Now Might Be the Time to Go After a 30-Year Fixed Rate Mortgage

Posted on August 31, 2016 by Scott Li

Whether you’re buying your first home or your fifth, knowing the right time to go after a fixed-rate mortgage can be a bit difficult. After all, interest rates change all the time, and you wouldn’t want to get one rate today, only to have it fall even further tomorrow. Experts believe that right now is a great time to go after a 30-year fixed-rate mortgage.

Interest Rates Are Falling

According to mortgage finance agency Freddie Mac, the interest rates on 30-year fixed mortgages are as low as they have been in three years. US Treasury officials are expressing some concern over slow economic growth in the US, which is in line with Treasury yields in recent months. As of August 4, interest rates for 30-year mortgages had fallen to 3.43% as compared to 3.48% the week prior. The lowest rate was documented in early July at 3.41%, which was only 10 points above the record low that was set back in November 2012. read more

Are Jumbo Mortgages Growing in Steam?

Posted on August 30, 2016 by Scott Li

Like many industries, the real estate financing industry is guarded by regulations and policies designed to protect borrowers and lenders alike. In fact, there are conforming mortgage amounts that are established by regulations in the United States. Loans that exceed these amounts are considered jumbo loans, and while they used to make up only a small fraction of annual US mortgages, they’re becoming more popular across the nation.

Higher Prices Require Larger Loans

Home prices are on the rise across the nation for many reasons. In cities like Detroit, which has been in economic decline since the end of its automotive manufacturing glory days, the local economy is starting to make a comeback thanks to successful entrepreneurs and small business owners. In cities like Denver, the job market is very attractive, and people from across the country are relocating for a shot at a better salary. In both cases, average home prices are climbing due to the nature of the supply and demand marketplace, and that means more buyers need jumbo mortgages, which typically exceed $417,000 in most markets. read more

5 Things to Do When Even Thinking About Buying a House Financially

Posted on August 4, 2016 by Scott Li

Buying a home is quite possibly the largest investment you will ever make. However, before you go to a lender and start filling out an application, there are some things you need to do to make sure you’re approved for your mortgage and you can handle the payments. Here are five things to do whenever you start thinking about buying a home.

#1 – Raise Your Credit Score

If there’s one rule that stays the same in the real estate world, it’s the fact that a higher credit score will always get you a lower monthly payment. Along those same lines, a lower credit score will get you a higher interest rate, if you’re even approved for your loan at all. Pull your credit reports from all three bureaus (you’re entitled to one free report per year from each) and look for inconsistencies or things you can pay off to raise your score. Look at things like credit utilization, and keep your inquiries to a minimum. read more

How to Look and Be Careful when it Comes to Mortgage Fraud

Posted on August 1, 2016 by Scott Li

Although US officials and the FBI work hand in hand to put a stop to mortgage fraud, there are still con artists out there who won’t think twice about making you their next victim. The best way to avoid mortgage fraud is to know what to look for. Here are some tips and tricks that can help keep you safe.

#1 – Never Make a False Statement on a Loan Application

Filling out loan applications can be an arduous task, especially if you’re applying through more than one lender. One of the tactics often used by mortgage fraudsters involves asking you to overstate your income or lie about where you got the money for your down payment. These are surefire signs that the lender isn’t truly vested in your best interests and just wants you to sign your name on the dotted line. If a lender asks you to falsify information on your application, do not do business with them. read more

Mortgage Refinancing on the Rise Again

Posted on July 28, 2016 by Scott Li

Thanks to “Brexit”, the term the media is using to describe England’s secession from the European Union, homeowners in the United States are enjoying a financial bonus. Mortgage interest rates are dropping, which has led to a 21% increase in refinances. The number of applications to refinance has climbed by 113% in just one year.

Close to Record Lows

According to Mike Fratantoni, the chief economist for the MBA, or Mortgage Bankers Association, Brexit has brought the US back to near-record low interest rates considering the fact that jumbo rates are already at their lowest levels. The Federal Reserve has made changes to the mortgage bond market, which allows banks to offer qualified borrowers low interest rates. However, Fratantoni points out that borrowers shouldn’t wait to lock in their rates; he’s forecasting a rate of 4.8% by December 2017 – the highest since 2009 and 30% more than current rates. read more

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