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Mortgage Rate Recap and Outlook For Week Ending March 16, 2018

This week's news has had little impact on mortgage rates.  Trade war concerns shifted from steel and aluminum tariffs to China's history of piracy issues in technology and intellectual property. The majority of the media commentary is around the appointment of Larry Kudlow as White House economic advisor. Kudlow has a pro-growth, anti-tariff, pro-tax-cuts stance, and those are negatives for long bonds (which directly impact mortgage rates). The elephant in the room is the Senate's passing a bipartisan bill relaxing restrictions placed on the banking industry via the 2010 Dodd-Frank Act.  The new…continue reading →

The Rest of the Four C’s: Credit, Capital, and Collateral

To understand how the underwriter looks at your information, you need a detailed explanation of the remaining three C’s.  Each C covers a lot of information, and the impact of government regulations push and pulls all of it outside the boundaries of common sense. Looking at the process may shed light on the underwriter's decision process. This blog post is second in the series of two blog posts. Read the first here about the 1st C - Capacity Credit is the most well known of these three categories, and the least understood.  A…continue reading →

Borrowing Down Payment from 401k or IRA for Home Purchase

Securing a down payment is often cited as the biggest challenge for buying a home - both for First Time Home Buyers and Move-up Buyers. To overcome these challenges, you can consider borrowing from retirement funds - 401k and IRA. Here is how it works. Borrowing Against 401k for Down Payment   How Much Can I Borrow From My 401k? You can borrow 50% of your vested balance or $50,000 whichever is lower. How Do I Pay It Back? The repayment term is usually between 5 and 15 years. The payment which includes…continue reading →

How Do Underwriters Decide Who Gets A Mortgage?

The Four C's of Credit: C #1 - Capacity Lenders haven't changed the method used to determine if someone qualifies for a mortgage in decades. But if you're on the outside, the one waiting to hear if you're approved, the mystery of how they decide might be frustrating. Yes, qualifying is a detailed process, but underwriters organize those details under four categories.  They're known as the Four C's: Capacity, Credit, Capital, and Collateral. Most people hear this and respond the same way, “what does that even mean?!” A brief overview of each area…continue reading →

Mortgage Rate Recap and Outlook For Week Ending March 9, 2018

The big news dominating financial markets right now is split between the continued improvement in employment numbers and the potential impact of the pending Tariffs on steel and aluminum. So far this year, most economic releases have met or exceeded predictions, proving that the economy is growing. But right now - the focus of the markets is on speculation about a potential global trade war when the tariff bill is signed by President Trump. As far as the upcoming Fed meeting, markets have already absorbed the effect of the pending rate increase. The…continue reading →

Can I use Restricted Stock Units (RSUs) for mortgage qualification?

Restricted Stock Units (RSUs) are a common form of compensation in high-tech companies (and some not so high-tech). But using that income to qualify for a mortgage has been a challenge. Well, not anymore! Subject to certain guidelines, income from RSUs can now be considered qualifying income towards a mortgage. RSUs are an eligible source of income for employees of publicly traded companies subject to the following requirements: • No more than 35% of your total qualifying income may be generated from RSUs • The stock must be from a publicly traded company; so…continue reading →

What Could Possibly Go Wrong On Your Refinance Appraisal?

  Did you know that the appraisal definition of a homes' market value is the price a willing buyer and seller agree to on the open market? That's exactly what happens when you buy a home - a willing buyer and seller have agreed to a price. But what's the market value of a home if you're refinancing and there's no buyer and seller? Get a live rate quote for your Refinance Maybe you're refinancing for a lower interest rate, called a 'rate and term,' or to borrow more money than the existing…continue reading →

Interest Paid on HELOC Still Deductible Under New Tax Plan

Do you have a line of credit or planning to take one?  Not sure about the impact of the tax plan on home equity loans, home equity lines of credit (HELOC), and second mortgages? Citing the "many" questions it received, the Internal Revenue Service issued a bulletin last week that clarifies how these loans will be treated under the new tax plan. Get a customized rate quote for your new mortgage According to the IRS bulletin, the interest paid on home equity loans and lines of credit (HELOC) is still deductible, as long as the money is…continue reading →

Best Markets To Invest In Real Estate For 2018

If you're planning on buying rental property this year - why not target cities where you can buy low and rent high?  The best markets to buy rental property have good rental cash flow and equity growth.  Look for these three things, according to RealWealth Network: Job growth Population growth Affordability Identifying 16 'best-buy' markets for 2018, RealWealth Network highlighted four cities in Florida with good potential: Orlando, Tampa, Jacksonville, and Cape Coral. Since taking an economic hit in the great recession, Florida offers low prices (under $125,000), property tax and insurance rates.…continue reading →

Here’s How To Prepare For The Spring Home Buying Season

After the Super Bowl, real estate professionals know the next big event on the calendar is the Spring Home Buying Season.  A time when more homes are for sale, and house hunters scour the internet so they can devote their weekends to the open (house) trail. But a tight real estate market and stiff competition mean buyers need to bring their A game. You don't want to fall in love with a home and then scramble around in an emotional tizzy to get your financial house in order. Good news! There's a right…continue reading →