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Tag: real estate

Mortgage rates are falling. Should you consider refinancing?

Posted on by Stephanie Aviles

It’s Fall and interest rates are dropping with the autumn leaves. So, does this mean you should refinance your mortgage? That depends on several factors. Let’s take a look at them and see how they add up for your particular situation.

Forbes says if your mortgage rate is 7% or above, refinancing makes sense, but if your current rate is 6.5% or lower you should hold on until 2025 when rates are expected to drop even lower. However, the change in interest rate shouldn’t be the only factor to consider, the cost of refinancing includes the following:

  • Government recording costs.
  • Appraisal fees
  • Credit report fees.
  • Lender origination fees.
  • Title services.
  • Tax service fees.
  • Survey fees.
  • Attorney fees.
  • Underwriting fees.

Because of all these costs and fees, many mortgage experts say refinancing only makes sense if you can get a rate that’s at least 1% lower than your current rate. Not just half a percent. A recent article in the Washington Post agrees. “In most cases, it doesn’t make sense to refinance a mortgage until the rate has dropped a full percentage point below your current rate. Once that happens, you can compare the amount your mortgage payment will drop against the closing costs you’ll have to pay to refinance.” 

Here are some steps you can take to lower your refinance rate:

  • Get rate quote estimates from three to five lenders
  • Ask lenders about waiving or reducing closing costs
  • Negotiate with your lender to match the best deal
  • Take steps to strengthen your credit score
  • Save for a larger down payment
  • Choose a shorter-term loan

However, if you got your mortgage during the pandemic when rates dropped to a historic low of 2.65% in 2021, consider yourself lucky and stay put. But if your current rate is over 6%, you need to consider how much time it will take for your savings to outweigh the refinancing costs. If your monthly payments cover those costs for two years or less, it’s probably worth it. On the other hand,  if you’re thinking about moving in a year or two, it might not be worth it. 

Another consideration is the increase in home values. For example, if your home’s value increases, you may qualify for a better rate.  If your credit score has improved since your original mortgage, you might qualify for more favorable terms. Even a small boost in your score could translate to big savings over your loan’s lifetime. 

“If rates continue to come down there could be a lot of additional buyer competition in the market, which could drive up prices,” said Solo agent, Alejandro Franqui. “That suggests that there is a sweet spot where rates are now more manageable, but prices haven’t started to accelerate yet.”

Headshot of Solo agent Alejandro Franqui
Solo agent Alejandro Franqui suggests it could be a good time to refinance while mortgage rates are down and before home prices increase. Image: Happy Hour Headshot.

No one has a crystal ball, but economic forecasters predict we’re in the early stages of a rate-dropping cycle. The Federal Reserve could continue to drop rates for the next 12 months or longer. On the other hand, waiting comes with risks. If you bought at peak rates and have a sizable loan, refinancing now could start saving you money. Waiting may lead to better rates — but future market conditions are uncertain so we recommend weighing your options to make an informed decision based on what makes sense for you now. 

Buying your first investment property in Philadelphia

Posted on by Solo Team

Thinking of buying your first investment property? Philadelphia offers first-time real estate investors excellent opportunities to create passive income streams while contributing to the improvement of its neighborhoods. We spoke with Alex Franqui, an agent at Solo Real Estate, to get the inside scoop on how to buy an investment/rental property, deal with contractors and circumvent management issues.

“Investors are coming from outside Philadelphia because you can still buy properties here in the $250,000 to $350,000 range in neighborhoods that have already seen a lot of reinvestment,” said Franqui who recommends setting aside another twenty-five thousand for improvements. “Those improvements can increase the value of your property by as much as $50,000, as well as command higher rents. You want to avoid a full gut rehab and find a property that needs updating, but is in livable condition.”

Another reason to take the plunge? Interest rates are still at an all-time low! 

Best Neighborhoods to Invest In Right Now

If you think that all the popular neighborhoods are out of your price range don’t worry, Philly still has plenty of exciting opportunities all across the city for discerning new investors. 


“For the last decade, out-of-state investors were focused on Fishtown. Now the New Kensington Development Corporation is investing in the area north of Lehigh Avenue.”  This includes the $17.8 million conversion of the former Orinoka Mills textile factory into a 51-unit residential property and the $7.5 million renovation of another textile mill into Coral Street Arts House, providing 27 living/work spaces for artists.

Another up-and-coming area is Strawberry Mansion, north of Brewerytown and east of Fairmount Park in North Philadelphia. The architecture reflects its former middle-class Jewish community, 1890-1950. Franqui views Strawberry Mansion as a good, long-term return on investment. He also sees new investors looking into neighborhoods like Germantown in Northwest Philly and Mantua adjacent to Poweltown Village in University City. What do these neighborhoods have in common? Easy access to Center City and major highway arteries.

Meanwhile, there are still bargains to be had in West Philly and Point Breeze. “Point Breeze is still viable in the $175,000 to $250,000 range,” said Franqui who recently showed several properties there to first-time investors. He attributes the rise in prices of Cedar Park properties in West Philly to the University of Pennsylvania’s ongoing contribution of $1,330 per child in Penn Alexander Elementary School at 4209 Spruce. However, there are still attractive investment opportunities adjacent to Cedar Park in the Kingsessing neighborhood where Bartram’s Garden is located.

Management expertise

Franqui has a unique understanding of Philly’s diverse neighborhoods. His parents, Deborah Solo and Angel Franqui, the owners of Solo Real Estate, moved to Northern Liberties in 1987. “It was one of the first neighborhoods to experience rapid reinvestment, growth, and development, along with the Graduate Hospital area,” said Franqui. 

“My background is in City Planning, and my mother’s background is in architecture; we encompass all the expertise an investor needs. With 70 years of experience, managing 500 units for different owners, Solo Real Estate is a full-service management company. “We get multiple bids from contractors. If you have a small job, it’s difficult to find a plumber or roofer. But we do enough business with them that they will handle the job,” said Franqui. “Our team at Solo will help you manage your property so it doesn’t become your full-time job and help maximize your return on investment.”

“We can also tailor our services to each investor’s preferences and budget. In the long run, a patient investor can do well here,” said Franqui. “Our goal is to improve neighborhoods, to maintain the character of their built environment, to renovate and restore.”

Interested in purchasing your first investment property? We can help! Learn more about our property investment and property management services here, and contact us for more information. 

Meet Jeff Carpineta

Posted on by Solo Team

Jeff Carpineta has been part of the Solo Real Estate family for the last fifteen years, helping buyers, sellers, investors, and renters find their place and community in the city we call home. Jeff is a Kensington resident, a real estate agent, an artist with a background in photography/music, and is very involved with his local community in the East Kensington section of Philadelphia, adjacent to Fishtown. He served as President of the East Kensington Neighbors Association (EKNA), has worked with NKCDC to offer housing counseling, partnered with the Kensington Kinetic Derby & Arts Fest, and co-founded the Kensington Community Food Coop, where he’s still a board member.

We sat down with him at a wildflower garden to talk about how he got started in real estate, his favorite places, and some of his interests outside of work:

How did you get started at Solo Real Estate?

Years ago, on a sweltering August heatwave day, I walked into the Solo Real Estate office looking for an apartment. Stanley Solo, in his 80s, greeted me. I mean – Stanley Solo who started the company in 1951 –  a guy that had already made it, a big name in Center City for half a century. He actually walked me across town to 10th and South to show me places. I was a restaurant waiter part-time and a sheet rocker/photographer/noisy musician person he’d never seen before but he treated me like a grandson. I was blown away and was so moved from that experience that 3 years later I wrote a letter to Deborah Solo, Stanley’s daughter, recounting that experience. I told Deborah about my background in art, my knowledge about Philadelphia neighborhoods, and that my grandfather was a factory worker – ironically in a building that got turned into a condo in Tacony (U.S. Rubber- Gilmer Plant). I also told her I was looking to own my first place and was looking to learn about real estate. ‘Maybe I can photograph some places or file things for you…?’  She wrote back “Sounds like you love many of the same things I love, come in, let’s talk”. I went in for an interview, she said, ‘You’re great, but I don’t have anything for you to do right now.’ But a few weeks later, she called: “My assistant wants to spend some more time with her family. Would you like to be my assistant a couple of days a week?” It was a dream. I did postcards – thousands of postcards per week, walking these bins of postcards over to the post office on Chestnut. Deborah called me into her office one day. “Jeff, the cards, we need to slow down on the cards!”. 22 cents apiece had climbed into 5 figures quickly. 

More important, the greatest gift: I made a little station for myself and all those cards right on the other side of Deborah’s door. All day I got to listen to Deborah Solo negotiating, solving crises, and making things happen for people with an incredible focus. She’s one of Philadelphia’s most badass women in the business community. Watching her do what she does was the best education anyone could ever have in real estate and, to some degree, in life. 

Within the year, I got my license to start showing houses on my own, and started to take care of everyone I knew in music and art who were scraping but dreaming of having their own place. 

Do you work with just buyers or sellers and investors too?

All of the above. Buyers are frequently looking to be a part of the community so that holds a special place in my heart, though sellers can come with powerful stories too. On both sides, there’s usually some chapter opening or closing – family expansion, business dream starting, marriage, a new town, or a new job. So many stories. Buildings are the stages where life unfolds, so there’s a lot of meaning, plus it’s often the biggest financial decision of a lifetime. Deborah and Angel, her husband – they both deeply appreciate the stories behind the work. So did Stanley. That care is the heartbeat of the company. 

What is your favorite project you’ve worked on? 

Too many! Fireball printing, Pizza Brain, Threshold Wellness, and the studios for Craftwork Design are some of the commercial things that made a difference to many people. On the residential side, there have been hundreds of amazing stories. People transform their rowhouses into these heart-songs. Have you seen Ken Schapira’s (North Standard Company) house? Breathtaking. 

What’s your favorite place in Philly?

For Music: How can you top live opera arias over deliciousness at the Victor Cafe?

For Nature: Anywhere there’s a river or creek. Pennypack is special. 

For Food: Thang Long – best Pho’ in the City, and the Philadelphia Inquirer agrees!

What are your interests outside of real estate?

Horticulture. I’m in the gardening program at Mt. Cuba Center in Delaware, studying local ecosystems, native plants, and ecological gardening. Philly, if you’ve never been to Mt. Cuba, get there! It’s filled with magic woodlands and wildflower meadows.  

Coffee or Tea?

Tea. Earl Grey in summer, Ginger through the winter. 

Are you a maximalist or a minimalist? 

I like lots of old things, so there’s some museum vibe, but emptiness is important too. At Mt. Cuba they always say “right plant, right place,” and in jazz: “less is often more” but it’s challenging – especially with books! 

Anything else you’d like to share?

Plant native plants! Make homes for butterflies, birds, and bees! And, of course, If you think you’d like to own your own place or sell one, let’s make it happen!

Contact Jeff Carpineta at 215.833.6720 or email him at jeffcarpineta@gmail.com