How I Travel Full-Time By RV And Boat With My 2 Dogs

Traveling with a dog is a lot of fun, but there are some important things to consider so you and your pet are prepared. 

How I Travel Full-Time By RV And Boat With My 2 Dogs

How I Travel Full-Time By RV And Boat With My 2 DogsSometimes people think we are crazy for bringing our dogs on our adventures, but I wouldn’t have it any other way. For us, it’s like bringing your kids along, haha! 

Since we’ve been doing this for several years and in so many different ways, I figured I would be a good person to share what it’s like traveling with a dog for anyone who is interested in learning how it’s done.

You might be interested in going on a roadtrip with a dog. Maybe you want to sail or RV full-time with them, or perhaps you just want to take your furry companion on your next week long vacation. 

Whether you want to travel full-time with your pets, or if you want to just go on the occasional trip, hopefully my experiences will help you.

Traveling with a dog has been a huge learning process for me.

We’ve had to go slow and learn what works for our dogs. I say this because there is no single right way to travel with pets. So, you may have to adjust a little for your specific animal, as all animals are different and have different needs. We even see differences between our two dogs in how they travel.

Before I go on, let me backup a little bit. If you follow me on Instagram, then you already know this – I travel full-time with my two dogs. We’ve been traveling with them for years now, and they are pretty used to it whether we are in a tent, Jeep, RV, campervan, or sailboat.

Our dogs have been to several new countries, many new states, national and state parks, hiked some of the tallest mountains in the U.S., swam in beautiful Caribbean waters, and more.

We absolutely love our dogs, and we go to the extreme to make sure they are happy and comfortable with what we are doing.

While we love bringing our dogs everywhere with us, that does not mean it’s easy. Traveling with a dog takes some serious planning, and it is not something to take lightly.

Everything takes a little bit longer due to bathroom breaks, walks, and all the planning, so it definitely takes more effort.

I have received a ton of questions over the years on how we keep everyone happy, us and the dogs, while we travel. Of course, my experiences won’t apply to all dogs, as all dogs are different. But, hopefully you will find some ideas or tips that will make traveling with pets a little easier on everyone.

Content related to traveling with a dog:

 

traveling with dogs by boat

The four of us on SV Paradise (our boat)

About our dogs, Sailor and Mr. French.

Our bigger dog is Sailor, and she is about 85 pounds and is over 13 years old. Our smaller dog is Mr. French, and he is a 15-pound French Bulldog who is over 11 years old. We’ve had them since they were puppies (we adopted both of them) and love them so much!

Mr. French is happy to be wherever we are, and he doesn’t care much for being outside so he makes the perfect pet for an RV or boat. He enjoys sailing and likes to be right at the helm with us.

Sailor enjoys all of the smells when we travel to new places as well as the attention and petting from being a big dog at a campground, marina, or anchorage. Due to her bigger size, we have to do more to make sure she is comfortable and happy, but it is all worth it. She is a great hiking buddy and is very friendly and social with new people.

Honestly, while traveling with a dog is more work, I can’t imagine what it would be like to travel without them. They bring us so much happiness and love, so it is well worth it to us.

When traveling with a dog, here are my tips so that both the humans and animals are happy and healthy.

Here’s how to start traveling with a dog.

 

1. Take it slow when introducing your pets to travel.

If you want to start traveling with a dog, then I recommend taking it slow.

Whether you are going to live in a boat or an RV full time, or are just going on a weeklong road trip, I recommend slowly introducing your dog to travel.

This is the top tip we’ve heard from others who travel with their dogs, and it’s very true.

So, instead of throwing your pets into a long trip, you may want to start with something much smaller, so that they can get used to the process. You will be completely changing their routine, and many pets are used to following routines each day.

I also recommend trying to keep some of their routines as close to normal as possible, such as feeding times and when you let them out for exercise and bathroom breaks.

For example, when we started sailing, numerous people suggested starting the dogs out at a marina, then doing day sails, then an anchorage, and go from there. So, that’s exactly what we did. We didn’t want them to be afraid of sailing or make them afraid to get on the boat, so we took it as slow as possible. That’s worked out well for us, and we recently did a 9-day sail with them, and they acted like it was no big deal at all.

We got them very comfortable with being on the boat, and we haven’t had to quit just yet, so I would say it was a huge success.

If you are not planning on traveling full-time, but want to go on a road trip with your dog, I recommend not traveling too far at first, especially if they’re not used to being in the car. Slowly introducing them to travel is good so that they don’t get scared or stressed out. So, you may want to start by bringing them to a park nearby to help them with their nerves, as some dogs can be quite anxious!

 

traveling with dogs internationally

This is what a normal day on the water looks like.

2. Know the rules and customs of where you are going.

Not every place you go to will be pet friendly.

When traveling with a dog, you will quickly learn that not every park or trail is open to dogs. Most national parks are this way and don’t allow dogs on the trails.

However, there are some national parks that do. This is why I recommend doing some research ahead of time so that you are not surprised or frustrated when you get to your destination.

No matter where you are traveling with a dog, respect the land and the people there. You should always pick up after your dog, even if that means that you will have to hike for hours with a dog waste bag. You should not let your pets trample over delicate areas, and don’t let them approach people who don’t want to be bothered.

The same also applies to campgrounds and hotels. You will want to make sure that you find dog friendly camping, dog friendly hotels, and more. You’ll want to call in advance to make sure the weight and breed are acceptable.

 

3. How to do veterinarian visits.

Going to the vet is an important part of being a pet owner, and you still need to do it when you’re traveling with a dog.

I receive a lot of questions about how we handle this.

Our dogs still see the vet each year, and sometimes more often if there are any issues. They just usually see a new vet each year. If we’re in the same place for longer than a year, then they might see the same vet more than once.

Our dogs have never had an issue going to a new vet, and they go each time with no problem. We simply make sure to bring all of their paperwork with us so that there is no confusion as to what was done at a previous appointment.

When it comes to medications, we try to stock up on what we need for the whole year. 

If you’re going to start traveling with a dog, especially full-time here are some thing you’ll want to bring up with your vet to prepare:

  • Getting your dog microchipped. This is a great thing to have, and if you are going to a new country then it is usually mandatory.
  • Rabies vaccination – this is normal.
  • Seeing what vaccinations and medications are recommended or required in the area you will be traveling to in the next year. This can vary even state by state!

 

4. How to visit new countries with dogs.

When visiting new countries with our dogs, there have been a lot of steps and hurdles to go through.

Here are some of the preparations you may need to make when traveling with a dog to a foreign country:

  1. Contact the government veterinarian agency of the country you are seeking to visit and ask for an up-to-date list of requirements for bringing a pet.
  2. Bring your dog to a veterinarian where you are currently located and get all of the required shots, tests, paperwork, etc.
  3. Visit the USDA or the equivalent in the country you are in to get your paperwork certified and stamped.
  4. Send all of the required paperwork back to the government veterinarian in the country you are desiring to go to and have them approve it. You will also need to get a permit from them for your pet to enter the country.
  5. Then, once you get to the new country, you may have to bring your pet to the government vet so that they can make sure it is the same pet on the paperwork, as well as to make sure the pet is healthy.

Now, these aren’t the exact steps for every single country, as every country has its own process.

The process can take several months from beginning to end, so you will want to make sure that you budget for plenty of time to get everything ready. When you’re boating with dogs, especially around the Caribbean, you can spend a lot of time researching this kind of stuff.

You’ll want to make sure you follow the steps exactly as detailed by the country you are going to, because doing them out of order (such as getting the vaccinations in the wrong timeline) will invalidate the process. This can be a costly and timely mistake, but it’s avoidable.

When you’re traveling with a dog or another pet, I also recommend:

  • Try to bring as much food for your pet as you can. We usually bring several months of dog food with us, as there may not be as many choices where you are going.
  • Keep your dog on a leash when it is required, if there are people near, and so on. And, always follow the leash rules of the area you’re visiting. Not everyone in other countries and areas like dogs, so you will want to keep that in mind.
  • When you go to the vet, try to get any standard medications that you may need. For example, our bigger dog can sometimes have an ear issue that requires a liquid steroid that you insert in her ears. We always try to have at least one backup on us so we don’t have to try to find a vet, as it can be quite difficult in foreign countries to get your dog to a vet if you don’t have a car, and not all islands have a vet either.
  • In some countries and/or areas, you may have to keep your pet documents on you at all times as you may be asked to show it at random times.

While it is a lot of work to bring your dog to a new country, it is possible and most government vets are super nice and helpful.

Some helpful resources for more information on each specific country include:

 

Traveling with a dog in a van

Can you spot Mr. French?

5. How to keep a tiny area clean when traveling with pets.

We keep our home as clean as it can be, which usually means vacuuming every single day. Our bigger dog sheds a ton, and we would be choking on hair all day if we didn’t vacuum as much.

We use a Dyson vacuum (this is the one that we love) and it works great. It’s small, rechargeable, and super portable.

We bring this with us whether we’re on the van or in the boat. Highly, highly recommend.

 

6. How to keep the temperature comfortable in an RV or boat for a pet.

For us, we try to follow good weather as much as we can. However, I know that is not always possible.

There are devices where you can track the temperature over a cell signal back to wherever your dog is (you can find a whole bunch of them on Amazon), which can be a great option. However, you might not always have a signal.

If we are unable to make the temperature comfortable for our dogs or if the electrical power isn’t stable, we simply do not leave our dogs alone.

But, it usually isn’t hard to make it comfortable for them. By opening windows, turning on fans, or the AC, you can make it pretty comfortable for both humans and pets.

 

What do I need to travel with my dog?

Walking in Utah

7. Full-time travel with dogs – how they use the bathroom on the boat.

This is one of the most common questions we’re asked about traveling with a dog. People are fascinated with how our dogs go to the bathroom on our boat.

We always try to make regular and frequent bathroom breaks for our dogs.

Whether we are traveling by boat or car, we like to keep bathroom breaks as similar as possible.

We were nervous training our older dogs to use the bathroom on the boat, but it has been just fine. They only have to do this when we’re on an overnight sail, so it’s not very often. Keep in mind that 90% of the time you’re living on a boat is either at anchor or in a marina, so there is almost always land access.

When we look for a marina or an anchorage, we are always looking to see if there is a good area to let out the dogs. That may mean a beach, a grassy area, a dinghy dock so that we can walk to town with the dogs, and so on.

A lot of people falsely assume that when you’re sailing full-time, neither you or your pets touch land for years at a time, and that assumption just makes me laugh. Our dogs go to shore multiple times a day, except for when we are doing a long passage (which isn’t often).

Depending on where we are, we may have to take them for a short dinghy ride to shore or we’re at dock and can simply walk them off the boat to use the bathroom.

If we are doing a longer passage on our sailboat and there is no land for them to step their paws on, we do have fake grass on our boat that they are able to use. It doesn’t happen often though, and most of the time they still get walked 3-5 times a day even when we are on our sailboat.

 

8. How to keep dogs safe on a boat.

The longest sail that we have done with our dogs was 9 days, and they did extremely well on that sail.

Some of the things we do to make sure they are happy and safe include:

  • One of us is pretty much always keeping an eye on them. If we can’t pay close attention to them, then we put a leash on them or close off the inside area so they cannot fall overboard. (If you decide to leash your dog, please make sure they cannot fall off the boat and choke themselves. This applies to being on the boat, dock, land, etc. Sadly we know someone who had this happen to their dog and it had a very sad ending.)
  • We have life jackets for each dog, and we’ve tested them before bringing them out for sails.
  • At night, we keep everything closed off so that there are absolutely no worries with the dogs.
  • We make sure there is plenty of water, food, snacks, and snuggles.

We are lucky that our dogs are quite comfortable on the boat.

They don’t panic or bark.

They simply fall asleep and are relaxed when on the boat.

I think this ties back into #1 of this blog post – we slowly introduce them to new things. This has allowed them to be quite adaptable to any environment that they are put in, whether we are tent camping, roadtripping, in an RV, or on an overnight sail.

 

Traveling with dog tips

Testing out their new dog life jackets 

9. The items that make it easy for traveling with a dog.

We have a lot of items on the boat that are specifically for our dogs, and many of them come with us when we move to our camper van. Here are the most helpful items we have:

  • Dog ramp – This is for when we are at a fixed dock, where it’s a long hop from our transom to the dock. We had a plastic one for a little bit but we found that it would bend in the heat so we had to switch to something better. We are much happier with an aluminum ramp now.
  • Dog toys – To keep our dogs busy and happy, I like to put peanut butter in a Kong and give it to them as a nice treat.
  • Dog waste bags – We keep a plethora of these onboard our boat and van. We usually bulk buy a big box of around 1,000 bags. We also make sure they are biodegradable and compostable.
  • Help ‘Em Up Harness – This is the harness we have for our bigger dog, and I highly recommend it. We put it on her so that she can easily get in and out of steeper places. It’s a little pricey, but well worth it to make sure your dog is safe.
  • K9 SportSack – We use this for our smaller dog so that we can easily just carry him around. He’s not a huge fan of walking everywhere so putting him in the backpack makes it easier on everyone.
  • Collapsible bowl – We always keep one of these in our hiking bag so that the dogs always have something easy to drink out of.
  • Life jacket – If your dog is going to be on a boat, you’ll want a life jacket for them.

 

10. Getting exercise is still important.

Some people think that having a dog on a boat or in an RV is bad for the dog. I don’t think that could be further from the truth, though.

Our dogs get 3-5 walks (sometimes more) each and every single day.

Exercise is so important whether you’re camping with a dog, sailing with them, etc. Don’t assume you’ll fit in walks – you have to plan them in advance.

We always make sure to give our dogs a long walk at the start of the day if we know we’re going to have a long drive or sail. This way, we can try to tire them out and get rid of a lot of energy.

Taking them for a walk is one of the first things we do when we stop, and then we always fit in another long walk before bedtime. You may feel exhausted after a long day of sailing or traveling, but don’t forget how important exercise and routines are to your pets.

 

11. Have a traveling checklist.

Before you leave for wherever you’re going, I recommend bringing anything you think you’ll need, even if you don’t end up using it. This may include:

  • Pet food
  • Water and food bowls
  • Collars, leashes, harnesses
  • Dog waste bags
  • Treats
  • Blankets and beds
  • Medication
  • Paperwork

Specific pets may need different items, and go over your list before you leave. 

12. What about traveling with a dog on a plane?

I would be careful if you are wanting to fly places with your pets where they have to go in the cargo area, as it can be traumatizing to put them in the cargo area of a plane. It can be extremely hot, scary, and they will be away from you for quite some time.

I know several people who have moved to a new country and flew their dogs in cargo in order to make it possible to bring their pets. But, nearly all of these people have told me that they would never do it again, unless absolutely necessary.

If you are going on short trips by plane, I would not recommend putting your pets in cargo for that. Instead, if you have to bring your pet, I would simply find another way to travel. Or, you can find someone to watch your pet.

If your pet can sit with you on the plane, then that’s a whole different story. They may be just fine on the plane, but you should consult with a veterinarian if you have any questions. We’ve avoided flying with our dogs, so I’m just not as familiar with it.

 

Traveling with a dog

We rented a pontoon in Nevada several years ago with the dogs

Traveling with a dog – in summary

I hope you found today’s article helpful.

Please remember that I am not a pet expert, nor a veterinarian. I do have a lot of experience traveling with a dog, but all pets are different. They have different needs and personalities, and what works for my dogs may not work for yours.

So if you have any concerns about traveling with your pet, please contact your veterinarian.

Traveling with a dog can be extremely enjoyable, but there are a few more things you’ll have to think about.

If you’re anything like me, though, it will be well worth it and your pet will enjoy it as well!

Do you like to travel with your dogs? What other questions do you have for me about traveling with pets?

Related Posts

<!–
–>

Source: makingsenseofcents.com

Refinance soon to avoid the FHFA adverse market refinance fee

FHFA fee starts on December 1, but rates will go up before that

Starting on December 1, a new “Adverse Market Refinance Fee” will be imposed on most conventional refinances.

But homeowners won’t pay the new fee at closing.

Instead, lenders will cover it by raising refinance rates — likely by as much as 0.125% to 0.25% on average.

To avoid higher rates, you’ll want to refinance before the fee takes effect.

But there’s a catch: to avoid FHFA’s fee, your refinance loan needs to be closed and delivered to Fannie Mae or Freddie Mac before December 1.

Homeowners who want the lowest-possible refinance rate should apply 2-3 months before December 1 — which is pretty much right now.

Find and a low refinance rate now (Feb 9th, 2021)

What is the Adverse Market Refinance Fee?

On August 12, Fannie Mae and Freddie Mac announced they would assess a new fee on all conventional refinance loans.

The fee is equal to 0.5% of the loan amount.

That means if you had a $200,000 refinance, the new fee would amount to an additional cost of $1,000.

Refinances take a long time to close and deliver, so a September 1 start date meant the fee was already being added to refinances in process.

Originally, the fee was meant to start on September first — meaning it would have applied to all loans not yet delivered to Fannie or Freddie by that date.

But because refinances take a long time to close and deliver, the fee effectively started being added to loans that were already in process prior to September 1.

However, Fannie and Freddie have since changed the rules (and delayed the start date for the fee) in response to a strong industry backlash against it.

Changes to the FHFA refinance fee

On August 25th, FHFA announced two changes to the new refinance fee.

  • The start date moved from September 1 to December 1
  • The new charge will not apply to loan amounts below $125,000, or to HomeReady and Home Possible loans

This is good news for borrowers. It means rates may stay a little lower, a little longer.

It also means that borrowers who were already in the process of refinancing might not see their rates go up as a result of the fee.

In fact, loans currently in the pipeline might have their loan costs re-adjusted in borrowers’ favor, notes Matthew Graham of Mortgage News Daily.

But each lender will handle its own loans differently, so make sure you talk to your mortgage company if you were in the process of refinancing.

Also, note that loans must be delivered to Fannie or Freddie before December 1 to avoid the fee.

That means the refinance will have to close much earlier (in October or early November), so time your refinance accordingly.

Find and lock a low refinance rate (Feb 9th, 2021)

The new fee could push refinance rates up by 0.125% or more

When the new fee does go into effect, borrowers won’t pay it directly.

Instead, it’s likely to be charged to borrowers in the form of higher rates.

“The fee is 50bps [0.50%] in terms of PRICE, and that equates to roughly 0.125% in terms of interest rate,” says Graham.

Though others have estimated that refinance rates could rise as much as 0.375% on average when the fee goes into effect.

Either way, that’s a significant difference in refinance rates for borrowers.

For those who planned to refinance in the near future, it makes sense to get the ball rolling as soon as possible.

The earlier you start your refinance, the better your odds of closing and having the loan delivered to Fannie Mae or Freddie Mac before the fee once again goes into effect.

Find a low refinance rate today (Feb 9th, 2021)

Will all refinances be affected by the new fee?

The Adverse Market Refinance Fee will only apply to refinance loans sold to Fannie Mae and Freddie Mac.

In other words, it applies to ‘conventional’ refinance loans.

But other types of mortgages could be affected indirectly.

In fact, the initial announcement set off higher rates for both purchase and refinancing loans, including some not intended for sale to Fannie Mae and Freddie Mac.

Those who had not locked in rates suddenly faced higher interest costs.

So in the coming months, it seems safe to assume that conventional refinances won’t be the only type affected by rising rates.

No refinance fee on loans under $125,000

One piece of good news from Fannie and Freddie’s most recent announcement is that the refinance fee won’t be charged on loans under $125,000.

Note, that’s based on the loan balance — not the home’s value.

So if your home is worth significantly more than $125,000, but you’ve paid down a lot of the balance, you might end up refinancing less than $125K and the fee won’t affect you.

In addition, the fee won’t be charged to those refinancing a Freddie Mac Home Possible loan or Fannie Mae HomeReady loan.

Why was a new fee developed?

We have faced the COVID-19 economy for months. Some 55 million people have filed for unemployment, and lenders have had to adjust many of their policies to account for the added uncertainty.

But did something new happen to justify this extra fee?

According to Freddie Mac, the new fee was necessary “as a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty.”

Fannie Mae explained that it was adding the fee “in light of market and economic uncertainty resulting in higher risk and costs.”

But on August 25th, a different answer emerged.

According to the Federal Housing Finance Agency (FHFA) — the regulator that runs Fannie Mae and Freddie Mac — the new money was “necessary to cover projected COVID-19 losses of at least $6 billion at the Enterprises.”

“Specifically,” says FHFA, “the actions taken by the Enterprises during the pandemic to protect renters and borrowers are conservatively projected to cost the Enterprises at least $6 billion and could be higher depending on the path of the economic recovery.”

This refers to relief packages passed during COVID-19, which allowed borrowers to skip mortgage payments without penalty and prevented lenders from foreclosing on any delinquent loans.

But this amount is a fraction of the $109.5 billion in profits Fannie and Freddie have added to government coffers, even after paying back bailout funds they received during the 2008 housing crisis, according to ProPublica.

Using a small percentage of past years’ profits to help homeowners through a worldwide pandemic seems like a good idea to us, anyway.

Will Congress stop the new fee before it goes into effect?

The Adverse Market Refinance fee is now set to start after the November election.

So, could the results of the election impact whether or not the fee actually goes into effect?

That’s not certain. Both Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, and Congressman Wm. Lacy Clay (D-MO), Chair of the Subcommittee on Housing, Community Development and Insurance, oppose the new charge.

If opposition to the fee is strong enough, there could potentially be an investigation into the fee and an attempt to stop it. But there’s no guarantee this will happen.

What to do if you want to refinance

Rates are still sitting near record lows — below 3% in many cases. This is basically unheard of in the mortgage world.

Rates are likely to go up as the new refinance fee start date nears. But that’s just one of the many, many factors that can impact mortgage and refinance rates.

If the economy starts to see a real recovery any time soon, rates could start going up regardless of what happens with the refinance fee. On the flip side, they’re not likely to go much lower than they are now.

So for borrowers hoping to refinance at record-low rates, it makes sense to get started sooner rather than later.

Verify your new rate (Feb 9th, 2021)

Source: themortgagereports.com

Don’t Freak Out About the Recent Mortgage Rate ‘Spike’

Posted on January 15th, 2021

Queue the panic. Mortgage rates have officially spiked and the media is all over it.

Yep, the average rate on a 30-year fixed mortgage increased from 2.65% to 2.79% this week, per Freddie Mac’s weekly survey.

Freddie Mac Chief Economist Sam Khater noted in the weekly news release that mortgage rates have been under pressure as Treasury yields have risen.

But he did stress that “while mortgage rates are expected to increase modestly in 2021, they will remain inarguably low.”

So he’s not panicking, even though the Washington Post and other news outlets are leading with articles about “mortgage rates spiking.”

When it comes down to it, a 14-basis point move isn’t what I’d refer to as a “spike,” but yes, mortgage rates are higher than they were last week.

But they are still well below the 3.65% average seen at this time a year ago.

Why Have Mortgage Rates Increased Lately?

rates

  • 30-year fixed mortgage rates have fallen to and hovered close to record lows for months
  • It’s inevitable to see some upward pressure after such a long period of record-breaking movement
  • One driver could be the bond selloff, which lower prices and increases yields
  • This might relate to the Democrats winning the Senate and increasing stimulus spending

As noted, mortgage rates are no longer at record lows, and are in fact closer to 3% than 2%. So should we all freak out?

I’m going to go with no. While the media is using the word “spike” in their articles, perhaps to make its relatively boring weekly report a little more interesting, things aren’t that bad.

Remember, mortgage rates are only marginally higher, and probably not high enough to change anyone’s position on buying a home or refinancing their mortgage.

Sure, there’s a chance someone’s monthly mortgage payment now exceeds the max DTI allowed for the loan, but if you were cutting it that close, you’re probably buying too much home.

As to what’s causing the recent upward reversal, mortgage rate watcher Matthew Graham seems to think it relates to the bond sell-off as a result of the Democrats taking over the Senate.

Simply put, the government issues Treasuries to fund additional COVID-related stimulus, which while good for the economy and struggling households, increases bond supply.

The result is lower bond prices, which forces the accompanying yields (or interest rates) higher.

And because Treasuries correlate with long-term mortgage rates like the 30-year fixed, borrowers will pay more to finance their homes.

Is This the End of Low Mortgage Rates Forever?

  • Let us remember that mortgage rates started off 2021 at all-time record lows
  • So it’s not surprising for them to rise off those levels if there’s any pressure whatsoever
  • I fully expect mortgage rates to hit new lows at some point this year
  • But you’re always going to see ebbs and flows over the course of 365 days

While it’s easy to let your fears and emotions get the best of you, perhaps we shouldn’t call an end to the low-rate party just yet.

Ultimately, mortgage rates ebb and flow, similar to how stocks go up and down from day to day, or week to week.

Yes, it’s easy to get caught up in the psychology of it all and panic, but I just don’t believe we’ve seen the end of the low rates.

Additionally, there may even be more record lows in store for 2021.

Remember, the first week of 2021 resulted in new all-time lows for both the 30-year fixed and 15-year fixed, so it’s kind of far-fetched to sound the alarm.

This isn’t to say we don’t experience a period of relatively higher rates, it’s just that it could be short-lived.

Remember, the presidential inauguration is next week and there are thousands of National Guard protecting the Mall in Wasington D.C and holed up in the Capitol Building.

If that gives you confidence that good times are ahead, well, I don’t know what to tell you.

Not trying to be an alarmist, but there’s just too much uncertainty in the air for interest rates to flourish.

In short, bad news tends to lower rates, while good news increases them. I don’t see much good news, even with all that proposed government spending taken into account.

A month ago, the Federal Reserve said it would be keep its short-term interest rate near zero for the foreseeable future as the economy attempts to recover from the COVID-19 pandemic.

They also indicated that they’d continue to buy Treasuries and mortgage-backed securities (MBS) at the current pace until “substantial progress” is seen in the economy.

Call me a pessimist, but I don’t see anything positive happening with the economy this year, or even next year.

I think we’ve all been ignoring the elephant in the room while watching the stock market reach new all-time highs. At some point, reality will hit.

Ultimately, as long as they’re continuing to buy the mortgages this month and next, lenders will continue to make them at low, low rates.

Time will tell if rates will need to rise on long-term fixed mortgages as the Fed eventually exits the marketplace.

Is It Best to Lock Now or Wait?

  • Times like this exemplify the importance of locking in your mortgage rate
  • You are typically given the choice to lock or float your interest rate once you apply for a home loan
  • If you like what you see, lock it in and don’t give it another thought
  • If mortgage rates shoot up quickly, it could be wise to float and wait for things to calm down

My guess is fixed-rate mortgages will settle down and begin making their way back to lows seen earlier this month.

Of course, mortgage lenders are always quick to raise rates, and a lot more patient when it comes to lowering them (at our expense).

You can’t blame them though – they don’t want to get caught out if volatile rates change direction and they’re on the wrong end of that.

Times like these really exemplify the importance of locking in your mortgage rate. No one cares or complains until rates increase.

If you’re happy with your quoted rate, lock it in and forget about it.

If you’ve got some time before funding, maybe float a bit and wait for some improvement.

After all, the more time you have, the more chances you’ve got for rates to move lower.

And you can always lean on your loan officer or mortgage broker if you’re not sure what to do. Most of the experienced ones keep a keen eye on rates.

In summary, you don’t need to panic, but you should be aware of the fluid situation if you’re looking to refinance or buy a home in 2021.

It might also be a good time to consider how long you plan to stay in your home as well.

That could dictate your mortgage decision and whether or not to pay mortgage points for an even lower rate.

Source: thetruthaboutmortgage.com

These Are the Top Reasons Home Buyers Haven’t Been Successful Lately

Posted on February 1st, 2021

In case you haven’t been paying attention, the housing market is en fuego. This is actually nothing new.

It’s been pretty red hot for years now, and home prices have risen consistently for about a decade since they bottomed around 2012.

But amazingly, the housing market has become even more competitive lately, despite us being in the midst of a worldwide pandemic.

I already explained that the 2021 housing market is akin to the toilet paper shortage, with too many buyers and not enough sellers.

This is why 2021 home prices will be roughly 10% higher than they were toward the end of 2020.

It also tells me you need to bring your ‘A’ game (and then some) if you want to be successful in winning a bid on a property.

You Better Be Ready If You’re in the Market to Buy

pending sales

  • New for-sale listings fell 12% from a year ago, the largest decline since May
  • Active listings declined 35% from 2020 to reach a new all-time record low
  • 43% of homes had an accepted offer within the first 2 weeks, up from 35% a year ago
  • Last week that number hit 55%, the highest point since at least 2012 (when Redfin began tracking such data)

Just when you thought real estate was cooling off, it got even hotter. Don’t believe me? Check out the latest data from real estate brokerage Redfin.

The company noted that new for-sale listings fell 12% from a year ago, the largest decline since May.

Meanwhile, active listings, which are the total number of homes listed for sale at any point during a given period, slipped 35% from levels seen in 2020 to reach a record low.

This supply issue resulted in nearly half (43%) of homes receiving an accepted offer within the first 2 weeks on the market, up from 35% a year ago.

And that number hit a staggering 55% during the week ending January 24th, which shows it’s only accelerating.

Prospective Buyers Are No Longer in the Planning Phase

planning

In another report from the National Association of Home Builders (the Q4 Housing Trends Report), they found that 56% of prospective buyers have exited the planning stage and are now actively attempting to purchase a home.

That number is up from 43% in the fourth quarter of 2019, and reflects a climate filled with more serious buyers, as opposed to lookie loos.

The NAHB said this is being driven by a mixture of record low mortgage rates, COVID-19, and the fear of missing out (FOMO).

Remember, we’ve just entered February. The traditionally hot housing market doesn’t begin to reveal itself until March and April. I can only imagine what that will be like.

In other words, this situation is only going to get worse as 2021 rolls on, so you better be ready if and when you find a house you like because your competition will be…

FYI, don’t buy a house because you don’t want to miss out.

Why Prospective Home Buyers Aren’t Winning

missing out

  • The most common issue is being outbid on a property
  • Which replaced the inability to find an affordable home
  • Another common gripe is finding a home in a desirable neighborhood
  • Or locating a property that has the desired features/amenities

The NAHB report also looked at why prospective home buyers aren’t closing the deal, and after years of its being an affordability issue, it’s now a matter of being outbid.

While bidding wars aren’t new, and certainly ebb and flow over time, they appear to be gaining traction again.

As you can see from the chart above, there are four main issues that have kept active home buyers from landing a property.

They include housing affordability, features/amenities, desired neighborhood, and getting outbid.

For the first time in the NAHB’s series history, getting outbid was the number one reason a long-time searcher hasn’t made a home purchase.

It usurped the “inability to find an affordably-priced home,” which had long been the issue for most prospects.

Interestingly, home buyers are less burdened by affordability and more held back by higher bids from their competition.

Of course, you could argue they are somewhat one in the same, with a higher bid possibly reflecting a price that becomes too far out of reach.

However, it further illustrates just how strong the seller’s market has become yet again.

There were some periods over the past few years where buyers had the upper hand, but it appears those days are numbered, at least for the foreseeable future.

Prepare for War (of the Bidding Variety)

  • You have to be pre-approved for a home loan (no ifs, ands, or buts), you won’t even get into a showing
  • Expect to provide your “best and final” offer right off the bat
  • Don’t be surprised if you’re outbid, but also don’t expect home prices to get any cheaper this year
  • Consider properties that aren’t picture-perfect which could offer value and help you avoid a bidding war

If you’re a buyer, you need to get your ducks in a row, now more than ever.

At a minimum, this means being pre-approved for a mortgage, having assets set aside for down payment and closing costs, and being ready to make an offer at a moment’s notice.

Oh, and if you’re currently a homeowner, how to get rid of that property without it being contingent.

If you’re worried about affordability, it’s likely only going to get worse, whether it’s higher mortgage rates or even more expensive home prices.

Remember, they’re forecast to rise another 10% by November nationally. As far as interest rates go, the 2021 mortgage rate forecast calls for mostly higher rates, or flat at best.

With regard to the features/amenities issue, the NAHB noted that 41% of buyers in the fourth quarter of 2020 were considering a newly-built home, more than double the 19% share a year earlier.

Generally, new homes have all the latest features a home buyer could want, and/or they can be paid add-ons depending on the builder.

The tradeoff is typically a home in a subdivision that isn’t as centrally located, so you might get the home you want, but not the neighborhood.

If you must have the neighborhood, home renovation isn’t as daunting as it looks, assuming we’re just talking about new paint, flooring, appliances, curb appeal, etc.

Because the market is so competitive, it might be better to look at the homes that aren’t staged to perfection, but have potential.

These diamonds in the rough good could offer a discount, or at least help you avoid a bidding war.

Read more: 2021 Home Buying Tips to Help You Seal the Deal

Source: thetruthaboutmortgage.com

Mortgage Rates vs. a Potential War with Iran

Well, it’s a new year and it certainly didn’t begin quietly. Might as well address the elephant in the room when it comes to your mortgage. This isn’t the first time I’ve discussed the possibility of war and its impact on mortgage rates, with the last discussion centered on the Syrian conflict back in 2013. [&hellip

The post Mortgage Rates vs. a Potential War with Iran first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com

It’s Taking a Really Long Time to Get a Mortgage Right Now

Similar to the increased waiting times to get a COVID-19 test these days, it’s taking an extended amount of time to get a mortgage to the finish line. The reason is simply unprecedented demand, just like those COVID-19 tests. The more people that need one, the longer the wait, period. This is the downside to [&hellip

The post It’s Taking a Really Long Time to Get a Mortgage Right Now first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com

2021 Conforming Loan Limit Rises to $548,250

Thanks to another year of stellar home price appreciation, the 2021 conforming loan limit will increase to $548,250, per the Federal Housing Finance Agency (FHFA). This is the maximum loan amount for mortgages that can be acquired by Fannie Mae or Freddie Mac, known as conforming mortgages. The figure is up from $510,400 for mortgages [&hellip

The post 2021 Conforming Loan Limit Rises to 8,250 first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com

United Wholesale Mortgage Now Offering FHA Loans with Rates Below 2%

The leading wholesale mortgage lender in the nation has brought the heat once again, this time offering 30-year fixed mortgage rates below 2% on FHA loans. United Wholesale Mortgage announced that borrowers can now lock in interest rates as low as 1.99% on FHA-backed loans via its popular Conquest program. The new Conquest for FHA [&hellip

The post United Wholesale Mortgage Now Offering FHA Loans with Rates Below 2% first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com

National Association of Realtors Says Home Prices Are Rising Too Fast

It’s good to be a homeowner these days. After all, home prices are rising at an incredible pace, and have been for nearly a decade now since bottoming out. On top of that, many of today’s homeowners hold fixed-rate mortgages with ultra-low mortgage rates, making it very affordable to own rather than rent. Unfortunately, the [&hellip

The post National Association of Realtors Says Home Prices Are Rising Too Fast first appeared on The Truth About Mortgage.

Source: thetruthaboutmortgage.com