home buyer: Should Buyers Be Scared That Mortgage Rates Are Rising? - 10/31/21 07:35 AM
Mortgage rates are no longer at ultra-low rates below 3% as they were this summer, but housing analysts are reminding house hunters that borrowing costs remain relatively cheap. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 3.14% this week.
“The yield on the 10-year Treasury note has been trending up due to the decline in new COVID cases, increasing consumer optimism, as well as broadening inflation and persistent shortages,” says Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are also rising, but purchase demand remains firm, showing that latent purchase demand exists among consumers.”
Freddie Mac reports the following national averages with … (3 comments)

home buyer: What is a mortgage origination fee? - 10/26/21 02:11 PM
A mortgage origination fee is one of many fees a mortgage lender can charge for allowing you to borrow financing. Here’s what you need to know about how the origination fee on a mortgage works, how much it costs and whether you can negotiate it.
What is a mortgage origination fee?
A mortgage origination fee is a fee that lenders charge for originating, or creating and processing, your home loan. The origination fee can cover a number of services, including origination, processing and underwriting. This fee is one of the ways lenders make money.
Your lender might break down the expenses that go into the origination … (0 comments)

home buyer: Buying a Home - 10/21/21 09:46 PM
Purchasing a home is one of the biggest, most important investments you'll make. Lean on us for reliable and sound advice — including if buying is right for you.
 
Understanding what you can afford
Your first step in buying a home is to fully understand your finances. It's not as fun as looking at homes, but it's important and necessary to determine how much you can afford.
 
Down payments and PMI
These two important topics are often misunderstood. Let us walk you through your options and the associated pros and cons.
 
Finding your team
There are many people involved in your homebuying journey. Learn how having the … (1 comments)

home buyer: Who Qualifies for an FHA Home Loan? - 10/19/21 02:32 PM
A mortgage the Federal Housing Administration backs is known as an FHA loan. FHA loans are unique from other mortgages and home loans. They’re often helpful for first-time homeowners because they offer a combination of a lower down payment requirement and lower credit score standards.
The following are some of the critical factors when it comes to qualifying for an FHA loan.
Credit Score Requirements
The minimum credit score for an FHA loan approval is 500. That’s lower and often significantly lower than lender requirements for traditional mortgages. The lower credit score requirements are a big reason this is an appealing program for first-time … (2 comments)

home buyer: Fannie Mae vs. Freddie Mac: What's the difference? - 10/17/21 10:08 PM
You’re likely to come across Fannie Mae or Freddie Mac as you explore your mortgage options. Although you won’t directly obtain a home loan through either, Fannie Mae and Freddie Mac are key players in the mortgage market. Let’s take a closer look at these government-sponsored enterprises, or GSEs.
Fannie Mae and Freddie Mac: Overview
In 1938, the government created Fannie Mae, or the Federal National Mortgage Association, amid the struggles of the Great Depression. The goal of Fannie Mae was to create a more reliable source of funding for homebuyers, opening doors for more Americans, figuratively and literally.
Freddie Mac, short for the Federal Home … (0 comments)

home buyer: Low Appraisals Stall 23% of Home Sales - 10/11/21 10:30 AM
Home buyers are bidding up home prices in competing for the home they want. But appraisals don’t always agree with that final seller’s accepted offer price. Some homes are appraised below the agreed-upon sales price, which could upend a deal.
Twenty-three percent of contracts were delayed due to appraisal issues, according to the latest REALTORS® Confidence Index Survey, based on a survey of real estate professionals’ transactions. About 12% of transactions were then terminated due to appraisal issues.
“I don’t remember any time where the frequency of buyers being willing to pay so much more than the market data was this high,” Shawn … (3 comments)

home buyer: Mortgage Demand Falls as Rates Rise to Highest Level Since July - 10/09/21 02:39 PM
The average contract interest rate for 30-year fixed-rate mortgages increased to 3.10% from 3.03% in the past week. Applications to refinance a home loan decreased 1% last week from the previous week. The average loan size for a purchase application reached $410,000, its highest level since May. Higher interest rates took some recent wind out of the sails in the mortgage market.
After gains the previous week, total mortgage application volume fell 1.1% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up … (0 comments)

home buyer: The Fed May Start Tapering, but Mortgage Rates Play by Their Own Rules - 10/08/21 02:52 PM
Despite increasing talk about interest rates and home prices, mortgage rates for now are likely to stay relatively steady.
Investors and homebuyers may expect large fluctuations in mortgage rates, as the Federal Reserve Board of Governors eventually plans to reduce mortgage purchases. But, like almost everything in the home lending business, things aren’t that simple.
The amount paid by the borrower can be as unique as the house they are buying. Still, there are usually some key inputs that influence the direction of mortgage rates as well as underlying asset rates. The two biggest: the yield on bonds that package mortgages for investors … (1 comments)

home buyer: Top Reasons a Mortgage can be Denied after Pre-Approval - 10/07/21 01:43 PM
When you’re ready to purchase a home, one of the first things you’ll need to do is get pre-approved for a mortgage. A pre-approval letter is critical, especially in a competitive market, because it shows sellers, you’re serious about buying a home and that you have the financial means to do it.
While having a pre-approval will make you more competitive, it’s important to remember that it’s not a guarantee you’ll receive financing. During the application process, your lender will examine certain factors like your credit score, income, employment, debts, and assets. If any of these criteria change between pre-approval and closing, … (1 comments)

home buyer: 4 Reasons to Choose a 30-Year Mortgage Over a 15-Year Repayment Term - 10/05/21 02:35 PM
When you borrow to buy a home, you'll need to decide on the loan repayment timeline. You will have a choice, with most lenders offering loans between 15 and 30 years in duration.
Loans with a longer loan repayment timeline typically have higher interest rates and cost more over time – but there are still reasons why you may want to opt for the longer payoff period.
Here are four of them. 
1. You'll have lower monthly payments
The longer your loan payoff time, the lower your monthly payment. That's because you will be making more of those payments over time so each one can be lower, and … (0 comments)

home buyer: Mortgage Rates Jump Above 3%, Creating Pressure for Home Buyers - 10/03/21 10:43 AM
As expected, mortgage rates have risen after the Federal Reserve signaled that it plans to begin reducing the support it’s been providing to the U.S. economy.
Home buyers could be caught flat-footed if they don't begin to factor rising interest rates into their budgets. 'At today’s rate, the monthly mortgage payment on a median-priced home for-sale is roughly $150 higher than it was a year ago, with $25 of the increase owed to higher rates and $125 owed to higher home prices,' said said Danielle Hale, chief economist for Realtor.com.
Mortgage rates rose above 3% for the first time since the beginning of … (1 comments)

home buyer: Average Mortgage Amount Increases to $410,000 - 10/02/21 10:59 AM
The dollar value of mortgages home buyers are taking out is soaring as they try to afford higher home prices.
The average amount for a mortgage averaged $410,000 last week, according to data from the Mortgage Bankers Association. That marks the highest average mortgage amount since May.
“With home price appreciation continuing to run hot, increasing more than 19% annually in July, applications for larger loan amounts continue to outpace lower-balance loans,” says Joel Kan, the MBA’s associate vice president of economic and industry forecasting.
While home prices continue to rise, they are inching up by smaller annual gains than they have been. The … (0 comments)

home buyer: What is an Energy-Efficient Mortgage? - 09/27/21 10:22 PM
What is an energy-efficient mortgage?
An energy-efficient mortgage (EEM) is a loan for purchasing or refinancing a home that meets certain energy-efficiency requirements or improving a home to make it more energy-efficient. Like other types of mortgages, the home serves as collateral for the loan.
An EEM can be a conventional EEM, insured by the Federal Housing Administration (FHA) or guaranteed by the U.S. Department of Veterans Affairs (VA).
How does an EEM work?
You can use an EEM alongside another mortgage, such a conventional loan or renovation loan, and depending on the type of EEM, can borrow up to 15 percent of the home’s … (0 comments)

home buyer: What Americans Will Sacrifice to Buy a Home - 09/24/21 12:32 PM
 
Most Americans want to own a home at some point in their life, and they say they’re willing to make sacrifices to achieve it. For some, that means forgoing alcohol or vacations for a year to save. But others say they’re willing to give up having kids in order to have their dream home. About 60% of recent survey respondents say they’d prefer their dream home over 40% who said they’d prefer kids first, according to a new survey from Cinch Home Services, a home warranty firm.
The youngest adults in the housing market—Gen Z—feel the strongest about one day becoming a … (0 comments)

home buyer: How the Federal Reserve Affects Mortgage Rates - 09/23/21 10:23 PM
Just to dispatch with the technicalities, the Federal Reserve does not set mortgage rates, and the central bank’s decisions don’t drive mortgage rates as directly as they do other products, like savings accounts and CD rates.
But the Fed’s actions do indirectly influence the rates consumers pay on their fixed-rate home loans when they refinance or take out a new mortgage. The Fed at its September meeting indicated it plans to keep rates low at least until 2022, despite a brightening economic picture and a jump in inflation in recent months.
“The Fed is inching closer to tapering, the process of slowly – very slowly – … (2 comments)

home buyer: What to Expect During the Mortgage Process? - 09/22/21 11:59 AM
 
This start-to-finish overview walks you through every step of getting a home loan.
Buying a home is a huge financial commitment that’s both exhilarating and stressful, especially for first-time buyers. But if you’ve done your homework and know what to expect, you’ll be ready to close your deal with confidence.
The process can vary from one scenario to the next, but you can expect to go through certain basic steps when you apply for a mortgage. Depending on your unique situation, these steps may happen concurrently, or take longer than expected. (We’re giving you some time estimates, but keep in mind that, for … (1 comments)

home buyer: 3 Must vs. Lust Buying Tips to Avoid Overspending - 09/03/21 08:55 AM
 
The super-simple (and fun) way to separate needs from nice-to-haves. 
When you embark on the home-buying process, your heart is filled with all the dreams in the world. It’s really easy to get caught up in the “I have to have ___________, so I’ll cut back somewhere else” game, even when you don’t actually know where that somewhere else is or if you can realistically cut back there.
This post will show you how to pare down the excess and make sure to get the things you really NEED.
Make a List of Wants
Start by making a list of everything you want in your house. If … (1 comments)

home buyer: Understanding Credit Scores - 08/30/21 07:30 PM
 
Credit scores may seem simple on the surface: your credit score is a number that represents how good your credit is, and the higher the better.
But what type of credit score are you looking at, and how is the score calculated? Why does your score keep changing, and why is the score you see in your banking app not the same as the one your lender sees?
Credit scores can be confusing and complex, so read on to learn how credit scores work, the different types of credit scores and where you can find your credit scores.
How Do Credit Scores Work?
A credit … (0 comments)

home buyer: Starter Homes Still Cheaper Than Renting in Many Areas - 08/29/21 03:00 PM
Aspiring first-time home buyers may not want to give up on that competitive house hunt: In many markets, they could save money by owning.
Buying a starter home is more affordable than renting in nearly half of the largest U.S. metros, according to a new study released by realtor.com®.
The U.S. median rental price has climbed nearly 10% year over year to $1,607. That is 15.5% higher than the monthly payments for a starter home, the lower-priced tier of homes for sale in a market. Low mortgage rates are helping to offset recent jumps in home prices.
“Rents hit new highs in 40 of … (0 comments)

home buyer: It Ain't Over 'Til the 'Funding Lady' Sings - 08/21/21 09:09 PM
 
If you think your new mortgage loan is official once you’ve signed your closing papers, you might want to rethink that. Sure, you’re pretty darn close to a brand-new loan, but you’re not completely there. When your loan is officially approved by the lender and closing documents are ordered, there were several stages your application went through before papers could be ordered.
When your loan officer contacts you and lets you know your loan has been approved, it’s very possible there are still some outstanding conditions attached to your approval. Your loan could be conditionally approved. This simply means there are some … (3 comments)