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December 29, 2020

ECO FRIENDLY

Green is the new black. In fact, it has been the new black for a while, with environmentally responsible companies the world is
looking for cost-effective, high-impact ways to become more environmentally friendly.

WARNING!

*Warning* "Many lenders and agents will tell you that my pricing is too good to be true, or try to convince you that their pricing superior when it's actually inferior, make sure you get an offer in writing from each of us before locking in your choice. We assure you our pricing has no hidden surprises, you will get what you expected or better, every client, every time."


Mike@Emortgage.Loans

Don't all lenders offer Fannie Mae and Freddie Mac loans and virtually have the same pricing?

When you apply for a mortgage, you don't get your mortgage directly from Fannie and Freddie, you go through a Broker or Bank, who charges a fee for qualifying you and obtaining financing for you from Fannie and Freddie. Although we all get the same rate and credit from Fannie and Freddie, the pricing is up to the lender and or broker. How much credit am I or the "Lender" keeping and how much are we sharing with you if any? That is what impacts the rate and closing cost tied to that rate. So yes, shop until you drop and let me know how you did. 

For example, So Lame Bank offers 4.375% rate with 0 credits to you and $900 in closing cost. So Cool Mortgage offers you the same rate with a 1% credit to you more than covering all closing cost making it a no cost loan other than the rate being charged.

How can Michael provide better pricing than the big banks? Efficiency, the more efficient your lender is, the less they need to charge. Even if they charge $0 on the front, they are charging something on the back end. The less they charge on the back end, the lower your rate and the more credit you get if any. The most efficient lenders don't need to buy leads, they get referrals. ;)

Why would you take so much risk and offer a line of credit that always increases regardless of the value of the home?

 The HECM loan is insured by FHA and Ginnie Mae. The investor takes no risk at all, and neither does the beneficiary.

FHA protects the beneficiary by insuring 3% or more of the equity in the home regardless of home values. Meaning if you sold the home and the sale price does not net you 3% of the proceeds, then FHA will make up the difference. The actual investor is Ginnie Mae on these types of loans regardless of what broker or lender originates the loan.  The feds have extremely high confidence that home values will increase over the next 30 years.

Do you offer down payment assistance?

I offer something like down payment assistance. I believe that our programs are better than down payment assistance programs.

We will assist you with everything except the down. No closing cost, no lender cost, we will even provide a credit covering your initial deposit into your escrow account and first year of home owners insurance depending on your qualifications and the rate you choose.

If you compare our offer with a down payment assistance program, you will most likely bring in less funds at closing and have a lower monthly payment using our home loan programs offered by Fannie and Freddie.

Another thing that separates our program apart from down payment assistance, is that you do not have to be a first time home buyer, you can even keep your existing home if you have one already.

Why is a No Closing Cost loan a big deal? Will I really benefit and save money?

 A: The national average that a homeowner pays for closing costs is $2,748. Our No Closing Cost customers avoid having to pay this $2,748 without having to take a higher rate, which results in a huge savings. It also makes refinancing a “no brainer”. With a lower interest rate, you will save money and it won’t cost you anything.

Do you charge a higher interest rate on the No Closing Cost loan program?

A: Our No Closing Cost rates are typically at or below the national average. You can expect to get an interest rate that is just as low as what other places are offering but with us, without having to pay points or lender fees.

MORTGAGE CALCULATORS

 Using Loan Comparison Calculator

Purchase: Put the loan amount + the total lender cost in the loan amount field, do not include the third party fees or pre paids, since they will be the same at closing regardless of the lender you use, however the quotes for those fees upfront could vary. It does not matter if you are going to pay for the cost with cash at closing or not, for comparison reasons only, add the lender cost to the loan amount.

Refinance: Put the loan amount + the total closing cost in the loan amount field even if you are not financing the closing cost. Each lender chooses the title and escrow companies, so the fees vary from lender to lender, make sure you put the TOTAL closing cost + the loan amount.

NOTE: It is not recommended to compare the total interest or payments on a 15 year or longer term since you will most likely redo the home loan or sell it in less than 7 years. We recommend putting 5 or 7 years in the term instead of the actual term, to see which one will save you the most in that time frame. According to a study by the largest mortgage lender in the USA, people who choose a 30 year fixed are more than 95% likely to redo it in less than 7 years.

Loan Comparison Calculator

APR Calculator

Amortization Calculator

Mortgage Calculator

Refinance Calculator

Reverse Mortgage Video CFPB Worth The Watch

December 9, 2020

A 35 BPS CREDIT Added to all loans locked in DECEMBER with me

To celebrate our 35th anniversary, Rocket ProSM TPO is offering me a 35 bps credit on all refi loans locked in December.1 This 35 bps credit can save you thousands on your refi!

Email me today! mike@emortgage.loans or 123@soez.tv

December 2, 2020

Loan Limits Increase Nearly 7.5 Percent

 The Federal Housing Finance Agency (FHFA) has released the new conforming loan limits which will be in place next year for mortgages acquired by the GSEs Fannie Mae and Freddie Mac.  In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020. 


The Housing and Economic Recovery Act (HERA) requires that the baseline CLL be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price as reported by FHFA's House Price Index (HPI).  According to the seasonally adjusted, expanded data HPI published last week, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020.  Therefore, the baseline maximum CLL will increase by the same percentage. 


The maximum loan limit in some areas is considered high cost, that is where 115 percent of the local median home value is higher than the baseline CLL, is also established by HERA. It uses a multiple of the area median home value but sets a "ceiling" at 150 percent of the baseline loan limit.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375 or 150 percent of $548,250.  There are special provisions in HERA that sometimes provide different limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. However, in 2021 those areas will also have the $822,373 ceiling.  


As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, FHFA says the maximum CLL will increase for next year in all but 18 U.S counties or county equivalents. will be higher in 2021 in all but 18 counties or county equivalents in the U.S.  


A list of the 2021 maximum loan limits for areas of the U.S. and for multiple unit properties is available here. This is a link directly to the FHFA site. 




ILY HA

November 30, 2020

Pricing Update 2020 December

 The bond market is seeing a rally as the equity market retreats from last weeks record highs: mainly caused by concern with C-19.

Market shifts can be stressful, here is a calming photo to ease your mind. 





November 19, 2020

How To Get The Lowest Mortgage Rate

 Monitor your credit score and make sure you keep it as high as you can, lenders and investors are constantly looking for that sweet spot, to determine who is the lowest risk, sometimes its 800+, 760+, 740+ but it changes. Just keep your scores as high as possible. 

Here are some ways to do that:

  1. Run your credit report once a year for free using the government provided website: https://www.annualcreditreport.com/index.action
  2. When you do so, run all three scores and the Experian log in you create should give you access to all three scores, if you need help, just call me, this is free and you do not need to pay for it.
  3. If you have a low score and you cant figure out on your own how to increase it using sites like MyFico.com, then contact a pro like Amy Martinez with Rising Point Solutions.
  4. Keep an eye on your credit using https://www.rockethomes.com/my-credit. This is completely free they don't even ask for your credit card, however while you are welcome to get a quote from them, the pricing I can offer you with them is much lower than if you go directly to them, be sure to call me or email me for a quote. 

November 18, 2020

How Long Does It Take To Close A Loan?

 Right now most of my competition is taking 60 days or longer to close your mortgage and the pricing is not even as good as mine. My loans close in under 30 days or your extension is free, we don't charge you because we take forever to close your loan. 

Unless your self employed or have a HELOC, there is no reason your loan should take more than 30 days to close. My pricing is unbeatable and my service is supreme. Lastly you will end up with the highest rated and largest mortgage servicer in the country. 

November 17, 2020

Rates 2.69% NO COST 30 YR Fixed Conforming and 2.375% 15 YEAR FIXED

I've been preaching for years that this day would come, here we are. Most clients in the last month locked at 2.69 to 2.99% for free, no points, no fees, no nothing. That is for a 30-year fixed loan amounts over $300k only. Hint's the reason I did not have time to post last month.

Rates will most likely continue down however we could see a period where they are higher and that day could be any day, the amount of time it last, who knows, but if you take the lowest rate for free now, you can always redo your loan again in 6 months. If it's free, what is the cost? 

While it's true the feds implemented a 0.5% fee to raise funds for C-19, less than a week afterwards the market improved by that same amount, just as I predicted would be the case. 

Here are some of the most relevant Real Estate Headlines for November:

 

  • Median Home Sales Price increased 15 percent year over year to $322,375 - the largest increase since 2005
  •  Of the homes that went under contract, 45 percent had an accepted offer within the first two weeks on the market
  • Pending Sales rose 34 percent
  • New listings only rose 9 percent from last year, but is the biggest increase since mid-September
  • Rates have held below 3 percent since late July
As always, I am here to help guide you through any climate. If you'd like more information on your local market, give me a call and let's discuss. I would love to chat with you to see how I can assist.

September 10, 2020

Market Update


With a holiday shortened week, you'll sometimes see a jam-packed economic calendar. This time around, that's not the case. With little scheduled news and no FedSpeak, much of the focus has been on the COVID recovery, trade tensions with China, and party politics out in DC. As far as the recovery is concerned, the job market seems to be heating back up, giving life to those that say booming recovery is just on the horizon. Jobless claims dipped below 1M in the last two readings, the jobs report showed the US economy added 1.3M jobs back last month, and yesterdays JOLTS report (Job Opening Labor Turnover Survey) showed similar growth, increasing for a third straight month to 6.6M. While we saw job openings rise across all regions and almost all sectors, leisure and hospitality continue to lag (as expected). All in, this sounds promising, but 13M people remain on unemployment and competition for those looking for a job remains fierce, leaving about 2.5 people fighting for every open position. 

August 20, 2020

What Will Housing Prices Do This Year



We continue to see the real estate and mortgage industries keep up with varying economic activity. Below are the most important highlights to keep you up to date.
  • Housing prices are surging to record high as national listing prices grew 8.5 percent. Homes continue to move off the market fast as new listing inventory declines to 35 percent from last year.
  • Pending Home Sales were up in June at 16.6% month over month with a 116.1 index.
  • Feds are expected to keep rates close to 0 to help support the economy as mortgage rates hold a 3 percent average: 30yr - 2.99%, 15yr - 2.51%, 5yr - 2.94%
  • Financial support for those currently unemployed is still pending. This could create another shift in economic and real estate activity, creating new behaviors and trends in the market.  
What does the housing market look like for the rest of 2020? While it’s hard for anyone to predict, take a look at the articles this month for some further reading and insight.

https://jordanvautier.com/blog/


The mortgage environment changes daily. Reach out to me directly to see how you can benefit from these low rates.

August 2020 | Published by Jordan Vautier - with E Mortgage Home Loans

July 28, 2020

Ten Year Bond, Yahoo, What Do you Predict Rates Are Going To Do?

Ok, this is nothing to be alarmed about. 

Wow, if you just locked your rate, good job, not bad, not bad at all. 


Hmmmm, looks like we have been sitting here for a while, Corona Rates?

Did you know that the area around the sun is actually hotter than the sun itself, but wait, there's more, it's called the Corona!


Does anyone else see the trend that I see? 

Have you ever thrown a basketball or tennis ball at the ground and failed to catch it. 
What happened next was probably an accurate depiction of what's illustrated above. 

Everything that goes up must come down, not everything that goes down comes back up. If you expected rates to go back up, you have been holding your breath since before I was born. 

Last, President Trump and Warren Buffet both claim they see rates hitting negative rates in America eventually, Buffet says he bets no later than 30 years, he cant say if it would be 10 or 15, but he is confident he knows where rates and the world economy will be 30 years from now. He says its actually easier to predict 30 years than 15 years because there are too many variables to be able to bet on the short run. He says he only bets on the long run. 

I guess when you already have more than you can spend, safer investments seem more attractive. 

Rates are going down, down, down, I would not pay for a lower rate unless you are going to recoup the cost in less than 3 years. Just imagine what everything will be like 2023. Keep in mind by next year, every car manufacture will be producing fully autonomous electric cars. I told you that 6 years ago when it was confirmed by a meeting between ADOT and the regulators of the auto insurance industry, I watched that meeting live and it was epic! This is the decade of automation, if I have a job doing anything I have done in my life 10 years from now, I would be unpleasantly surprised.