mortgage: Cash? So What?
- 05/23/23 12:13 PM
In today's tight-inventory real estate market, there's often a preference, either real or perceived, toward cash buyers. "They're buying cash" is often used as a way to portray a buyer as some kind of powerhouse. Sellers are often told that cash offers are better, because "it's cash!". In reality, though, everyone buys with cash. USD is the currency used in the US to buy & sell real estate (calm down crypto bros, that's a discussion for another blog on another day). Whether that cash comes direct from a briefcase or direct from a bank, it's worth exactly the denomination of dollars being … (7 comments)
I was fortunate enough to join some fellow ActiveRainers this week and present some information on the recent Conventional loan LLPA changes. Since yesterday, I've continued to see some misinformation circulating around the changes, and thought it would be worthwhile to hold a quick webinar to cover fact VS fiction, and provide detail and insight into what changes are actually happening with conventional loan pricing.
Since the topic has grabbed some headlines in mainstream media, it's likely your current clients or future clients will have questions or … (14 comments)
mortgage: Biden's Conventional Loan Price Changes
- 04/21/23 10:44 AM
Changes to pricing for conventional loans are in the news as the proposed changes are set to take place in May. The reality is that these changes have already taken place, because they are effective for loans delivered to Fannie Mae or Freddie Mac in May. Loans closing in the next couple weeks will be the first to be delivered with the updated pricing, but due to the nature of a purchase contract period, many of these loans have been locked over the last 3-4 weeks. It's a bit surprising to see the uproar today about this topic, as the news of this change came out … (50 comments)
mortgage: The Importance Of A Great Title Agent
- 04/17/23 01:52 PM
The Importance Of A Great Title Agent Depending on the state or area you're in, when getting a mortgage, you'll be working (knowingly or not) with a title agent. They may be referred to as "title", "closing attorney", or "escrow officer", but despite the title, the work they perform is the same from state to state.
Title agents will perform a title search to ensure our borrower has a clean title history, and they'll insure that search, protecting borrowers and us as the lender against any title claims. They also coordinate closing, cut checks to all involved agents and 3rd parties, and accept … (4 comments)
mortgage: FHA Loans Are Getting More Affordable
- 02/22/23 06:13 PM
FHA Loans Are Getting More Affordable For the first time in a long time, HUD has announced that FHA loans are getting more affordable! A long time ago, in a galaxy far, far away (specifically, circa 2009 when housing was in a bubble that was bursting), HUD was losing a ton of money due to housing foreclosures, and to offset these losses and improve their finances, they made the FHA loan program more expensive by increasing MIP costs (the cost of mortgage insurance for FHA loans). Not only did they make it more expensive, but they implemented mortgage insurance that would remain … (6 comments)
mortgage: 2023 Mortgage & Housing Forecast
- 01/05/23 08:36 PM
As in year's past, we took a look at recent data, historical data, and expected news and economic metrics to come up with a forecast for 2023. We discuss housing, rates, inflation, and recession to come up with some overall forecasts for the housing market. It's good news for buyers, sellers, and the overall market in many instances, with some recessionary concerns posing challenges for the overall economy - BUT, things look good for housing in most markets due to continued inventory challenges and a high likelihood we'll see mortgage rates take a dip. You can find the full forecast and see the … (2 comments)
mortgage: Mortgage Applications Up - What Does It Mean?
- 11/16/22 02:00 PM
Why am I posting today about mortgage applications when data on them is and has been released weekly for as long as I can remember? Because this week signifies the first time application data has been released in a week where we saw a significant drop in interest rates. Mortgage rates haven't seen any substantial drop since 2021 when inflation began to grip the market place, but last week's low inflation reading caused mortgage rates to dip more than half a percent in a single day.
And what happened next? Refinance applications continued to fall. This makes sense, because there's a massive amount … (5 comments)
mortgage: Let's Talk: Buy Downs
- 10/26/22 11:57 AM
Let's Talk: Buy Downs When the real estate market stumbles, slows, or goes through any type of shift, it's a pretty well known fact that a couple of things are about to happen: - lenders are going to get creative - inexperienced (or ignorant, or slimy) professionals in the real estate and mortgage space will offer potentially really bad and costly advice on how to cope with the market shift Cue the "marry the house, date the rate!" crowd. Great idea, until the rate you're dating knocks you up and you're stuck with it for 18 years. I digress... In recent weeks and months, the "buy … (15 comments)
Many of our clients come to my team due to our expertise in delayed financing. Recently, we got a call from a potential customer that was working with another lender who couldn't quite figure it out. Many lenders struggle with delayed financing or don't know it exists, so it's important to work with an expert in getting a delayed financing transaction done.
What is delayed financing? Delayed financing is simply recouping funds through a refinance that were used to make an all-cash purchase of a home. Many investors use delayed financing to have the benefit of being able … (0 comments)
The question of inflation is a tricky one for several reasons, perhaps the biggest being that the Fed is in damage control mode. They're playing catch up in reckoning with their ignorance and incorrect actions based on their belief that the inflation we're knee-deep in would be "transitory" in 2021. We've seen that inflation is not only not transitory, but that it's spiraled to a point where it's tough to reign in. Last Friday, mortgage rates shot up nearly .5 percent based on updated inflation readings - the inflation reports weren't terrible when compared with the month before, but the fact that despite … (12 comments)
Answer the phone at all hours of the day? Work weekends? Over-communicate, even when the communication is not fun? Yep. Check. Check. And check. Invest in my business to provide what I feel is the best possible loan experience? Done.
When it comes to getting loans, I do a lot. Over the past 15 years I've worked my tail off to create a steady stream of business that I can consistently rely on. Much of that comes from relationships with some wonderful people that share my name (if you're one of them … (25 comments)
Consumer debt is UP! Way up. In part, this is due to the financing of things normally financed (cars, homes) becoming more expensive with home prices skyrocketing over the past 2 years and cars becoming more expensive due to supply chain issues.. But credit card debt has risen as well, and home equity line of credit (HELOC) applications have increased in 2022.
Unemployment is low, and wages are up, so the news isn't all bad, and defaults on debt are fairly low as well, meaning Americans are shouldering that debt OK for now, but the tide is turning. With the … (2 comments)
Real estate is on fire. It's no secret that home prices have gone up astronomically over the past 2+ years, and they continue to rise, in a phrase coined by crypto investors, "to the moon!". This meteoric rise in prices has caused the phrase "bubble" to be tossed around my media talking heads, "experts" on the news, and even some very smart people within the industry. They cite things like "rising rates pushing buyers out of the market", a slow down in pending home sales, and other metrics in determining that a "bubble" … (11 comments)
Recently our team was fortunate enough to work with a customer we've worked with for years on various properties in various states. One benefit of licensing in multiple states is that when a customer moves, considers investing outside of their state, or picking up a vacation home, we're still able to assist. In this instance, we last helped our client nearly a decade ago when we met him in Pennsylvania. This past week, we funded a condo loan in South Carolina, helping the customer move from a 30 year loan into a new … (2 comments)
mortgage: Buying with Rising Rates - The Numbers Add Up
- 04/05/22 01:18 PM
Buying a House with Rising Rates - The Numbers Add Up! No one wants a 6% interest rate when they could have a 3% interest rate, but until a time machine is invented, the 3% 30 year fixed rate mortgage (without paying a boat load of points and fees!) is, for the time being, a thing of the past. And while we're not approaching 6% rates for the same product, the overall idea I want to share is illustrated even with a rate much higher than where we currently sit. In the above scenario, a 6% rate offers a monthly payment $623/month, or … (1 comments)
Recession is starting to show it's ugly face in the US - at least in media headlines. One of the biggest reasons is that a historical indicator of pending recession is upon us - the flattening of the yield curve. "Yield curve flattening" is a pretty simple concept - it occurs when the yield between short and long term treasury bill prices disappears, making the cost and return of short and long term investments identical, or inverted. Yield curve inversion occurs frequently in environments where the Fed is raising rates and tightening intra-bank … (22 comments)
Closing dates. Financing contingencies. Prequal vs Preapproval. These are just a few things sellers are looking at when it comes to reviewing offers on their home. While there are many reason a seller may or may not accept an offer or choose one offer over another, one thing is for certain - any offer that creates FUD (fear, uncertainty, doubt) is going to hurt a potential buyer's chances of getting the home under contract. One way to get over FUD is to be a buyer that has been fully approved by their lender before they even see … (7 comments)
mortgage: The 'Local Lender' Myth
- 01/18/22 03:35 PM
The 'Local Lender' Myth Real estate is local! Out of area lenders are terrible! Online lenders are the worst! "______(insert lender/bank name here) stinks!". These statements are thrown around pretty often in the real estate arena, and sadly, the perception is in some cases translated to reality. Before I address these specific statements, a quick story:
Once upon a time, in a galaxy far, far away (specifically, the year 2007, in a small town called Chadds Ford, Pennsylvania) there was a lender who helped a home buyer purchase a new home. Just prior to closing, the final documents were generated, and to the … (14 comments)
mortgage: While You Were Shopping
- 01/07/22 01:19 PM
While You Were Shopping We've known, and have shared, for quite some time now that mortgage rates would be heading up. What we didn't know, was that they were going to go up all in one week. Happy 2022! While rate is an important factor when getting a mortgage, it's important to note that rate is only one piece of the puzzle, and it's actually a lot less important than many people think. Markets change, circumstances change, and there's daily volatility to consider. All of these things have an impact on getting the best mortgage for you, and the best mortgage isn't … (14 comments)
mortgage: Mortgage Secrets 'They' Don't Want You To Know About - Part 1
- 12/13/21 01:47 PM
Mortgage Secrets 'They' Don't Want You To Know About - Part 1 When the Lowest Rate Makes the Most Sense The lowest rate never makes the most sense. Or, hardly ever. Sounds like something a lender with high rates would say, huh? Well, hear me out. First, the rates I offer are extremely competitive. Lowest in the industry? Nope, and for good reason (if you've seen the recent better.com layoff saga, you're witness to how the companies with the lowest rates are run). But our rates are always competitive, and I still don't think most people should opt for the lowest rate. I … (13 comments)
In today's tight-inventory real estate market, there's often a preference, either real or perceived, toward cash buyers. "They're buying cash" is often used as a way to portray a buyer as some kind of powerhouse. Sellers are often told that cash offers are better, because "it's cash!". 
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