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If you spent your teenage years waiting anxiously for one of your siblings to get out of the shower, the idea of selling your spacious, multi-bathroom home and moving into a smaller house or condo may feel like a reversal of fortune.

Yet for many retirees, downsizing makes financial and practical sense. Younger baby boomers — those currently ranging in age from 57 to 66 — made up 17% of recent home buyers, while older boomers — ages 67 to 75 — accounted for 12%, according to a 2022 report from the National Association of Realtors Research Group. Boomers’ primary reasons for buying a home were to be closer to friends and family, as well as a desire to move into a smaller home, the report said. Both younger and older boomers were more likely than others to purchase a home in a small town, and younger boomers were the most likely to buy in a rural area.

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For retirees Fred and Shelby Bivins, selling their home in Green Valley, Ariz., will enable them to realize their dream of traveling in retirement. The Bivinses have put their 2,050-square-foot Arizona home on the market and plan to relocate to their 1,600-square-foot summer condo in Fish Creek, Wis., a small community about 50 miles from Green Bay. They plan to live in Wisconsin in the spring and summer and spend the winter months in a short-term rental in Arizona, where they have family.  

Fred, 65, says the decision to downsize was precipitated by a two-month stay in Portugal last year, one of several countries they hope to visit while they’re still healthy enough to travel. “We’ve had Australia and New Zealand on our list for many years, even when we were working,” says Shelby, 68. The Bivinses are also considering a return visit to Portugal. Eliminating the cost of maintaining their Arizona home will free up funds for those trips. 

With help from Chris Troseth, a certified financial planner based in Plano, Texas, the Bivinses plan to invest the proceeds from the sale of their home in a low-risk portfolio. Once they’re done traveling and are ready to settle down, they intend to use that money to buy a smaller home in Arizona. “Selling their primary home will generate significant funds that can be reinvested to support their lifestyle now and in the future,” Troseth says. “Downsizing for this couple will be a positive on all fronts.”

Challenges for downsizers 

For all of its appeal, downsizing in today’s market is more complicated than it was in the past. With 30-year fixed interest rates on mortgages recently approaching 8%, many younger homeowners who might otherwise upgrade to a larger home are unwilling to sell, particularly if it means giving up a mortgage with a fixed rate of 3% or less. More than 80% of consumers surveyed in September by housing finance giant Fannie Mae said they believe this is a bad time to buy a home and cited mortgage rates as the top reason for their pessimism. “This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon,” Fannie Mae said in a statement. As a result, buyers are competing for limited stock of smaller homes, says Hannah Jones, senior economic research analyst for Realtor.com. 

Here, though, many retirees have an advantage, Jones says. Rising rates have priced many younger buyers out of the market and made it more difficult for others to obtain approval for a loan. That’s not an issue for retirees who can use proceeds from the sale of their primary home to make an all-cash offer, which is often more attractive to sellers. 

Retirees also have the ability to cast a wider net than younger buyers, whose choice of homes is often dictated by their jobs or a desire to live in a well-rated school district. While the U.S. median home price has soared more than 40% since the beginning of the pandemic, prices have risen more slowly in parts of the Northeast and Midwest, Jones says. “We have seen the popularity of Midwest markets grow over the last few months because out of all of the regions, the Midwest tends to be the most affordable,” she says. “You can still find affordable homes in areas that offer a lot of amenities.” 

Meanwhile, selling your home may be somewhat more challenging than it was during the height of the pandemic, when potential buyers made offers on homes that weren’t even on the market. The Mortgage Bankers Association reported in October that mortgage purchase applications slowed to the lowest level since 1995, as the rapid rise in mortgage rates has pushed many potential buyers out of the market. Sales of previously owned single-family homes fell a seasonably adjusted 2% in September from August and were down 15.4% from a year earlier, according to the National Association of Realtors. “As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” NAR chief economist Lawrence Yun said in a statement. 

However, because of tight inventories, there’s still demand for homes of all sizes, Jones says, so if your home is well maintained and move-in ready, you shouldn’t have difficulty selling it. “The market isn’t as red-hot as it was during the pandemic, but there’s still a lot to be gained by selling now,” she says.

Other costs and considerations 

If you live in an area where real estate values have soared, moving to a less expensive part of the country may seem like a logical way to lower your costs in retirement. While the median home price in the U.S. was $394,300 in September, there’s wide variation in individual markets, from $1.5 million in Santa Clara, Calif., to $237,000 in Davenport, Iowa. But before you up and move to a lower-cost locale, make sure you take inventory of your short- and long-term expenses, which could be higher than you expect. 

Selling your current home, even at a significant profit, means you will incur costs, including those to update, repair and stage it, as well as a real estate agent’s commission (typically 5% to 6% of the sale price). In addition, ongoing costs for your new home will include homeowners insurance, property taxes, state and local taxes, and homeowners association or condo fees.

Nicholas Bunio, a certified financial planner in Berwyn, Pa., says one of his retired clients moved to Florida and purchased a home that was $100,000 less expensive than her home in New Jersey. Florida is also one of nine states without income tax, which makes it attractive to retirees looking to relocate. Once Bunio’s client got there, however, she discovered that she needed to spend $50,000 to install hurricane-proof windows. Worse, the only home-owners insurance she could find was through Citizens Property Insurance, the state-sponsored insurer of last resort, and she’ll pay about $8,000 a year for coverage. Her property taxes were higher than she expected, too. When it comes to lowering your cost of living after you downsize, “it’s not as simple as buying a cheaper house,” Bunio says 

Before moving across the country, or even across the state, you should also research the availability of medical care. “Oftentimes, those considerations are secondary to things like proximity to family or leisure activities,” says John McGlothlin, a CFP in Austin, Texas. McGlothlin says one of his clients moved to a less expensive rural area that’s nowhere near a sizable medical facility. Although that’s not a problem now, he says, it could become a problem when they’re older. 

If you use original Medicare, you won’t lose coverage if you move to another state. But if you’re enrolled in Medicare Advantage, which is offered by private insurers as an alternative to original Medicare, you may have to switch plans to avoid losing coverage. To research the availability of doctors, hospitals and nursing homes in a particular zip code, go to www.medicare.gov/care-compare.

At a time when many seniors suffer from loneliness and isolation, a sense of community matters, too. Bunio recounts the experience of a client who considered moving from Philadelphia to Phoenix after her daughter accepted a job there. The cost of living in Phoenix is lower, but the client changed her mind after visiting her daughter for a few months. “She has no friends in Phoenix,” he says. “She’s going on 61 and doesn’t want to restart life and make brand-new connections all over again.”

Time is on your side 

Unlike younger home buyers, who may be under pressure to buy a place before starting a new job or enrolling their kids in school, downsizers usually have plenty of time to consider their options and research potential downsizing destinations. Once you’ve settled on a community, consider renting for a few months to get a feel for the area and a better idea of how much it will cost to live there. Bunio says some of his clients who are behind on saving for retirement or have high health care costs have sold their homes, invested the proceeds and become permanent renters. This strategy frees them from property taxes, homeowners insurance, homeowners association fees and other expenses associated with homeownership 

The boom in housing values has boosted rental costs, as the shortage of affordable housing increased demand for rental properties. But thanks to the construction of new rental properties in several markets, the market has softened in recent months, according to Zumper, an online marketplace for renters and landlords. A Zumper survey conducted in October found that the median rent for a one-bedroom apartment fell 0.4% from September, the most significant monthly decline this year. 

In 75 of the 100 cities Zumper surveyed, the median rent for a one-bedroom apartment was flat or down from the previous month. (For more on the advantages of renting in retirement, see “8 Great Places to Retire—for Renters,” Aug.)

Aging in place

Even if you opt to age in place, you can tap your home equity by taking out a home equity line of credit, a home equity loan or a reverse mortgage. At a time when interest rates on home equity lines of credit and loans average around 9%, a reverse mortgage may be a more appealing option for retirees. With a reverse mortgage, you can convert your home equity into a lump sum, monthly payments or a line of credit. You don’t have to make principal or interest payments on the loan for as long as you remain in the home. 

To be eligible for a government-insured home equity conversion mortgage (HECM), you must be at least 62 years old and have at least 50% equity in your home, and the home must be your primary residence. The maximum payout for which you’ll qualify depends on your age (the older you are, the more you’ll be eligible to borrow), interest rates and the appraised value of your home. In 2024, the maximum you could borrow was $1,149,825.

There’s no restriction on how homeowners must spend funds from a reverse mortgage, so you can use the money for a variety of purposes, including making your home more accessible, generating additional retirement income or paying for long-term care. You can estimate the value of a reverse mortgage on your home at www.reversemortgage.org/about/reverse-mortgage-calculator.

Up-front costs for a reverse mortgage are high, including up to $6,000 in fees to the lender, 2% of the mortgage amount for mortgage insurance, and other fees. You can roll these costs into the loan, but that will reduce your proceeds. For that reason, if you’re considering a move within the next five years, it’s usually not a good idea to take out a reverse mortgage.

Another drawback: When interest rates rise, the amount of money available from a reverse mortgage declines. Unless you need the money now, it may make sense to postpone taking out a reverse mortgage until the Federal Reserve cuts short-term interest rates, which is unlikely to happen until late 2024 (unless the economy falls into recession before that). Even if interest rates decline, they aren’t expected to return to the rock-bottom levels seen over the past 15 years, according to a forecast by The Kiplinger Letter. And with inflation still a concern, big rate cuts such as those seen in response to recessions and financial crises over the past two decades are unlikely. 

Note: This item first appeared in Kiplinger’s Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Source: kiplinger.com

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In the previous month, closed sales of existing single-family homes all over the state amounted to a total of 17,722 while existing condo-townhouse sales reached 7,108, according to data from Florida Realtors Research Department. Closed sales may also occur from 30 to 90 or more days after sales contracts are written. “Lately, prospective buyers in … [Read more…]

Apache is functioning normally

Customer Retention, Down Payment Products; Home Maintenance Study; First American News

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Customer Retention, Down Payment Products; Home Maintenance Study; First American News

By:
Rob Chrisman

Tue, Dec 26 2023, 10:43 AM

Did you receive any SM under the tree this weekend? Call it snail mucus, or snail mucin, it’s all the same to me, which, as a kid, represented a trail to something I could direct the sun’s rays on using my magnifying glass. (Sorry, when you’re a kid on a very limited budget, this counts as amusement.) But times change and now it’s a beauty product? “Next level!” Really? SM aside, Depth’s Kerri Milam reminded me that the key difference between initials and acronyms is that we pronounce acronyms as a word and initials as a list of letters. Put another way, Fannie Mae is an acronym, as is First American Title (FAT), FHA is a set of initials. NASA or ASAP versus MD or DFW. Throw in some numbers and you have… license plates. For those curious, here is a list of vanity license plates rejected by the state of Illinois. Of course, this has nearly nothing to do with mortgages. First American Financial’s customer service woes continue with its cybersecurity failure (more below), but my informal chats recently are still interested in the NAR lawsuit and how it will wind its way through the courts for years. A big question is what will contracts look like for buyer’s agents? (Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus! Hear an interview with Candor’s Thomas Showalter on the latest in the AI underwriting space.)

Broker and Lender Programs, Software, and Products

How about adding down payment assistance (DPA) to your toolset for 2024? Down Payment Resource, the original keeper of all things DPA, has an extensive database of programs to set your office up with the holiday gift that keeps on giving. With Down Payment Resource, you can reduce declined loans, bring the joy of homeownership to more borrowers, and become a strong contender for referrals and repeat business. To learn more, schedule a demo with the DPR team.

Permissionize revolutionizes servicing retention! Permissionize offers an innovative, cost-effective approach to retaining clients. This cutting-edge technology streamlines retention programs by notifying service providers when borrowers complete a webform, allowing for re-engagement with existing clients before they start the application process. Permissionize constantly monitors for signals, 24/7, whenever a phone number is entered into a webform, enabling you to capitalize on your established business relationships and drive inbound traffic to your call center without requiring opt-ins. This revolutionary technology redefines client retention in the servicing industry. John Lomanno, a seasoned professional in the mortgage industry, states, “We are transforming the servicing industry through automation by providing a cost-effective, extremely reliable way to get in front of your customer when they go online.” Contact us to experience firsthand how our pioneering technology changes everything you thought you knew about servicing retention.

Free eBook: How to Lower Costs, Boost Profitability, and Surge Ahead of the Competition in 2024. Why simply stay alive until ‘25 when you can make more of ‘24? By planning strategically now, you can reduce fixed costs, improve your bottom line, and set the groundwork to win market share as volume begins to improve. Want to learn how? We spoke to senior members of the Maxwell team, each with decades of industry experience, and the result is our new eBook: an actionable guide that will teach you the likely path for rates and volume in 2024, strategies to bulk up your pipeline, why reevaluating your cost structure is vital to achieving profitability, and more. Get your free copy today to inform your 2024 planning: Click here to download Make More Out of ‘24: How to Win Market Share as Your Competition Lags.

First American: This Isn’t the First Cyber Issue

It doesn’t take long for vendor management teams to figure out how much exposure a lender has to certain third-party providers. In this case, First American has been in the proverbial hotseat since last week. There are some who, I’m sure, are thinking about buying stock in First American Financial.

In 2021 we saw, “The Securities and Exchange Commission today announced settled charges against real estate settlement services company First American Financial Corporation for disclosure controls and procedures violations related to a cybersecurity vulnerability that exposed sensitive customer information.”

Last week, ”First American “has experienced a cybersecurity incident. In response, we’ve taken certain systems offline [like the main website above] and working to return to normal business operations as soon as possible.”

Those seeking updates have been pointed to this “non-hacked” site. Word on the street says that First American Financial Corp. cannot estimate how long some of its systems will remain offline after a cybersecurity incident, the company said in a Dec. 22 filing with the U.S. Securities and Exchange Commission.

First American touches many millions around the nation, from the early processing of a loan all the way through trailing docs and servicing. For example, Bob Caruso, the CEO of ServiceMac, sent out, “ServiceMac’s affiliated company First American has experienced a cyber security incident. In response, First American has taken certain systems offline and is working to return to normal business operations as soon as possible.

“ServiceMac’s primary data network and systems are separate from First American, have not been impacted, disrupted, breached, or subject to a cyber-security incident. Black Knight’s MSP platform remains fully operational. ServiceMac’s call centers continue to be operational. For customers, payments made by auto-debit from the customer’s designated account, bill paid through a customer’s financial institution, payment by a check sent to the address on the bill and payments made by overnight courier continue to be managed as normal. For those customers wanting to make a one-time payment or set up reoccurring payments, ServicMac’s Customer Service Representatives can handle those requests as usual at no cost to the customer. Customers can contact ServiceMac directly for that service.

“Certain customer and client facing technology features, such as the customer portal/website, the client portal, the IVR and the document management system, which depend on having a DNS that translates a domain name to an IP address, are back to normal operations for our internal team members. Because the outage is limited specifically to our DNS provider, external parties will have limited or no access to our systems like Client Portal, inbound SFTP sites, and Reporting.

“In addition, we are experiencing issues processing external emails. Please continue to communicate directly with your Account Executive and/or their leaders should you need anything. Once our DNS provider is restored, all services will be available to our clients and any of their customers who may have been affected. We will continue to provide updates as available. Should you have any additional questions our team is happy to set up a call with you to walk through together.”

Average Cost of Home Maintenance

Unsurprisingly, initial costs of upkeep were higher for new owners of older homes than for those who had lived in their homes for at least 10 years, according to recently released Census Bureau data. About 61 percent of owners of older homes started a home improvement project between 2019 and 2021, spending a median of $4,100 on all their home improvement projects during that time. Homes built before 1950 made up about 17 percent of homes and their owners spent a median of $1,800 a year on upkeep.

Owners of older homes who had moved in within the past two years tended to spend more on overall upkeep. These new owners spent a median of $3,900 per year, while longtime owners who had lived in older homes for at least 10 years spent about $1,500 annually. About 61 percent of owners of older homes started a home improvement project between 2019 and 2021, spending a median of $4,100 on all their home improvement projects during that time. Median annual spending on maintenance alone was around $540 for owners of older homes. Among owners of older homes, 59 percent of new owners who had moved in within the last two years did interior projects, compared to 46 percent of longtime owners who had lived in the home at least 10 years.

Capital Markets

Are these the best of times for stocks and bonds? Interest rates have been behaving themselves, and U.S. stocks on Friday ended largely higher, extending its amazing bull run to eight straight weeks. Sentiment this week has been boosted by favorable economic data, led by inflation data showing price increases are simmering down. The bond market may be ahead of itself, but, for now, the “smartest guys in the room” are talking about how inflation is in a downward trajectory and the Federal Reserve will lower benchmark interest rates in 2024.

Economic data released over the last week showed the U.S. economy is still expanding. That is despite November’s Leading Economic Index falling 0.5 percent, the 20th consecutive decline and typically a sign that the economy is currently in recession. Consumer spending increased 0.3 percent in November and for the first time in eight months, discretionary purchases surpassed non-discretionary. The spending gain can be attributed to a 0.4 percent rise in real disposable personal income.

Meanwhile, falling mortgage rates boosted existing home sales in November which rose 0.8 percent and snapped a five-month streak of declines. New home sales fell 12.2 percent in November due mostly to a sharp decline in sales in the South region. New home sales were up 1.4 percent on an annual basis. Lower mortgage rates could be a catalyst for a rebound in sales in the new year. And the Fed’s preferred gauge of inflation barely rose last month, and by one measure even trailed the policymaker’s 2 percent target. That marks the first time in three years the Fed has achieved its definition of price stability after waging war on inflation.

U.S. markets return today, and the calendar kicked off with the non-market moving Chicago Fed National Activity Index for November along with Philadelphia Fed non-manufacturing for December. Later today brings October house prices from Case-Shiller and FHA, Dallas Fed Texas manufacturing for December, and a Treasury auction of $57 billion 2-year notes. The rest of the week is light on data, though we do receive December PMI on Friday. We begin the abbreviated trading week with Agency MBS prices unchanged from Friday and the 10-year yielding 3.89 after closing Friday at 3.90 percent.

Employment

“Citizens has garnered attention for its clear vision, strong leadership, and disciplined execution through challenging market conditions and is looking for talented salespeople (sales managers, loan officers, and more) in Retail throughout the Northeast, MidAtlantic, Midwest, and Florida. Our deep product mix allows us to help with many different loan needs, from affordable loan programs such as HomeReady to a best-in-class one-time close construction to permanent product. Our specialty loan programs such as condo/co-op financing, rate protection programs with extended rate locks, along with an amazing Private Wealth discount value proposition for high net worth banking clients, ensures you have all the tools to win in this challenging market. Contact Carl Minott or visit here. During this holiday season we would like to express gratitude and appreciation to our customers and partners for their continued business this past year. While interest rates may go up and down our commitment to serving customers with their homeownership needs has never wavered. We look forward to serving our communities in even more ways in 2024!”

In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.

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Source: mortgagenewsdaily.com

Apache is functioning normally

TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

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TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

By:
Rob Chrisman

Thu, Dec 21 2023, 10:43 AM

“What do you call a Christmas wreath made out of $100 bills? Aretha Franklins.” It’s cutting-edge humor like this that keeps readers coming back for more, right? Or astronomy tips, as today is the Winter Solstice, with the least amount of sunlight in the Northern Hemisphere and a little music to go along with it. “The winter is here again, oh Lord. Haven’t been home in a year or more.” (Look at that hair!) Lenders and vendors are hoping that the decline in rates keeps the “winter” away from lending, and holds more salary cuts, layoffs, and furloughs at bay. Mortgage banking is not alone in expanding automation and trying to save money. Do you think that you deserve a lower price for checking out of a store yourself and not using a paid clerk? Many do. The number of people who work as cashiers dropped from 1.4 million in 2019 to 1.2 million today, and over the next decade the BLS projects an additional 10 percent decline. (Today’s podcast can be found here, and this week’s is sponsored by Lender Toolkit’s AI-powered AI Underwriter and Prism borrower income automation tools. Get loans approved in under two minutes. By providing lightning-fast underwriting decisions, your market reputation with borrowers and Realtors will soar. Listen to an interview with Hometap’s Dan Burnett on record home equity levels and how Americans can best leverage them.)

Lender and Broker Products, Programs, and Services

“With increased regulatory focus on property-valuation bias, lenders need robust risk-management processes in place. The recently released interagency proposals on AVM-quality control and ROV-process guidance are designed to prevent valuation bias and help ensure industry stakeholders follow fair-lending practices. Watch our complimentary on-demand webinar to learn how you can prepare, and implement the tools needed to support the proposed changes.* Our experts discuss how to identify potential bias in valuations, ways to mitigate bias risk, how to monitor AVM and appraisal compliance with fair-lending requirements, and more. Watch this timely and important webinar here. *Check with your compliance or legal department for information on complying with applicable law.”

“As the year draws to a close, Planet Home Lending extends our heartfelt gratitude to our invaluable correspondent partners. Together, we’ve stood strong in the face of challenges in a demanding market. Thank you for being an integral part of our shared journey. As we look forward to 2024, we continue our commitment to being your go-to team, your reliable partner, your toolkit, and your product gateway. Here’s to a smooth finish for 2023 and a prosperous New Year.”

“Ready to make your borrowers’ dreams of homeownership a reality? Kind ‘s blended FICO (conventional representative score) loan options can help make it happen! With this option, your borrowers have a greater chance of final approval for a home loan based on their average combined score. Kind has the tools & resources to help you get the job done fast and easy! Using the Kwik Pricer in our broker platform, Kwikie – built with brokers in mind, you’ll be able to knock out deals hassle-free! Learn more by connecting with your Kind Account Executive. If you’re not yet a partner with us, join the #kindmovement today by submitting your broker inquiry.”

Disaster Updates and Other Industry News

On December 13, 2023, with DR-4751-TN, the Federal Emergency Management Agency (FEMA) declared that federal disaster aid with individual assistance has been made available to four Tennessee counties; Davidson, Dickson, Montgomery and Sumner to supplement recovery efforts in the areas affected by severe storms and tornadoes on December 9, 2023.

On 12/13/2023, with DR-4751, FEMA declared federal disaster aid with individual assistance has been made available to counties affected by severe storms and tornadoes on 12/9/2023. See AmeriHome Mortgage Disaster Announcement 20231205-CL for inspection requirements.

Hometown Equity Mortgage is offering G-PA 525 Fast closings 21-30 days, 5-25 units can be mixed use, Mixed use is viable with 70 percent residential, no prepay, I/O 12/24, Up to 75 percent LTV.

Create opportunities with ITIN borrowers in the new year. If you’re not sure how, reach out to the Champs of Non-QM. Champions Funding is steadfast in its mission to help you and your borrowers access loan products outside of traditional agency options. Don’t miss out on learning all the CDFI benefits too! Not yet partnered with the Champs? Sign up today!

loanDepot, Inc. a leading provider of home lending solutions that enable customers to achieve the dream of home ownership, unveiled its fully automated melloNow underwriting engine, changing the game for mortgage borrowers by delivering a fully conditional loan approval in minutes rather than hours or days. Utilizing a fully digital verification process, melloNow swiftly analyzes credit reports, detects fraud, and validates income and employment data at the point of sale, instantaneously generating unique borrower conditions. Now, with the melloNow digital underwriting engine, many loanDepot customers will enjoy a dramatically improved experience.

Newfi Wholesale announced its partnership with the popular technology solution, ARIVE to bring its full suite of Non-QM products to loan officers and brokers. With this partnership, ARIVE is now expanding its capabilities to include DSCR loans. This illustrates the industry-wide shift towards the growing Non-QM sector. Specializing in alternative lending products, Newfi has led the way with innovative solutions relevant for today’s markets. This strategic partnership will empower mortgage brokers with a one-stop shop mortgage experience to a wide array of niche loan programs. Newfi approved brokers will gain immediate access to Newfi’s diverse product lineup and competitive pricing in seamless technological experience, with deeper integrations in development and are set to be unveiled soon, further enriching our shared platform’s capabilities. Brokers interested in working with Newfi can sign up here.

Effective for FHA case number assignments on or after January 1, 2024, AmeriHome’s 2024 Loan Limit Pricing will be available. For additional information including updates on VA loan limits, see AmeriHome Mortgage announcement 20231207-CL for details.

For Mortgage Loans converted from interim construction financing to a permanent loan with a modification, the Loan Modification Agreement required to be included in the Collateral Package may be a certified copy with the original document treated as a Trailing Document. View AmeriHome Mortgage Product Announcement 20231206-CL for details.

VA announced an update to VA Lenders Handbook Chapter 4 Topic 7, Subsection b on Collection Accounts. See AmeriHome Mortgage announcement 20231204-CL for details.

Jet Mortgage is offering a new FHA DPA, 100 percent LTV FHA with New Improved Pricing. Jet 200 FHA DPA Highlights include 600 Min FICO, 1 Unit, Condo’s, Townhomes, Repayable & Forgivable Option, Max 2 percent BPC/LPC – Max 2 percent Discount Points. Must be DU Approve/Eligible, no Manual Underwrites allowed. Contact Jet Mortgage for more information.

VA has issued Circular 26-23-26 regarding the impact of 2024 Conforming Loan Limits on VA loans. Contact Kind Lending with questions about impacts to VA loans regarding changes to conforming loan limits for 2024

Capital Markets

Bonds enjoyed another winning session yesterday on the back of some market-friendly inflation data for November out of the United Kingdom, geopolitical angst tied to a potential military response to Houthi rebels disrupting shipping activity in the Red Sea, slowdown worries linked to disappointing forward revenue guidance from economic bellwether FedEx, and some safe-haven positioning before the extended Christmas weekend. The market largely overlooked some stronger-than-expected existing home sales activity in November, a nice pickup in consumer confidence in December, and a weak 20-year bond reopening auction.

In housing/real-estate news, Existing Home sales rose 0.8 percent month-over-month in November to a seasonally adjusted annual rate of 3.82 million, ending a five-month decline. Despite the rise, sales still sit 7.3 percent lower than a year ago largely due to mortgage rates spiking in September and October. Sales of existing homes continue to be hindered by high mortgage rates, high selling prices, and limited inventory. Inventory remains light, with only 3.5 months’ worth at the current pace. Fortunately, the recent drop in mortgage rates is expected to be a driver of stronger sales activity in December. The median home price rose 4 percent year-over-year to $387,600, while the first-time homebuyer share rose to 31 percent from 28 percent from the month prior.

As previously mentioned, this week contains a lot of housing data. After learning Tuesday of a substantial pick-up in residential activity recently, it would appear that home builders are becoming more optimistic as mortgage rates trend lower and economic growth remains resilient. Speaking of optimism, we also learned yesterday that the Conference Board’s Consumer Confidence Index increased in December as there was renewed optimism across all ages and household income levels with attention being paid to improved inflation trends, business conditions, and job availability. Consumer confidence is highly influenced by gasoline prices, which have been falling.

There will be little data of importance on the economic front until we get into the new year, though we do have a busy economic calendar today that is underway with the third look at Q3 GDP (4.9 percent, revised slightly downward). We’ve also received weekly jobless claims (205k, up from 202k) and Philadelphia Fed manufacturing (-10.5, much lower than expected). The core PCE deflator was expected to be unchanged at 2.3 percent. Later today brings leading indicators for November, KC Fed manufacturing for December, Treasury announcing next week’s laundry list of supply including 2-, 5- and 7-year notes before auctioning $20 billion reopened 5-year TIPS, and Freddie Mac’s Primary Mortgage Market Survey with the prior week’s 30-year mortgage rate slipping eight basis points to 6.95 percent. We begin the day with Agency MBS prices unchanged from Wednesday night, the 10-year yielding 3.87 after closing yesterday at 3.88 percent, and the 2-year at 4.36. With yesterday’s gains, the 10-year note yield returned to unchanged for 2023 after hitting 5.02 percent intraday in the middle of October.

Employment

“Logan Finance bucks mortgage industry trends with strong Q4 growth! As the year-end fast approaches, Logan Finance finds itself in a thriving environment sparking growth that has more than doubled over the last two years. “There’s a great need for Non-QM lending and we are positioned well to handle the influx of new business,” says Aaron Samples, Logan’s Chief Revenue Officer. TPO partners, if you missed the year-end pricing special announcement, see our LinkedIn profile at Logan Finance Corporation. Mortgage broker clients can get rate discounts of up to .375 on select loan products through the end of December, so bring your deals to Logan! Logan’s growth is also fueling several new hires including Wholesale and Correspondent industry veterans Nick Pabarcus and Dave Weatherford, who will focus on recruiting and growing our network. And speaking of hiring, we’re looking for Non-QM superstar AE’s, so contact Aaron Samples for hiring information. Learn more about Logan’s growth at Loganwholesale.com and Logancorrespondent.com.”

Happy Holidays from PrimeLending! Looking back at 2023, are you wrapping up the year feeling more confident of where your career is headed than when you started? Did you receive the coaching and support needed to strengthen critical skills, harness cutting-edge tools, and propel yourself to new heights? As you gear up for 2024, why settle for treading water? Take charge and position yourself to thrive at PrimeLending. Our LOs are transforming their professional journeys through One More, our exclusive peer-to-peer coaching program. Designed to empower producers to excel in today’s volatile market, One More offers a dynamic, fast-paced, and results-oriented small group support system where LOs can connect, collaborate, and ultimately surpass their goals. We’d love to talk with you about how we can help you flourish more too. Contact Nic Hartke for more information.

A Greater Town has built a robust real estate portal into its national hyperlocal marketing site and is looking for one mortgage lender (or a few select mortgage lenders) to “own” it, similar to having your own Zillow or Rocket Homes. About 600 MLS associations are represented with over 1,100,000 listings & 750,000 real estate agents & brokers. A comprehensive directory of every mortgage lender & MLO in the country is in construction as well. It’s the ideal environment for a national lender to set up shop. Examples include Editors Picks, Sally Forster Jones, Founder & CEO of the Sally Forster Jones Group at Compass, and Jerry & Lisa String, Listing & Buyer Agents at Realty ONE Group DocksideSouth. For further information, please contact Drew Knapp, CEO of A Greater Town, (973-477-7154).

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Today’s mortgage rates

For a third day, average mortgage rates barely moved yesterday. But that’s good because it means last week’s big falls remain effectively uneroded.

First thing, it was again looking as if mortgage rates today might fall, perhaps modestly or moderately. However, that could change as the hours pass.

Current mortgage and refinance rates

Find your lowest rate. Start here

Program Mortgage Rate APR* Change
Conventional 30-year fixed 7.125% 7.14% -0.075
Conventional 15-year fixed 6.385% 6.415% -0.1
Conventional 20-year fixed 6.975% 7% -0.045
Conventional 10-year fixed 6.12% 6.145% -0.065
30-year fixed FHA 5.98% 6.88% -0.095
30-year fixed VA 6.165% 6.315% -0.13
5/1 ARM Conventional 6.425% 7.675% -0.035
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.

Should you lock your mortgage rate today?

Every day that passes makes a corrective bounce (when mortgage rates rise as markets think they’ve got carried away) less likely. And it reinforces my hope that those rates are in a downward trend that could last well into next year.

So, my personal rate lock recommendations are:

  • LOCK if closing in 7 days
  • FLOAT if closing in 15 days
  • FLOAT if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.

>Related: 7 Tips to get the best refinance rate

Market data affecting today’s mortgage rates

Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:

  • The yield on 10-year Treasury notes edged lower to 3.90% from 3.92%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
  • Major stock indexes were mostly falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
  • Oil prices climbed to $75.14 from $73.12 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
  • Gold prices held steady at $2,049 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
  • CNN Business Fear & Greed index — ticked down to 77 from 78. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones

*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.

Caveats about markets and rates

Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to decrease. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.

Find your lowest rate. Start here

What’s driving mortgage rates today?

The Federal Reserve

This morning’s Wall Street Journal (paywall) observed: “After their policy meeting last week, Fed officials released projections of at least three rate cuts [in general interest rates] next year. They have since been flummoxed that investors expect even faster and deeper cuts. The result: Confusion over when and how quickly the Fed might cut as the central bank tries to bring inflation down without a painful recession.”

This could turn into a real issue that could push mortgage rates higher, probably in the new year. Wall Street has a long and inglorious record of hearing what it wants the Fed to say rather than what the Fed actually says. And we’ve seen quite recently examples of sharp rises in mortgage rates when markets’ wishful thinking collides with reality.

Still, last week’s Fed meeting did deliver genuinely good news. And, even if mortgage rates rise when investors face the cold light of dawning reality, I’m optimistic that we’ll keep at least most of the recent gains. Just be aware that the path to lower mortgage rates is unlikely to be smooth.

Today

This morning’s economic reports cover existing home sales in November and consumer confidence in December. They’re both published too late for me to assess their likely impact on markets and mortgage rates.

They could push mortgage rates a little higher or lower, but they rarely move them far or for long.

Tomorrow

Tomorrow brings gross domestic product (GDP) figures for the third quarter of this year. This will be the third and final estimate for this number.

The second estimate put GDP growth at 5.2%, up from 2.1% in the second quarter. MarketWatch says that market expectations for tomorrow’s figure have recently been slightly scaled down to 5.1%.

If the actual number tomorrow is lower than 5.1%, that could drag mortgage rates lower. But, if it’s higher, that could push those rates upward.

Friday

We’re due November’s personal consumption expenditures (PCE) price index on Friday. Markets might get nervous if that shows inflation rising more than expected because that could destroy the Fed’s new-found optimism.

More on what to expect from the PCE report tomorrow.

Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.

According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.

Freddie’s Dec. 14 report put that same weekly average at 6.95%, down from the previous week’s 7.03%. Freddie’s data are almost always out of date by the time it announces its weekly figures.

Expert forecasts for mortgage rates

Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

And here are their rate forecasts for the current quarter (Q4/23) and the following three quarters (Q1/24, Q2/24 and Q3/24).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Dec. 19 and the MBA’s on Dec. 13.

Forecaster Q4/23 Q1/24 Q2/24 Q3/24
Fannie Mae 7.4% 7.0%  6.8% 6.6%
MBA 7.4% 7.0%  6.6% 6.3%

Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.

Important notes on today’s mortgage rates

Here are some things you need to know:

  1. Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
  2. Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
  3. Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
  4. When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
  5. Refinance rates are typically close to those for purchases.

A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.

Find your lowest mortgage rate today

You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:

“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”

In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?

Verify your new rate

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

How your mortgage interest rate is determined

Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.

Factors that determine your mortgage interest rate include:

  • Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
  • Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
  • Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
  • Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
  • Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
  • Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
  • Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
  • Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate

Remember, every mortgage lender weighs these factors a little differently.

To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.

Verify your new rate. Start here

Are refinance rates the same as mortgage rates?

Rates for a home purchase and mortgage refinance are often similar.

However, some lenders will charge more for a refinance under certain circumstances.

Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.

This creates a tidal wave of new work for mortgage lenders.

Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.

In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.

Also, cashing out equity can result in a higher rate when refinancing.

Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.

Check your refinance rates today. Start here

How to get the lowest mortgage or refinance rate

Since rates can vary, always shop around when buying a house or refinancing a mortgage.

Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.

Here are a few tips to keep in mind:

1. Get multiple quotes

Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.

Some simply go with the bank they use for checking and savings since that can seem easiest.

However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.

So get multiple quotes from at least three different lenders to find the right one for you.

2. Compare Loan Estimates

When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.

You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:

  • Interest rate
  • Annual percentage rate (APR)
  • Monthly mortgage payment
  • Loan origination fees
  • Rate lock fees
  • Closing costs

Remember, the lowest interest rate isn’t always the best deal.

Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.

Also, pay close attention to your closing costs.

Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.

3. Negotiate your mortgage rate

You can also negotiate your mortgage rate to get a better deal.

Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.

You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.

And if they’re not, keep shopping — there’s a good chance someone will.

Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?

Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).

Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.

Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.

With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.

Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.

In most other cases, a fixed-rate mortgage is typically the safer and better choice.

Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.

How your credit score affects your mortgage rate

You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.

This is because credit history determines risk level.

Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.

For the best rate, aim for a credit score of 720 or higher.

Mortgage programs that don’t require a high score include:

  • Conventional home loans — minimum 620 credit score
  • FHA loans — minimum 500 credit score (with a 10% down
    payment) or 580 (with a 3.5% down payment)
  • VA loans — no minimum credit score, but 620 is common
  • USDA loans — minimum 640 credit score

Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.

If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.

You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.

How big of a down payment do I need?

Nowadays, mortgage programs don’t require the conventional 20 percent down.

In fact, first-time home buyers put only 6 percent down on average.

Down payment minimums vary depending on the loan program. For example:

  • Conventional home loans require a down payment between 3%
    and 5%
  • FHA loans require 3.5% down
  • VA and USDA loans allow zero down payment
  • Jumbo loans typically require at least 5% to 10% down

Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.

If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.

This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.

But a big down payment is not required.

For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.

Verify your new rate. Start here

Choosing the right type of home loan

No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.

The five main types of mortgages include:

Fixed-rate mortgage (FRM)

Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.

The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.

Adjustable-rate mortgage (ARM)

Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.

Your rate and payment can rise or fall annually depending on how the broader interest rate trends.

ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).

For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.

Jumbo mortgage

A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.

In 2023, the conforming loan limit is $726,200 in most areas.

Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.

FHA mortgage

A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.

VA mortgage

A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.

VA loans allow no down payment and have exceptionally low mortgage rates.

USDA mortgage

USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.

Bank statement loan

Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.

Portfolio/Non-QM loan

These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.

Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.

Choosing the right mortgage lender

The lender or loan program that’s right for one person might not be right for another.

Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.

Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.

Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.

Time to make a move? Let us find the right mortgage for you

Current mortgage rates methodology

We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.

Source: themortgagereports.com

Apache is functioning normally

Government-sponsored enterprise (GSE) Freddie Mac on Wednesday announced further enhancements to its Condo Project Advisor tool that are designed to “streamline” such loan originations and to offer lenders “greater security” through a new designation, according to an announcement.

“This designation, known as ‘project certified’ status for Project Assessment Requests (PAR), confirms that condo properties meet certain project review and general eligibility requirements for financing,” Freddie Mac said of the new designation. “Once reaching this status, lenders only need to do minimal project underwriting, which may save lenders time and borrowers money.”

Lenders also now can submit to receive project certified status for certain projects at no cost, specifically “for loans secured by units in condo projects that don’t already carry this status,” the GSE said.

The new designation will become available to all Freddie Mac-authorized lenders using Condo Project Advisor on Dec. 8, 2023.

“Condominiums provide a key path to homeownership, particularly for first-time and low-income homebuyers,” said Tanya DeLia, Single-Family VP of Collateral Risk Management at Freddie Mac. “Considering the challenges facing the housing market currently, it should come as no surprise that condo financing is especially critical.”

Freddie Mac is committed to “continuing to find ways to help streamline condo loan originations, while helping lenders ensure that condo homebuyers are put on a path of sustainable and successful homeownership in [such] communities,” she added.

News of the move was immediately lauded by the Community Home Lenders of America (CHLA), according to a statement from the organization.

“CHLA commends Freddie Mac for [providing] more transparency to condo associations and lenders regarding which condo projects are eligible for Freddie Mac loans — and would provide assistance to both to help non-eligible condos become eligible,” CHLA said.

Such actions can serve as important steps to “facilitate homeowner access to affordable mortgage loans for condos, one of the most affordable sectors of our housing markets,” CHLA added.

Source: housingwire.com

Apache is functioning normally

Get a mortgage as a military borrower

The GI Bill offers numerous benefits for veterans, active-duty service members, and their families however it does not offer its own home loan program.

But military borrowers have access to the VA home loan program through the U.S. Department of Veterans Affairs, a mortgage program designed to help make homeownership more accessible.

The VA home loan program offers significant benefits, particularly when compared to other home loan programs, including:

  • No down payment requirement
  • No private mortgage insurance (PMI)
  • Competitive interest rates
  • Flexible qualifying requirements

Verify your new rate

Is there a GI home loan program?

While there is technically no home loan program including the GI Bill benefits, military home buyers who qualify for the GI Bill also likely qualify for the VA home loan program, which offers mortgages to eligible veterans, service members and their families.

Benefits of a VA home loan

A VA loan’s most significant benefit is that it requires zero down payment. Where other programs might require anywhere from 3 to 20 percent of the loan amount upfront, a VA loan will have no down payment at all, which can represent immediate savings.

Other VA loan benefits include:

  • Competitively low interest rates
  • No private mortgage insurance
  • Flexible qualifying requirements
  • Capped closing costs
  • Loans are assumable
  • No loan limits
  • Can be used multiple times

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VA loan eligibility & requirements 2024

VA service eligibility requirements

VA loans are intended for active-duty service members, veterans, and their families (including surviving spouses).

That means, there are service requirements that borrowers must meet to qualify.

Generally, eligible borrowers will have one or more of the following:

  • 90 consecutive days of active service during wartime
  • 181 days of active service during peacetime
  • 6 years of service in the National Guard or Reserves
  • A spouse who died in the line of duty or due to a service-connected disability or injury

Servicemen will demonstrate their qualifying military background with a Certificate of Eligibility (COE), a document that indicates the specifics of their military service and the total amount of their entitlement.

Borrowers can request a COE directly from the VA, or a VA lender can help you request it.

VA financial eligibility

The VA doesn’t set qualifying financial thresholds for its borrowers. These requirements will be set by the individual private lender issuing the VA loan. That means the minimums required to qualify will vary somewhat from lender to lender, and military borrowers may even be in a position to shop around if they are having difficulty qualifying.

That said, VA borrowers can generally expect to need a score of 640 or greater and a debt-to-income (DTI) ratio of 41 percent or less.

VA loan property requirements

In addition to qualifying requirements for the borrower, the VA sets requirements for the property that is being purchased with a VA loan. This is intended to ensure that the VA program is being used to get military borrowers into homes that are suitable primary residences — both safe and structurally sound.

The VA lender will order a VA appraisal — not to be confused with a home inspection — which will ensure the home meets the VA’s livability standards. Learn more about the VA Minimum Property Requirements (MPRs) here.

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Types of VA home loans

VA loans can be used to purchase or refinance a house. The types of loans available through the VA program include:

  • VA Purchase Loans: These can be used to purchase a primary residence, including a multi-unit property of up to four units, a VA-approved condo or townhouse, or a manufactured home.
  • VA Streamline Refinance: Also sometimes known as a VA Interest Rate Reduction Refinance Loan (IRRRL), these refinance loans are intended to help existing VA homeowners quickly and affordably lower their interest rate or improve their loan terms.
  • Native American Direct Loans: These VA loans are specifically for veterans of Native American descent and can be used to buy, build, renovate, or refinance properties on federal trust lands.
  • VA Cash-out Refinance Loans: These VA loans allow homeowners to convert their home equity into cash by replacing an existing home loan with a larger one and giving the borrower a lump sum of cash. VA cash-out refinance can be one option for converting a non-VA home loan to a VA loan.

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What is the VA funding fee?

The VA funding fee is a percentage of the loan amount paid at closing. This money enables the VA home loan program to be self-sustaining and for the Department of Veterans Affairs to guarantee future VA loans.

The amount of the funding fee is variable and typically costs between 0.5 and 3.3 percent of the loan amount. The exact amount is determined by the nature of the borrower’s military service, the size of the down payment, the type of loan, and the number of times the borrower has used the VA loan program.

While the VA funding fee can be a significant upfront cost, it is a cost that is generally offset by the other savings that the VA loan program offers.

Finally, the VA funding fee can be financed into the overall loan amount and paid over time.

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GI loan FAQ

How much is a typical GI home loan?

While there is no GI home loan, the VA home loan program has no limits. That means borrowers with full entitlement can get a loan amount for as much as they like — provided they can qualify for it financially with a mortgage lender.

What are the benefits of a VA home loan?

The VA home loan is a product intended to help veterans, active-duty service members, reservists, and even some of their family members, to purchase a home.How much house can I afford as a veteran?
The amount of house that a borrower can afford with a VA home loan will depend on their budget, the interest rate they qualify for, and the size of down payment they can afford to make.

What is a Certificate of Eligibility (COE)?

The Certificate of Eligibility (COE) is a document that indicates the details of someone’s service with the armed forces and the amount of VA entitlement that is available to them. Lenders use the COE to confirm a borrower meets the VA service requirements.

Can I get a COE as the spouse of a veteran?

In some cases, a spouse may be able to get a COE, such as when the service member is missing in action, a prisoner of war, or has died in the line of service or from a service-related injury/disability.

Can I get a COE for a VA direct or VA-backed home?

COEs are required for all VA loans, including Native American Direct loans, or VA-based purchase or refinance loans.

How much is the funding fee?

The VA funding fee is typically between 0.5 and 3.3 percent of the total loan amount, depending on whether the borrower is purchasing or refinancing, whether or not they are a first-time borrower, how many times they have used the VA loan program, the size of their down payment, and the nature of their military service.

Are World War II vets eligible for the VA home loan program?

Yes, WWII veterans are eligible for the VA home loan program. Service members with 90 days of consecutive active service during wartime, including in Korea, Vietnam, and Iraq, are eligible for the VA loan program.

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Military home loans: The bottom line

While the GI Bill doesn’t offer a home loan benefit, the VA home loan program is a wonderful resource for service members looking to purchase or refinance a home.

Time to make a move? Let us find the right mortgage for you

Source: themortgagereports.com

Apache is functioning normally

Apache is functioning normally

Right next to the Hollywood Walk of Fame, in the beating heart of Hollywood, is a penthouse that transcends the ordinary, and comes with a touch of star-studded allure.

Set in the landmark building known as The Broadway Hollywood at 1645 Vine St, the loft-style condo with soaring ceilings is owned by none other than actor and comedian Danny McBride, best known for his distinctive comedic style and memorable roles in hits like Eastbound & Down and Pineapple Express.

But not for long, as The Righteous Gemstones creator/actor has listed it for sale, asking $1,795,000 for the 2,149-square-foot duplex condo. Deedee Howard of The Agency holds the listing.

The Broadway Hollywood building in Los Angeles. Photo credit: Jason Shaltz courtesy of The Agency

McBride is by no means the only celebrity to live at the Broadway.

The star-studded Broadway Hollywood building was home to countless bold-faced names, including actors Charlize Theron and Jason Statham, Jane’s Addiction guitarist Dave Navarro, and Wilmer Valderrama and his fellow That 70s Show castmate Danny Masterson.

Inside Danny McBride’s penthouse at The Broadway

Photo credit: Jason Shaltz courtesy of The Agency

Recently renovated, McBride’s penthouse is a swanky one-bedroom, two-bath spread with an industrial loft style with exposed ductwork.

From the Hollywood sign to the rolling hills and the iconic Capitol Records building, each view offered by the duplex condo’s sleek glass windows is a cinematic experience.

Key facts & figures

  • Bedrooms: 1
  • Baths: 2
  • Square footage: 2,149 sq. ft.
  • Price: $1,795,000
  • Price/ sq. ft: $1,128
  • Building amenities: newly finished, rooftop pool area with a hot tub, a fitness center, world-class 24-hour staff, secure access, and two parking spaces with 24-hour valet service

Sleek design and lofty spaces

Lofty spaces, gallery walls for art, and soaring ceilings create an inviting ambiance, reflecting McBride’s eclectic tastes and appreciation for aesthetics.

Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency

Live/work in style

Beyond its aesthetic appeal, the penthouse is a live/work space that mirrors McBride’s dynamic career.

See also: James Franco’s former West Hollywood digs — Next to the Chateau Marmont

A chic media room with a projector, an open kitchen with high-end Viking appliances, and an industrial staircase leading to the primary ensuite bedroom loft make this space a versatile canvas for both relaxation and creativity.

Photo credit: Jason Shaltz courtesy of The Agency

Lofty living

The primary ensuite bedroom loft, with its walk-in closet, stunning marble bath, and private outdoor terrace with an inviting fireplace, adds to the appeal of this city gem.

Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency

Rooftop retreat & private balcony

Residents, including the comedic genius himself, can indulge in sunsets from one of the cabanas at the rooftop pool area. The newly finished space includes a hot tub with breathtaking hillside views and an adjacent fitness center.

The penthouse also has its own private outdoor terrace with a fireplace that’s perfect for enjoying the city’s vibrant nighttime lights.

Photo credit: Jason Shaltz courtesy of The Agency

Upscale living, Hollywood style

World-class 24-hour staff, secure access, and the convenience of two parking spaces with 24-hour valet service add to the appeal, but it’s the location that trumps all other attributes.

Proximity to the Entertainment District places renowned establishments like Katsuya, a vibrant Sunday farmers market, and a Trader Joe’s just steps away.

And let’s not forget that the world’s biggest stars are literally at your feet as soon as you step out of the building, with the Hollywood Walk of Fame right outside its doorsteps.

Photo credit: Jason Shaltz courtesy of The Agency

This property falls under the Mills Act, adding a layer of financial appeal to this Hollywood gem.

More stories

What happened to Jason Oppenheim’s penthouses from Season 6 of ‘Selling Sunset’?

Is it Real? Lucifer’s Lux nightclub and the posh penthouse above it

‘South Park’ creator Matt Stone’s former Venice house is up for grabs

Source: fancypantshomes.com

Apache is functioning normally

Existing home sales achieved their lowest annual level in ten years in September, and now appear to have doubled down. The National Association of Realtors® (NAR) said sales of pre-owned single-family homes, townhouses, condominiums, and cooperative apartments fell another 4.1 percent in October to an annual rate of 3.79 million homes. This is 14.6 percent below the 4.44 million level of sales in October 2022.

Single-family home sales decreased to a seasonally adjusted annual rate of 3.38 million, a 4.2 percent decline from 3.53 million in September. Condo/co-op sales fared slightly better, slipping only 2.4 percent month-over-month to an annual rate of 410,000 units. Both single-family and condo/co-op sales were 14.6 percent lower than the same month last year.

Analysts had expected a less drastic decrease from the 3.95 million level of sales in September. Both Econoday and Trading Economics had consensus estimates of 3.9 million.

“Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” said NAR Chief Economist Lawrence Yun. “Multiple offers, however, are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.”

There were 1.15 million housing units available for sale at the end of October. This is an increase of 1.8 percent from the previous month but 5.7 percent fewer homes than a year earlier. Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in October 2022.

Prices are holding up despite fading sales, moving higher for the 4th consecutive month. The median existing home price for all housing types in October was $391,800, 3.4 percent higher than the $378,800 median in October 2022. The median single-family home price appreciated 3.0 percent to $396,100 and the median condo price gained 7.6 percent to $356,000.

“While circumstances for buyers remain tight, home sellers have done well as prices continue to rise year-over-year, including a new all-time high for the month of October,” Yun said. “In fact, a typical homeowner has accumulated more than $100,000 in housing wealth over the past three years.”

NAR said properties typically remained on the market for 23 days in October, up from 21 days in both September and the prior October. Sixty-six percent of homes sold last month were on the market for less than 30 days.

First-time buyers accounted for 28 percent of October sales and individual investors, or second-home buyers had a 15 percent share. Twenty-nine percent of sales were cash purchases. Only 2.0 percent of sales were considered distressed, that is short sales or foreclosures.

Regional data reflected the downturn in sales and rising home prices. Existing home sales in the Northeast dipped 4.0 percent from September to an annual rate of 480,000 units and were 15.8 percent lower year-over-year. The median price grew 7.5 percent to $439,200.

Sales in the Midwest held steady at an annual rate of 930,000 units but were 13.9 percent lower than in October 2022. The median price in the Midwest was $285,100, an annual increase of 4.2 percent.

Existing home sales in the South retrenched by 7.1 percent from September to an annual rate of 1.69 million, 14.6 percent lower on an annual basis. The median price was up 3.5 percent to $357,700.

In the West, existing home sales decreased 1.4 percent and 14.8 percent from the two earlier periods to an annual rate of 690,000 units. The median price rose 2.3 percent to 602,200.

Yun said a three-week easing of mortgage rates has stirred up buying interest. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales,” he said.

Source: mortgagenewsdaily.com

Apache is functioning normally

The Florida housing market in September and the third quarter (3Q) of 2023 showed signs of stabilization in statewide median prices and improved inventory levels compared to the previous year, according to the latest housing data from Florida Realtors®.

“Florida continues to draw new residents, and the dollar volume of single-family home sales in September was up 14.1% year-over-year to $12.2 billion dollars. Over that same timeframe, closed sales of single-family homes rose 6.1%. The Florida market remains strong in the face of higher mortgage rates, and first-time buyers are finding greater selections and less competition than they’ve seen in years.”

Florida Realtors® President G. Mike McGraw

Despite higher mortgage rates, the Florida market remains strong, offering more choices and less competition for first-time buyers.

In September 2023, closed sales of existing single-family homes statewide reached 21,335, a 6.1% increase from the previous year. Existing condo-townhouse sales, on the other hand, totalled 8,387, a slight decrease of 0.2% compared to September 2022.

During the 3Q of 2023, statewide existing single-family home sales declined by 3.2% from the previous year, totalling 66,450. Existing condo-townhouse sales also decreased by 5.8% year-over-year, totaling 26,129. It’s important to note that closed sales may occur from 30 to 90 days after sales contracts are written.

Florida Realtors Chief Economist Dr. Brad O’Connor noted some positive signs as the market entered the fall season:

“In September, closed sales of single-family homes were up for the first time compared to a year ago, rising by over 6%. Closed sales of townhouses and condos in 2023 have been converging with their 2022 levels as well. We were still down in September year over year, but by a fraction of 1%.”

Fla. Sept. Report: Single-Family Sales Up 6.1%

In September, the statewide median sales price for existing single-family homes reached $409,243, a 1.3% increase from the previous year. Condo-townhouse units had a median price of $324,990, reflecting a 5.8% increase compared to September 2022.

For the 3Q of 2023, the median sales price for single-family homes in Florida was $414,000, showing a 1.0% increase over the second quarter of 2022. The median sales price for condo-townhouses during the same period was $320,545, reflecting a 5.8% year-over-year increase.

O’Connor mentioned that new listings have been at their lowest level in several years in 2023, but in recent months, they’ve been closer to pre-pandemic levels. In fact, September’s new single-family listings exceeded the number from the same month in 2019, marking an 8% increase compared to the previous year.

While there is more active inventory at the end of September compared to the beginning, Florida still has a lower inventory of single-family homes than in 2019 before the pandemic. The state had a 3.2-month supply of single-family existing homes in September, a 28% increase year-over-year. Condo-townhouse units had a 4.1-month supply, reflecting a significant 78.3% increase compared to the previous year.

For the full statewide housing activity reports, interested parties can visit the Florida Realtors Newsroom or access the September 2023 and 3Q 2023 data report PDFs under Market Data.

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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.

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Source: realtybiznews.com