Category: Mortgage
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Reverse Mortgages: Unlocking the Equity in Your Home—Without Selling
For many homeowners, a large portion of their wealth is tied up in their home. But what if you could access that equity without selling, downsizing, or taking on a monthly payment? That’s exactly where a reverse mortgage can come into play. As a mortgage advisor, I often see misconceptions around reverse mortgages. The reality…
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DSCR Loans Explained: A Smarter Way to Finance Investment Properties
If you’re looking to grow your real estate portfolio—or even purchase your first investment property—you’ve likely run into one major hurdle: qualifying for a traditional mortgage. Between strict income verification, tax return requirements, and debt-to-income ratios, many investors find themselves limited by conventional lending standards. That’s where DSCR loans come in. What Is a DSCR…
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Consumers Save $10,662 Working With a Mortgage Broker
A recent study by Polygon Research, supported by Willow Canyon Advisors and United Wholesale Mortgage (UWM), reveals that consumers save an average of $10,662 over the life of a loan when working with independent mortgage brokers compared to nonbank retail lenders. The research, based on 2023 Home Mortgage Disclosure Act (HMDA) data, highlights that the…
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New FHA Program Offers Temporary Mortgage Relief Amid Rising Interest Rates
The Federal Housing Administration (FHA) has introduced a new initiative known as the Payment Supplement program aimed at assisting struggling borrowers by offering temporary relief in the form of reduced monthly mortgage payments, all without altering their existing interest rates. Under this program, mortgage servicers can utilize funds from a “partial claim,” an interest-free second…
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Investors scooping up low priced homes
Investors are increasingly scooping up low-priced homes, according to a new report from Redfin. The report found that investors bought a record 26% of homes in the lowest price tier during the fourth quarter of 2022. This is up from 19% in the previous quarter and 16% a year earlier. Investors are attracted to low-priced…
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Fact-checking the confusion around changes to mortgage fees based on credit scores
A change to Loan Level Price Adjustments (LLPAs) by Fannie Mae and Freddie Mac in January 2023 has caused confusion among borrowers. While some have claimed that those with lower credit scores will now pay less than those with higher credit scores, this is not the case. LLPAs are based on loan features such as…
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The U.S. housing market will continue to be impacted by 3% mortgage rates as homeowners are unwilling to sell and lose their low rates.
The US housing market is being impacted by higher mortgage rates and a lock-in effect, which is constraining both buyers and sellers. The average 30-year fixed mortgage rate reached 7.10% in February 2022, the highest since November 2021, resulting in a drop in demand for properties. Meanwhile, homeowners who locked in lower mortgage rates are…
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FHA Loans Are Getting Cheaper
It has been announced that the annual mortgage insurance premium will be reduced by 0.30 percentage points, from 0.85% to 0.55% for most new borrowers, which will save homebuyers and homeowners with new FHA-insured mortgages an average of $800 per year. The reduction in the premium is expected to lower housing costs for an estimated…
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Tips to Help Improve Your Credit Score
Here are some basic tips that can help improve your credit score: Remember, improving your credit score takes time and effort. Stick to these tips and be patient, and you should see improvement over time.
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Pros and Cons of a Temporary Interest Rate Buydown
A temporary interest rate buydown is a type of financing option where a homebuyer pays an up-front fee to lower the interest rate on their mortgage loan for a limited period of time, typically the first few years of the loan. Here are some of the pros and cons of a temporary interest rate buydown:…