October 14th, 2016
There is good news for homebuyers and homeowners, as mortgage rates are still at 40 year lows! Rates are at 3.41% on a conventional 30-year fixed, 2.74% on a 15-year fixed, and 3.125% on a VA or FHA 30-year fixed. As 30-year rates were as high as 4.125% at the turn of the year, a homebuyer has gained over 7.5% in purchasing power in just the past 6 months, which means a buyer who could afford a $475k home at the start of 2016, can now afford a $510k home today using the same monthly payment. It's a great time to borrow money for a home purchase, or to refinance and lower your interest rate and monthly payment.
October 12th 2016
The new 5% down Jumbo Conventional mortgage with No monthly PMI is a terrific financing option for borrowers who want to purchase a home or refinance. For example, it will allow buyers to purchase a home up to $600k in San Diego, or $655k in LA, Orange County or San Francisco with only 5% down, and have the option of No monthly PMI. Until now, jumbo buyers had to put 10% down if they wanted to purchase a home and borrow over the conventional loan limit of $417k, or they were stuck with FHA financing with expensive mortgage insurance. Check out how to qualify for this new Jumbo Conventional mortgage program.
October 8th, 2016
There is a terrific new mortgage program available for borrowers who want to purchase a home or refinance! It is a conventional mortgage that only requires a 1% down payment, and there is also an option to eliminate the monthly mortgage insurance “PMI”. Until recently, buyers had to put down 3% - 5% to qualify for conventional financing, or they were stuck with FHA financing and expensive monthly mortgage insurance if they only had a minimum down payment. Check out how to qualify for this program.
September 10th, 2016
There is great news for buyers and current FHA homeowners who would like to refinance, as the FHA recently 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%. 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. With 1 in 4 homebuyers using FHA financing to purchase a home, check out why FHA remains one of the best low down payment options available for borrowers.
The Different Factors That Determine the Rate on Your Mortgage
October 5th, 2016
There are many factors that determine the interest rate on your mortgage. 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 I hear on the TV or radio?, 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 different factors determine the rate on your mortgage.
October 2nd, 2016
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.