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LPMI loans – how to decide?
I am finishing a series on LPMI loans. If you’ve missed any of them, here is a quick recap for you: LPMI loans, or Lender Paid Mortgage Insurance, are loan programs that allow a borrower to not make a...
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Is there a better day to lock a rate?
Last time, we discussed how mortgage rates change. It isn’t from the Federal Reserve raising rates. Mortgage rates move up and down along with the value of mortgage-backed securities. As these bond...
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VA Loans are Quite Popular Now
Realtor.com recently reported that the VA loan program closed more mortgages in 2015 than any year in the program’s history. The VA guaranteed about 631,000 loans for veterans last year, breaking the...
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VA Loans – Low or No Down Payment
Military veterans who want to buy a home don’t have to spend years scraping together a down payment. That helps make home ownership possible for scores of veterans and military families who might...
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Declining Asset Loan Option
In the last post, I commented on a situation where a retiree with over half a million dollars in a brokerage account could not count his $4,000 monthly withdrawals from that account as “income” for a...
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The Simplest Loan Around – Part 1
It’s a fun time to be a mortgage lender. Interest rates are hovering near their historic lows. They’ve been close to rock bottom for a while, but this Brexit situation has pushed them back to almost...
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The Simplest Loan Around – Part 3
Continuing the FHA streamline refinance theme… Here’s an example. I’m currently talking with Confidential. Confidential is self-employed. Confidential’s spouse, Anonymous, recently took a new...
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Continuing Ed for MLOs
The fall is here, and I know what that means… time to complete annual Continuing Education so I can keep my Mortgage Loan Originator (also called MLO) License. I am happy to say, I’ve completed the...
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Credit Reports and Qualifying for a Mortgage #1
This news may shock you – mortgage underwriters actually look at a borrower’s credit report. Notice I said, credit report, not credit score. The score is only one component of the full report. When...
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Credit Reports and Qualifying for a Mortgage #3
In prior posts we reviewed the credit score and public record components of a credit report. But even with a qualifying score and a clean public record history, that doesn’t mean you are in the...
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Interest Rates Jump
One thing that I did not expect from this election was the change in interest rates. Mortgage interest rates on November 14 were a half a percentage point higher than they were on November 7. Rates...
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How Could Fed Rate Increase Affect Mortgage Rates?
For the first time in a year, the United States Federal Reserve raised the federal funds rate by 0.25%. How will that impact mortgage interest rates? Here’s a history lesson: The last time the FED...
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Credit Score Basics for Home Buyers
A recent survey reported that 2.7 times more first time home buyers than repeat buyers believe they must improve their credit scores before buying a house. First let’s dispel credit score myths. A...
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Planning Your Home Purchase While Renting
A recent survey reported that 2.9 times more first time home buyers than repeat buyers expect a home purchase delay due to their current lease terms. My first reaction to this statement is “No duh!”...
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Down Payments Basics for Home Buyers
A recent home ownership survey showed that 3 times more first time home buyers than repeat buyers say they lack enough money for a down payment. Perhaps this is due to folks not truly understanding...
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3% Down and a Great Interest Rate!
National mortgage giant Fannie Mae offers the Home Ready conventional loan program that can be very helpful for qualifying home buyers. Home Ready enables qualified buyers to obtain a mortgage with a...
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Geographic Income Limits for Home Ready Program
One potentially limiting aspect of the Home Ready program is that income limits are specified by census tract. (Notice I said “potentially.” We will get back to that point very soon.) To qualify...
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Mortgage Rates and the Second Part of the Fed’s Announcement
The Federal Reserve’s announcement last week that it was increasing the Federal Funds rate included a second statement regarding the Fed’s bond holdings. The Fed began buying Treasury and mortgage...
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The Truth About Down Payments…
Many young adults and other potential home buyers mistakenly assume that they cannot buy a house. Why? Because they believe the myth that a home buyer must make a 20% down payment to buy a home. A...
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Beyond the Down Payment…Cash to Close
In the last post, we debunked the myth that home buyers must make a 20% down payment to buy their home. There are many programs enabling buyers to close with 5%, 3.5%, or even 3% down payments. But...
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