Do you know when you feel yourself getting over a cold? It’s when you can finally get out of bed and walk around without a Kleenex in your hand. You’re not 100%, but hey, you’re active, getting in the car, playing with the kids, and suddenly you see the light of big breaths at the end of dark, mucus-filled days (I know, the irony of starting this post off with a cold analogy). As we enter the start of June, there are signs that the worst of the coronavirus shutdowns and the economic impact may be over. For example, we saw an increase in new home sales for April, well above expectations. In addition, more people applied to open new businesses. Two great things!
When you take out a conventional mortgage to buy a home, your lender will require you to pay a premium for a private mortgage insurance (PMI) coverage if you opt to put a low down payment. Like the majority of homebuyers, a PMI gets you an approved mortgage that you would barely qualify to take. After several years of repaying your monthly mortgage, you’ll realize that your PMI becomes a burden and canceling it could help increase your savings.
For millions of borrowers who are struggling to pay their mortgage, help is on the way under the Coronavirus Aid, Relief, and Economic Act a.k.a. the CARES Act. When you contact your mortgage servicer or lender to get financial relief, it’s important that you know your rights as a homeowner.
Mortgage interest rates are at historic lows for the past several years and it’s all over the news. When you shop and get loan estimates from several mortgage lenders, you’ll come across two important figures that are both expressed in percentages: mortgage interest rate and annual percentage rate (APR). Understanding the difference between the two can help you make better decisions when choosing between buying a home or refinancing.
Like your health, checking your mortgage periodically is worth considering to determine if it’s still in good shape. There could be a lot of changes that have happened in your life since you took out a mortgage to fulfill your homeownership dreams. After several years of dutifully repaying your monthly mortgage, you may want to find out if you can reap the rewards of being a homeowner.
If the plural of tooth is teeth, why isn’t the plural of booth, beeth? One goose, two geese. So one moose, two meese? Doesn’t it seem crazy that you can make amends but not one amend? If you have a bunch of odds and ends and get rid of all but one of them, what do you call it? Likewise, figuring out which mortgage program you qualify for can be just as twisted. Let me shed some light on many of the common terms you may hear as you embark on the mortgage process.
Staying at home may significantly reduce your chances of getting infected by the Coronavirus Disease of 2019 (COVID-19). As you stay in the comfort of your home, you might be at risk of falling victim to scams. This is especially true if you’re one of the millions of people who lost their jobs and fearing that you could miss your mortgage payments in the coming months.
Millions of mortgage borrowers have already applied for loan forbearance because of the uncertainty brought by the Coronavirus Disease of 2019 (COVID-19). However, some homeowners who have called their servicers were advised that they need to make a balloon payment once the deferment period ends. A balloon payment could be overwhelming if the pandemic has affected your finances.
When refinancing your mortgage, the lender will order an appraisal to determine if your property has enough value to secure the new loan that you’re about to take. Just like homebuying, an appraisal is one of the most crucial steps when refinancing.
In this post, I’m going to educate you about what is going on in the economy. Most any economic indicator (GDP, New Home Sales, Jobless Claims, etc.) from Q1 and Q2 is going to be, in the words of Billie Eilish, “baaaaaaaaaaad.” Don’t reach for your mid-day cocktail yet, I have some good news for you.The market is already looking forward to Q3 and Q4 numbers while closely monitoring the pace at which states are opening back up and how citizens are responding. The positive news is that the amount of money being pumped into the economy through unemployment programs and the PPP will be enough stimulant to lead to better numbers in the back half of the year. Additionally, the Fed has done a phenomenal job rolling out the 2008 ready-made playbook and more since this crisis began. The circumstances surrounding this crisis—caused by a virus, and not from bad actors in the financial markets world—has allowed the Fed to act swiftly and effectively.Both Fed Chairman Powell and Secretary Mnuchin say they are ready with even more liquidity injections if needed. Fortunately, for mortgage rates, the volatility has died off, and that should give buyers a lot more confidence to lock their loans. The Fed will be careful not to say or do anything that has a chance of upsetting the apple cart for the foreseeable future. In fact, the Fed has ramped up the programs they already have in place to help areas of economic stress that have arisen and may arise going forward. For you as a potential home buyer or refinancer, it is amazing news that the Fed signaled that interest rates will be at zero until they are sure we are out of this economic overhang from the virus. As a result, it’s a great time to reach out to your mortgage professional and stay on top of exactly what is going on in the market. Whether or not we can win your business, we are happy to be an amazing resource in your home buying journey.