Mortgage forbearance

July 1st, 2020
no cost

Forbearance – you should only do it if you absolutely have to. Some people are taking a forbearance on their mortgage as a way to take a break on their mortgage payment when they really do not need to.

Forbearance does not mean you can skip mortgage payments and never pay them back. You have to repay any missed or reduced payments in the future. So, if you’re able to keep up with your payments, keep making them.

Taking a forbearance will also impede your ability to refinance. Having a forbearance on your credit report means you cannot get a new mortgage. You have to bring the loan current to do so. Read the rest of this entry »

Bookmark and Share

How Much Mortgage Can I Afford?

May 28th, 2020
approved or declined

When you buy a new home, you need a mortgage to purchase it. And before you get a mortgage, you need to determine how much mortgage you qualify for. Different sources may qualify you for different mortgage amounts. And how much you qualify for does not necessarily equate to how much you can afford.

How much you can afford is based on your personal budget. When a mortgage lender tells you how much you can qualify for, that is the highest mortgage amount they’ll approve you for. But this may not be the mortgage size you end up closing on.  Read the rest of this entry »

Bookmark and Share

6 Tips on Choosing a Mortgage Lender or Broker

April 10th, 2020
bad versus good

People spend a  lot of time looking for the perfect home. There are the countless hours spent poring over real estate listings, the weekend trips to open houses, and the days of driving with your realtor from showing to showing. However, choosing a mortgage lender or broker is often treated as an afterthought—many buyers simply go with their own bank or a broker/lender recommended by their realtor without researching competitive rates and looking for lenders who will also educate them.

This is a critical mistake. Read the rest of this entry »

Bookmark and Share

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 »

Bookmark and Share

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 »

Bookmark and Share

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 »

Bookmark and Share

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 »

Bookmark and Share

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 »

Bookmark and Share

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

Bookmark and Share

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 »

Bookmark and Share