July 22nd, 2015
Mortgage rates have jumped from 3.5% in April to 4.125% in July on a conventional 30-year fixed rate, an increase of .625%. Rising mortgage rates do more to influence home affordability than rising home prices. Now that rates are moving higher again, buyers are losing purchasing power. Because of this recent increase in rates, homebuyers have lost roughly 7.5% in purchasing power in just the past four months, which means a buyer who could afford a $500k home in April, can now only afford $462,500 today. So what is causing mortgage rates to suddenly spike up and will they continue moving higher?
July 20th, 2015
There is a terrific new mortgage program available for borrowers! It is a conventional mortgage that only requires a 3% down payment and there is also an option to eliminate the monthly mortgage insurance “PMI”. Until recently, buyers had to put down 5% to qualify for conventional financing, or they were stuck with FHA financing and their expensive monthly mortgage insurance if they only had a minimum down payment. Here is what you need to know to qualify for this program.
July 15th, 2015
There is great news for buyers and current FHA homeowners who would like to refinance, as the FHA lowered their Monthly Mortgage Insurance for the first time since 2001! The FHA lowered it's annual MIP (monthly mortgage insurance premiums) by 50 basis points (0.50%) on all new loans, which will drop the monthly FHA insurance from 1.35% to .85% of the loan balance for any buyer who puts down the minimum of 3.5%. So on a $400k loan for example, the monthly MIP drops from $450 a month to $283, savings of $167 a month. This means a buyer can either take advantage of a lower monthly payment, or be able to afford a bigger home.
July 1st, 2015
As the housing market continues to strengthen in many areas, lenders are coming up with new low down payment financing options with No monthly mortgage insurance “PMI”, to help buyers purchase homes. There are 4 terrific financing options now available for home buyers in California who have a limited down payment and do not want to pay monthly PMI, and this includes options for jumbo buyers who do not want to use all their cash towards a down payment.
June 25th, 2015
There are many factors that determine the interest rate on your mortgage. Also understanding why rates move up and down each day is quite simple, once you understand some basic economic fundamentals. The most frequently asked questions that buyers and homeowners ask are “What’s my rate”, or “How is my mortgage rate determined” or “why is my rate higher than what they say on TV?, or “Do you see rates increasing when I am ready to buy in a few months?”, With these questions in mind, here is a quick guide that will help you better understand what factors determine the rate on your mortgage.
June 21st, 2015
Our underwriters have been warning us about an increase in borrowers who are accidentally disqualifying their loan before the closing. For example, they advise that borrowers are going out and buying furniture on credit or a new car before closing, or they change jobs, which unfortunately may now disqualify their loan before closing. These mistakes will happen and will continue to happen if borrowers are not being coached properly before or during the loan process until they close escrow. Here are the 9 most common mistakes that borrowers make which may accidentally disqualify their loan before closing.