In The Modern World of Home Buying, There are Tools such as Zestimate of Zillow and then, There is Redfin Estimate: Discover How Estimates Can Help You With Your House-Hunting Objective Today?

Looking at homes online, it’s hard to get away from estimates of home values. Are these online amounts the same as an appraisal? No — and you shouldn’t rely on them. While they can be useful shopping tools, neither Zillow’s Zestimate or Redfin Estimate or accurate. They are both based on computer programs that average sales prices and offers throughout different areas and regions. How inaccurate could they be? Apparently, the CEO of Zillow sold his own home in Seattle for 40% less than the Zestimate showed for his property.

What are the accuracy rates for Zestimate and Redfin Estimate?

Both Redfin and Zillow advertise that their estimates are very accurate. According to Redfin, if a home is offered for sale, its estimates have an error rate of 1.77%. When a home isn’t for sale, Redfin says that its margin of error is 6.66%. So, if Redfin said a home’s estimated value was $500,000 and the home was off the market, the actual appraised value or sales value could be $33,300 lower or higher – or within a range of $66,600. That’s a pretty large margin of error. 

Zillow doesn’t differentiate between its estimates for homes that are on sale vs. those that are off the market. For all of its properties, Zillow says that the error rate for its Zestimates is about 4%. 

Redfin has about 75 million properties in its database while Zillow has 110 million properties. 

What do these accuracy rates mean when you’re looking to buy a home?

In the end result: not much. The rates of error could be much higher or lower depending on the neighborhood you’re considering, how many homes are for sale, what type of real estate market you’re shopping in, and individual factors influencing a home’s desirability. As people are getting more accustomed to seeing these estimates and comparing them to realistic offers and sales of homes, they’re becoming less influential. A few homeowners have reportedly sued Zillow — unsuccessfully — because they believed their Zestimates were too low.

The online real estate websites can provide valuable information, but they’re not an effective substitute for working with an experienced real estate professional.

Sources

 

https://www.washingtonpost.com/realestate/which-firm-has-more-accurate-online-estimates-for-homes-zillow-or-redfin/2019/02/19/7a1f6436-346b-11e9-a400-e481bf264fdc_story.html

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A Home Equity Line of Credit – HELOC or A Mortgage Loan Refinance? In The Current World of Home Improvement, Learn Their Pros And Cons Today

Do you need extra cash for specific needs like home repairs or college costs? Which should you choose: a home equity line of credit (HELOC) or a mortgage refinance? Which is your best choice depends on how much money you need, how much equity you have in your home, what purpose you intend for the cash, and whether you have an FHA, VA, or other type of mortgage.

Cash Out Refinance vs. HELOC Interest Rates

You’ll pay more interest on a HELOC than you will with a cash-out mortgage refinance. HELOCs can have interest rates two to three points higher than the best rates on mortgage refinance loans.

What is the difference between a cash-out and a straight refinance loan?

A straight mortgage refinance loan will allow you to refinance a percentage of the value of your mortgage. Mortgage refinance programs like the VA streamlined Interest Rate Reduction Refinancing Loan (IRRRL) won’t allow you to take additional cash out of the equity in your home. 

A cash-out loan, which is also available as a VA and FHA loan product, and some other loan programs, lets you take cash out of your home’s value. A VA cash-out loan is a unique benefit for qualified veterans. Nearly all cash-out programs limit how much additional cash you can borrow based on your home’s value. A VA cash-out refinance could allow you to borrow additional cash up to 100% of your home’s value. 

What’s a home equity loan? Is it the same as a HELOC?

A home equity loan isn’t the same as a cash out refinance and it’s not the same as a HELOC, either. A home equity loan can be a good choice if you need money to pay for home repairs or for another one-time, essential cost. Home equity loan amounts are based on the amount of equity you have in your home. 

Why choose a cash-out refinance over a HELOC?

A home equity line of credit has some benefits, which include acting as a revolving line of credit instead of a one-time cash payment. You can have varying payment amounts with a HELOC, but its higher interest rate often makes a straight one-time cash-out refinance more attractive financially. HELOCs are usually better financial deals than high-interest credit cards, however.

A cash-out refinance is going to offer you better loan terms and a more appealing interest rate than nearly all HELOC alternatives. When you’re shopping for a cash-out mortgage refinance, you can save time and compare terms from different lenders by working with an experienced mortgage refinancing professional. An experienced local independent mortgage broker may have multiple resources and lending channels allowing them to find the refinancing product that’s right for you.  If you are interested in learning more about your options get in touch with us here at California Platinum Loans.  We are a Local Independent Mortgage Broker shop with many niche loan products we can custom tailor to your specific situation.

Sources

https://themortgagereports.com/24853/cash-out-refinance-vs-home-equity-loan

I just stumbled on this site and it’s a goldmine for topics, keywords, and different information (your pages should be better-written)

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