortgage -
    https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
18. MarketWatch -
    https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993

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Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

See all homes for sale in Pine Canyon

Sold! Live the Ultimate Flagstaff Lifestyle in this Immaculate Home in Gated Pine Canyon
3 Beds | 3.5 Baths | $1,950,000

Searching for a slice of paradise in the Flagstaff area? Immerse yourself in the ultimate lifestyle with this immaculate residence set within the guard-gated Pine Canyon golf community! Enter the great room with soaring beamed cathedral ceilings and gleaming hardwood floors where a striking flagstone fireplace anchors the space. Ideal for entertaining, a wide array of windows and French doors bring in abundant natural light while your guests bask in verdant views. Upgraded appliances and countertops are showcased in the adjacent kitchen along with new light fixtures and fresh paint throughout. Your 3 bedroom private retreats include 3.5 deluxe baths offering luxury touches such as twin sink vanities with beautiful countertops and a massage tub to help you relax. 

OPEN HOUSE Saturday 9/3, 11AM - 3PM

Step outside onto the wraparound deck, which overlooks a stunning park featuring fun for all ages. Enjoy meals at the covered Ramada's outdoor kitchen, fishing in a well-stocked lake, playground equipment, and a large, fenced dog run. The 3-car attached garage has plenty of room for your vehicles, toys, and golf cart, and the course is just a short ride away. As a bonus, you'll have a loft and laundry room along with a host of other desirable amenities. This excellent, move-in-ready home could be all yours, so come experience the laid-back lifestyle you deserve while it's still available!

TAKE A 3D TOUR

VIRTUAL TOUR

Photos and more information here: 

www.northernarizonafinehomes.com/property/191152/

Location

1766 East Elysian Court

Car-Dependent

Learn more about Pine Canyon Flagstaff

North on I-17. Exit 339 onto S Lake Mary Rd. Turn right onto S Lake Mary. Turn left onto E John Wesley Powell Blvd. Turn right onto S Links and arrive to the Pine Canyon Guard House. Turn left onto S Clubhouse Cir. Right on Tourmaline. Left onto Elysian. Home is on the left

Dining Nearby

Sometimes a strip mall cafe will surprise you and Coppa will blow you away in Flagstaff. Check out This is a small adorable French cafe, their salads, soups and entrées are incredible. They pay a lot of attention to detail. If you are looking for an amazing meal and enjoy Indian cuisine drop by at Delhi Place. Looking for an unusual menu with great range of flavors? Nomads Global Lounge a great place for you.

Attractions & Recreation

• Lowell Observatory- Astronomical observatory where the planet Pluto was discovered.  Enjoy the live indoor astronomy presentations about eclipses; the sun; and the galaxies. Very kid/family friendly.
• Flagstaff Extreme Adventure Course - Facility at Fort Tuthill County Park offering treetop suspended obstacle courses for kids & adults.
• Walnut Canyon National Monument - features prehistoric archaeological sites which are spectacularly located in cliffs and along the rim of Walnut Canyon. 

Schools

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

Sold! This Williams Home on 2 Acres has it All!
4 Beds | 2 Baths | $398,850

This home has it all! Enjoy the wildlife out side your back door on 2 full acres of land! Lush and green, you feel like you are in the wilderness, yet less than 20 min from downtown Williams for stores and dining. This home is move-in ready. Enjoy the spacious, split floor plan. Flagstone landscaping and a generous deck out front. Separate building for workshop, hobby room, or in-door recreation and a storage shed.

TAKE A VIRTUAL TOUR

More pics and info here:

www.northernarizonafinehomes.com/property/191126/

Location

1184 East Birchwood Drive

Car-Dependent

Learn more about North Rural Williams 

Hwy 64 North to right on Hoctor. Turn right on Sycamore Turn right on Birchwood, house is on the left.

• 10.5 miles to North Country HealthCare- Williams Hospital
• 6.2 miles to Williams Municipal Airport
• 9.9 miles to Canyon Vista Mall

Attractions & Recreation

• Circle Pines/KOA Campground - Located just off I-40, go camping among the pines near the Grand Canyon. Swim at the indoor pool, enjoy mini golf, go karting, air hockey, gold panning a park and a lot more
• Grand Canyon Railway- children, and the young at heart, can take a ride on the historic train to the Grand Canyon.
• Grand Canyon Deer Farm, Bearizona Wildlife Park

Dining Nearby

There are plenty of dining options along Historic Route 66, a short commute from this beautiful home. Dine at top rated restaurants in historic downtown Williams: Kicks On Route 66 Bar & Grille, Red Raven Restaurant, Western View Steakhouse & more. Stop for a barbecue and pork sandwiches dinner at the Cowboy Cafe at Grand Canyon KOA 

Schools

Nearby schools

• Williams Elementary/Middle School
• Williams High School
• School District: Williams Unified District

Williams Rural North 

Enjoy endless wildlife, star-filled night skies, and peaceful tranquility in Williams Rural North. Williams Rural North offers a range of housing options including single-family homes on acreage, vacant land (some parcels border State Land), some horse properties and new manufactured homes. Visit the Williams Rural North Area page for more information about this Northern Arizona community. 

Contact Kelly Broaddus at kelly.broaddus@exprealty.com or call 888-4465602 to see this 28 Acre Spanish Style Ranch luxury home in Williams, AZ, or other houses for sale in nearby Flagstaff. 

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Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

 Sold! Rare Opportunity! Beautiful, Move-In Ready, Single Level Aspen Trails Home

    3 Beds |   2 Baths | $619,780

Don't miss the high-quality upgrades offered in this immaculately maintained home in the desirable Aspen Trails neighborhood just minutes from downtown Flagstaff! Inside, discover an elegant open floor plan filled with natural light, a neutral color palette, and soaring vaulted ceilings. A skylight and ceiling fan enhance your spacious, living room. Mohawk plank flooring cascades all the way to the kitchen which comes equipped with Energy Star appliances including a microwave and dishwasher. Chic pendant lights hang over a handsome eat-in island with ample shaker-style cabinetry. Three relaxing bedrooms await with ceiling fans and cellular insulating window shades. There is a Water Sense-certified toilet in each bath, and a soaking tub in the luxe primary ensuite. With a newly stained deck, patio, and gazebo, entertaining is a delight.

Other notable highlights include an attic with storage, a fully fenced backyard, with a storage shed, custom paint, a radon mitigation system, and an attached 1-car garage with a bonus room that can be used as a study or for storage. An unbeatable location places you only a few minute's walk to Ponderosa Trails and Bow and Arrow Parks, the Flagstaff Urban Trail System, and bus stops to downtown Flagstaff and all it has to offer for downtown shopping, and, dining, and more. Come experience this amazing abode for yourself before it slips you by!

Take a Virtual Tour

3D Walkthrough (Matterport)

Photos and more information here: 

www.northernarizonafinehomes.com/property/191124/

LOCATION

3961 South Kendall Street

Car-Dependent

Learn more about Aspen Trails Flagstaff

Lake Mary Road to Mohawk to Kendall and turn left. Home is on the right.

Amusement & Recreation 

• Wheeler Park- A great place to stay cool under the trees and enjoy the outdoors with family.
• Flagstaff Extreme Adventure Course - This place provides a safe, fun, physical and unique outdoor experience in the trees. 
• Thorpe Park Center - Great place for the whole family including the furry ones. There are plenty of activities for the kids, a playground area, picnic tables, lots of grass areas, sports fields, a dog park, adequate parking.  

Dining Nearby

Visit Olive Garden Italian Restaurant, they offer great menu choices with many healthy (gluten and vegan ) options. You can also drop by at Delhi Palace  to try their  high quality, traditional Indian cuisine. Your Pie Pizza serves satisfying pizza and pasta with a nice selection of local brews and wine

Nearby Schools

• Lura Kinsey Elementary School 
• Mount Elden Middle School
• Flagstaff High School

Aspen Trails Neighborhood Information 

Quiet and friendly, FUTS steps away. Visit the Aspen Trails community page to get more information about this neighborhood located in southwest Flagstaff.

Contact Kelly Broaddus at kelly.broaddus@exprealty.com  or call 888-4465602 to see other houses and condos for sale in Flagstaff.

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Kelly Broaddus  |  eXp Realty  |  888.446.5602  |  Contact Kelly

Sold! Spectacular Ponderosa Trails Home Under The Pines

4 Beds | 3 Bath | $850,000

Tucked amidst towering pines in a peaceful Flagstaff neighborhood, this spectacular haven is a tranquil retreat away from the hustle and bustle of the city! Inside, a timelessly elegant interior exhibits a fusion of freshly painted neutral tones, impeccable millwork, and classic hardwood flooring. Undoubtedly the best spot to entertain, the bright living room displays coffered ceilings anchored by a stone fireplace and multiple French doors that open to an expansive deck, ideal for dining alfresco while overlooking the greenbelt.

Your kitchen has stainless steel appliances, gorgeous cabinetry, granite countertops, a pantry, and a multi-seater island under pendant lighting. Wake up refreshed in your carpeted private retreats, including the primary suite with vaulted ceilings, a stately fireplace, and an immaculate 5-piece ensuite with a clawfoot tub. Other notable features are a laundry area, surround sound in the living and movie rooms, 2 new A/C units, dual water heaters, a new roof, and an attached 2-car garage with storage and bike racks. Come take a tour before the opportunity passes you by!

3D Matterport Walkthrough

Take a Virtual Tour

More photos and info

www.northernarizonafinehomes.com/property/191122/

Location

67 West Hance Trail

Car-Dependent

Learn more about Ponderosa Trails Flagstaff

Head south on Lake Mary Rd, Turn right onto High Country Trail, Turn left onto S Vaseys Paradise, Trail/W Vaseys Paradise Trl, Turn left onto S Elves Chasm Trail, S Elves Chasm Trail turns right and becomes W Hance Trail. Home is on the right.

Dining Nearby

• Sizzler is the place where you, family and friends can enjoy a great meal at an affordable price. 
• If you like fresh light salads with delicate and delicious flavor, Taverna Modern Mediterranean is the place to come! Taverna has been a favorite dining destination since 2019 for delicious Mediterranean inspired foods. 
• Silver Pine Restaurant and Bar offers a wonderful experience for visitors and locals alike. At the Silver Pine, they serve breakfast, lunch and dinner, with local and Southwest influenced menu items, creatively prepared with something for everyone.

Schools

Children in this community typically go to the following nearby schools: