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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.

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Historical Rates Now In The Blog, LIVE, Meaning Always Current, No Matter How Old This Blog Is

 All Rates Shown Are Annual Percentage Rates, also known as the APR. 

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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. 




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