Tag Archives: HomeBuyers

What To Expect When Closing On Your House

If you’re a first‑time homebuyer, or even if it’s been a while since your last purchase, this video will walk you through exactly what to expect on closing day so you can walk in confident and walk out a homeowner.

Let’s start with the basics.

Closing — also called settlement — is the final step in your residential real estate transaction. It’s the moment when:

  • Money changes hands
  • Documents get signed
  • Ownership officially transfers
  • And you get the keys to your new home after the Deed is Recorded

Think of it as the finish line of the home‑buying journey.

Before you even sit down at the closing table, a few important things happen:

1. Final Walkthrough

Usually within 24 hours of closing, you and your agent walk through the property to confirm it’s in the same condition as when you made the offer and that any agreed‑upon repairs were completed.

2. Review Your Closing Disclosure

Your lender must provide this at least three days before closing. It outlines:

  • Your loan terms
  • Closing costs
  • Prepaid taxes and insurance
  • Cash needed to close

Review it carefully — this is your chance to ask questions before signing anything.

Now let’s talk about what actually happens during the closing appointment.

You’ll Sign Documents

A lot of them. These include:

  • The promissory note
  • The mortgage or deed of trust
  • The settlement statement
  • Various disclosures required by state and federal law

You’ll Bring Your Funds to Close

This is usually done via certified funds or wire transfer. No personal checks.

The Title Company or Attorney Finalizes Everything

They’ll:

  • Verify your identity
  • Confirm the lender has funded the loan
  • Record the deed with the city or town
  • Issue your title insurance policies

Once everything is signed and recorded… you’re officially the owner.

After closing, you’ll receive copies of your documents — either digitally or in a physical folder.

You’ll also get:

  • Your keys
  • Garage door openers
  • Any appliance manuals
  • And sometimes a welcome packet from the seller

From here, you can move in, change the locks, and start making the home your own.

If you found this helpful, please subscribe for more real estate tips, homebuyer education, and Rhode Island market insights.

If you’re thinking about buying or selling a home — or you want to understand the closing process in more detail — reach out anytime. I’m here to guide you every step of the way.

Thanks for reading, and congratulations in advance on your closing day.

Providence Housing Market: A Resilient Outlook Amid National Trends

For months, we’ve all been hearing about how the housing market is “stuck”—high mortgage rates, affordability challenges, and cautious consumers. Home Depot’s most recent analyst call echoed those themes, pointing to weak housing turnover, consumer uncertainty, and the absence of storm-driven demand as drags on their sales.

But here’s the thing: while those national headwinds are real, Greater Providence continues to show resilience. Let’s break it down.

📉 National Trends That Hit Home

  • Housing Turnover Slows: Across the country, fewer people are buying and selling homes. That means less remodeling, less furnishing, and fewer big-ticket projects.
  • Consumer Caution: Shoppers are deferring discretionary spending. Kitchens, bathrooms, and flooring projects are being put on hold until confidence returns.
  • Storm Activity: Believe it or not, storm seasons drive demand for repairs and rebuilding. A mild season means less of that emergency-driven activity.

📊 Greater Providence Snapshot

  • Inventory: Just 227 homes for sale in late October, with only 86 new listings. Supply is tight.
  • Speed: Homes go pending in about 15 days. Buyers must move fast.
  • Prices: Average home value sits at $419,889, up 1.1% year-over-year. Median sale price in October was $515,000, up 3% YoY.
  • Neighborhoods:
    • College Hill: ~$968,317
    • Downtown: ~$548,504
    • Federal Hill: ~$430,068
    • Valley/Smith Hill: ~$369K–$373K

🧭 What It Means for Buyers & Sellers

  • For Buyers: Yes, rates are high. But inventory is scarce, and homes are still moving quickly. Waiting for the “perfect” rate could mean missing out on the right property.
  • For Sellers: Demand remains strong enough to keep values stable. Homes are selling near list price, often with multiple offers. If you’re considering listing, the market is still in your favor.
  • For Investors: Providence remains attractive as a safe-haven asset. Tight supply and steady demand make real estate here a hedge against broader economic uncertainty.

🔮 Outlook

Nationally, the housing market is in a holding pattern—waiting for lower rates or stronger consumer confidence. Locally, Providence’s severe inventory shortage keeps values resilient. Expect modest price growth (~3.5% in 2026), fast-moving listings, and continued competition in desirable neighborhoods.

Bottom Line: The same forces slowing Home Depot’s sales—cautious consumers, weak turnover, affordability pressures—are shaping our housing market. But in Greater Providence, scarcity keeps the market competitive. If you’re thinking about buying, selling, or investing, the window of opportunity is still open.

Above image and some data generated by AI.

50-Year and Portable Mortgages

50-Year Mortgages: Would I Recommend One?

Would I recommend a 50-year mortgage to my daughter, who is currently renting? Honestly, building equity with such a loan would be slow. Fully owning the property free-and-clear could take a lifetime—or even longer. On top of that, the interest rate on a 50-year mortgage would almost certainly be higher. It would be higher than on a traditional 30-year loan.

That said, I wouldn’t outright oppose it. Here’s why.

Why a 50-Year Mortgage Might Make Sense

  • Lower monthly payments: Even modest reductions can make a difference in qualifying ratios.
  • Fixed payments vs. rising rents: Mortgage payments stay the same, while rents inevitably increase over time.
  • Automatic equity through appreciation: Home price gains build equity regardless of the mortgage balance.
  • Flexibility to pay down faster: Extra payments from raises or bonuses can shorten the payoff timeline significantly.
  • Future refinancing or trading up: Homeowners have options if rates decline. They can refinance into shorter terms. Alternatively, they can move into a new property with a better loan structure.

In short, while the 50-year mortgage is far from perfect, it can serve as a stepping stone into homeownership. It is beneficial for renters who might otherwise remain on the sidelines.

Assumable and Portable Mortgages: Pros and Cons

We’re considering unconventional mortgage structures. It’s worth exploring assumable and portable mortgages. These two ideas could reshape affordability if implemented more widely.

Assumable Mortgages

An assumable mortgage allows a buyer to take over the seller’s loan under its original terms. Imagine assuming a 30-year fixed loan from January 2021 at 2.65%. Compare that to today’s rates north of 6%, and the appeal is obvious.

The Catch

  • Equity gap: Buyers must cover the difference between the home’s current value and the remaining loan balance. Often this requires a second mortgage at a higher rate.
  • Approval hurdles: Lenders must approve the assumption, and buyers must meet financial qualifications.
  • Seller liability: Unless formally released, sellers may remain liable for the loan even after transferring it.

Government-backed loans (FHA, VA, USDA) are generally assumable, but conventional loans rarely are.

Potential Improvements

  • Expanding assumability to Fannie Mae and Freddie Mac loans.
  • Offering low-cost “top-up” loans to bridge equity gaps.
  • Educating consumers and professionals to normalize the practice.

Still, the government can’t retroactively make existing non-assumable loans assumable. That ship has sailed for the ultra-low-rate loans of 2020–2022.

Portable Mortgages

A portable mortgage allows borrowers to transfer their existing loan to a new property. This concept is common in the UK but rare in the U.S.

Benefits

  • Keeps the borrower’s low interest rate intact when moving.
  • Reduces the need to start fresh with higher-rate financing.

Challenges

  • Requires a new mortgage application with full underwriting.
  • Borrowers must cover the gap between the new home’s price and the existing loan balance.
  • U.S. lenders may resist, since they profit from “churn” in mortgage origination.

The Bigger Picture

Both assumable and portable mortgages offer intriguing ways to ease affordability pressures. But they face significant hurdles—legal, financial, and political.

Meanwhile, the 50-year mortgage proposal has already sparked debate. Lawrence Yun is the chief economist for the National Association of Realtors®. He warns that the “small savings” in monthly payments come with “significant trade-offs.” Slow equity build makes trading up difficult. Meaningful equity may not arrive until the final decade of the loan.

Ultimately, subsidizing demand without increasing supply risks pushing home prices even higher. The only true solution to the housing crisis is simple, though not easy: build millions more affordable homes.

✅ Takeaway for Renters and Buyers: A 50-year mortgage isn’t ideal, but it can be a gateway to homeownership. Assumable and portable mortgages could help in theory, but they’re far from mainstream in practice. For now, the smartest path remains balancing affordability with flexibility. This involves buying when ready. It also means paying down aggressively when possible and staying alert to refinancing opportunities.

📣 If you’re weighing your options in today’s complex housing market, don’t go it alone. Whether you’re a renter considering your first purchase, I’m here to help. If you’re a homeowner exploring refinancing, I’m here to help. Perhaps you are simply curious about how these evolving mortgage products could impact your future, I’m here to help.

👉 Subscribe to my newsletter for practical insights. Tune into The Joe Luca Real Estate Show on Tuesdays at 6pm EST at WNRI.com, for weekly updates. You can also reach out directly to discuss your personal situation. Together, we can cut through the noise and chart a clear path toward smart, sustainable homeownership.

This post was created with information from Lawrence Yun at NAR.com, Realtor.com, Bloomberg.com and Kiplinger.com.

Why Now Is a Great Time to Buy a House in Southern New England

If you’ve been dreaming of owning a home in Southern New England—think Connecticut’s charming towns, Rhode Island’s coastal gems, or the historic corners of southern Massachusetts—2025 might be your moment. As of March 11, 2025, the real estate market here is showing signs of opportunity for buyers. From economic shifts to local trends, here’s why now could be the perfect time to plant your roots in this picturesque region.

1. Interest Rates Are Settling Down

After a wild ride in recent years, mortgage rates appear to be stabilizing across the U.S., and Southern New England is no exception. While we’re not back to the rock-bottom rates of the 2010s, the steep climbs of the early 2020s have eased. For buyers in places like New Haven or Providence, this means more predictable mortgage payments and a chance to lock in a rate before any surprises. With the Federal Reserve keeping a close eye on inflation, rates could hold steady—giving you a solid window to finance that Cape Cod-style home or colonial fixer-upper.

2. Inventory Is Ticking Up Across the Region

Southern New England has felt the inventory crunch hard, with sellers clinging to their low-rate mortgages or waiting out peak prices. But early 2025 is bringing a shift. In towns like Mystic, CT, or Bristol, RI, more “For Sale” signs are popping up. Maybe it’s empty nesters downsizing, retirees heading south, or homeowners feeling the market has topped out. Whatever the reason, this uptick means more choices—whether you’re eyeing a waterfront cottage in Narragansett or a suburban spread in West Hartford. More options also mean less cutthroat bidding wars, a welcome relief for buyers.

3. Prices Are Softening in Hotspots

The pandemic boom sent prices soaring in Southern New England, especially in desirable spots like Fairfield County or the South Shore of Massachusetts. But as demand normalizes, some of these overheated markets are cooling. Sellers who bought at the 2021 peak might be more open to negotiation, especially in areas where listings are lingering a bit longer. In places like Cranston, RI, or Milford, CT, you could snag a deal that feels more reasonable than it did two years ago. It’s not a buyer’s market everywhere, but the balance is tipping your way in many towns.

4. Southern New England’s Long-Term Appeal Holds Strong

This region’s charm—historic villages, top-notch schools, and proximity to both Boston and New York—makes it a perennial winner for real estate investment. Even with short-term ebbs and flows, home values here tend to climb over time. Buying now in, say, Portsmouth, RI, or Simsbury, CT, sets you up for equity growth as hybrid work trends keep the area attractive to professionals and families alike. A home purchased in 2025 could be your family’s cornerstone—and a financial win—by 2035.

5. Local Incentives Are Sweetening the Deal

From builders in growing suburbs like Plainfield, CT, to sellers in competitive markets like Attleboro, MA, incentives are emerging. New developments might offer rate buydowns or closing cost help, while individual sellers could throw in extras—like covering roof repairs or offering flexible move-in dates—to close the deal. These perks can shave thousands off your upfront costs, making homeownership more attainable in a region where prices can still feel steep.

6. Seasonal Timing Works in Your Favor

March in Southern New England is a quiet season for real estate. The spring rush hasn’t fully kicked in, and winter’s chill keeps some buyers indoors. That means less competition as you tour that farmhouse in Litchfield County or that bungalow in Westerly, RI. Sellers listing now might be extra motivated—perhaps they’re relocating for work or eager to sell before the summer crowd arrives. It’s a strategic moment to strike while the market’s still waking up.

A Word of Caution

Southern New England’s market varies widely—Greenwich, CT, is a different beast from Fall River, MA. Check local trends, get pre-approved, and team up with a realtor who knows the area inside out. Coastal properties might still carry flood insurance costs, and older homes could need TLC. But for those ready to navigate these quirks, the rewards are there.

The Bottom Line

March 2025 is shaping up as a buyer’s sweet spot in Southern New England. With steadier rates, growing inventory, softening prices in key areas, and the region’s enduring appeal, the stars are aligning. So, grab your map, hit the open houses—from Stamford to Stonington—and make your move. That quintessential New England home, complete with a front porch and autumn leaves, might be waiting for you right now.

If you have any questions, or would like to connect, email me: Joe@JoeLucacaRealtor.com

How the Economy Impacts Mortgage Rates

As someone who’s thinking about buying or selling a home, you’re probably paying close attention to mortgage rates – and wondering what’s ahead.

One thing that can affect mortgage rates is the Federal Funds Rate, which influences how much it costs banks to borrow money from each other. While the Federal Reserve (the Fed) doesn’t directly control mortgage rates, they do control the Federal Funds Rate.

The relationship between the two is why people have been watching closely to see when the Fed might lower the Federal Funds Rate. Whenever they do, that’ll put downward pressure on mortgage rates. The Fed meets next week, and three of the most important metrics they’ll look at as they make their decision are:

  1. The Rate of Inflation
  2. How Many Jobs the Economy Is Adding
  3. The Unemployment Rate

Here’s the latest data on all three.

1. The Rate of Inflation

You’ve probably heard a lot about inflation over the past year or two – and you’ve likely felt it whenever you’ve gone to buy just about anything. That’s because high inflation means prices have been going up quickly.

The Fed has stated its goal is to get the rate of inflation back down to 2%. Right now, it’s still higher than that, but moving in the right direction (see graph below):

2. How Many Jobs the Economy Is Adding

The Fed is also watching how many new jobs are created each month. They want to see job growth slow down consistently before taking any action on the Federal Funds Rate. If fewer jobs are created, it means the economy is still strong but cooling a bit – which is their goal. That appears to be exactly what’s happening now. Inman says:

“. . . the Bureau of Labor Statistics reported that employers added fewer jobs in April and May than previously thought and that hiring by private companies was sluggish in June.”

So, while employers are still adding jobs, they’re not adding as many as before. That’s an indicator the economy is slowing down after being overheated for quite some time. This is an encouraging trend for the Fed to see.

3. The Unemployment Rate

The unemployment rate is the percentage of people who want to work but can’t find jobs. So, a low rate means a lot of Americans are employed. That’s a good thing for many people.

But it can also lead to higher inflation because more people working means more spending – which drives up prices. Right now, the unemployment rate is low, but it’s been rising slowly over the past few months (see graph below):

It may seem harsh, but a consistently rising unemployment rate is something the Fed needs to see before deciding to cut the Federal Funds Rate. That’s because a higher unemployment rate would mean reduced spending, and that would help get inflation back under control.

What Does This Mean Moving Forward?

While mortgage rates are going to continue to be volatile in the days and months ahead, these are signs the economy is headed in the direction the Fed wants to see. But even with that, it’s unlikely they’ll cut the Federal Funds Rate when they meet next week. Jerome Powell, Chair of the Federal Reserve, recently said:

“We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”

Basically, we’re seeing the first signs now, but they need more data and more time to feel confident that this is a consistent trend. Assuming that direction continues, according to the CME FedWatch Tool, experts say there’s a projected 96.1% chance the Fed will lower the Federal Funds Rate at their September meeting.

Remember, the Fed doesn’t directly set mortgage rates. It’s just that whenever they decide to cut the Federal Funds Rate, mortgage rates should respond.

Of course, the timing of when the Fed takes action could change because of new economic reports, world events, and other factors. That’s why it’s usually not a good idea to try to time the market.

Bottom Line

Recent economic data may signal that hope is on the horizon for mortgage rates. Let’s connect so you have an expert to keep you up to date on the latest trends and what they mean for you.

Saving for a Down Payment? Here’s What You Need To Know.

If you’re planning to buy your first home, then you’re probably focused on saving for all the costs involved in such a big purchase. One of the expenses that may be at the top of your mind is your down payment. If you’re intimidated by how much you need to save for that, it may be because you believe you must put 20% down. That doesn’t necessarily have to be the case. As the National Association of Realtors (NAR) notes:

“One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership.”

And a recent Freddie Mac survey finds:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Here’s the good news. Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize.

According to NAR, the median down payment hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):

What does this mean for you? It means you may not need to save as much as you originally thought.

Learn About Options That Can Help You Toward Your Goal

And it’s not just how much you need for your down payment that isn’t clear. There are also misconceptions about down payment assistance programs. For starters, many people believe there’s only assistance available for first-time homebuyers. While first-time buyers have many options to explore, repeat buyers have some, too.

According to Down Payment Resource,there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. That same resource goes on to say:

“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”

Plus, there are even loan types, like FHA loans with down payments as low as 3.5% as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

If you’re interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.

Bottom Line

Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation about your homebuying goals.

Why Buying or Selling a Home Helps the Economy and Your Community

If you’re thinking about buying or selling a house, it’s important to know that it doesn’t just affect your life, but also your community.

The National Association of Realtors (NAR) releases a report every year to show how much economic activity is generated by home sales. The chart below illustrates that impact:

As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community:

“The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”

Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune notes housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:

“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint.”

When you buy or sell a home, you work with a team of professionals, including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen. 

So, when you make a move in the housing market, you’re not just meeting your own needs, you’re also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year.

Bottom Line

Each and every home sale is important for the local economy. If you’re ready to move, let’s connect. It won’t just change your life – it’ll also have a strong positive effect on the whole community.

Are Home Prices Going Up or Down? That Depends…

Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here’s an explanation of each. 

Year-over-Year (Y-O-Y):
  • This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you’re comparing Y-O-Y home prices for April 2023, you would compare them to the home prices for April 2022.
  • Y-O-Y comparisons focus on changes over a one-year period, providing a more comprehensive view of long-term trends. They are usually useful for evaluating annual growth rates and determining if the market is generally appreciating or depreciating.
Month-over-Month (M-O-M):
  • This comparison measures the change in home prices from one month to the next. For instance, if you’re comparing M-O-M home prices for April 2023, you would compare them to the home prices for March 2023.
  • Meanwhile, M-O-M comparisons analyze changes within a single month, giving a more immediate snapshot of short-term movements and price fluctuations. They are often used to track immediate shifts in demand and supply, seasonal trends, or the impact of specific events on the housing market.

The key difference between Y-O-Y and M-O-M comparisons lies in the time frame being assessed. Both approaches have their own merits and serve different purposes depending on the specific analysis required.

Why Is This Distinction So Important Right Now? 

We’re about to enter a few months when home prices could possibly be lower than they were the same month last year. April, May, and June of 2022 were three of the best months for home prices in the history of the American housing market. Those same months this year might not measure up. That means, the Y-O-Y comparison will probably show values are depreciating. The numbers for April seem to suggest that’s what we’ll see in the months ahead (see graph below):

That’ll generate troubling headlines that say home values are falling. That’ll be accurate on a Y-O-Y basis. And, those headlines will lead many consumers to believe that home values are currently cascading downward.

However, on a closer look at M-O-M home prices, we can see prices have actually been appreciating for the last several months. Those M-O-M numbers more accurately reflect what’s truly happening with home values: after several months of depreciation, it appears we’ve hit bottom and are bouncing back.

Here’s an example of M-O-M home price movements for the last 16 months from the CoreLogic Home Price Insights report (see graph below):

Why Does This Matter to You?

So, if you’re hearing negative headlines about home prices, remember they may not be painting the full picture. For the next few months, we’ll be comparing prices to last year’s record peak, and that may make the Y-O-Y comparison feel more negative. But, if we look at the more immediate, M-O-M trends, we can see home prices are actually on the way back up.

There’s an advantage to buying a home now. You’ll buy at a discount from last year’s price and before prices start to pick up even more momentum. It’s called “buying at the bottom,” and that’s a good thing.

Bottom Line

If you have questions about what’s happening with home prices, or if you’re ready to buy before prices climb higher, let’s connect.

What Buyer Activity Tells Us About Today’s Housing Market

Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to U.S. News:

“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”

That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):

The 62% jump in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, explains:

“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”

It’s important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when mortgage rates are favorable, they’re ready to make their move.