va: Where Did the Assumptions Go?
- 12/16/20 10:08 AM
Mortgage assumptions have not been a practical matter for the last 30 years because mortgage rates have been on a steady decline. Even if the seller had a rate lower than the current rate, the new purchaser must qualify to assume the loan. In the case of conventional loans, the lender has the right to increase the rate to the current rate which neutralizes the reason for assuming the loan. This change took place in the early 1980's when lenders added due on sale provisions so lower rates could not be assumed. FHA and VA loans can be assumed at the existing … (1 comments)
va: A Good Time to Buy a Home
- 10/29/19 06:35 PM
You may have noticed that REALTORS® seem to always think now is a good time to buy and they can usually justify it with solid reasoning. While it can be true in general, a good time to buy has more to do with the individual than anything else. There are four things to consider. It is a good time to buy a home when you have good credit. Since the Great Recession and the housing crisis, lenders have been required to be sure that the borrowers have good credit. This actually benefits not only the lenders but the borrowers because no one wants to … (2 comments)
va: When It's Important...Find the Facts
- 02/13/19 07:27 AM
When It's Important...Find the Facts2/13/2019 Most parents don't put a lot of credence in the statements "Everyone is doing it" and "No one does that anymore." They'll dig a little deeper and get the facts of the situation. Interestingly, when it comes to buying a home, similar common myths continue to prevail surrounding what it takes to buy a home. One of the most common myths is that it takes 20% down payment to get into a home. Certainly, an 80% mortgage might have the most favorable interest rate. It won't require mortgage insurance and qualifying requirements might be a little less but there are … (3 comments)
va: Waiting Will Cost More
- 04/17/18 06:16 PM
With the first quarter of 2018 in the books, the 30-year fixed rate mortgage is nearing what Freddie Mac predicted it would be in the second quarter. If this pace continues, rates will exceed the five percent mark expected by the end of the year. The Fed has had its first of an expected three raises for this year and two more are expected in 2019. While these rates are not directly related to mortgages, they certainly have an effect. Delaying the decision to purchase or refinance could be an expensive missed opportunity. A $270,000 mortgage at 4.44% has a principal and interest … (1 comments)
va: Waiting Period After Distressed Sale
- 04/17/18 06:06 PM
"How long do we have to wait to qualify for another mortgage" is the question concerning people who've had a foreclosure, short sale or bankruptcy. The loan types for the new loan will differ in amounts of time to heal credit scores based on the event. The following chart is meant to be a general guide for how long a person might have to wait. During this waiting period, it's important that the person be current on all payments and maintains a history of good credit. A recommended lender can give you specific information regarding your individual situation and can make suggestions that … (1 comments)
In the late 80’s, both FHA and VA began requiring buyers to qualify to assume their mortgages. The main reason there haven’t been many assumptions in the past 25 years is that interest rates have been steadily going down and if a person has to qualify, they might as well do it on a new loan and get a lower interest rate. Based on projections by Fannie Mae, Freddie Mac, the MBA and NAR, rates for the second half of 2017 and 2018 are expected to be higher. When interest rates on new mortgages are higher than the rates … (1 comments)
va: Money Down the Drain
- 09/10/14 12:13 PM
Money Down the Drain - Private mortgage insurance is necessary for buyers who don’t have or choose not to put 20% or more down payment when they purchase a home. It is required for high loan-to-value mortgages and it provides an opportunity for many people to get into a home who otherwise would not be able. The problem is that it is expensive and a homeowner’s goal should be to eliminate it as soon as possible to lower their monthly payment and avoid putting good money down the drain. FHA loans made after 6/1/13 that have 90% or higher loan-to-value at … (6 comments)
va: The Reason They're Called Benefits
- 08/01/14 10:58 AM
The Reason They're Called Benefits The Veterans Administration guarantees home loans for eligible veterans. It is considered an attractive loan because the veteran can purchase the home with no down payment up to specific loan limits and no mortgage insurance. This makes the monthly payment considerably lower. Let’s assume a buyer wants to purchase a $200,000 home and can get a 4.5% interest mortgage for 30 years. A FHA loan would require a $7,000 down payment plus $3,377.50 in up-front MIP which can be rolled into the mortgage. The monthly mortgage insurance premium would be $221 per month for a … (0 comments)
Mortgage assumptions have not been a practical matter for the last 30 years because mortgage rates have been on a steady decline. Even if the seller had a rate lower than the current rate, the new purchaser must qualify to assume the loan. 
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