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How the Fed Rate Increase Affects Mortgage Rates

The Federal Open Market Committee - also known as the Federal Reserve or just the “FED” -  makes big decisions that impact the future of the American (and even the world) economy. The Federal Open Market Committee (FOMC) is a rotating, 12-person sub-committee within the Federal Reserve, headed by Federal Reserve Chairwoman Janet Yellen. The FOMC meets eight times annually on a pre-determined schedule, and on an emergency basis, when needed (like in 2008). What they say matters. They move markets of all kinds with their actions and also their words. This time…continue reading →

15 or 20 or 30 Year Fixed – Which Mortgage is Right for You?

While most mortgage lenders and borrowers focus on the omnipresent 30 year fixed rate mortgage, other mortgage terms do exist. Many of them offer lower interest rates in addition to the added benefit of paying off your loan quicker. So, is the 30 year mortgage always the right choice? Are there drawbacks to choosing the status quo? I’ll let you decide. Get PreApproved  for a Mortgage 30-Year Mortgages Drawbacks When it comes down it, 30-year mortgages have some drawbacks, with the most obvious one being the long amortization period. They also come with the…continue reading →

[Infographic] Home Sales Data Continues to Highlight Inventory Issues

With mortgage rates remaining below 4 percent for the third straight month, existing-home sales in October were at a healthy pace but failed to keep up with September's jump, according to the National Association of Realtors®. All four major regions saw no gains in sales in October. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4 percent to a seasonally adjusted annual rate of 5.36 million in October from 5.55 million in September. Despite last month's decline, sales are still 3.9 percent above a year…continue reading →

HomeReady™ Program Will Offer 3% Down Payment On Conforming Loans

Fannie Mae Announces New Low Down Payment Mortgage Product Fannie Mae made big news this week when they announced a new mortgage product designed for low to middle income borrowers. The move officially retired the MyCommunity mortgage that had been a mainstay Fannie Mae product for years. Fannie Mae’s announcement of the HomeReady™ mortgage, an innovative lending option aimed at helping creditworthy borrowers with lower and moderate incomes, has been greeted by mortgage lenders with much anticipation and provides a viable - and possibly more affordable - alternative to low-down payment FHA financing.…continue reading →

Mortgage Rates Jump 0.25% on Fed Comments and Employment News

In last 2 weeks, mortgage rates have jumped sharply. They are up 0.25% for most loan programs and the outlook is for something worse for the rest of 2015. Day to day mortgage rates are decided by the movement of mortgage backed securities (MBS) as traded on the Wall Street.  The lower the price of MBS, the higher the mortgage rates to consumers. Get a Live Rate Quote MBS lost 74 basis points (bps) last week. See the image below. It had gone down in pricing the week before and this week has…continue reading →

Finance Your Renovation with an FHA 203k Mortgage Loan

During the housing market collapse and Great Recession of 2008 many Americans lost their homes to foreclosure. Some of those mortgages failed because they were bad loans from the beginning. Some of those failed mortgages were strategic. The homeowners reviewed their equity position and just decided to walk away. Others failed due to loss of borrower income from employer layoffs and general economic malaise Get Pre-Approved Regardless of how they came about, foreclosures flooded the housing market from 2007 to 2011. With the gut of foreclosures, many of which were in disrepair from…continue reading →

Your Guide to VA Mortgage Eligibility

Veterans deserve rewards. They serve our country in a way that many would not or could not. One of their primary perks is access to some of the best mortgage financing available anywhere on the market. Get Pre-Approved. VA loans are backed by the Department of Veterans Affairs and available to active-duty members and veterans of the U.S. military, as well as members of the National Guard and surviving spouses. Cadets, in nearly all military branches, also have VA eligibility. U.S. Public Health Service officers and Department of Defense (DOD) officers can also…continue reading →

With Ever-Increasing Rents, Is Renting the Right Move?

Supply and demand is a basic tenet of capitalism. It drives the engine of America and it certainly drives the American housing market.   But are millennials that escue the commitment of owning a home making a gigantic mistake?  What about the Boomers? Burned by the last housing bubble, many are also choosing to avoid returning to the homeownership game.   It certainly appears that way. I feel for millennials. In general they exited college burdened with huge student loan debt. Much larger than the burden that previous generations faced. The general consentment…continue reading →

4 Things Every Home-Shopper Should Do Before They Hit the Market

Buying a home is a big deal. It’s typically one of the biggest financial transactions that many Americans undergo in their lifetimes. It is not something you just do. You need to get your ducks in a row. You absolutely have to prepare if you want to ensure your home-buying success. How do you prepare? You prepare by following these 4 simple steps that are guaranteed to make your home buying experience smoother. Get pre-approved Check Your Credit Scores Your credit scores ultimately play a key role in determining your mortgage rate, so…continue reading →

Existing Home Sales Numbers Rebound in September

The end of the summer buying season brought good news for the housing market. After weaker than expected numbers in August, existing home sales numbers rebounded nicely in September. Total existing–home sales, which are closed transactions that include single–family homes, townhomes and condominiums and, increased 4.7 percent to a seasonally adjusted annual rate of 5.55 million in September from a slightly downward revised 5.30 million in August, and are now 8.8 percent above a year ago (5.10 million). Get Pre-Approved The numbers continue the 12 consecutive months of gains that the housing market…continue reading →