Archive for the ‘Home Buyers’ Category

  • Mortgage Rates Return To 2017 Low

    Sep 11, 17 • Huggy • Home Buyers, Mortgage RatesNo CommentsRead More »

    by Francis Monfort | 28 Aug 2017 | Mortgage Professional America  Mortgage rates fell back during the week to their lowest level for the year, Bankrate.com said as it released its weekly national survey. The benchmark 30-year fixed mortgage rate was 4.02%, down from 4.05% last week and tying with the rate last seen June 14, which was the lowest rate since November 2016. The average rate had average discount and origination points of 0.31. The average rate for the larger jumbo 30-year fixed mortgage was 4.03%, while the average 15-year fixed mortgage rate fell to 3.23% from last week’s 3.27% average rate. The latter mortgage type had average points of 0.25. Average rates for adjustable-rate mortgages (ARM) rose this week. The 5-year ARM climbed to 3.50% from 3.49% a week ago and had 0.35 average discount and origination points. The 3-year ARM increased to 3.62% and the 7-year ARM climbed to 3.68%. Bankrate.com said the decrease follows a shift among investors to safe-haven government bonds given high valuations in the stock market. While markets have until recently ignored political and geopolitical issues, they are no longer immune to these developments, the company said. Following recent tensions with North Korea, markets have also been affected by Washington politics and the recent Barcelona terrorist attack. Previously, markets ignored these issues and moved higher given strong corporate earnings, improvements in the economy, and

  • How to Beat the Jumbo Loan

    How to Beat the Jumbo Loan

    Why 2 loans can be better than 1: As housing prices continue to rise, so do loan amounts.  You may know that each county has something called a County Loan Limit (You can click here to see them).  But did you know once you go over those limits your loan is considered to be Non-Conforming, or “Jumbo”?  So what?  Well, once you’re in that category many things can change.  Here are just a few: Higher Credit requirements Larger down payment requirements Property restricitons Borrower restrictions Higher Rates So you can see that it would be valuable to avoid these issues.  Let’s talk about How to Beat the Jumbo Loan. One of the most effective ways to do this is with a 2-loan combo.  To do this, we do a first loan up to the highest amount possible, while maintaining the best parameters.  That might mean considering things like loan amount, Loan-To-Value ratio, etc.  Then we add a 2nd loan that makes up for the difference. For example: Purchase Price = 850k 1st loan of 600k 2nd loan of 165k This gives us the best rates and terms on the first loan, and as a bonus, allows us only 10% down payment!  Using this method could save you hundreds of dollars a month, and 10’s of thousands over the life of the loan. So why doesn’t everyone do this?  Good questions

  • Customer Experience vs. Customer Service In The Mortgage Industry

    Aug 14, 17 • Huggy • Home Buyers, Purchase Loan, RefinancingNo CommentsRead More »
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    by Craig Anderson | 03 Aug 2017 | Customer experience vs. customer service in the mortgage industry Customer experience is a term that shows up everywhere in today’s business marketing.  It’s a “must have,” “the single most important factor” and “if you don’t master it, you’re dead.”  Most experts agree, customer experience is the most important differentiator a company can possess to gain a competitive advantage. But, does anyone really even know the difference between customer experience and customer service?  As long as the customer is happy we should be good, right?  And, don’t most companies have a designated customer service department to handle their customer issues, complaints and general inquiries? Defining the differences Customer service can simply be defined as, “what’s my business doing to help solve my customers’ issues,” while customer experience can be defined as, “how is my customer feeling or what are they thinking every single time they interact with my business?” Now, let’s put these into perspective with the mortgage industry. Rocket Mortgage is often thought to be one of the first in the industry to implement a customer experience program. When they introduced their ‘push button mortgage’ concept, they focused on technology to simplify the mortgage application user experience. Instead of the applicant having to manually type in all of their employment and banking information, the system would retrieve the information and auto-fill the application form

  • Assets Can Be Used For Qualifying Income

    Much of the housing news reported focuses on inventory and credit guidelines.  In case you haven’t noticed housing inventory is low and credit guidelines are tight.  These two headlines show up all the time and for good reason.  In many markets they are both true. With interest rates still low and home prices rising in a majority of markets many homeowners appear to be hanging on to their homes.  This could be to try and time the sale of their home to coincide with a market peak or they realize that if they do sell their home for top dollar they will be turning around to buy in a market with scarce homes available and paying top dollar as well. The gap between income and home affordability can be a hard one to bridge and for many potential home buyers it is out of reach due to increasing prices and a tight credit market. One story I don’t see reported much is that lending volume is down considerably in 2017 and lenders are looking for ways to increase loan applications while not taking on too much risk.  That line is not an easy one to draw so instead of re-writing guidelines or coming up with something altogether new lenders will typically enhance an existing guideline to cast a wider net in an effort to capture more potential borrowers. Whenever

  • Is Renting Really Cheaper Than Owning a Home?

    by Anna Sobrevinas | 04 May 2017 | MPA Mortgage Professional America | www.mpamag.com The responsibility of owning a home can be intimidating for people who’ve only rented in the past, but new data from Zillow suggests renting can actually cost more. Zillow’s analysis found out that sans increasing monthly housing costs, a typical renter can buy a home almost 50% more expensive than the median valued home and still get to keep the same amount of monthly housing budget. The median US home value is $196,500, while the median rent in the country is $1,416 per month – an amount enough to pay for monthly housing expenses needed to own a $289,505 home. “The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers,” said Zillow Chief Economist Dr. Svenja Gudell. “Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers.” Renters in Cleveland can afford a $174,194 home while retaining monthly housing costs, which is representative of more than 80% of homes on the market now,

  • 40-Year Fixed & Interest Only

    Yes, you read that right.  We have loan terms fixed for 40 years and the first 10 years can be interest only.  And here is best part:  The range of loan amount is $100k to $2.5 million. While our residential lending world looks to find it’s footing in this new market place lending volume is down and banks are looking to expand lending guidelines to appeal to a wider variety of consumer.  For those of you who recall what the lending world looked like ten years ago this may feel nostalgic and for those of you new to the home buyer market this may be your big opportunity. As with every loan program the devil is in the details and I think this is where this program shines because the barrier to entry is very reasonable.  For example, do you have a bankruptcy on your record?  It it’s been 2 years since the discharge date you are eligible for this loan.  Do you have a 600+ Fico score?  You are eligible.  Even the reserve requirement and debt-to-income ratio are better than most lending programs out there and they even allow non-occupant co-borrowers.     Basically, the only thing keeping you from qualifying for this loan is not taking action.  Want to spend a few minutes of your time finding out what your purchase power looks like using this incredible opportunity

  • Beware of Poor Home Flips! Lurking in the Kitchen

    Beware of Poor Home Flips!  Lurking in the Kitchen

  • House Flipping…The Good vs. The Bad!

    House Flipping…The Good vs. The Bad!  

  • What Happens To Home Buying Power As Rates Rise?

    By Eric J Martin of The Mortgage Reports Originally posted on November 21, 2016   Mortgage Rates’ Profound Effect On Affordability The mortgage interest rate you find plays a large part in how much money your lender will let you borrow. That affects how much home you can buy. That begs the question: how does your purchasing power change if rates creep up a half a point or even one full percentage point? Much more than you might think, which is why it pays to shop for a home now, and lock in a favorable fixed rate at historical lows. Many home buyers realize that rising home prices can limit their ability to buy. However, rising interest rates can alter home-buying plans even more. The current rate environment is likely a narrow window of opportunity in which to claim a low rate and a still-reasonable home price. Housing agency Freddie Mac recently predicted that mortgage rates will rise to 4.0% in 2017. That’s more than 50 basis points (0.50%) higher than the current mortgage rate average. Today’s rates maximize your ability to buy a better home with affordable payments. Click to see today’s rates (Feb 13th, 2017) The Cost Of Rising Rates Today’s lenders qualify home buyers based on several factors, not the least of which is something called a debt-to-income ratio (DTI). A low DTI demonstrates that you have a healthy balance between income and debt. Lenders generally cap the allowable DTI at

  • Trump’s Overhaul of Dodd-Frank – How it Changes Your Mortgage

    Feb 6, 17 • J.Beckistan • Home Buyers, Loan Programs, Purchase Loan, RefinancingNo CommentsRead More »
    Trump’s Overhaul of Dodd-Frank – How it Changes Your Mortgage

    You’ve probably heard that President Trump presently signed an executive order allowing Dodd-Frank to be changed.  The promise thus far is that his administration has plans to “cut a lot out of Dodd-Frank”.  So at this point you may be asking yourself –  ” What the heck is Dodd-Frank?!”  Well, essentially Dodd-Frank was a reform act set into place after the big mortgage meltdown.  It was designed to place more control on big banks, increase accountability, and increase transparency.  On the mortgage side of thing, it can be argued as to whether or not that was accomplished.  What is true, is that it created a number of extra waiting period requirements, disclosures, and good deal more paperwork.  It also put a lager burden of proof on borrowers when in comes to proving their ability to repay their loan. Ya, but so What?  Good question…  It’s not clear yet what impact rolling back Dodd-Frank would have the way people get loans.  It might make it easier.  It might cause another period of turmoil while banks race to learn the new laws.  Or, maybe nothing will change at all. One thing I do know is how much I love the way we here at the GreenHouse Group can handle these situations.  We’ve been through many of these changes now in the life of our organization.  Experience shows that the way we do

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

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