Zillow Exiting Its Home-Flipping Division

Zillow Exiting Its Home-Flipping Division

Last week, the home mortgage industry was shocked with the announcement “Zillow Exiting Its Home-Flipping Division“. This decision resulted in a reduction of 25% of Zillow’s staff. This is a sudden about-face exit from the housing market from a company that launched this division in 2017. Yet, as unexpected as this announcement may have been, the reasons behind the departure are even more curious.
 
In mid-October, the company initially reported a slowdown of their purchasing as they faced a deluge of backlogged inventory1. Then, Zillow’s quarterly earnings last week revealed that their exit from the business would result in a total write-down of more than $540 million. A substantial contributing factor to this write-down was their realization that they bought homes during the last quarter for home prices much higher than it now believes it can sell them. Understandably, this raised many questions about the reliability of Zillow’s home price estimates. As Bloomberg’s Patrick Clark wrote, in his recent reporting, “The episode is a cautionary tale for what happens when an overconfident company uses (home price estimate) algorithms to supersize an old-fashioned business”2.

Are Online Home Price Estimators Unreliable?

Does this mean online home price tools and estimators of home values (like Zillow) are unreliable? The answer is NO! While studies showed Zillow’s early estimates were off as much as 14%, more recent studies show a very respectable 2% error rate as the company matured. Ultimately, Zillow’s biggest mistake (and the cautionary tale for us) is how they used or did not use their data. As the housing market heated up early this year, Zillow found themselves not purchasing as many homes as their executive team “felt was necessary to make iBuying profitable”2. Instead of listening to their data, they tweaked their algorithm to be more aggressive; a lot more aggressive. Suddenly, Zillow began buying house after house, acquiring more than 10,000 homes in the third quarter. They purchased more homes than they could process, resell and paid more for the homes than they were worth.

What Can We Learn From Zillow's Missteps?

So what can we learn from Zillow’s missteps? 

  • First, much of the online data available on home values is good but never trust just one source and don’t assume the highest valuation number you see represents your home’s worth.
  • Second, don’t make any decisions regarding your home based on the highest estimate found online.
  • Third, seek outside sources to validate your assumptions. While we can learn much from online resources, we should always talk to professionals who work with this data daily. I can learn a lot from WebMD, but I still want my doctor to give me my diagnosis.

So what is your home worth and what options do you have with potential increased equity? The GOOD NEWS – you don’t need to try and answer these questions by yourself.

Revival Lending – Certified Mortgage Advisors

At Revival Lending, we are Certified Mortgage Advisors. We will work to design a customized loan to facilitate your goals. At times, that means advising our clients not to refinance because sometimes the best mortgage you can get is the one you already have. We want to earn your business over a lifetime and not just through a one-time transaction. Therefore, we promise to take the time to truly understand your goals and help you map out a plan to use your mortgage and home to reach them. Set up an appointment with us today. I promise you will not be disappointed. Call 714-257-5284 or email us to schedule a complimentary mortgage review today.

 
Sometimes the Best Mortgage Is the One You Already Have

Sometimes the Best Mortgage Is the One You Already Have

Mortgage rates are low and you are ready to refinance. What if I told you that sometimes the best mortgage you can get is the one you already have? If you are not asking the right questions and working with a certified mortgage advisor, it could be costing you a lot of money. 
 

Consider Your Family’s Life Plans Prior to Refinancing

While refinancing may be the perfect solution, you need to take the time to consider your family’s life plans before refinancing your mortgage loan. Here are several questions to ask yourself:
 
  1. Do you see yourself moving within the next three years (relocation due to job/career, moving to be closer to family, or downsizing)?
  2. Are you looking to make any home improvements (kitchen or bathroom remodels, adding more space, or re-landscaping your yard)?
  3. Do you see a future need to access equity from your home (college/education tuition, funding a new business opportunity, or taking care of aging parents)?
  4. Are there any foreseeable significant changes in your income level and/or financial obligations? (sizable raise/promotion, retirement, or large purchases like a car, second home, new business)
As you can see, there are many factors to consider when refinancing besides just getting a new lower rate. It is easy to get overwhelmed. The GOOD NEWS- you don’t need to tackle this alone. Your dreams are not one-size-fits-all, your loan shouldn’t be either.

Revival Lending – Certified Mortgage Advisors

At Revival Lending, we are certified mortgage advisors (CFAs). We will work to design a customized loan to facilitate your goals. At times, that means advising our clients not to refinance, because sometimes the best mortgage you can get is the one you already have. We think through all the options with your best interest at heart. Revival Lending wants to earn your business over a lifetime and not just through a one-time transaction. Our CFAs take the time to truly understand your goals, and help you map out a plan to reach them. Call or email us to schedule a complimentary mortgage review today. I promise you will not be disappointed.

Call or DM to schedule a complimentary mortgage review today. I promise you will not be disappointed.
(714) 257-5284

Home Improvements That Pay

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Energy-Efficient Windows

Many home renovations will increase your resale value but home improvements that pay you now are a smart investment. Energy-efficient windows pay for themselves now and when you’re ready to sell!

Older homes typically have windows that are of a single glass pane construction that waste energy and money. They are not energy-efficient at all and are simply barriers to rain and bugs. When you sell, expect buyers to offer less and create negotiation strategies considering they will want to replace them.

You see, today, manufacturers are making double- and triple-pane vinyl windows that insulate the home from wind, rain, cold, heat, and even outside noise. Additional benefits to multi-pane windows include a reduction of dust and allergens, added security for your home, ease of maintenance, and increased curb appeal. Now, let’s talk about the financial impact.

EnergyStar-Rated Windows

Replacing old windows with EnergyStar-rated windows will save money on heating & air conditioning bills. These windows also insulate so efficiently; additionally, green energy tax credits can apply! Next, new windows provide one of the higher rates of returns for a home improvement investment. In fact, a recent report entitled “Remodeling 2020 Cost vs. Value Report”* (www.costvsvalue.com) shows homeowners can expect a 73% return on their project investment when they sell their home.

Home Improvements That Pay for Themselves

While the initial cost for new windows can be high, it is one of those home improvements that pay for themselves in lower energy costs, and they will surely increase the value of your home when you sell!

Need a referral? Give us a call!

*© 2019 Hanley Wood, LLC. Complete data from the Remodeling 2019 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Revival Lending is here for you! As a mortgage broker, we have access to hundreds of lenders who offer a variety of programs and certified services for every need:

• Second Mortgages
• Certified Veteran Loan Specialists
• Commercial Loans
Take the next step—->
Call or Email for a free consultation!
• Complete our no-obligation application online
• Tag friends who need a home loan or those who could improve their financial position with refinancing.
• FOLLOW: @revival_lending for market updates and tips on achieving financial freedom through homeownership.
Our Commitment

Our Commitment

Buying a Home

Our commitment to you is to support your decision to buy a home. This commitment you’ve made is an incredible accomplishment; a sacred act. It’s the purchase of your sanctuary, the escape from the world‘s turmoil and noise. A space that fosters cherished memories with family and friends. It’s no small act…

The Home Loan Process

The process of obtaining a home loan can be overwhelming—but it doesn’t need to be. At Revival Lending we‘ll  guide you from beginning to end, demystifying the process throughout. We eliminate surprises and offer full disclosure. We pride ourselves with being in constant communication with our home buyers and realtors, proactively updating and educating you throughout the loan process. We value integrity and will always have your best interests at heart. 

We don’t just get you into any loan, together we’ll:

1. Discuss and assess your unique situation

2. Find opportunities to improve your financial circumstances

3. Identify long term plans, goals and dreams, and

4. Work to design a customized loan option that fits all your needs and sets you up for success!

The way we work is not a standard in the industry, excellence is not common. At Revival Lending we help you experience revival in your finances and your life.

Welcome to Revival Lending! 

Your dreams are not one-size-fits-all, your loan shouldn't be either!
Home Refinance icon - Mortgage Loans For Every Need - Revival Lending
Tyson Hilton
Owner
To Infinity and Beyond

To Infinity and Beyond

Buzz Lightyear’s trademark cry of “To infinity and beyond!” from Toy Story is an all time favorite movie quote. Ever wonder why? Think about it, “Why?”, a question we learn to ask at an early age but the older we get, we seem to ask less and less.

Do Not Stop Dreaming

It’s easy for both people and companies to get into a rut and stop asking the fundamental question, “Why?”.  Simon Sinek writes, in his book “Start With Why”, “Very few people can clearly articulate WHY they do WHAT they do. WHY do you get out of bed every morning? WHY should anyone care?  I have found that when we only think in terms of “what” and “how” we stop dreaming- and no one should stop dreaming.

Understanding Your Dream

My wife, Alicia, and I began Revival Lending with a clear understanding of our why- “to help people experience revival in their finances and their lives.” We believe the best way to accomplish our dream is to free people up to dream again about the “why” in their life. As a mortgage professional with 20+ years of experience, I know I can help people navigate the process of home finances to put them on a road to fund their dream. That’s why our loan process always begins with our clients; understanding their dreams, their needs, and their housing situation. Their dreams are not one size fits all, so neither should be their loan solution.

Dreams Realized

As a business owner, I am often asked how I measure success. To me the answer is simple. We talk in terms of dreams launched and funded. More specifically, I talk about my client, who at the age of 62, took the courageous step and started her own company after years of working for someone else. I talk about the young couple who bought their first home once they saw it would cost them less than renting. I talk about the happy homeowners who regained hope after they had lost everything in the last recession. Children sent to college. Kitchen remodels. Retirements secured. Dreams realized. I measure success one dream at a time.

What’s Your Dream

What’s your dream? I would love to hear from you. Give me a call and I will be happy to conduct a complimentary financial review of your situation, and we can talk about how to finance your dream. In fact, I will give away a copy of Simon Sinek’s book, Start with Why, to the first five people who complete a financial review with me.

FREE Copy With Financial Review

Start with Why - Simon Sinek

What’s Your Dream – Let Us Help You Get to Infinity and Beyond!

Schedule Your Financial Review

    The Home Equity Secret Menu

    The Home Equity Secret Menu

    The Home Equity Secret Menu. Haven’t heard of it? Well, just like the famous secret menu of In-N-Out , the mortgage industry has a secret menu of its own. Here is everything you need to know about the Home Equity Secret Menu.

    Your Situation

    So, you want access to the equity within your home? Should you look to refinance your current mortgage or obtain a 2nd mortgage? Does trying to decide make you think of the old Clash song which asked, “Should I stay or should I go now? If I go, there will be trouble. And if I stay it will be double.” Yet, unlike the song, which implies a no-win situation, there are a few easy ways to figure out the best financial option for you.
     

    Just the Facts

    Here is the reality. To obtain access to your home’s equity, without selling it, you have two main options. 
     
    First, you can simply refinance your current mortgage and pull cash out. Choosing this option usually provides you with access to the lowest current interest rates on the market. Yet, obtaining a new first mortgage can be more time consuming and expensive than obtaining a second mortgage.  
     
    Second, you can choose to tap into your home’s equity by obtaining a second mortgage. These loans typically can be completed quickly and often provide access to a greater portion of your home equity than many first mortgages. However, these mortgages usually have a higher interest rate than those available on a first mortgage. 
     
    So how do you decide? Which option provides you the lowest overall rate?
     

    The Blended Rate – The Home Equity Secret Menu Item

     
    Let me introduce to your new friend, the Blended Rate. It provides us with the necessary tool by which we can compare the two options above. The Blended Rate is a mathematical equation which allows us to calculate the effective rate when combining two loans. In other words, using the blended rate formula allows us to determine the effective interest rate when combining your current mortgage with a proposed second mortgage. We can then compare this blended rate with a proposed new 1st mortgage rate to see which one is lower.
     

    The Blended Rate Applied

     
    To see how the blended rate is applied, let’s image you have a current 30 year mortgage of $250,000 at an interest rate of 4%. You needed to get $50,000 to complete a kitchen remodel and make a down payment on your daughter’s college tuition. In speaking with a mortgage professional, you were offered a new first mortgage at 4.5% or you could obtain a 2nd mortgage at 7.99%. 
     
    Now, let’s apply the blended rate formula (math explained in more detail below). This reveals the effective interest rate of keeping your current 1st mortgage and obtaining a second mortgage is 4.69%. In this case, the lowest interest rate available to you would be obtaining the new 1st mortgage. Yet a small change in your requirements can flip the equation. Imagine your cash out requirements dropped to $20,000. Now, the blended rate formula reveals your effective rate would instead be 4.29%. In this case, keeping your current 1st mortgage and obtaining a second mortgage would provide you with a lower interest rate. 
     

    Complimentary Financial Review

     
    At Revival Lending, we work hard to understand the particulars of your situation and find the loan that best helps you accomplish your goals. There is a reason we say, “Your Dream. Your Home. Our Loan Solution.” If you have any question about this scenario or your own financial situation give me a call and I will be happy to conduct a complimentary financial review of your situation.
     
    P.S. – Now make sure to apologize to your high school math teacher and parents for saying you would never need this algebra stuff in the real world.
     
    P.S.S – If the mere mention of In-N-Out has made you hungry, here is a guide to their secret menu.
     
    Blended Rate Formula Explained
     
    Blended Rate = (r1*b1 + r2*b2)/tb
    r= Rate, b= Loan Balance, tb= Total Balance
     
    Example 1: (4%*$250,000 + 7.99%* $50,000)/$300,000 = 4.69%
    Example 2: (4%*$250,000 + 7.99%* $20,000)/$270,000 = 4.29%
     
    Note: Above Blended Rate assumes the same loan term for both loans