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Two former New Jersey-based mortgage loan originators have been charged with conspiracy to commit bank fraud by the U.S. Attorney’s Office, District of New Jersey according to an announcement by the U.S. Department of Justice (DOJ) and U.S. Attorney Philip Sellinger.

Christopher Gallo has been recognized as a top-producing loan originator, at one point being named Scotsman Guide‘s fourth-ranked LO in America. Gallo previously shared perspectives with HousingWire on his business strategy for 2023 after enduring challenges in 2022. At the time, Gallo was employed by NJ Lenders Corp, which primarily operates in New Jersey, New York and Pennsylvania.

Alongside Gallo, Mehmet Elmas was also named in the complaint, filed by a special agent working under the Office of the Inspector General (OIG) at the Federal Housing Finance Agency (FHFA). The complaint says that Gallo and Elmas were employed by the same company at the time of the alleged offense, with Elmas working as Gallo’s assistant.

Gallo and Elmas have each been released on a $200,000 bond after appearing before a magistrate judge in Newark federal court, the DOJ said.

“From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans,” the DOJ alleges.

The pair allegedly “routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates,” adding they “often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties,” the complaint alleges.

The alleged scheme misled lenders about the “true intended use of the properties,” and “Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates,” the DOJ claimed.

The alleged conspiracy also included falsifying property records, including “building safety and financial information of prospective borrowers to facilitate mortgage loan approval,” the DOJ alleged.

In a statement, NJ Lenders Corp told HousingWire that it is cooperating with law enforcement as the investigation progresses.

“NJ Lenders is proud of its 33 years of successfully assisting homeowners with integrity and professionalism. We are fully cooperating with law enforcement and the ongoing investigation of two former employees,” said Mark Tabakin, an attorney for NJ Lenders.

“The actions of these former employees appear to have been coordinated to benefit them financially while taking advantage of the reputation and trust of the firm,” he continued. “NJ Lenders’ work will continue uninterrupted as we provide the highest level of service to our clients.”

Gallo originated more than $1.4 billion in loans between 2018 and October 2023, according to the DOJ. When listed as the fourth top-producing LO in 2022 by Scotsman Guide, the publication placed his total volume at $1.175 billion for that year alone. One-third of his loans were purchases, with the remainder being refinances.

“The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest,” DOJ said.

Gallo joined CrossCountry Mortgage in October 2023, according to NMLS licensing information. His webpage at CCM was taken down on Wednesday, and a spokesperson for the Cleveland-based retail lender did not immediately return a request for comment.

This story has been updated with a statement from NJ Lenders Corp.

Source: housingwire.com

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The Big Apple, New York City, truly has something for everyone – from the bustling streets of Manhattan to the vibrant neighborhoods of Brooklyn. This world-renowned city is home to countless iconic landmarks, from Times Square and Central Park to Madison Square Garden and the Statue of Liberty.

If you’re looking to rent an apartment in New York City, you might be surprised to find that the average rent for a studio is $3,900 and a one-bedroom apartment is $4,770. But don’t worry, we’ve got you covered. ApartmentGuide has compiled a list of the most affordable neighborhoods in New York City to rent this year.

11 Affordable Neighborhoods in New York

From Lenox Hill to Flatbush, New York City has affordable neighborhoods that fit your budget. The best part is that they’re all under New York City’s average rent for studio and one-bedroom units. Let’s jump in and see what New York City neighborhoods made the list.

1. Lenox Hill
2. Flatbush
3. Washington Heights
4. Northeastern Queens
5. Ridgewood
6. West Bronx
7. East Harlem
8. Bushwick
9. Park Slope
10. Tudor City
11. Prospect Heights

Read on to see what each neighborhood has to offer its residents.

1. Lenox Hill

Average studio rent: $2,715
Average 1-bedroom rent: $1,425
Apartments for rent in Lenox Hill

Lenox Hill is the most affordable neighborhood in New York City, as the average rent for a one-bedroom unit is $1,425. There are plenty of reasons to love living in Lenox Hill, from attractions like Central Park and the Frick Collection to green spaces like St. Catherine’s Park. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore, from deli’s and Italian restaurants to trendy pubs and vegan spots. For renters living in New York without a car, there are several subway stations in Lenox Hill.

2. Flatbush

Average studio rent: $1,900
Average 1-bedroom rent: $2,000
Apartments for rent in Flatbush

Flatbush is a bustling area located in the Brooklyn borough. This affordable neighborhood has lots of attractions such as Prospect Park and the Brooklyn Botanic Garden, giving renters plenty of green spaces to enjoy. There are plenty of transit stops in the neighborhood, making it easy to get into Manhattan. It’s also a walkable area, so make sure to explore the restaurants, shops, and nearby neighborhoods like Kensington and Midwood.

3. Washington Heights

Average studio rent: $1,995
Average 1-bedroom rent: $2,100
Apartments for rent in Washington Heights

With an average one-bedroom rent of $2,100, Washington Heights is the third-most affordable neighborhood in New York. This Manhattan neighborhood is an awesome option to consider as it’s near attractions like Fort Tryon Park, United Palace, and Fort Washington Park. There are also picturesque views of the Hudson River, so this area is great for exploring and enjoying New York. Or, if you’re looking for a fun night out, you can head to nearby Yankee Stadium to watch a game.

4. Northeastern Queens

Average studio rent: $1,820
Average 1-bedroom rent: $2,145
Apartments for rent in Northeastern Queens

Northeastern Queens is the fourth-most affordable neighborhood in New York. This neighborhood is a great option if you’re looking for New York’s charm without living in the heart of Manhattan. For example, you can easily access the Queens Botanical Garden, Flushing Meadows Corona Park, and the New York Hall of Science.

5. Ridgewood

Average studio rent: $1,587
Average 1-bedroom rent: $2,300
Apartments for rent in Ridgewood

Just about 8 miles from Manhattan, Ridgewood is a stellar neighborhood if you want to rent an apartment. It’s also a great area if you’re living in New York without a car, as Ridgewood has a few subway stops. There are also several beautiful green spaces in the area, like Grover Cleveland Playground. Ridgewood is also home to a variety of restaurants, shops, and cafes like Super Pollo, Topos Bookstore, and Rudy’s Pastry Shop. You can also find the charming Madison–Putnam–60th Place Historic District.

6. West Bronx

Average studio rent: $1,603
Average 1-bedroom rent: $2,599
Apartments for rent in West Bronx

Next up is West Bronx, the sixth-most affordable neighborhood in New York. West Bronx is full of history and charm with tree-lined streets, historic buildings, and museums, like the Bronx Museum of Arts. This area also has plenty of parks, restaurants, and attractions, so you’ll have lots of explore. Make sure to enjoy the outdoors at Crotona Park, catch a game at Yankees Stadium, or grab a meal at one of the neighborhood restaurants. There’s something for everyone living in West Bronx.

7. East Harlem

Average studio rent: $2,800
Average 1-bedroom rent: $2,750
Apartments for rent in East Harlem

East Harlem is next on our list, just east of Central Park. East Harlem has a friendly atmosphere and community feeling, with plenty of local cafes and restaurants throughout the area, such as Ricardo Steak House and El Kallejon. You can also check out some of East Harlem’s green spaces, like Thomas Jefferson Park, or visit museums, like El Museo del Barrio, the Graffiti Hall of Fame, and the Museum of the City of New York.

8. Bushwick

Average studio rent: $2,289
Average 1-bedroom rent: $2,850
Apartments for rent in Bushwick

Bushwick takes the eighth spot on our list of most affordable neighborhoods in New York. The average rent for a one-bedroom unit is roughly $2,000 less than the city’s average, making Bushwick a great option to consider renting in. It’s located in Brooklyn, which means you’ll have the best of city life without living in the city center. This artsy area is home to many art galleries, like the Bushwick Collective, and green spaces, like Maria Hernandez Park and Irving Square Park.

9. Park Slope

Average studio rent: $2,500
Average 1-bedroom rent: $3,100
Apartments for rent in Park Slope

A well-known New York neighborhood, Park Slope is the next area. In the Brooklyn borough, Park Slope is home to the Old Stone House of Brooklyn and Grand Army Plaza, meaning there’s plenty to do throughout the week. You’ll find there are countless historic brownstones in Park Slope, so make sure to explore the area’s charm. If you need to commute to work, there are lots of options as the 7th Avenue subway station is nearby.

10. Tudor City

Average studio rent: $2,400
Average 1-bedroom rent: $3,575
Apartments for rent in Tudor City

The tenth-most affordable neighborhood in New York is Tudor City. This area has a vibrant feeling, just blocks from the Empire State Building. You can find parks like Robert Moses Playground and the East River Esplanade, perfect for enjoying a sunny day in New York. Tudor City also events throughout the year at Tudor City Greens, providing residents with lots of opportunities to enjoy their neighborhood.

11. Prospect Heights

Average studio rent: $2,201
Average 1-bedroom rent: $4,145
Apartments for rent in Prospect Heights

The final spot on our list of affordable neighborhoods in New York is Prospect Heights. This affordable neighborhood is located north of the popular Prospect Park and is an awesome area if you’re looking for a neighborhood with a charming main street. You can find plenty of cozy cafes and lively restaurants along Vanderbilt Avenue and Flatbush Avenue. Prospect Heights is home to Barclays Center, where you can see concerts and sporting events. It’s also close to parks like Prospect Park and the Brooklyn Museum, so there’s a lot to do in this neighborhood.

Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in 2024.

Mortgage interest rates on the 15-year and 30-year mortgages are down from last week, Freddie Mac reported.

“The 30-year fixed-rate mortgage decreased again this week, with declines totaling almost a quarter of a percent in two weeks’ time,” Freddie Mac Chief Economist Sam Khater said.

For 30-year, fixed-rate mortgages, the average interest rate was 6.74% this week, a decent drop from last week when rates averaged 6.88%. Rates aren’t down quite as much as last year when they were 6.6%, on average.

Additionally, 15-year mortgages averaged 6.16%, down slightly from last week when they averaged 6.22%. These mortgages also aren’t as low as last year when they averaged 5.9%.

“Despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation,” Khater said. “In this environment, there is a good possibility that rates will stay higher for a longer period of time.”

If you want to take advantage of lowering interest rates, consider using Credible to help you easily compare interest rates from multiple lenders in minutes.

HOMEBUYERS FEEL GOOD ABOUT WHERE MORTGAGE RATES ARE HEADED: FANNIE MAE

Spring likely to bring higher home prices

Warmer weather tends to bring a booming housing market as more homebuyers start looking for homes and inventory grows.

Sellers who list their homes in the spring and summer months often make more money when their home sells because the market is more competitive. A Zillow study found that June was the most profitable month for sellers. Homes listed in the first half of June sold for 2.3% more, on average, putting about $7,700 more in the pocket of sellers.

Location matters when it comes to selling power. In San Francisco, the best time to list is the second half of February, but the first half of July is the best time to sell in New York and Philadelphia.

Certain locations also boast even higher profits during warmer months. During the hottest time of the year, homes in San Jose sold for 5.5% more, boosting profits by $88,000 on an average home, according to Zillow. However, homes in San Antonio sold for just 1.9% more during the same time frame.

“Most sellers don’t have the luxury of timing the market,” Zillow Chief Economist Skylar Olsen said. “The best time to list is when it makes the most sense for their lives.” 

“Regardless of the month, sellers who list their home for sale this spring can expect plenty of interest if their home is marketed and priced right.,” she contined. “That’s why it’s more important than ever to hire a real estate agent with the experience to localize your strategy when comparable sales might be further afield.”

If you’re looking to compete with other buyers this spring, you can explore your mortgage options by visiting Credible to compare rates and lenders and get a mortgage preapproval letter in minutes.

HOMEBUYERS GAINED THOUSANDS OF DOLLARS AS MORTGAGE INTEREST RATES FALL: REDFIN

To afford homes, buyers need higher incomes than they did a few years ago

Buyers are facing a tougher market than they did a few years ago. To comfortably afford a home, buyers need to make more than $106,000 annually, another Zillow study showed. This income requirement is 80% higher than in 2020.

Monthly mortgage payments are higher than ever and have doubled since 2020. Payments average $2,188, assuming the buyer puts 10% down. With such high prices, affordability has become a major issue. In 2020, households earning $59,000 annually could afford the median-priced home without spending more than 30% of their income.

The $106,000 income needed today is well above the average household income in the U.S. The average household earns about $81,000.

Some areas are more affordable than others and require a much lower income to afford the average-priced home. Pittsburgh buyers need to earn just $58,232 to afford the average home. Memphis residents need $69,976 and Cleveland residents need $70,810.

Costlier cities like San Jose and San Francisco require much more in annual income to afford a home. San Jose requires an average annual income of $454,296 while San Francisco requires $339,864, according to Zillow.

To see if you qualify for a mortgage based on your current credit score and salary, consider using Credible, where you can compare multiple mortgage lenders at once.

15% OF AMERICANS HAVE CO-PURCHASED A HOME WITH A NON-ROMANTIC PARTNER, EVEN MORE WOULD CONSIDER IT

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Source: foxbusiness.com

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Kelly Suzan Waggoner
April 8, 2024 at 7:43 AM
Daily mortgage rates for Monday, April 8, 2024 (Dragon Claws via Getty Images)

Rates on popular 30-year and 15-year fixed mortgages start the week at under 7%, though with a week-over-week increase on most terms as of Monday, April 8, 2024.

The current average interest rate on a 30-year fixed mortgage is 6.97% for purchase and 6.99% for refinance — up 9 basis points for purchase and 11 basis points for refinance over the past week. Increases on a 15-year term were a more modest 4 basis points week over week for both purchase and refinance, bringing rates to 6.48% for purchase and 6.42% for refinance. The average rate for a 30-year fixed jumbo mortgage is 7.09%.

Purchase rates for Monday, April 8, 2024

  • 30-year fixed rate — 6.97%

  • 20-year fixed rate — 6.75%

  • 15-year fixed rate — 6.38%

  • 10-year fixed rate — 6.27%

  • 5/1 adjustable rate mortgage — 6.56%

  • 30-year fixed FHA rate — 6.85%

  • 30-year fixed VA rate — 7.05%

  • 30-year fixed jumbo rate — 7.09%

Refinance rates for Monday, April 8, 2024

  • 30-year fixed rate — 6.99%

  • 20-year fixed rate — 6.74%

  • 15-year fixed rate — 6.42%

  • 10-year fixed rate — 6.28%

  • 5/1 adjustable rate mortgage — 6.42%

  • 30-year fixed FHA rate — 6.94%

  • 30-year fixed VA rate — 7.69%

  • 30-year fixed jumbo rate — 7.08%

Freddie Mac weekly mortgage report

Freddie Mac reports an average 6.82% for a 30-year fixed-rate mortgage, up three basis points from last week, according to its weekly survey of nationwide lenders published on April 4, 2024. The fixed rate for a 15-year mortgage is 6.06%, down five basis points from last week.

Sam Khater, Freddie Mac’s chief economist, says of the report, “While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term. On the plus side, inventory is improving somewhat, which should help temper home price growth.”

Current mortgage rates for April 8, 2024

The Fed rate does not determine mortgage rates, though it sets benchmarks that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts. The Fed has a firm goal of a 2% inflation rate, and with favorable economic reports on the job market, it’s unlikely the reserve will cut rates until that goal is within reality’s reach.

Mortgage rates in the news

Mortgage lenders keep a close eye on the key interest rate set by the Federal Reserve, the U.S.’s central bank. Called the fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation.

Federal benchmark: Summer rate cut expected

At the conclusion of its rate-setting policy meeting on March 20, 2024, the Fed left the federal funds target interest rate of 5.25% to 5.50% unchanged, marking the fifth consecutive time it’s held rates steady since July 2023. In its post-meeting statement, the Federal Reserve repeated earlier concerns about cutting its key interest rate until it’s confident “that inflation is moving sustainably toward 2 percent.” Bankers forecast three rate cuts by the end of the year, predicting the first to come not when the Fed meets again later this month, but instead at its summer meeting in June 2024.

The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic. While inflation has cooled, Consumer Price Index data released on March 12 showed a month-over-month increase in consumer prices — a widely used indicator for inflation. The next CPI report is due for release next week on April 10, with inflation nowcasting from the Federal Reserve Bank of Cleveland suggesting a welcome decrease in rates of inflation.

Government agency Freddie Mac released its March 20 economic outlook on the housing and mortgage market that predicts mortgage rates to stay at 6.5% or higher through the summer.

NAR settlement could change homebuying

The anticipated summer rate cut could coincide with a major change in the way Americans buy and sell homes. On March 15, the National Association of Realtors announced it had agreed to a settlement that, if approved by a federal judge, would bring an end to longstanding real estate broker commissions of up to 6% of a home’s purchase price. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, potentially saving homebuyers money in the long run — just in time for summer home sales.

4 top factors that affect your mortgage rate

The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.

  • Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.

  • Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.

  • Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.

  • Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.

Frequently asked questions about mortgage rates

What are mortgage lenders?

Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.

What does it mean to refinance a mortgage?

Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.

What factors influence mortgage rates?

Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.

When is the best time to lock in a mortgage rate?

Mortgage rates can fluctuate daily, so it’s best to lock in a rate when you’re comfortable with the offered rate and conditions of the loan.

Can I negotiate my mortgage rate?

It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.

Editor’s note: Annual percentage yields shown are as of Monday, April 8, 2024, at 7:45 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

Source: aol.com

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A home equity loan is a lump sum of money you can borrow at a fixed rate based on the equity, or ownership stake, in your home. If you already paid off 15% to 20% of your house, this one-time installment loan can be used to cover major expenses, from home renovations to paying off debt. 

Home equity loans have fixed interest rates, so your monthly payments are predictable and easy to budget for. But because your home acts as collateral for the loan, you could risk foreclosure if you fall behind on repayments.

I’ve spoken with experts about the advantages and disadvantages of home equity loans, how they work and where to find the best rates. Here’s what I’ve uncovered.

This week’s home equity loan rates

Here are the average rates for home equity loans and home equity lines of credit as of March 27, 2024.

Loan type This week’s rate Last week’s rate Difference
10-year, $30,000 home equity loan 8.73% 8.73% None
15-year, $30,000 home equity loan 8.70% 8.70% None
$30,000 HELOC 9.01% 8.99% +0.02
Note: These rates come from a survey conducted by CNET sister site Bankrate. The averages are determined from a survey of the top 10 banks in the top 10 US markets.

Though home equity loan rates will vary depending on the lender and loan type, their rates are generally lower than personal loans or credit card annual percentage rates. 

Home equity loan rates aren’t directly set by the Federal Reserve, but adjustments to the federal funds rate impact the borrowing cost for financial products like home equity loans and home equity lines of credit, aka HELOCs. 

Since March 2022, the Fed has hiked its benchmark rate a total of 11 times in an attempt to slow the economy and bring inflation down, driving home equity loan rates up alongside. Though the Fed has kept interest rates steady since last summer, home equity loan rates have remained elevated for borrowers. Home equity rates are likely to stay high until the central bank begins cutting interest rates, projected for later this year.

With home equity loans, you tap into your equity without giving up the rate on your primary mortgage, making them a popular alternative to cash-out refinances. If you use a home equity loan to install solar panels or renovate your kitchen, you get the added benefit of increasing your home’s value. 

“Most homeowners with mortgages in 2024 are choosing home equity loans or HELOCs, instead of a cash-out refinance, to avoid losing their attractive interest rates,” said Vikram Gupta, head of home equity at PNC Bank.

Best home equity loan rates of March 2024

Lender APR Loan amount Loan terms Max LTV ratio
U.S. Bank From 8.40% Not specified Up to 30 years Not specified
TD Bank 7.99% (0.25% autopay discount included) From $10,000 5 to 30 years Not specified
Connexus Credit Union From 7.20% From $5,000 5 to 15 years 90%
KeyBank From 10.29% (0.25% autopay discount included) From $25,000 1 to 30 years 80% for standard home equity loans, 90% for high-value home equity loans
Spring EQ Fill out application for personalized rates Up to $500,000 Not specified 90%
Third Federal Savings & Loan From 7.29% $10,000 to $200,000 Up to 30 years 80%
Frost Bank From 7.3% (0.25% autopay discount included) $2,000 to $500,000 15 to 20 years 90%
Regions Bank From 6.75% to 14.125% (0.25% autopay discount included) $10,000 to $250,000 7, 10, 15, 20 or 30 years 89%
Discover 6.99% for 1st liens, 7.99% for 2nd liens $35,000 to $300,000 10, 15, 20 or 30 years 90%
BMO Harris From 8.84% (0.5% autopay discount not included) From $25,000 5 to 20 years Not specified
Note: The above annual percentage rates are current as of March 1, 2024. Your APR will depend on such factors as your credit score, income, loan term and whether you enroll in autopay or other lender specific requirements.

Best home equity loan lenders of March 2024

U.S. Bank

Good for nationwide availability

U.S. Bank is the fifth largest banking institution in the US. It offers both home equity loans and HELOCs in 47 states. You can apply for a home equity loan or HELOC through an online application, by phone or in person. If you want a loan estimate for a home equity loan without completing a full application, you can get one by speaking with a banker over the phone.

  • APR: From 8.40%
  • Max LTV ratio: Not specified
  • Max debt-to-income ratio: Not specified
  • Min credit score: 660
  • Loan amount: $15,000 to $750,000 (up to $1 million for California properties)
  • Term lengths: Up to 30 years
  • Fees: None
  • Additional requirements: Subject to credit approval
  • Perks: You can receive a 0.5% rate discount by enrolling in automatic payments from a U.S. Bank checking or savings account.

TD Bank

Good for price transparency

Primarily operating on the East Coast, TD Bank offers home equity loans and HELOCs in 15 states. You can apply for a TD Bank home equity loan or HELOC online, by phone or by visiting a TD Bank in person. The online application includes a calculator that will tell you the maximum amount you can borrow based on the information you input. You can also see a full breakdown of rates, fees and monthly payments. No credit check is required for this service.

  • APR: From 7.99% (0.25% autopay discount included)
  • Max LTV ratio: Not specified
  • Max debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: From $10,000
  • Term lengths: Five to 30 years
  • Fees: $99 origination fee at closing. Closing costs only application to loan amounts greater than $500,000.
  • Additional requirements: Loan amounts less than $25,000 are available only for primary residence property use.
  • Perks: You will receive a 0.25% discount if you enroll in autopay from a TD personal checking or savings account.

Connexus Credit Union

Good branch network

Connexus Credit Union operates in all 50 states, but it offers home equity loans and HELOCs in 46 states (excluding Alaska, Hawaii, Maryland and Texas). The credit union has more than 6,000 local branches. To apply for a home equity loan or HELOC with Connexus, you can fill out a three-step application online or in person. You won’t be able to see a personalized rate or product terms without a credit check.

  • APR: From 7.20%
  • Max LTV ratio: 90%
  • Max-debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: From $5,000
  • Term lengths: Five to 15 years
  • Fees: No annual fee. Closing costs can range from $175 to $2,000, depending on your loan terms and property location. It has returned loan payments fees of $15, convenience fees of $9.95 (for paying by debit or credit card online) and $14.95 (for paying by phone) and a forced place insurance processing fee of $12.
  • Additional requirements: Because Connexus is a credit union, its products and services are only available to members. Member eligibility is open to most people: you (or a family member) just need to be a member of one of Connexus’s partner groups, reside in one of the communities or counties on Connexus’s list or become a member of the Connexus Association with a $5 donation to Connexus’s partner nonprofit.
  • Perks: Flexible membership options

KeyBank

Good online application user experience

Based in Cleveland, KeyBank offers home equity loans to customers in 15 states and HELOCs to customers in 44 states. Aside from a standard home equity loan, KeyBank offers a few different HELOC options. The KeyBank application allows you to apply for multiple products at one time. If you’re not sure whether KeyBank loans are available in your area, the application will tell you once you input your ZIP code. If you’re an existing KeyBank customer, you can skim through the application and import your personal information from your account.

  • APR: From 10.29% (0.25% client discount included)
  • Max LTV ratio: 80% for standard home equity loans, 90% for high-value home equity loans
  • Max debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: From $25,000
  • Term lengths: One to 30 years
  • Fees: Origination fee of $295. Closing costs aren’t specified.
  • Additional requirements: Borrowers must be at least 18 years of age and reside in one of the states KeyBank operates in.
  • Perks: KeyBank offers a 0.25% rate discount for clients who have eligible checking and savings accounts with them.

Spring EQ

Good option for high debt-to-income ratio limits

Spring EQ was founded in 2016 and serves customers in 38 states. Spring EQ offers home equity loans and HELOCs. Spring EQ doesn’t display rates for its home lending products online — you must complete an application to see your personalized rate. The Spring EQ loan application process is simple though. Customers can see an extensive breakdown of their loan term and rate options without needing to undergo a credit check or provide their Social Security number.

  • APR: Not specified
  • Max LTV ratio: 90%
  • Max debt-to-income ratio: 50%
  • Min credit score: 640
  • Loan amount: Up to $500,000
  • Term lengths: Not specified
  • Fees: Spring EQ loans may be subject to an origination fee of $995 and an annual fee of $99 in some states.
  • Additional requirements: Spring EQ does not display rates for its home lending products online — you must complete an application to see your personalized rate.
  • Perks: Spring EQ has a higher maximum DTI ratio than most other lenders — compare 50% with the typical 43% average.

Third Federal Savings & Loan

Good option for rate match guarantee

Third Federal Savings & Loan first opened in 1938. Today, the bank offers home equity loans in eight states and HELOCs in 26 states. Third Federal offers a lowest rate guarantee on its HELOCs and home equity loans, meaning Third Federal will offer you the lowest interest rate relative to other similar lenders or pay you $1,000. You can apply for a home equity loan or HELOC on the Third Federal website. You won’t have to register an account to apply, but you’re still able to save your application and return to it later.

  • APR: From 7.29%
  • Max LTV ratio: 80%
  • Max debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: $10,000 to $200,000
  • Term lengths: Five to 30 years
  • Fees: Home equity loans and HELOCs with Third Federal have an annual fee of $65 (waived the first year). There are no application fees, closing fees or origination fees.
  • Additional requirements: Specific requirements aren’t listed.
  • Perks: If you set up autopay from an existing Third Federal account, you’ll be eligible for a 0.25% rate discount.

Frost Bank

Good option for Texas borrowers

Frost Bank’s home equity loans and HELOCs are only available to Texas residents. You can apply for a home equity loan or HELOC on the Frost Bank website, but you’ll need to create an account. According to the website, the application will only take you 15 minutes.

  • APR: From 7.3% (0.25% autopay discount included, only available for 2nd liens)
  • Max LTV ratio: 90%
  • Max debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: $2,000 to $500,000
  • Term lengths: 15 or 20 years
  • Fees: No application fee, annual fee or closing costs. Frost Bank does charge a $15 monthly service fee, which can be waived with a Frost Plus Account.
  • Additional requirements: Borrowers must reside in Texas. The bank also requires proof of homeowners insurance.
  • Perks: 0.25% rate discount for clients who enroll in autopay from a Frost Bank checking or savings account. However, this feature is only available for second liens.

Regions Bank

Good rate discounts

Regions Bank is one of the nation’s largest banking, mortgage and wealth management service providers. Regions offers home equity loans and HELOCs in 15 states. You can apply for a Regions home equity loan or HELOC online, in person or over the phone. You’ll have to create an account with Regions to apply. Before you create an account, though, you can use the bank’s own rate calculator to estimate your rate and monthly payment.

  • APR: From 6.75% to 14.125%(0.25% autopay discount included)
  • Max LTV ratio: 89%
  • Max debt-to-income ratio: Not specified
  • Min credit score: Not specified
  • Loan amount: $10,000 to $250,000
  • Term lengths: Seven, 10, 15, 20 or 30 years
  • Fees: No closing costs and no annual fees. Late fees apply for 5% of the payment amount. There is a returned check fee of $15 and an over limit fee of $29.
  • Additional requirements: Not specified.
  • Perks: Rate discounts between 0.25% and 0.50% to those who elect to have their monthly payments automatically debited from a Regions checking account.

Discover

Good option for no fees or closings costs

Discover is known primarily for its credit cards, but it also offers home equity loans — available in 48 states. The lender does not offer HELOCs at all. You can apply for a home equity loan from Discover online or over the phone. The application process takes approximately six to eight weeks in total, according to Discover’s website.

  • APR: 6.99% for first liens, 7.99% for second liens
  • Max LTV ratio: 90%
  • Max debt-to-income ratio: 43%
  • Min credit score: 620
  • Loan amount: $35,000 to $300,000
  • Term lengths: 10, 15, 20 and 30 years
  • Fees: None
  • Additional requirements: Specific requirements not listed.
  • Perks: The lender charges no origination fees, application fees, appraisal fees or mortgage taxes.

BMO Harris

Good option for second liens

BMO Harris products and services are available in 48 states (all but New York and Texas). BMO Harris offers home equity loans and three variations of a HELOC. You can apply for a home equity loan or HELOC online or in person, but in order to get personalized rates, you’ll have to speak with a representative on the phone. Getting personalized rates doesn’t require a hard credit check.

Home equity loans from BMO Harris are only available as second liens. If you have already paid off your mortgage, a rate-lock HELOC from BMO Harris may be a better option.

  • APR: From 8.84% (0.5% autopay discount not included)
  • Max LTV ratio: Not specified
  • Max debt-to-income ratio: Not specified
  • Min credit score: 700
  • Loan amount: From $5,000
  • Term lengths: Five to 20 years
  • Fees: There is no application fee. BMO Harris will also pay closing costs for loans secured by an owner-occupied 1-to-4-family residence. If you pay off your loan within 36 months of opening, you may be responsible for recoupment fees.
  • Additional requirements: Home equity loans are only available as a second lien (meaning you can’t be mortgage free)
  • Perks: If you enroll in autopay with a BMO Harris checking account, you’ll be eligible for a 0.5% rate discount.

What is a home equity loan?

A home equity loan is a fixed-rate installment loan secured by your home as a second mortgage. You’ll get a lump sum payment upfront and then repay the loan in equal monthly payments over a period of time. Because your house is used as a collateral, the lender can foreclose on it if you default on your payments. 

Most lenders require you to have 15% to 20% equity in your home to secure a home equity loan. To determine how much equity you have, subtract your remaining mortgage balance from the value of your home. For example, if your home is worth $500,000 and you owe $350,000, you have $150,000 in equity. The next step is to determine your loan-to-value ratio, or LTV ratio, which is your outstanding mortgage balance divided by your home’s current value. So in this case the calculation would be:

$350,000 / $500,000 = 0.7

In this example, you have a 70% LTV ratio. Most lenders will let you borrow around 75% to 90% of your home’s value minus what you owe on your primary mortgage. Assuming a lender will let you borrow up to 90% of your home equity, you can use the formula to see how that would be:

$500,000 [current appraised value] X 0.9 [maximum equity percentage you can borrow] – $350,000 [outstanding mortgage balance] = $100,000 [what the lender will let you borrow]

A standard repayment period for a home equity loan is between five and 30 years. Under the loan, you make fixed-rate payments that never change. If interest rates go up, your loan rate remains unchanged. 

Second mortgages such as home equity loans and HELOCs don’t alter a homeowner’s primary mortgage. This lets you borrow against your home’s equity without needing to exchange your primary mortgage’s rate for today’s higher rates.

Home equity loans have fixed interest rates, which is a positive if you’re looking for predictable monthly payments. The rate you lock in when you take out your loan will be constant for the entire term, even if market interest rates rise. 

Reasons to get a home equity loan

A home equity loan is a good choice if you need a large sum of cash all at once. You can use that cash for anything you’d like — it doesn’t have to be home-related.However, some uses make more sense than others. 

  1. Home renovations and improvements: If you want to upgrade your kitchen, install solar panels or add on a second bathroom, you can use the money from a home equity loan to pay for the cost of these renovations. Then, at tax time, you can deduct the interest you pay on the loan — as long as the renovations increase the value of your home and you meet certain IRS criteria. 
  1. Consolidating high-interest debt: Debt consolidation is a strategy where you take out one large loan to pay off the balances on multiple smaller loans, typically done to streamline your finances or get a lower interest rate. Because home equity loan interest rates are typically lower than those of credit cards, they can be a great option to consolidate your high-interest credit card debt, letting you pay off debt faster and save money on interest in the long run. The only downside? Credit card and personal loan lenders can’t take your home from you if you stop making your payments, but home equity lenders can. 
  1. College tuition: Instead of using student loans to cover the cost of college for yourself or a loved one, you can use the cash from a home equity loan. If you qualify for federal student loans, though, they’re almost always a better option than a home equity loan. Federal loans have better borrower protections and offer more flexible repayment options in the event of financial hardship. But if you’ve maxed out your financial aid and federal student loans, a home equity loan can be a viable option to cover the difference.
  1. Medical expenses: You can avoid putting unexpected medical expenses on a credit card by tapping into your home equity before a major medical procedure. Or, if you have outstanding medical bills, you can pay them off with the funds from a home equity loan. Before you do this, it’s worth asking if you can negotiate a payment plan directly with your medical provider. 
  1. Business expenses: If you want to start a small business or side hustle but lack money to get it going, a home equity loan can provide the funding without many hoops to jump through. However, you may find that dedicated small business loans are a better, less risky option. 
  1. Down payment on a second home: Homeowners can leverage their home’s equity to fund a down payment on a second home or investment property. But you should only use a home equity loan to buy a second home if you can comfortably afford multiple mortgage payments over the long term. 

Experts don’t recommend using a home equity loan for discretionary expenses like a vacation or wedding. Instead, try saving up money in advance for these expenses so you can pay for them without taking on unnecessary debt.

Pros

  • One lump sum payment of total loan up front.

  • Fixed interest rate, meaning you won’t have to worry about your rate rising over the repayment period.

  • Typically lower interest rate than credit cards or personal loans.

  • Little to no restrictions on what you can use the money for.

Cons

  • Your home is used as collateral, meaning it can be taken from you if you default on the loan.

  • If you’re still paying off your mortgage, this loan payment will be on top of that.

  • Home equity loans can come with closing costs and other fees.

  • May be hard to qualify for if you don’t have enough equity.

Home equity loan vs. HELOC

Home equity loans and HELOCs are similar but have a few key distinctions. Both let you draw on your home’s equity and require you to use your home as collateral to secure your loan. The two major differences are the way you receive the money and how you pay it back. 

A home equity loan gives you the money all at once as a lump sum, whereas a HELOC lets you take money out in installments over a long period of time, typically 10 years. Home equity loans have fixed-rate payments that will never go up, but most HELOCs have variable interest rates that rise and fall with the prime rate. 

A home equity loan is better if:

  • You want a fixed-rate payment: Your monthly payment will never change even if interest rates rise.
  • You want one lump sum of money: You receive the entire loan upfront with a home equity loan.
  • You know the exact amount of money you need: If you know the amount you need and don’t expect it to change, a home equity loan likely makes more sense than a HELOC.

A HELOC is better if:

  • You need money over a long period of time: You can take the money as you need it and only pay interest on the amounts you withdraw, not the full loan amount, as is the case with a home equity loan.
  • You want a low introductory interest rate: Although HELOC rates may increase over time, they also typically offer lower introductory interest rates than home equity loans. So you could save money on interest charges.

Home equity loans vs. cash-out refinances

A cash-out refinance is when you replace your existing mortgage with a new mortgage, typically to secure a lower interest rate and more favorable terms. Unlike a traditional refinance, though, you take out a new mortgage for the home’s entire value — not just the amount you owe on your mortgage. You then receive the equity you’ve already paid off in your home as a cash payout. 

For example, if your home is worth $450,000, and you owe $250,000 on your loan, you would refinance for the entire $450,000, rather than the amount you owe on your mortgage. Your new cash-out refinance home loan would replace your existing mortgage and then offer you a portion of the equity you built (in this case $200,000) as a cash payout. 

Both a cash-out refi and a home equity loan will provide you with a lump sum of cash that you’ll repay in fixed amounts over a specific time period, but they have some important differences. A cash-out refinance replaces your current mortgage payment. When you receive a lump sum of cash from a cash-out refi, it’s added back onto the balance of your new mortgage, usually causing your monthly payment to increase. A home equity loan is different — it doesn’t replace your existing mortgage and instead adds an additional monthly payment to your expenses. 

Who qualifies for a home equity loan?

Although it varies by lender, to qualify for a home equity loan, you’re typically required to meet the following criteria:

  • At least 15% to 20% equity built up in your home: Home equity is the amount of home you own, based on how much you’ve paid toward your mortgage. Subtract what you owe on your mortgage and other loans from the current appraised value of your house to figure out your home equity number. 
  • Adequate, verifiable income and stable employment: Proof of income is a standard requirement to qualify for a HELOC. Check your lender’s website to see what forms and paperwork you will need to submit along with your application. 
  • A minimum credit score of 620: Lenders use your credit score to determine the likelihood that you’ll repay the loan on time. Having a strong credit score — at least 700 — will help you qualify for a lower interest rate and more amenable loan terms. 
  • A debt-to-income ratio of 43% or less: Divide your total monthly debts by your gross monthly income to get your DTI. Like your credit score, your DTI helps lenders determine your capacity to make consistent payments toward your loan. Some lenders prefer a DTI of 36% or less.

A home equity loan is better if:

  • You don’t want to pay private mortgage insurance: Some cash-out refinances require PMI, which can add hundreds of dollars to your payments, but home equity loans don’t.
  • You can’t complete a refinance: With rates rising, it’s possible that your mortgage rate is lower than current refinance rates. If that’s the case, it likely won’t make financial sense for you to refinance. Instead, you can use a home equity loan to take out only the money you need, rather than replacing your entire mortgage with a higher interest rate loan.

A cash-out refinance is better if:

  • Refinance rates are lower than your current mortgage rate: If you can secure a lower interest rate by refinancing, this could save you money in interest, while providing access to a lump sum of cash. 
  • You want only one monthly payment: The amount you borrow gets added back to the balance of your mortgage so you make only one payment to your lender every month.
  • Less stringent eligibility requirements: If you don’t have great credit or you have a high debt-to-income ratio, or DTI, you may have an easier time qualifying for a cash-out refi compared with a home equity loan. 
  • Lower interest rates: Cash-out refinances sometimes offer more favorable interest rates than home equity loans.

Tips for choosing a lender

You’ll want to consider what type of financial institution best suits your needs. In addition to mortgage lenders, financial institutions that offer home equity loans include banks, credit unions and online-only lenders. 

“Select a lender that makes you feel comfortable and informed with the home equity loan process,” said Rob Cook, vice president of marketing, digital and analytics for Discover Home Loans. “Look at what tools a lender makes available to borrowers to help inform their decision. For many borrowers, being able to apply and manage their application online is important.”

One option is to work with the lender that originated your first mortgage as you already have a relationship and a history of on-time payments. Many banks and credit unions also offer discounted rates and other benefits when you become a customer. 

Some lenders offer lower interest rates but charge higher fees (and vice versa). What matters most is your annual percentage rate because it reflects both interest rate and fees. 

Ensure the specific terms of the loan your lender is offering make sense for your budget. For example, be sure the minimum loan amount isn’t too high — be wary of withdrawing more funds than you need. You also want to make sure that your repayment term is long enough for you to comfortably afford the monthly payments. The shorter your loan term, the higher your monthly payments will be. 

“Costs and fees are an important consideration for anyone who is looking for a loan,” Cook said. “Homeowners should understand any upfront or ongoing fees applicable to their loan options. Also look for prepayment penalties that might be associated with paying off your loan early.” 

No matter what, it’s important to talk to numerous lenders and find the best rate available. 

How to apply for a home equity loan

Applying for a home equity loan is similar to applying for any mortgage loan. You’ll need both a solid credit score and proof of enough income to repay your loan. 

1. Interview multiple lenders to determine which lender can offer you the lowest rates and fees. The more companies you speak with, the better your chances of finding the most favorable terms. 

2. Have at least 15% to 20% equity in your home. If you do, lenders will then take into account your credit score, income and current DTI to determine whether you qualify as well as your interest rate.

3. Be prepared to have financial documents at the ready, such as pay stubs and Form W-2s. Proof of ownership and the appraised value of your home will also be necessary. 

4. Close on your loan. Once you submit your application, the final step is closing on your loan. In some states, you’ll have to do this in person at a physical branch. 

FAQs

As of March 27, average home equity loan rates are 8.73% for a $30,000 10-year home equity loan and 8.70% for a $30,000 15-year home equity loan — higher than the average rate for a 30-year fixed rate mortgage, which is currently 7.01%. Both home equity rates and mortgage rates started off at historic lows at around 3% at the beginning of 2022 and have been consistently climbing in response to the Federal Reserve aggressively raising the benchmark interest rate.

Most lenders will allow you to borrow anywhere from 15% to 20% of your home’s available equity. To calculate your home equity, subtract your remaining mortgage balance from the current appraised value of your home. How much equity a bank or lender will let you take out depends on a number of additional factors such as your credit score, income and DTI ratio. For most homeowners, it can take five to 10 years of mortgage payments to build up enough tappable equity to borrow against.

A home equity loan can affect your score positively or negatively depending on how responsibly you use it. As with any loan, if you miss or make late payments, your credit score will drop. The amount by which it will drop depends on such factors as whether you’ve made late payments before. However, HELOCs are secured loans that are backed by your property, so they tend to affect your credit score less because they’re treated more like a car loan or mortgage by credit-scoring algorithms.

Lenders are currently offering rates that start as low as 5% to 6% for borrowers with good credit, but rates can vary depending on your personal financial situation. A lender will base your interest rate on how much equity you have in your home, your credit score, income level and other aspects of your financial life such as your DTI ratio, which is calculated by dividing your monthly debts by your gross monthly income.

Home equity loans can be used for anything you choose to spend the money on. Typical life expenses that people usually take out home equity loans for are to cover expenditures such as home renovations, higher education costs like tuition or to pay off high-interest charges like credit card debt. There’s a bonus for using your loan for home improvements and renovations: the interest is tax deductible.

You can also use a home equity loan in the event of an emergency like unplanned medical expenses. Whatever you chose to use your loan for, keep in mind that taking out a large sum of money that accrues interest is an expensive choice to carefully consider, especially because you’re using your home as collateral to secure the loan. If you can’t pay back the loan, the lender can seize your home to repay your debt.

Methodology

We evaluated a range of lenders based on factors such as interest rates, APRs and fees, how long the draw and repayment periods are, and what types and variety of loans are offered. We also took into account factors that impact the user experience such as how easy it is to apply for a loan online and whether physical lender locations exist.

Source: cnet.com

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Third Federal Savings & Loan

Highlights

Products offered
HELOC, home equity loan, 5/1 adjustable-rate home equity loan

APR
From 7.49%

Credit score
Undisclosed

Contact info
Visit www.thirdfederal.com or call at 800-THIRD-FED (800-844-7333)

Operating out of Cleveland, Ohio, Third Federal Savings & Loan offers home equity lines of credit (HELOCs) in 26 states and home equity loans in eight states. With Third Federal, you can borrow up to $300,000 against the equity in your home. Although the bank doesn’t lend everywhere in the US, it made our list of the best home equity loan and HELOC lenders due to its easy online application process, lowest-rate guarantee and price transparency.

Third Federal Savings & Loan: At a glance

Types of loans offered HELOC, home equity loan, 5/1 adjustable-rate home equity loan
APR range From 7.49%
Loan amounts From $10,000 to $300,000
Credit score requirements Undisclosed
Repayment terms HELOC: 10-year draw period, 20-year repayment period
Home equity loan: Five- or 10-years
Average time for approval Undisclosed
Rates as of March 26, 2024.

Third Federal is best suited for homeowners who need a long repayment period and want the option of choosing between a fixed-rate or variable-rate loan. It also offers a $1,000 lowest-rate guarantee: If you find a lower rate from another lender, Third Federal will match the rate or pay you up to $1,000. You just need to find the lower rate 10 days before closing on your loan.

What we like

  • Low fees: There are no applications or prepayment fees with Third Federal, and an annual $95 fee is waived the first year. You also don’t have to pay an origination fee or closing costs, which saves you thousands of dollars upfront. 
  • Low minimum draw requirement: Sometimes minimum withdrawal requirements can make your loan more expensive because you end up wasting money paying interest on funds you never use. But with Third Federal, there is only a $10,000 minimum withdrawal requirement.
  • $1,000 lowest-rate guarantee: If you find a lower interest rate with comparable terms from another lender, Third Federal says it will beat the rate or pay you $1,000 as long as you find the rate up to 10 days before closing on your loan.

What we don’t like

  • Limited availability: Third Federal offers home equity loans in only eight states (California, Florida, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and Virginia) and offers HELOCs in only 26 states and the District of Columbia. Most of its brick-and-mortar locations are clustered in Ohio and Florida.
  • No interest-only payments: You must pay back your principal balance from the start of your draw period, which will make your monthly payments higher from the very beginning. However, if you can afford it, this can also be a benefit for homeowners who want to tackle paying down their principal balance from day one, saving themselves money in interest over the lifetime of the loan.
  • Undisclosed credit score requirements: Without knowing the minimum credit score or this lender’s preferred credit score to receive its best rates, it’s hard to know whether it’s worth applying or how you compare to other applicants. Completing a full application for loan preapproval will result in a hard pull on your credit.

Home equity loan products

HELOC: With a Third Federal HELOC, you can borrow up to $300,000 (depending on how much equity you’ve built up) at a variable interest rate. It has a standard 10-year draw period followed by a 20-year repayment period. 

Home equity loan: You can borrow a large sum of money with a Third Federal home equity loan. The bank has loan terms of five or 10 years. 

5/1 adjustable-rate home equity loan: Third Federal also offers a unique 5/1 adjustable-rate home equity loan. If you opt for this loan type, your interest rate will be fixed for five years and then adjust annually after that. 5/1 adjustable-rate loans have terms ranging from 6-30 years.

Fees

There are minimal fees with Third Federal, which is why it’s good if you need financing but don’t want to spend a lot of money upfront to obtain it. You don’t have to pay an origination fee, application fee or closing costs, which provides valuable savings from the start. However, you must pay a $95 annual fee for HELOCs (but it’s waived the first year).

How to qualify

Third Federal doesn’t disclose its minimum credit score requirements. In order to get a personalized-rate quote, you must apply and provide your specific financial details, as well as personal information like your Social Security number, address and date of birth. As with any kind of home equity loan, you must have built up enough equity in your property over the years to qualify to borrow against it. 

Most lenders typically require at least 15% to 20% home equity to be approved. Additionally, you must also have current homeowners’ insurance, as well as flood insurance if you live in a flood zone that requires it. 

How to apply for a home equity loan or HELOC with Third Federal

You can apply for a home equity loan online, at one of its physical branches or over the phone, and the whole process should take only about 30 minutes, according to Third Federal.

Everything you need to get started on your application is clearly laid out on its website. Third Federal wants to see the following documentation to verify that you are creditworthy and will pay back your loan on time.

  • Gross annual or monthly income amount
  • Monthly payments for property tax and homeowners insurance
  • List of assets
  • Paystub dated within at least 30 days of the application date, illustrating year-to-date earnings of at least 30 days
  • Tax Form W-2 from the most recent year

Customer service

For general information about Third Federal’s home equity loans and HELOCs, you can visit Third Federal’s website, call its customer care department at 800-THIRD-FED (800-844-7333) or fill out a form on the website for a loan officer to contact you directly. You can also go in person to a branch location, which is an option not all lenders provide. For HELOCs and home equity loans specifically, when you need to activate your debit card to access your funds you can call the number below.

However, Third Federal isn’t open on Sundays and has limited hours on Saturday, which are only from 8:30 a.m. to 1:30 p.m. ET. You can call Monday through Friday from 8:30 a.m. to 5 p.m. ET and until 6 p.m. on Fridays.

Live phone support: 

  • General loan inquiries: 800-844-7333 
  • Active your Home EquityCard : 866-619-0245 

Source: cnet.com

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Las Vegas, NV, isn’t just a place for tourists to enjoy; it’s also an exciting city for locals. Known for its bright lights and endless entertainment options, living here means you’re never far from an adventure. But “Should I move to Las Vegas?” is a question many wonder. Beyond the Strip, this city offers unique neighborhoods and a desert landscape that’s perfect for outdoor enthusiasts. Las Vegas combines the thrill of a 24/7 city with the comforts of home, making it a one-of-a-kind place to live. Before packing your bags, it’s important to know the city’s strengths and weaknesses to make sure it’s the right fit for you. In this article, we’ll discuss the pros and cons of living in Las Vegas that may help you make your decision. Let’s get started.

Las Vegas at a Glance

Walk Score: 42 | Bike Score: 46 | Transit Score: 36

Median Sale Price: $430,000 | Average Rent for 1-Bedroom Apartment: $1,280

Las Vegas neighborhoods | houses for rent in Las Vegas | apartments for rent in Las Vegas | homes for sale in Las Vegas

Pro: Vibrant nightlife

Las Vegas, known globally as “The Entertainment Capital of the World,” offers an unparalleled nightlife experience. From world-class DJs at top-tier clubs to iconic shows and performances, the city caters to every taste and preference. The Strip lights up with possibilities, making every night a potential adventure. This unique aspect ensures there’s always something exciting happening, no matter the day of the week.

Con: Extreme summer heat

The desert climate of Las Vegas brings with it extreme heat, especially during the summer months. Temperatures often soar above 100 degrees Fahrenheit, which can be uncomfortable and limit outdoor activities. While many indoor places are air-conditioned, the intense heat can be a significant deterrent for those wishing to explore the natural beauty surrounding the city or engage in daytime outdoor events.

Pro: World-class dining

Las Vegas offers amazing dining experiences, featuring restaurants from renowned chefs from around the globe. Restaurants like Joël Robuchon at MGM Grand, led by the legendary French chef, offer exquisite tasting menus featuring meticulously crafted dishes. Additionally, Las Vegas is home to celebrity chef restaurants like Gordon Ramsay’s Hell’s Kitchen at Caesars Palace and Bobby Flay’s Mesa Grill at Caesars Palace. The city’s thriving food scene extends beyond the famed Strip. Local favorites like Lotus of Siam and Carson Kitchen showcase the culinary diversity and creativity that Las Vegas has to offer.

Con: Water scarcity

Being in the Mojave Desert, Las Vegas faces significant challenges with water scarcity. So much so that the city ranks #2 in U.S. for cities most at risk of droughts. The city relies heavily on the Colorado River for its water supply, which is becoming increasingly stressed due to overuse and climate change. This situation has led to water restrictions and conservation efforts that impact residents’ daily lives, from landscaping choices to water usage habits.

Pro: Outstanding entertainment and events

Aside from nightlife, Las Vegas is a hub for entertainment, hosting numerous concerts, sports events, and conventions, year-round. Sports enthusiasts can cheer on teams like the Vegas Golden Knights (NHL) at the T-Mobile Arena or the Las Vegas Raiders (NFL) at the stunning Allegiant Stadium, both located just off the Strip. The Las Vegas Motor Speedway hosts NASCAR races and other motorsport events, attracting fans from around the world. For those interested in conventions, Las Vegas is renowned for its expansive convention center. It features trade shows, expos, and conferences covering various industries, from technology and gaming to hospitality and healthcare. These events ensure that residents and visitors have access to plenty of entertainment options beyond the casino floors.

Con: Traffic congestion

With its popularity as a tourist destination, Las Vegas experiences significant traffic congestion, especially on The Strip and surrounding areas. Major events and conventions can exacerbate this issue, leading to longer commute times for locals. This congestion is a consideration for those who value ease of mobility and a more relaxed pace of life.

Pro: Thriving arts scene

Las Vegas is home to a thriving arts scene that goes beyond its famous shows and performances. The Arts District, located in downtown Las Vegas, is a testament to the city’s commitment to the arts, offering galleries, studios, and unique boutiques. First Friday events in this area showcase local artists and musicians, providing a platform for creative expression and community engagement.

Con: Limited public transportation

Compared to other major cities, Las Vegas has a low Transit Score of 36. While Las Vegas does have public transportation, options can be limited, especially outside of the central tourist areas. The reliance on cars can be a drawback for those without vehicles or those who prefer more sustainable modes of transportation. Efforts are being made to improve this, but it remains a consideration for daily commuting and travel within the city.

Pro: Access to healthcare

Las Vegas offers access to quality healthcare facilities, including the Cleveland Clinic Lou Ruvo Center for Brain Health and the University Medical Center. These institutions provide residents with advanced medical care and research opportunities. The presence of such facilities ensures that residents have access to some of the best healthcare services in the region.

Con: Dependence on tourism

The economy of Las Vegas is heavily dependent on tourism, which can be both a strength and a vulnerability. Economic downturns or global events that reduce tourist numbers can have a significant impact on the city’s economy. This dependence on a single industry can affect job security and economic stability for those working in and around the tourism sector.

Pro: Plenty of outdoor recreation opportunities

Las Vegas is not just about indoor entertainment; it’s also a gateway to some of the nation’s most beautiful parks and recreation areas. Residents can enjoy a short drive to Red Rock Canyon for hiking, rock climbing, or biking. Similarly, Lake Mead offers water sports and camping opportunities. These natural attractions provide a perfect escape from the city’s hustle and bustle.

Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.

Source: rent.com

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Unstable borrowing conditions and a lack of affordable properties kept homeownership out of reach for many Americans in 2023. However, as the spring buying season approaches and signs that the market is recovering emerge, buyer sentiment is shifting. According to the National Association of Realtors®, national existing home sales in January 2024 were up year-over-year by 1.3%. Housing supply is also improving, with national inventory up by 3.1% year-over-year and 2% month-over-month. 

These positive changes are setting the stage for an active spring market in the US. But as competition increases, so do home prices. The national median price for a single-family home in the US increased by 5.1% year-over-year in January to $379,100. This begs the question: where can prospective homebuyers find the best deals this spring? 

To better understand where homebuyers can find pockets of affordability, Zoocasa analyzed home prices in 50 metropolitan statistical areas across the country to determine which are below the national median and where the most growth is happening. Median single-family home prices were sourced from the National Association of REALTORS® and are from Q4 2023, except the national median home price which is from January 2024. 

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It’s usually said that the further outside of an urban center you go, the more affordable the home price. But of the 33 metropolitan statistical areas with a median home price below the national median, 15 have populations above 2 million, and five have populations above 5 million. The largest urban center with a median home price below the national median is Chicago, IL with a median home price of $343,300 in Q4 of 2023. Despite the city experiencing year-over-year price growth of 6.2%, Chicago’s median home price is still $35,800 below the national median. 

Of the 50 markets we analyzed, Cleveland, OH came out on top for affordability. Cleveland’s median home price of $190,700 is an impressive $188,400 below the national median and is one of the few areas on our list where the median home price dropped from last year. Other markets where the median home price fell from last year include Myrtle Beach, SC, Houston, TX, San Antonio, TX, and Memphis, TN. Alabama’s capital, Montgomery, was the only other market on our list besides Cleveland with a median home price below $200,000. Homebuyers here can snag a home for approximately $185,700 below the national median. 

It’s worth noting that five out of the six markets that experienced year-over-year price growth of more than 9% have home prices below the national median. These markets include Rochester, NY, Hartford, CT, New Haven, CT, Oklahoma City, OK, and Cincinnati, OH. This means that homebuyers of all price ranges, including those purchasing lower-priced homes, can still expect to build a significant amount of equity. 

Markets that have experienced significant year-over-year price growth also present good investment opportunities. For instance, single-family homes in Philadelphia, PA have experienced year-over-year price growth of 7.2% and are still $20,100 below the national median price, making this sought-after city a good option for first-time investors. Kansas City, MO is an emerging market that would make a great first-time investment location. The city garnered a lot of media attention last year thanks to the city’s football team and frequent Taylor Swift visits, resulting in the median home price rising by 5.9% year-over-year. Despite its growing popularity, the median home price in Kansas City remains one of the lowest on our list at $315,800. 

Homebuyers with their hearts set on a particular destination, especially one of the largest and most sought-after cities in the US, would benefit from considering smaller markets relatively close to their dream location. While the Big Apple might be out of reach for the average buyer, with a median home price of $659,200, New York’s second and third-largest cities still maintain affordable prices. Buffalo and Rochester have median home prices of $243,500 and $230,500 respectively. This is nearly $150,000 less than the national median, compared to New York City, where the median home price is more than $280,000 above the national median. 

Though San Francisco, CA, and Los Angeles, CA have notoriously high home prices, at $1,251,000 and $884,400 respectively, California homebuyers still have affordable options. At just $26,600 above the national median, Fresno’s median home price is one of the more affordable options in California. But for savvy buyers looking for a deal in California, Bakersfield presents the best option with a median home price of $11,800 below the national median. 

In Florida, motivated buyers on the hunt for affordable prices will have to look outside of the vibrant Miami market, which has a median home price more than $200,000 above the national median. Tampa’s median home price exceeds the national median by just $30,900, while Daytona Beach and Tallahassee offer more affordable housing, with median prices $16,700 and $57,100 below the national median, respectively.

Planning to enter one of these markets this spring? It’s important to speak with a local realtor who is familiar with your local real estate market. Give us a call today to discuss your home-buying plans. 

Ready to join the spring market?

Our experienced agents can help!

Source: zoocasa.com

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The Capital One Venture X Rewards Credit Card is a premium credit card that offers cardholders a host of benefits, such as a $300 annual travel credit, 10,000 anniversary bonus miles, 10x miles on hotels and rental cars booked through Capital One Travel and Priority Pass membership.

Below we dive into the specifics of the Priority Pass membership benefit so you can take full advantage of it when traveling with your Capital One Venture X Rewards Credit Card.

Overview of the Capital One Venture X Rewards Credit Card Priority Pass benefit

For frequent flyers, the Capital One Venture X Rewards Credit Card Priority Pass membership is one of the card’s most useful benefits as it gives cardholders access to the global Priority Pass airport lounge network.

Authorized users of the card are also eligible to sign up for a Priority Pass membership, meaning that if you have a Capital One Venture X Rewards Credit Card and add someone as an authorized user (for instance, a spouse or relative), that individual can also access Priority Pass lounges when traveling.

How to enroll in Priority Pass as a Capital One Venture X Rewards Credit Card holder

The Primeclass Lounge, a Priority Pass lounge located at Rome’s Leonardo da Vinci–Fiumicino Airport (Photo courtesy of Josh Garber)

To take advantage of the Priority Pass benefit, you’ll need to enroll by following these steps:

  1. Receive your Capital One Venture X Rewards Credit Card in the mail, which can take up to two weeks after you’ve been approved for the card.

  3. Enter your Capital One card number, country of residence and address to create your Priority Pass account.

  4. Enter your billing details, which will be used to identify you when you arrive at a Priority Pass lounge.

  5. Review and accept the membership declaration, then click “Join.”

Once you’re enrolled, you can access your account through the Priority Pass website or the mobile app.

🤓Nerdy Tip

We recommend downloading the Priority Pass mobile app, which makes it easy to find Priority Pass lounges while you’re traveling. You can also take advantage of the digital card on the app to enter eligible lounges.

How to enter Priority Pass lounges with your membership

To enter a Priority Pass lounge using your membership, you’ll first need to locate a lounge to visit.

Priority Pass has plenty of lounges — over 1,500 internationally. As of this time, the lounges are available in 44 U.S. cities.

Some airports may have several Priority Pass lounges, and some have none at all.

Once you find a Priority Pass lounge to visit, you’ll need the following to get in:

  • A same-day boarding pass.

  • An ID, such as a driver’s license or passport.

  • One of the following: 

    • YourCapital One Venture X Rewards Credit Card.

    • Your physical Priority Pass membership card.

    • Your digital Priority Pass membership card.

Keep in mind that Priority Pass lounges have capacity limits and can fill up, so we recommend having a back-up lounge or plan in mind if the Priority Pass lounge you want to visit is full.

Are there limits on guests or visits to Priority Pass lounges with the Capital One Venture X Rewards Credit Card?

One of our favorite features of the Capital One Venture X Rewards Credit Card Priority Pass benefit is that there is no limit to the number of lounges you can visit in a year.

Additionally, all guests traveling with you also receive complimentary access to the lounge.

Is it worth getting a Capital One Venture X Rewards Credit Card for the Priority Pass benefit?

The annual fee on the Capital One Venture X Rewards Credit Card is $395, while a Priority Pass membership that offers unlimited visits costs $469 per year, making the Capital One Venture X Rewards Credit Card Priority Pass membership a great value.

But if you’re able to take advantage of the other benefits offered by the Capital One Venture X Rewards Credit Card, like the card’s $300 annual travel credit, 10x miles on hotels and rental cars booked through Capital One Travel and the 10,000 miles anniversary bonus, then it makes sense to sign up for Priority Pass and the card’s other benefits.

Capital One Venture X Rewards Credit Card Priority Pass, recapped

Cardholders need to enroll in Priority Pass to gain access, but the process is straightforward. Once enrolled, you’ll be able to access a global network of Priority Pass lounges with no limit on the number of visits you can make or guests that you can bring each year.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

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Non-QM, RE Agent Monitoring, Mandatory Sales Products; The White House and Closing Costs; Webinars and Training

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Non-QM, RE Agent Monitoring, Mandatory Sales Products; The White House and Closing Costs; Webinars and Training

By:
Rob Chrisman

Fri, Mar 8 2024, 10:40 AM

“Horses have lower divorce rates. It’s because they are in stable relationships.” Here on the Central Coast of California, there are plenty of horses but few disasters, wars, or big insurance claims. But in Ukraine there have been 566,000 property damage reports, and the government has launched eRecovery, an app based on the government’s digital platform Diia that may provide a template for future recovery efforts worldwide. It has already processed 83,000 compensation claims for damaged or destroyed property and has paid out over 45,000 claims, with 566,000 property damage reports filed through December. Volume isn’t a disaster for lenders, but it isn’t stellar either, and today’s TMC Rundown features Femi Ayi, VP Branching Operations at Revolution Mortgage, discusses using technology to make some tough choices. Curinos tells us that February 2024 funded mortgage volume increased 5 percent YoY and increased 14 percent MoM. The average 30-year conforming retail funded rate in February 2024 was 6.79, a shade lower than January but 62 basis points higher than the same month last year. (Found here, this week’s podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear an interview with the STRATMOR Group’s Jim Cameron on Maslow’s hierarchy of needs as it pertains to mortgage companies.)

Lender Broker Services, Products, and Software

“How much are you spending on Agency LLPAs? The Conforming product for NOO and second homes can add upwards of 4 percent to your cost and prevent you from accessing the deepest possible pool of borrowers. More than 160 sellers on the MAXEX platform have eliminated their spend on Agency LLPAs for investment properties and second homes by utilizing our mandatory bulk, and best-efforts flow, Conforming program. Access multiple securitization and portfolio investors with a single contract and no LLPAs on NOO and Second-home properties using the same Agency guidelines you’re used to, without the fees. High Balance loans also available. Schedule time with our team today to learn more.”

As the U.S. prepares to spring forward this weekend, the long-awaited spring market has finally arrived, marked by March ’23 showcasing peak LO activity with $129B in volume. As 2024 is predicted to bring $2 trillion in mortgage origination volume, now is the time to prepare for new business opportunities by cultivating and reinforcing your real estate agent referral partnerships. Unsure of where to begin? Mobility Market Intelligence (MMI) offers full visibility into any agent’s activity, including instant new listing alerts. Learn more here.

TPO, Broker, and Correspondent Product News

“Luxury Mortgage Corp. is thrilled to announce that we’ve recently enhanced and expanded over 100 facets of our Non-QM underwriting guidelines within the past two weeks. We’re eager to share these exciting updates with you! These enhancements include improvements for allowing certain borrowers to exclude the PITIA from their departing residence. We’ve expanded the eligibility criteria for non-occupant co-applicants, allowing blended income and assets up to 90 percent LTV. Additionally, our Bank Statement qualification options have been widened to encompass five (5) methods, one of which allows for a 1-year P&L supported by only two months of bank statements. To learn more about these updates, we invite you to explore a list of key improvements by clicking here. If you are not an approved broker, now is the perfect time to become one. Click here to initiate the process of becoming an approved wholesale broker and prepare to take your production to the next level.

Attribution: Yesterday’s Commentary reported that, “The real estate investment trust affiliated with Angel Oak Companies posted a $28.6 million profit in the fourth quarter. For the full year of 2023, the REIT generated a profit of $33.7 million; all but forgotten is 2022’s reported loss of $187.8 million….” This information and story came from Inside Mortgage Finance, and we apologize for not noting this yesterday.

President Biden and… Closing Costs?

Anyone in our business knows that “housing costs” are complex and dependent on a myriad of factors, including supply and demand, demographics, local and state zoning and permit costs, construction demographics, builder choices, etc.

“President Biden believes housing costs are too high, and significant investments are needed to address the large shortage of affordable homes inherited from his predecessor and that has been growing for more than a decade. During his State of the Union Address, President Biden will call on Congressional Republicans to end years of inaction and pass legislation to lower costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes; build and renovate more than 2 million homes; and lower rental costs. President Biden also announced new steps to lower homebuying and refinancing closing costs and crack down on corporate actions that rip off renters.”

Webinars, Podcasts, and Training Next Week

It’s hard to believe a woman couldn’t get mortgage without a co-signer until 1974! In celebration of Women’s History Month, join MGIC for The Remarkable Rise of Women in the Mortgage Industry webinar on Wednesday, March 13. Hear guest speaker Patty Arvielo, CEO of New American Funding, discuss co-founding one of the largest independent mortgage lenders in the nation while fostering growth for women. MGIC’s Paula Maggio, EVP – General Counsel & Secretary, will lead the moderated discussion. Register now!

(A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.)

Today, Friday, March 8, is this week’s episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Today’s is co-hosted by Femi Ayi, VP Branching Operations at Revolution Mortgage.

Come see another industry first product by Insellerate with its new AI assistant. See how you can leverage AI now to create better customer experiences, drastically increase conversion, increase loan officer efficiency, market in new ways, and have insights into your customer like never before. On Tuesday March 12th Insellerate will be hosting a free webinar that will show case an industry first AI product.

National MI University’s March Webinars! Mastering LinkedIn for Mortgage Professionals – Session Three ​​​​​​​​​​with Brynne Tillman – March 12th at 3pm ET. Top Loan Officer Strategies to Win NextGen Homebuyers ​​​​​​with Kristin Messerli – March 13th at 2pm ET. Your Leadership DNA ​​​​​​​​​​with Andrew Oxley – March 14th at 2pm ET. The Psychology of Sales ​​​​​with Rebecca Lorenz – March 26th at 2pm ET.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Next week watch attorney James Brody field questions on repurchases and compliance issues.

The Federal Housing Finance Agency (FHFA) announced it will host the next session in its series of property insurance symposiums on March 13.

Optimal Blue’s Hedging 101 webinar is back on March 14, Noon CT. Whether you’re considering a transition to mandatory or you’re already hedging, you won’t want to miss this highly informative and directional webinar.

Free, Live, virtual training for all USDA lenders and real estate agents, Top Tips for Confident Credit Underwriting. Watch this live training event in Microsoft Teams on Thursday, March 14, 2:00 pm – 3:00 pm ET.

Partner with the pioneer in non-QM wholesale lending to elevate your brokerage. Don’t miss Angel Oak’s March webinars crafted exclusively for broker originators. March 14th, 1PM EST, a Non-QM Webinar on DSCR Loans, March 21st, 1PM EST, a Non-QM Webinar on Bank Statement Loans.

Register for the Independent Community Bankers of America’s (ICBA) national convention, Thursday, March 14 through Sunday, March 17 at Orlando World Center Marriott.

The largest, most comprehensive educational and networking event for the nation’s community bankers. Attendees will explore industry trends and best practices while tackling top-of-mind community banking issues through dynamic general sessions; learning lab sessions, roundtables, and panels; and view demos featuring the latest innovation developments during the ICBA ThinkTECH Showcase and Expo Hall featuring more than two hundred vendors.

Capital Markets

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.54 trillion in February, including $30.9 billion of total MBS issuance, leading to $11.4 billion of net growth. February’s new MBS issuance supports the financing of more than 96,000 households, including more than 44,000 first-time homebuyers. Approximately 69.8 percent of the February MBS issuance reflects new mortgages that support home purchases. The February issuance includes $30 billion of Ginnie Mae II MBS and nearly $894 million of Ginnie Mae I MBS, including nearly $816 million in loans for multifamily housing. For the 2024 calendar year to date, Ginnie Mae has supported the pooling and securitization of more than 91,000 first-time homebuyer loans.

Turning to the overall fixed-income markets, the yield curve is moving toward “normal convexity” as dovish rhetoric from Federal Reserve officials this week has buoyed investor sentiment. The Fed may cut interest rates three times this year. Or twice. Or once. Or maybe not at all. Day two of Fed Chair Powell’s congressional testimony yesterday brought him before the Senate Banking Committee, where he reiterated that the Fed is close to the necessary confidence that will make it appropriate to begin dialing back the level of restriction.

But the FOMC is in no rush: Stronger than expected economic data in the first two months of the year has given the Fed ample breathing room to wait for further evidence that inflation is returning to the 2 percent target. Powell also confirmed policymakers are well aware of the risks of cutting too late. Cleveland Fed President Mester echoed Chairman Powell’s view that the FOMC will likely be in position to lower rates this year.

Improved TBA (“to be announced” MBS, used for hedging pipelines) pricing yesterday was primarily a result of the ECB’s adjusted inflation forecasts despite no change in rates. ECB President Lagarde’s remarks after maintaining current rates for the fourth consecutive meeting raised speculation that a rate cut could be on the horizon for June. Domestically, continuing jobless claims came in slightly lower than expected, which contributed to favorable bond market pricing.

What’s the rate & term refi possibility? We’ve seen a reduction in mortgage rates from nearly 8 percent at the end of October to slightly under 7 percent currently. The total percentage of American homeowners that currently have refi incentive of at least 50 basis points has risen from 0.03 percent to just 2.1 percent ($102.2 billion out of about $4.97 trillion in UPB).

Today brought the February payrolls report. Nonfarm payrolls increased 275k versus 190k expectated and 353k previously. The unemployment rate was 3.9 percent when it was seen holding steady at 3.7 percent. Average hourly earnings were tame at +.1 percent (+4.3 year-over-year) versus expectations of increasing 0.3 percent month-over-month and 4.5 percent year-over-year versus 0.6 percent and 4.5 percent in January. Later today brings remarks from New York Fed President Williams, the only scheduled Fed speaker. After the employment data Agency MBS prices and the 10-year yielding 4.04 after closing yesterday at 4.09 percent. The 2-year is at 4.44.

Employment and Transitions

“Ross Mortgage Corporation, celebrating 75 years as a trusted lender, invites you to join a legacy where success, innovation, and an unparalleled customer experience are the foundation of everything we do. With our unmatched support system, including personalized marketing strategies and tools to highlight your achievements and community impact, you’ll have everything you need to succeed. We are a sales organization led by a salesperson, where our President understands the challenges you face and is there every step of the way along with our caring team to support your growth and success. Ross is large enough to provide a state-of-the-art technology stack, but small enough where your voice is always heard. If you are a Loan Officer or Branch Manager who would like to learn about joining our winning team, please reach out to our President, Tim Pascarella at 248-259-4614. Licensed in AL, FL, GA, IL, IN, KY, MD, MI, MN, NC, OH, PA, SC, TN, TX, VA, WI, and the District of Columbia.”

It’s difficult to imagine a mortgage company remaining stable and debt-free for 32 years, especially in today’s market. But that’s exactly what Churchill Mortgage has achieved. Founder and CEO, Mike Hardwick believes a key component of running a successful business is doing what’s right for its people. In 2013, Mike transformed Churchill Mortgage into an Employee-Owned company, and as such, the team has navigated challenges together and emerged even stronger through the last few years. This year, Mike has promoted Matt Clarke to President as a natural next step to support continued growth. “I am excited and proud to promote Matt to President and Chief Operating Officer of Churchill Mortgage. He is an extraordinarily gifted thinker who has a unique ability to pull people together and make them stronger as a team,” said Hardwick. “I am honored to step into the role as President. Churchill’s people inspire me to keep growing and that’s exactly what we’re doing. We’re pushing ourselves to never stop improving and evolving. I’m excited to see what we achieve in the next 32 years,” said Clarke.

In Montana, Evergreen Home Loans is excited to introduce our new leadership team, reinforcing our dedication to serving the local community with unparalleled mortgage solutions. Leading the charge is Pete Edgecomb as Regional Manager, bringing a strategic vision and robust market acumen. Brett Evertz steps in as Area Manager, ready to foster growth and enhance our service offerings. At the branch level, Kelly Duray and Crystal Eckerson assume the roles of Branch Managers, combining their deep industry knowledge and local insights to deliver personalized client experiences. Evergreen is committed to empowering homeownership with a suite of innovative products. Our focus on local decision-making and comprehensive product offerings positions Evergreen as the premier choice for both seasoned teams and individuals aiming to advance their careers in the Montana market. Join us in shaping the future of home financing. To see all job listings visit: Mortgage Careers

AmeriHome wired out the news that Jim Furash, CEO of AmeriHome, has decided to retire from the company as of March 1st and that Josh Adler, Chief Investment Officer, has been promoted to CEO of AmeriHome. In addition to Josh’s new role as CEO, the company also announced that Dan Blanding, EVP Capital Markets, has been promoted to Chief Investment Officer. Congratulations all the way around!

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Source: mortgagenewsdaily.com