Charlotte in Early-Spring Renting Report

Charlotte, North Carolina, is a thriving city that has seen significant population growth in recent years. As more and more people move to the area for job opportunities, affordable living, and a high quality of life, the rental market in Charlotte has become increasingly competitive. With the approach of early spring, it's a great time to take a closer look at the state of the rental market in Charlotte and how rent rates have evolved over the past few years. Rent Rates in Charlotte To get a better understanding of the rental market in Charlotte, let's take a look at some data from Zillow. According to Zillow's March 2022 report, the average rent in Charlotte was $1,629 per month, up from $1,454 per month in March 2021. This represents an increase of approximately 12%, which is significantly higher than the national average for rental rate growth. Breaking down the data further, we can see that rent rates have increased across all types of rental properties in Charlotte. For example, the average rent for a one-bedroom apartment in March 2022 was $1,400, up from $1,245 in March 2021. Similarly, the average rent for a two-bedroom apartment was $1,700, up from $1,527 in March 2021. It's important to note that these are just averages, and rent rates can vary widely depending on the specific neighborhood, size, and amenities of the rental property. However, these numbers give us a good sense of the overall trend in rent rates in Charlotte. Factors Driving Rent Rate Growth So why have rent rates in Charlotte been on the rise in recent years? There are a few factors at play. First, as mentioned earlier, Charlotte has experienced significant population growth in recent years. According to the US Census Bureau, the population of the Charlotte metro area grew by over 15% between 2010 and 2020. This growth has led to an increase in demand for rental properties, which has driven up rental rates. Second, Charlotte's job market is thriving, particularly in industries like finance, healthcare, and technology. As more and more people move to the city for job opportunities, the demand for rental properties has increased, leading to higher rent rates. Finally, Charlotte is known for its high quality of life, with plenty of outdoor recreation opportunities, cultural attractions, and a thriving food and drink scene. As more people discover the many benefits of living in Charlotte, the demand for rental properties continues to rise. Rent Rates by Neighborhood While rent rates have increased across Charlotte as a whole, there is significant variation in rent rates by neighborhood. Here are a few examples: Uptown: The heart of Charlotte's central business district, Uptown is home to many luxury apartment buildings and high-end condos. As a result, rent rates in Uptown tend to be higher than in other areas of the city. According to Zillow, the average rent for a one-bedroom apartment in Uptown in March 2022 was $1,895, up from $1,685 in March 2021. South End: Located just south of Uptown, South End has become a popular neighborhood for young professionals in recent years. With plenty of trendy bars, restaurants, and shops, South End offers a lively urban atmosphere. However, rent rates in South End have also been on the rise. According to Zillow, the average rent for a one-bedroom apartment in South End in March 2022 was $1,636, up from $1,474 in March 2021. Plaza Midwood: Located just east of Uptown, Plaza Midwood is a diverse neighborhood with a strong sense of community. With tree-lined streets, historic homes, and plenty of local restaurants.  

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Is There Really a New, Unfair Mortgage Tax on Those With High Credit?

Is There Really a New, Unfair Mortgage Tax on Those With High Credit?   Weekly Newsletter   Seemingly overnight, the internet is awash with news regarding a "new," unfair tax on mortgage borrowers with higher credit scores. Some have gone so far as to suggest that someone could intentionally lower their credit score in order to get a better deal. Before you stop paying your bills in the hope of cashing in, let's separate fact from fiction.  First and most importantly, you will absolutely NOT get a better deal on a mortgage rate if your credit score is lower, even if your nephew just texted you a screenshot of a news headline saying "620 FICO SCORE GETS A 1.75% FEE DISCOUNT" and "740 FICO SCORE PAYS 1% FEE."   So why would your nephew make such a claim? This all has to do with changes to Loan Level Price Adjustments (LLPAs) imposed by Fannie Mae and Freddie Mac (the "agencies"), the two entities that guaranty a vast majority of new mortgages. LLPAs are based on loan features such as your credit score and the loan-to-value ratio among other things.  They've been changed several times over the years and a fairly substantial change was announced in January of this year. Wait... This news is from JANUARY?!  Why are people talking about it now? Yes, in fact, we already told you about it.  People are confused because they don't understand how "delivery dates" work when it comes to Fannie and Freddie.  Changes that impact fees and guidelines are almost always implemented based on the date the loan in question is "delivered" to Fannie/Freddie.  "Delivery," in this context, typically occurs a matter of weeks AFTER the loan is closed, although it can be more than a month.   Now consider that a closed loan has often been quoted and locked for more than 3 weeks--call it a month to be safe.  Since these changes go into effect on loans delivered on or after May 1st, 2023, lenders began to implement them weeks ago.  Many lenders implemented them months ago--especially for loans that are locked for longer periods of time. So low credit borrowers are already getting a discount while high credit borrowers pay more?  Not exactly, and this is where the confusion comes in.  Also, from here on out, please note that there is no opinion offered here as to whether this is good/bad/etc.  The only goal is to clear up confusion and offer facts.   The fact of matter is that LLPAs are indeed changing in a way that improves costs for those with lower credit scores and increases costs for those with higher credit scores (in many cases, anyway).  But people are confusing the CHANGE for the ACTUAL cost. So a low credit borrower isn't paying less than a high credit borrower?  The gap between what they pay is just smaller than it was? YES! Again, all value judgements and political commentary aside, the change amounts to a tweak of an existing fee structure in favor of those with lower credit scores and at the expense of those with higher credit scores, but there's no scenario where someone with lower credit will have a lower fee.  In other words, don't go skipping those credit card payments in the hopes of getting a lower rate. How about some color-coded charts/tables? I thought you'd never ask.  Let's start with the changes that have everyone so upset.  The following tables shows the DIFFERENCES (in % of loan balance) in LLPAs before and after the change.  RED = rising costs.  GREEN = falling costs. If you only saw this chart, you could be forgiven for thinking someone with a 640 credit score was paying less than someone with a 740, but again, these are just the changes.   Now let's look at a table with OUTRIGHT LLPAs for the same matrix of credit scores and loan-to-value ratios.  This is the NEW structure, after the implementation of the change. As you can now plainly see, if you have a score of 640, you'll be paying significantly more than if you had a 740.  Using an 80% loan-to-value ratio as an example, your LLPA at 640 is 2.25% versus 0.875% for a 740 score.  That's a difference of 1.375%, or just over $4000 on a $300k mortgage.  This is almost HALF the previous difference, and that's certainly a big change. Yes, it's a big change, so why is the government doing this to people with higher credit?!   Fannie and Freddie technically have a "mission" to promote affordable home ownership.  Here is the statement on the topic by their regulator, the FHFA: FHFA Announces Updates to the Enterprises’ Single-Family Pricing Framework. Note in the first two tables that there is more of an improvement for the lower FICO rows on PURCHASES (i.e. home ownership vs refis). Any other misconstrued news I need to know about? Yes, actually.  While not as viral as the LLPA stuff, there has been a fair amount of press on a new 40yr FHA mortgage.  THERE IS NO NEW 40yr FHA LOAN!  Lenders who collect payments on FHA loans have a new option to offer loan modifications with terms of 40 years to borrowers who are unable to pay their existing FHA loans.   Don't you usually talk about financial markets in these newsletters? Indeed!  But since we've taken a fair amount of space on more interesting stuff above, we can keep the market recap fairly short.  Rates moved higher to start the week as economic data was strong on Monday morning.  There were several other examples of reactions to economic data at home and abroad as the week continued, but all of them played out in a sideways range that continues to wait on the first two weeks of May for the most relevant input.                          

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Discover the Beauty of Dog Parks in Charlotte NC: Your Ultimate Guide

Discover the Beauty of Dog Parks in Charlotte NC: Your Ultimate Guide   Are you a dog owner in Charlotte, NC, looking for the perfect place to let your furry friend run, play, and socialize? Look no further! Charlotte boasts some incredible dog parks where your four-legged companion can enjoy the great outdoors while making new friends. In this ultimate guide, we will take you on a journey to explore the beauty of dog parks in Charlotte, NC. 1. Buckingham Dog Park Located within the Reedy Creek Park, Buckingham Dog Park is a true paradise for dogs. With over five acres of fenced-in play areas, your furry friend will have plenty of space to roam and explore. The park features separate sections for large and small dogs, ensuring a safe and enjoyable experience for all. Let your dog off the leash, and watch as they gleefully bound across the open fields, make new friends, and engage in endless tail-wagging fun. 2. Frazier Park Situated in the heart of the city, Frazier Park offers an oasis of greenery and tranquility for both dogs and their owners. Take a leisurely stroll through the picturesque walking trails, or venture into the designated dog park area. The off-leash zone provides a safe and secure environment for your pup to frolic and play. Complete with shaded areas, water fountains, and agility equipment, Frazier Park is a delightful destination that will leave tails wagging with joy. 3. William Davies Park Nestled in the peaceful neighborhood of Ballantyne, William Davies Park offers a serene setting for dogs and their owners to enjoy quality time together. The park features an expansive off-leash area, allowing dogs to explore to their heart's content. Watch as your furry companion races across the open grassy fields, tests their agility on the obstacle course, and cools off in the dog-friendly pond. With ample seating areas and waste disposal stations, William Davies Park ensures a convenient and pleasant experience for everyone. 4. Swaney Pointe K-9 Park Situated on the shores of Lake Norman, Swaney Pointe K-9 Park offers a breathtaking natural backdrop for you and your furry companion. The park features separate areas for large and small dogs, both equipped with agility equipment and ample space to romp around. Take a leisurely walk along the picturesque trails or let your dog cool off in the lake's inviting waters. Swaney Pointe K-9 Park is a true haven for both dogs and their owners to enjoy the beauty of nature together. Remember to follow park rules and regulations, and always clean up after your furry friend to help maintain the parks' cleanliness and integrity. "A dog park is a magical place where tails wag, friendships blossom, and the joy of play knows no bounds." - Unknown In summary, Charlotte, NC, is home to a variety of dog parks that cater to every pup's needs. From spacious play areas and agility equipment to picturesque trails and dog-friendly ponds, these parks offer an ideal environment for both dogs and their owners. So grab your furry friend, leash up, and embark on an adventure to explore the beauty of dog parks in Charlotte, NC. Feel free to explore these amazing dog parks and create unforgettable memories with your canine companion. Remember, a happy dog is a healthy dog, and what better way to keep them happy than by letting them explore the wonders of these enchanting parks in Charlotte, NC. Enjoy the journey and embrace the joy of being a dog owner in this vibrant city! Disclaimer: The information provided in this article is based on current knowledge and may be subject to change. Please check the respective park websites for the latest updates and guidelines.

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