VA $0 Down Payment Loans To Infinity?!

March 29th, 2020
house and calculator

Prior to 2020, veterans could borrow more than the Veteran’s Administration (VA) Loan Limits capped amount, but had to have a down payment of 25% of the difference between the maximum loan limit and the sales price. As of January 1, 2020, the VA has started to allow $0 down loans that exceed the county loan limits.

So now, if a veteran wants to buy a home for $1,000,000 with no money down, they can. $2,000,000? Sure thing. $3,000,000? No problem! However, there are rules and guidelines that come with this new change. Read the rest of this entry »

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Did The Coronavirus Make Mortgage Rates Go Down? Did the Federal Reserve Just Cut Mortgage Rates To 0%?

March 20th, 2020
interest rates are up

Mortgage rates did indeed go down after the Coronavirus spread and financial markets started to panic. But the Coronavirus and mortgage rates aren’t directly connected.

 

People considering a refinance continue to contact me for low rates, but now that rates have spiked it may no longer makes sense.

 

The recent mortgage rate reductions we saw may be gone for a period of time, but the rate changes are not as drastic as the media made it sound. Read the rest of this entry »

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Buying A Home Non-Contingent On The Sale of My Current Home

February 15th, 2020
open house sign

I often get asked to get a potential buyer pre-approved to buy a new home, without the mortgage being contingent on the sale of the current home that they own. While this is possible, it is difficult.

 

GETTING THE CASH FOR THE DOWN PAYMENT ON YOUR NEXT HOUSE

First, you have to have the cash for the down payment and closing costs for the new home without the benefit of the sale of the current home. Then you would have to be able to qualify to carry the debt of both mortgages at the same time. Read the rest of this entry »

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Latest Bond Market Report

January 17th, 2020
bond market report

The 10 Year Treasury Bond was at 1.822% on January 10th 2020.

It was 1.847% as of October 28th 2019.

So you can see that rates have been fairly flat for the last 2+ months.

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on Treasury bond rates.

Read the rest of this entry »

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Qualifying For A Mortgage With Rental Income

December 2nd, 2019
keys to a new house

I have clients who are buying a rental property or who are buying a primary residence and already own rental property and think they need to provide a copy of a current lease for the rental property as part of the loan application. But, that is not always the case.

 

The borrower may be able to document rental income by providing tax returns, rather than leases.  In either a purchase or refinance the borrower should have a history of renting property.  If the request is for a refinance, the borrower needs to have owned the property long enough to qualify for this option, typically a 2 year history is needed.

 

If the request is for a loan to purchase a new rental property, then having existing rental property with a 2 year track record income may allow them to use the tax return option.

If the borrower does not have a history of renting the subject property or if the borrower’s tax returns do not reflect the accurate income or expenses, then a mortgage lender may require one of two things: Read the rest of this entry »

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Latest Bond Market Report

October 30th, 2019
bond market report

The 10 Year Treasury Bond was around 1.8% as of October 28th 2019.

 

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on treasury bond rates.

 

On August 2nd 2019 the 10 Year Treasury Bond was 1.846%.

 

On September 3rd 2019 the 10 Year Treasury Bond was 1.461%.

 

Below are some interesting historical numbers:

In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.

In 2017 the average yield of the 10 Year Treasury Bond was 2.33%.

In 2007 the average yield of the 10 Year Treasury Bond was 4.63%.

In 1997 the average yield of the 10 Year Treasury Bond was 6.35%.

In 1987 the average yield of the 10 Year Treasury Bond was 7.18%.

In 1977 the average yield of the 10 Year Treasury Bond was 7.42%.

 

Where is the 10 Year Treasury Bond headed next? Stay tuned!

 

*The source for these numbers comes from:

https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

and

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

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Important VA Mortgage Guidelines

September 23rd, 2019
veteran administration mortgage

A VA loan is a mortgage loan guaranteed by the Veterans Administration. There are numerous mortgage guidelines for a VA mortgage. I wanted to list some of the more important ones below, but you always need to speak to an experienced mortgage loan officer and have them discuss your specific circumstances as there are many other things to consider in addition to the below. Read the rest of this entry »

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The Best Mortgage Rates

August 17th, 2019
fifty percent off

Often a client will start a mortgage loan conversation with, “I need to get the best rates.” And that often confuses me. What does the “best rates” mean? Does that mean you won’t work with a lender who doesn’t have the very lowest interest rate on the day you are ready to lock-in an interest rate? Does it mean you won’t give any consideration to experience, execution, responsiveness and delivery?

 

Would most people work with a mortgage lender willing to lose money? Read the rest of this entry »

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Jumbo Mortgage Loans

July 14th, 2019
Jumbo elephant

Jumbo mortgage loans are usually confusing to the average mortgage consumer. No one seems to know what defines a Jumbo mortgage loan, and no one realizes that there can be different underwriting guidelines for Jumbo mortgage loans than for non-Jumbo (also called Conforming) mortgage loans.

Jumbo loan amounts may vary county by county.

It is first important to know that there can be three different loan amount categories. There are:

  • Conforming loans, which in 2019 go up to $484,350
  • Conforming “High Balance” loans, which can go from $484,351, to as high as $726,525 if you are in a high cost area.
  • Jumbo loans (also called Non-Conforming loans) are loans higher than the county Conforming loan limit.

Read the rest of this entry »

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Latest Bond Market Report

June 16th, 2019
bond market report

The 10 Year Treasury Bond was at 2.08% as of last Friday*. This is the lowest it has been in a long time.

QUESTION: But what does this mean for mortgage rates?

ANSWER: In general, mortgage rates are flat recently, but down over the last few months.

QUESTION: Do mortgage rates rise and fall in lockstep with the 10 Year Treasury Bond?

ANSWER: No.

QUESTION: What variables affect mortgage rate quotes.

ANSWER: Loan size, loan type, property type, credit score, down payment, debt ratios, and more.

 

Where are the 10 Year Treasury Bond, and more importantly mortgage rates, headed next? Check back here to see!

 

*The source for the 10 Year Treasury Bond quote comes from here: https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

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