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Apache is functioning normally

March 8, 2024 by Brett Tams

Read more: US home sales – what’s the latest? This trend could prove frustrating for homebuyers seeking more choices in a tight market. Since older homeowners make up a substantial portion of the homeowner population, their decision to age in place limits the number of houses coming on the market, potentially further fueling competition and … [Read more…]

Apache is functioning normally

March 8, 2024 by Brett Tams

The originators who are weathering the industry headwinds told HousingWire that a significant decline in mortgage rates is no longer expected.

“Generally speaking, originators did not expect mortgage rates to be as high as they are right now. But look, I think a lot of it is wishful thinking. The refinance boom lasted three years. Why would the higher rate environment not last as long?” said Craig Strent, former CEO of Apex Home Loans and head of the faculty of mentors at The Loan Atlas, a mortgage coaching platform.

“A lot of people are going after not a lot of deals, and it’s easy to fall into a race to the bottom and get commoditized. It’s a survival of the people that are doing the right things,” Strent added.

The high-performing LOs are not putting a lot of focus on a potential decline in mortgage rates. Rather, their priorities are buyer education and the nurturing and building of more referral relationships to expand their market share, loan originators who spoke to HousingWire said.

Two types of homebuyers

“For every five phone calls I have, only one out of five of those will actually supply paperwork. They want to know what the rates are and they say it’s too high,” said Justin Wood, production manager at CMG Financial.

Many of his buyers are still waiting for rates to come down before seeking preapproval for a mortgage. On the other hand, some buyers see the value of getting a higher-rate mortgage in the current environment.

Having a fully preapproved mortgage, buyers will be able to jump on the opportunity more quickly when they find the home they’ve been looking for, Wood explained.

These are the borrowers who know it’s unrealistic to get mortgage rates as low as 3% and realize a drop in mortgage rates will entail a rise in list prices due to lower levels of housing inventory.

What’s changed about first-time homebuyers is that they no longer expect to get mortgages at 4% levels like they did during the COVID-19 pandemic, said Khash Saghafi, a loan officer at Liberty Home Mortgage Corp.

Saghafi has clients who recently decided to pull the trigger and move to a bigger house by selling their home that had a 2.375% mortgage rate.

The couple was quoted 7% for a $500,000, three-bedroom home in early March, and they decided to go ahead with the purchase as they expect to refinance the mortgage when rates eventually decline.

“What I tell all loan officers, no matter who I talk to, is that there’s no foreclosure crisis coming on the horizon,” Saghafi said. “For that reason, real estate prices are only going in one direction — and that’s up. So, whatever you’re looking at today, it’s going to be more expensive 12 months from now.”

Priorities for successful originators

Educating borrowers on the reasons why they should be in the market now is crucial in adding value, Saghafi and other mortgage professionals emphasized.

“Even though the rates are higher now, I think it’s a great market for a first-time homebuyer,” Saghafi said. “Interest rates going up definitely cooled the market, but overall, that is not the problem.”

The rationale behind this thinking is that if a borrower can afford their current monthly mortgage payment, they can always refinance when rates drop, rather than waiting until rates decline only to see home prices soar.

“I have spoken to multiple people that feel trapped in their home,” Strent said. “They say, ‘Why would I sell my $600,000 home at 3.5% to buy a $1 million house at 7%?’ That 7% rate is high now, but you’re going to refinance. If you wait for rates to drop to 5%, that $1 million house is going to be $1.4 million because everybody else is going to want it.”

Mike Simonsen, founder and president of real estate analytics company Altos Research, expects home prices to climb for the rest of the spring and peak in June.

“There are buyers on the sidelines and if rates were to finally fall again, you’ll see inventory fall with new bidders, you’ll see fewer price reductions and you’ll see the leading indicators of home sales prices … climb over last year,” Simonsen wrote in recent commentary.

According to Michael Clark, vice president at Primary Residential Mortgage, there’s no secret to grabbing market share — it’s about doing outbound sales activities, addressing agents’ fears and adding value for them.

“Our philosophy is, ‘Go help agents that are sending you buyers.’ Market their listings; go to their listings. By doing so, you are adding value to their marketing efforts and getting them a contract even if you don’t write a loan on that home,” Clark said.

When an agent sees this effort, they will be more likely to send buyers, refer the loan officer to other agents through word of mouth, and even pick up some clients at an open house.

Clark’s team of 73 loan originators who cover the East Coast funded $81 million in loans in January 2024, up 35% from January 2023. More than 20 of his LOs produced at least $1 million in volume during the opening month of this year and 10 of them topped $2 million.

“All those guys weren’t doing that much volume in 2019,” Clark noted.

U.S. mortgage origination volume is expected to be $2 trillion in 2024 and $2.3 trillion in 2025, according to forecasts from the Mortgage Bankers Association (MBA). For comparison, lenders funded $2.4 trillion in first-lien mortgages in 2019, prior to the pandemic.

“Buyers are shopping left and right, but we don’t get shopped. Why? Because there’s an actual relationship — we are their mortgage adviser,” Clark said. “We’re not just some transaction coordinator that is trying to push paper to a closing table.”

“I always tell our loan officers and our team, activity breeds activity,” Wood said. “There’s a tough market out there for sure, but I think it’s creating a lot of good opportunities for people that are ready to go and serious about buying.”

Source: housingwire.com

Apache is functioning normally

March 8, 2024 by Brett Tams

These chic home decor pieces look so expensive but are so affordable

Looking to give your home a bit of a facelift? As much as we love trendy décor pieces, we don’t love the hefty price tags that tend to come with them. So we were thrilled to find that Walmart has a ton of great deals on chic home décor pieces so you can live in the trendy space of your dreams — no matter your budget.

From throw pillows to area rugs, mirrors and more, check out the list below of our favorite pieces from Walmart, and grab your favorites in time to give your home a refresh for spring.

Shop this article: Phantoscope Pom Pom Velvet Series Decorative Throw Pillow, Better Homes & Gardens Indoor Carved Mid-Tone Brown Wood Decorative Dough Bowl and KUETH 5’x7′ Area Rugs for Living Room

Refresh your home for spring with these trendy-yet-affordable home decor pieces from Walmart

Phantoscope Pom Pom Velvet Series Decorative Throw Pillow

Velvet furniture is super trendy right now — but if you can’t invest in a whole furniture piece, a throw pillow is the perfect way to get some of this luxurious fabric into your space. These cute two-packs come in nearly a dozen colors.

Better Homes & Gardens Indoor Carved Mid-Tone Brown Wood Decorative Dough Bowl

Store fruit, mail, your keys or anything else that needs a stylish home in this decorative carved wood bowl.

KUETH 5’x7′ Area Rugs for Living Room

These area rugs are low maintenance thanks to their low pile — and the fact that they’re machine-washable. Choose from eight available patterns to match your home’s aesthetic.

Neutype 32″x22″ Aluminum Alloy Wall Mount Rounded Corner Rectangular Mirror

This mirror will add light and subtle gold accents to any room — plus, its curved frame design is soft yet striking for an accent piece that’s sure to impress.

Crystal Art Gallery Round Woven Paper Rope Multicolor Wall Art Set of 3

Each of these three woven paper rope décor pieces is 12 inches wide. Arrange them on the same wall or hang them separately.

DR.Planzen 4 ft Artificial Olive Plants with Realistic Leaves and Natural Trunk

This 4-foot artificial olive tree has silk leaves for a realistic look. It comes in a black pot that you can place in another, more decorative container.

Mainstays Ombre Velvet Plush 50 X 60 Throw

Cozy up in this plush velvet throw blanket, woven in an ombre pattern that adds a subtle pop of color to any space.

Yanwe1 Ceramic Vases, Set of 2

These vases are a fun way to add modern, abstract art to a bookshelf or table top. This set of two gives you two sizes to arrange.

Thyme & Table Stoneware Serve Bowl

This dotted stoneware serving bowl has a gold rim that gives it an elevated look, along with a wide design perfect for serving salads, pasta and many other dishes.

Better Homes & Gardens Gold Modern Geometric 5″ x 6″ Tabletop Sculpture

Need a gold accent for your coffee table or entryway console? This geometric tabletop sculpture lends just a touch of visual interest to any space.

Better Homes & Gardens Large Natural Poly Rattan Open-Weave Round Basket

This large, open-weave basket is the perfect place to store throw pillows, extra blankets, magazines or anything else that needs to be organized, but not necessarily hidden away.

Prices listed reflect time and date of publication and are subject to change.

Check out our Daily Deals for the best products at the best prices and sign up here to receive the BestReviews weekly newsletter full of shopping inspo and sales.

Source: ketk.com

Apache is functioning normally

March 8, 2024 by Brett Tams

While there are plenty of benefits to going public, there are also some downsides to being listed on a major stock exchange. Public companies must abide by strict government compliance and corporate government statutes and answer to shareholders and regulatory bodies. Plus they’re subject to the whims of the broader stock market on a regular basis.

So, public companies can opt to go private and delist from a public stock exchange. What happens when a public company goes private? Here’s what you need to know about that process.

Table of Contents

What Is Going Private?

When a company goes from public to private, the company is delisted from a stock exchange and its shareholders can no longer trade their shares in a public market. It also means that a private company no longer has to abide by the Sarbanes-Oxley Act of 2002. That legislation required publicly-traded companies to accommodate expansive and costly regulatory requirements, especially in the compliance risk management and financial reporting areas. (The legislation was created by lawmakers to help protect investors from fraudulent financial practices by corporations.)

Going private may also mean less pricing and financial stability, as private company shares typically have less liquidity than a public company traded on a stock exchange. That can leave a private company with fewer financing options to fund operations.

Going private also changes the way a company operates. Without public shareholders to satisfy, the company’s founders or owners can control both the firm’s business decisions and any shares of private stock. Private companies can consolidate power among one or a few owners. That can lead to quicker business decisions and a clear path to take advantage of new business opportunities.

By definition, a private company, or a company that has been “privatized”, may be owned by an individual or a group of individuals (i.e., a consortium) that also has a specific number of shareholders.

Unlike traditional stocks, investors in a private company do not purchase shares through a stock broker or through an online investment platform. Instead, investors purchase private equity shares from the company itself or from existing shareholders.
💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

What Is Privatization?

Privatization is the opposite of an initial public offering. It’s the process by which a company goes from being a publicly traded company to being a private one. A private company may still offer shares of stock, but those shares aren’t available on public market exchanges. There’s no need to satisfy public shareholders and the company has less governmental oversight into its governance and documents.

(Note that privatization is also a term used to describe when a public or government organization switches to ownership by a private, non-governmental group.)

What Happens if You Own Shares of a Company That Goes Private?

If shareholders approve a tender offer to take a public company private, they’ll each receive a payment for the number of shares that they’re giving up. Typically, private investors pay a premium that exceeds the current share price and shareholders receive that money in exchange for giving up ownership in the company.

This is the opposite of IPO investing, in which the public buys stock in a newly listed company, and private owners have a chance to cash out.

Why a Company May Go Private

Likely the biggest reason why a company would choose to go private are the costs associated with being a public company (largely to accommodate regulatory demands from local, state, and federal governments).

Those costs may include the following potential corporate budget challenges:

• The legal, accounting, and compliance costs needed to accommodate company financial filings and associated corporate governance oversight obligations.

• The costs needed to pay compliance, investor relations, and other staffing needs – or the hiring of third-party specialty firms to handle these obligations.

• The costs associated with paying strict attention to company share price – a public company always has to keep its eye on maximizing its stock performance and on keeping shareholders satisfied with the firm’s stock performance.

In addition, going private enables companies to free up management and staff to turn their attention to firm financial growth, instead of regulatory and compliance issues or shareholder concerns. Some public companies struggle to invest for the long-term because they’re worried about meeting short-term targets to keep their stock price up.

Going private also enables companies to keep critical financial and operational data away out of the public record — and the hands of competitors. Privatization could also help companies avoid lawsuits from shareholders and curb some litigation risk.

How to Take a Company Private

Typically, companies that go private work with either a private-equity group or a private-equity firm pooling funds to “buy out” a public company’s entire amount of publicly-traded stock. This typically requires a group of investors since, in most cases, it takes an enormous amount of financial capital to buy out a company with hundreds of millions (or even billions) of dollars linked to its publicly-traded stock.

Often a consortium of private equity investors gets help financing with a privatization campaign from an investment bank or other large financial institution. The fund usually comes in the form of a massive loan — with interest — that the consortium can use to buy out a public company’s shares.

With the funding needed to close the deal on hand, the private equity consortium makes a tender offer to purchase all outstanding shares in the public company, which existing shareholders vote on. If approved, existing shareholders sell their stock to the private investors who become the new owners of the company.

The goal is that the private investors will take the gains accrued through stronger company revenues and rejuvenated stock, to pay down the investment banking loan, pay off any investment banking fees accrued, and begin managing the income and capital gains garnered from their investment in the company. While this can take some time, the process of going private is much less intensive than the IPO process.

Company executives, meanwhile, can focus on growing the company. In many instances, newly-minted private companies may roll out a new business plan and prospectus that firm executives can share with potential shareholders, hopefully bringing more capital into the company. Sometimes private owners will plan to IPO the business again in the future.
💡 Quick Tip: Keen to invest in an initial public offering, or IPO? Be sure to check with your brokerage about what’s required. Typically IPO stock is available only to eligible investors.

Pros and Cons of Going Private

Taking a company private has both benefits and drawbacks for the company.

The Pros

In addition to lower costs, there are several other advantages to delisting a company.

• Establishing privacy. When a company goes public, it relinquishes the right to keep the company private. By taking a company private, it makes it easier to operate outside of the public eye.

• Fewer shareholders. Public companies don’t have to deal with external company sources that may make life difficult for company executives and may result in a loss of operational independence. Once a company goes private, the founders or new owners retain full control over the business and have the last word on all company decisions.

• A private company doesn’t have to deal with financial regulators. A private company doesn’t need to file financial disclosures with the U.S. Securities and Exchange Commission and other government regulatory bodies. While a private company may have to file an annual report with the state where it operates, the information is limited and financial information remains private.

The Cons

There are some disadvantages to taking a company private.

• Capital funding challenges. When a company goes private, it loses the ability to raise funds through the publicly-traded financial markets, which can be an easy and efficient way to boost company revenues. Yet by privatizing the company, publicly-funded capital is no longer an option. Such companies may have to borrow funds from a bank or private lender, or sell stock based on a state’s specific regulatory requirements.

• The owner may have more legal liability. Private companies, especially sole proprietorships or general partnerships, aren’t protected from legal actions or creditors. If a private company is successfully sued in court, the court can garnish the business owner’s personal assets if necessary.

• More powerful shareholders. While there are not as many shareholders at a private company, new owners, such as venture capitalists or private equity funds, may have strong feelings about the operational business decisions, and as owners, they may have more power over seeing their wishes carried out.

The Takeaway

Going private can be an advantage for companies that want more control at the executive level, and no longer want their shares listed on a public exchange. However, taking a company private may impact the company’s bottom line as corporate financing options thin out when public shareholders can no longer buy the company’s stock.

If a company you own stock in goes private, you will no longer own shares in that company or be able to buy them through a traditional broker. For investors, having different types of assets in an investment portfolio may be helpful in case something happens to or changes with one of them.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

Is it good for a public company to go private?

Going private can have benefits for a public company, including lower costs related to legal, accounting, and compliance obligations, as well as costs associated with maximizing stock performance and keeping shareholders happy. In addition, going private may allow a company’s staff to focus more fully on financial growth, and keep critical company data out of the public record (and the hands of competitors).

However, there are potential drawbacks as well. For instance, a company may face capital funding challenges once it goes private since it can no longer raise funds through publicly-traded financial markets.

What happens to my private shares when a company goes public?

Once a company goes public (typically done through a process called an IPO, or initial public offering), your private shares become public shares, and they become worth the public trading price of the shares.

How long does it take for a public company to be private?

How long it takes for a public company to become private depends on the time it takes to complete the steps involved. For instance, the company has to buy out all of its publicly-traded stock; it usually works with a group of private investors to do this since the process is costly. Once they have the founding secured, a tender offer is made to purchase all outstanding shares in the public company, which the existing shareholders vote on. If that is approved, the shareholders sell their stock to the owners of the company. How long all this takes generally depends on the company and the specific situation.

Photo credit: iStock/Olezzo

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SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

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For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.

New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.

SOIN0124064

Source: sofi.com

Apache is functioning normally

March 7, 2024 by Brett Tams

Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics

This website requires Javascrip to run properly.

Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics

By:
Rob Chrisman

6 Hours, 35 Min ago

“I saw a woman at Walmart with March Madness teeth… She was down to the final four.” No one is talking about 30-year mortgage interest rates heading down into the 4’s; many would be happy if they came down into the 5’s. Heck, forget about mortgage interest rates because they’re going to do what they’re going to do. Originators are equally interested in potential or existing borrowers. New data reveals that Americans are spending nearly as much on interest payments for credit cards and other kinds of consumer debt as they are on mortgage interest. But hey, if your client has their debt under control, LOs can help them by passing along Home Facts so that they can do an analysis of where they might like to live. (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 Lending Tree’s Jacob Channel on the rent-versus-buy debate and just how far people should stretch their finances to achieve the dream of homeownership.)

Lender and Broker Services, Products, and Software

Collecting interim servicing payments is a pain, but not with Fee Chaser. With its seamless integration into Encompass® by ICE Mortgage Technology™, Fee Chaser automates upfront fee collection and can handle those pesky interim servicing payments as well. Check out Fee Chaser by LenderLogix here.

Today’s mortgage landscape demands greater efficiency. Xactus, a leading verification innovator, makes it easy to obtain all the verifications lenders need to be more efficient and advance the modern mortgage. For example, with its ICE Mortgage Technology Encompass Partner Connect™ integration, you can streamline your consumer verifications. Encompass Partner Connect provides direct access to Xactus verification products including Credit ReportX, Flood ReportX, Undisclosed Debt VerificationX, Tax TranscriptX, Employment VerificationX, Income VerificationX, Fraud ReportX, and Social Security VerificationX. In fact, Xactus was the first third-party service provider to integrate credit with Encompass Partner Connect, and won the 2023 ICE Innovation Award for Lenders’ Choice for Innovative Service Provider. Heading to the ICE Experience in Las Vegas? Experience Xactus’ award-winning innovation. Stop by Xactus’ booth or email [email protected] to schedule a meeting. For the latest updates and news about important industry innovations, follow Xactus on LinkedIn.

If you thought McDonald’s® invented the combo meal, you’d be wrong. The honor actually belongs to defunct fast-food chain Burger Chef, which introduced the classic trio of burger, fries and a drink as one meal. Known as “The Triple Threat,” it sold for just $0.45. While that kind of pricing belongs to a bygone era, lenders using Fannie Mae’s Desktop Underwriter® (DU®) validation service can enhance their validation processes by leveraging AccountChek by Informative Research to validate income, employment and assets with a single report. By using direct deposit banking data to evaluate income and employment, lenders can streamline borrower eligibility. Additionally, current AccountChek users don’t have to change their process. The AccountChek report they have been using for years already provides the needed transaction data to DU. To get started, visit Fannie Mae’s webpage, and submit the request form to begin the activation process.

Most lenders are painfully aware of rising loan origination costs, which is a common trend in a down market. But certain costs like credit (surging by 400 percent) and verifications (up by 141 percent) have soared disproportionately, with incumbent providers exploiting their market dominance as virtual monopolies. Yet some lenders are fighting back… Like Lower, which has found a way to save as much as 80 percent on these operational line items and win more loans. Sign up for this exclusive webinar taking place on March 21 at 2pm ET, featuring Rob Chrisman, James Duncan and Donielle Geiser (Lower), and Richard Grieser (Truv), where they’ll share their take on today’s market and how they’ve reduced costs on operational line items previously thought to be beyond a lender’s control. RSVP today!

Introducing the All-New Quarterly Conversations About QC Newsletter! Get the latest quality control news delivered directly to your inbox with QC Ally’s new email newsletter. Designed to be your trusted loan quality resource, you’ll get the latest industry headlines, helpful tools designed to inspire your business, and regulatory updates each quarter. Recent features include eGuides to strengthen your QC processes, webinars discussing how to successfully implement new requirements, and industry conference takeaways. Sign up today to stay in-the-know on updates designed to spark discussion and inspire your business!

TPO, Broker, and Correspondent Product News

Renovation lending fuels loan production, boosts profits, and fortifies housing inventory in competitive markets. Explore the rising demand for renovation loans with Planet Home Lending’s Guide to Renovation lending, tailored for correspondent lenders. From seizing opportunities to fostering robust partnerships, it offers a step-by-step roadmap. Request your exclusive copy today.

Freedom Mortgage Wholesale reminded brokers that it is historically, currently, and forever wholesale, and has posted some solid numbers about its status. In 2023 Wholesale increased its sales force by 20 percent, 25 percent of whom were rehires. Wholesale increased its Ops staff by 125 percent, 70 percent of whom were rehires. Freedom doubled its production two months in a row and is still growing.

But not to be overlooked is that Freedom is very active in the philanthropic arena through Freedom Cares. Last year it donated $660,000, used a holiday toy drive to raise $60,000 to support Children’s Hospital of Philadelphia (CHOP), The Salvation Army, and Toys for Tots, has, for 11 years, donated over $100,000 and nearly 2,000 backpacks (with school supplies) to Rucksacks to Packpacks. Freedom Mortgage’s employees and vendors raised $50,000, providing 500,000 meals for people facing hunger through Feeding America’s “Freedom from Hunger, and in 2023, through Project Gratitude, sent 1045 handwritten and video thank you messages to active-duty service members. And let’s not dismiss the 2,300 logged hours of employee volunteer engagement.

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. Angel Oak REIT participated in four non-qualified mortgage securitizations in 2023, contributing $662 million in unpaid principal balance to the issuance. The REIT’s earnings increased after it sold off non-QMs with relatively low interest rates. Its statistics reflect the industry’s: The REIT held $380 million in whole loans at the end of the fourth quarter, up from the $284 million held at the end of the third quarter. The company increased the weighted average coupon on its whole-loan portfolio to 6.78 percent as of the end of the fourth quarter compared with an average WAC of 5.83 percent at the end of the third quarter. As of the end of February, the WAC on the REIT’s portfolio had increased to 7.14 percent.

One should know the big news from Fannie Mae: Lenders now will be able to validate assets, income, and employment with a single 12-month asset report in Desktop Underwriter®. That same asset report will also identify the borrower’s positive rent payment history and cash flow history. This could be a boon for both lenders and homebuyers: Think faster cycle times, less paperwork, and enhanced access to credit, not to mention the ability for lenders to get Day 1 Certainty®, which can help improve loan quality and reduce the risk of repurchase. “Fannie Mae is continually focused on modernizing the mortgage finance experience and exploring new ways to help our lenders open more doors for aspiring homeowners in a responsible and sustainable way. With this new update in Desktop Underwriter, we are removing a hurdle from the loan application process and bringing greater speed, simplicity, and certainty to both lenders and borrowers,” said Cyndi Danko, Fannie Mae’s SVP and Single-Family Chief Credit Officer. The enhancement goes into effect in DU on March 29. Reach out to your Fannie Mae representative for help getting started.

Capital Markets

Interested in learning more about moving from best efforts to mandatory loan sales? Maybe you’ve already moved to mandatory and are looking for even more pickup and ways to mitigate risk? Join MCT’s Moving to Mandatory Loan Sales webinar on April 4th at 11am PT to learn how mandatory loan sales is helping lenders improve profitability while reducing risk. In this webinar, MCT’s Scott Holtz, Vice President of South Regional Sales, will discuss how to leverage mandatory loan sales to improve profitability, manage risk with pipeline hedging, and operational changes needed for the transition. Register for the webinar or join MCT’s newsletter to receive the latest educational content.

Between Fed Chair Powell testifying before the House Financial Services Committee and the latest Beige Book, there was a lot of Fed news for investors to digest yesterday. A slew of stronger-than-expected economic data has raised concerns that the FOMC is preparing to walk back its anticipated 75 basis points of easing in 2024, and the Fed Chair told the House panel that he’s in no rush to lower rates, though doing so will probably be appropriate “at some point this year.” He repeatedly stated that he does not see a risk of recession right now. Powell will be back on Capitol Hill today to appear before the Senate Banking Committee, though the potential for market-moving remarks is low.

The Fed’s Beige Book for March described overall economic activity since the last report as having “expanded at a modest pace since earlier in the year.” Consumers showed more sensitivity to rising prices and spending softened in recent weeks as businesses found it harder to pass through higher costs to their customers. Leisure and hospitality sectors varied from District to District, the Fed said in its survey of regional business contacts. Manufacturing activity was little changed while residential real estate demand improved. Employment rose at a slight to modest pace while price pressures persisted. If the economy evolves broadly as expected, the Fed is likely to begin dialing back policy interest rates 25 basis points between three and four times this year.

Ahead of February payrolls this Friday, we received a couple of labor market indicators yesterday. Job openings fell slightly in January to 8.86 million, and the number of job openings per unemployed worker was little changed at 1.45. The ADP Employment Change report pointed to the addition of 140k payrolls in February, slightly less than 150k expectations, while the January increase was revised up to 111k from 107k. The JOLTS data signal that the jobs market is slowly settling down, consistent with wage inflation pressures cooling and without a troubling slowdown in net job creation and overall economic activity. The gradual softening in the labor market will likely keep the FOMC comfortable in waiting a little while longer before beginning to cut rates.

Today’s economic calendar kicked off with Challenger job cuts for February: U.S.-based employers announced 84,638 cuts in February, up 3 percent from last month and 9 percent higher than the 77,770 cuts announced in the same month in 2023. Markets have also received the latest European Central Bank decision and remarks from ECB head Lagarde in her press conference, the latest jobless claims (217k last week, unchanged from 217k), trade deficit (high at $67.4 billion, a subtraction from growth), and productivity and unit labor costs (3.2 and .4 percent respectively). Chair Powell will be back on Capitol Hill before the Senate Banking Committee to testify on the Monetary Policy Report later this morning, and other releases of note include Treasury releasing the details of the mini-Refunding consisting of $56 billion 3-years, $39 billion reopened 10-years, and $22 billion reopened 30-years, remarks from Cleveland Fed’s Mester, Freddie Mac’s Primary Mortgage Market Survey, and January consumer credit. After the initial salvo of news, we begin Thursday with Agency MBS prices better .125-.250, the 10-year yielding 4.07 after closing yesterday at 4.10 percent, and the 2-year at 4.53.

Employment and Transitions

Unlock success with PrimeLending’s East Meets West Podcast! Join EVPs Karen Blakeslee and Al Velasco, the production leaders from the Eastern and Western divisions, for a lively discussion about the pulse of the housing market. Discover how PrimeLending empowers our loan officers to compete and win. Karen and Al also discuss leveraging new products to create more opportunities. Tune in for exclusive access to the wisdom of Dallas-based Branch Manager and perennial top producer, Mark Raskin (NMLS# 176513). Mark shares invaluable insights and proven tips, providing a backstage pass to success in today’s market. Check out East Meets West to learn why PrimeLending loan officers rank our engaged, experienced leadership as a game-changer. If you’re a top producer ready to turn up the volume on your career, contact Nic Hartke today!

Landmark Bancorp, Inc. announced that it has appointed Abigail (Abby) Wendel to serve as president and chief executive officer of the Company and Landmark National Bank, its wholly owned bank subsidiary, effective March 29. Wendel also will join the respective boards of directors of the company and bank, and succeeds current President and CEO, Michael Scheopner, who will serve in a non-executive role until his retirement at the end of the year. Congratulations!

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

Source: mortgagenewsdaily.com

Apache is functioning normally

March 7, 2024 by Brett Tams

Buyers who expect mortgage rates to drop must wait longer. (iStock)

Apache is functioning normally

March 7, 2024 by Brett Tams

Over the life of a $350,000 mortgage with a 7% interest rate, borrowers could expect to pay from $216,229 to $488,233 in total interest, depending on whether they opt for a 15-year or 30-year loan term. But the actual cost of a mortgage depends on several factors, including the interest rate, and whether you have to pay private mortgage insurance.

Besides interest, homebuyers need to account for a down payment, closing costs, and the long-term costs of taxes and insurances that are included in a $350,000 mortgage payment.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Cost of a $350,000 Mortgage

When you finance a home purchase, you have to pay back more than the borrowed amount, known as the loan principal. The total cost of taking out a $350,000 mortgage is $838,281 with a 30-year term at a 7% interest rate. This comes out to $488,233 worth of interest, assuming there aren’t any late monthly mortgage payments or pre-payments.

When you buy a home, there are usually some upfront costs you’ll have to pay, too. Mortgages often require a down payment, calculated as a percentage of home purchase price, that’s paid out of pocket to secure financing from a lender. The required amount varies by loan type and lender, but average down payments range from 3% – 20%.

Closing costs, including home inspections, appraisals, and attorney fees, represent another upfront cost for real estate transactions. They typically sum up to 3% to 6% of the loan principal, or $10,500 to $21,000 on a $350,000 mortgage.

The total down payment on $350,000 mortgages also impacts the total cost of taking out a home loan. Unless buyers put 20% or more down on a home purchase, they’ll have to pay private mortgage insurance (PMI) with their monthly mortgage payment. The annual cost of PMI is generally between 0.5% – 1.5% of the loan principal. Borrowers can get out of paying PMI with a mortgage refinance or when they reach 20% equity in their home. If this is your first time in the housing market, consider reading up on tips to qualify for a mortgage.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Monthly Payments for a $350,000 Mortgage

The monthly payment on a $350K mortgage won’t always be the same amount. You’ll need to factor in your down payment, interest rate, and loan term to estimate your $350,000 mortgage monthly payment.

With a 30-year loan term and 7% interest rate, borrowers can expect to pay around $2,328 a month. Whereas a 15-year term at the same rate would have a monthly payment of approximately $3,146. However, these estimates only account for the loan principal and interest. Monthly mortgage payments also include taxes and insurances, but these costs can differ considerably by location and based on a home’s assessed value.

There are also different types of mortgages to consider. Whether you opt for a fixed vs adjustable-rate mortgage, for instance, will affect your monthly payment.

To get a clearer idea of what your monthly payment might be with different down payments and loan terms, try using a mortgage calculator.

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Where to Get a $350,000 Mortgage

Homebuyers have many options in terms of lenders, including banks, credit unions, mortgage brokers, and online lenders.

The homebuying process can be stressful, so it may be tempting to go with the first mortgage offer you receive. However, shopping around and getting loan estimates from multiple lenders lets you choose the one that’s the most competitive and cost-effective.

Even a fraction of a percentage point difference on an interest rate can add up to thousands in savings over the life of a mortgage. Besides the interest rate, assess the fees, terms, and closing costs when comparing mortgage offers.

Recommended: Home Loan Help Center

What to Consider Before Applying for a $350,000 Mortgage

When taking out a mortgage, it’s important to consider the total cost of the loan. You’ll need cash on hand for a down payment and closing costs, plus sufficient income and funds to cover the monthly payment and other homeownership costs.

Before applying for a $350,000 mortgage, crunching the numbers in a housing affordability calculator can give a better understanding of how these costs will work with your finances.

It’s also helpful to see how $350,000 mortgage monthly payments are applied to the loan interest and principal over the life of the loan. The majority of the monthly mortgage payment goes toward interest rather than paying off the loan principal, as demonstrated by the amortization schedules below.

Here’s the mortgage amortization schedule for a 30-year $350,000 mortgage with a 7% interest rate — which would amount to $488,233 in interest. For comparison, we’ve also included the mortgage amortization schedule for a 15-year $350,000 mortgage with a 7% interest rate. A $350,000 mortgage payment, 15 years’ out, would add up to $216,229 in interest. When weighing a 30-year vs 15-year loan term, the shorter loan term carries a higher monthly payment but less than half the total interest over the life of the loan.

Amortization Schedule, 30-year Mortgage at 7%

Year	Beginning Balance	Total Interest Paid	Total Principal Paid	Remaining Balance
1	$350,000	$24,386	$3,555	$346,425
2	$346,425	$24,129	$3,812	$342,613
3	$342,613	$23,853	$4,088	$338,525
4	$338,525	$23,558	$4,383	$334,142
5	$334,142	$23,241	$4,700	$329,442
6	$329,442	$22,901	$5,040	$324,402
7	$324,402	$22,537	$5,404	$318,998
8	$318,998	$22,146	$5,795	$313,203
9	$313,203	$21,717	$6,214	$306,989
10	$306,989	$21,278	$6,663	$300,326
11	$300,326	$20,796	$7,145	$293,182
12	$293,182	$20,280	$7,661	$285,520
13	$285,520	$19,726	$8,215	$277,306
14	$277,306	$19,132	$8,809	$268,497
15	$268,497	$18,496	$9,446	$259,051
16	$259,051	$17,813	$10,128	$248,923
17	$248,923	$17,081	$10,861	$238,062
18	$238,062	$16,295	$11,646	$226,417
19	$226,417	$15,454	$12,488	$213,929
20	$213,929	$14,551	$13,390	$200,539
21	$200,539	$13,583	$14,358	$186,181
22	$186,181	$12,545	$15,396	$170,784
23	$170,784	$11,432	$16,509	$154,275
24	$154,275	$10,238	$17,703	$136,573
25	$136,573	$8,959	$18,982	$117,590
26	$117,590	$7,586	$20,355	$97,236
27	$97,236	$6,115	$21,826	$75,409
28	$75,409	$4,537	$23,404	$52,006
29	$52,006	$2,845	$25,096	$26,910
30	$26,910	$1,031	$26,910	$0

Amortization Schedule, 15-year Mortgage at 7%

Year	Beginning Balance	Total Interest Paid	Total Principal Paid	Remaining Balance
1	$350,000	$24,065	$13,684	$336,296
2	$336,296	$23,076	$14,673	$321,624
3	$321,624	$22,015	$15,733	$305,890
4	$305,890	$20,878	$16,871	$289,020
5	$289,020	$19,658	$18,090	$270,929
6	$270,929	$18,351	$19,398	$251,531
7	$251,531	$16,948	$20,800	$230,731
8	$230,731	$15,445	$22,304	$208,427
9	$208,427	$13,832	$23,916	$184,510
10	$184,510	$12,103	$25,645	$158,865
11	$158,865	$10,249	$27,499	$131,366
12	$131,366	$8,261	$29,487	$101,879/td>
13	$101,879	$6,130	$31,619	$70,260
14	$70,260	$3,844	$33,904	$36,355
15	$36,355	$1,393	$36,355	$0

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How to Get a $350,000 Mortgage

To qualify for a $350,000 mortgage, borrowers will need to meet the income, credit, and down payment requirements. It’s also important to have an adequate budget for long-term housing costs and other financial goals and obligations like savings and debt.

Using the 28/36 rule, a monthly mortgage payment shouldn’t be more than 28% of your monthly gross income and 36% of your total debt to be considered affordable. With a $2,328 monthly mortgage payment, you’d need a minimum gross monthly income of at least $8,300, or annual income of $96,600, to follow the 28% rule. Similarly, your total debt could not exceed $660 to keep housing and debt costs from surpassing 36%.

Home mortgage loans, with the exception of certain government-backed loans, require a minimum credit score of 620 to qualify. However, a higher credit score can help secure more competitive rates. If you qualify as a first-time homebuyer, you could get a FHA loan with a credit score of 500 or higher, though borrowers with a credit score below 580 will have to make a 10% down payment.

As mentioned above, it’s a good idea to compare lenders and loan types to find the most favorable rate and loan terms. From there, getting preapproved for a home loan is a logical next step to determine the loan amount and interest rate you qualify for. It also puts you in a better position to demonstrate you’re a serious buyer when making an offer on a property.

After putting in an offer, completing the mortgage application requires many of the same forms used for preapproval, plus an earnest money deposit.
💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

The Takeaway

Buying a home is the largest purchase many Americans make in their lifetime. How much you’ll end up paying for a $350,000 mortgage depends on the interest rate and loan term. On a $350,000 mortgage, the monthly payment can range from $2,328 to $3,146 based on these factors.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much is a $350K mortgage a month?

The cost of a $350,000 monthly mortgage payment is influenced by the loan term and interest rate. On a $350K mortgage with 7% interest, the monthly payment ranges from $2,328 to $3,146 depending on the loan term.

How much income is required for $350,000 mortgage?

Income requirements can vary by lender. But using the 28/36 rule, a borrower who isn’t burdened by lots of other debts should make $99,600 a year to afford the monthly payment on a $350,000 mortgage.

How much is a down payment on a $350,000 mortgage?

The down payment amount depends on the loan type and lender terms. FHA loans require down payments of 3.5% or 10%, while buyers could qualify for a conventional loan with as little as 3% down.

Can I afford a $350K house with a $70K salary?

It may be possible to afford a $350,000 house with a $70,000 salary, but only if you are able to make a sizable down payment to lessen the amount of money you need to borrow. Having a good credit score and minimal debt would also better your chances.

Photo credit: iStock/sturti

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

SOHL0124066

Source: sofi.com

	Price Cut Payment	Post-Buydown Payment
Purchase Price	$325,000	$350,000
Loan Amount	$260,000	$280,000
Interest Rate	6.99%	6.99%
Monthly Payment	$1,728.04	$1,860.97
Difference		$132.93

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Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics

Option 1: Copy and send this link

Market waits for rates to drop

Buyers should shop for the best rate

Home Builders Don’t Have Competition Right Now

They Don’t Need to Lower Prices If Demand Is Strong

Lowering Prices Could Make It Harder for Appraisals to Come in at Value

Home Builders Would Rather Offer Incentives Like Temporary Buydowns

Home Price Cuts Don’t Result in Big Monthly Payment Savings

First-time homebuyers canprequalify for a SoFi mortgage loan,with as little as 3% down.

Cost of a $350,000 Mortgage

Monthly Payments for a $350,000 Mortgage

Where to Get a $350,000 Mortgage

What to Consider Before Applying for a $350,000 Mortgage

How to Get a $350,000 Mortgage

The Takeaway

FAQ

How much is a $350K mortgage a month?

How much income is required for $350,000 mortgage?

How much is a down payment on a $350,000 mortgage?

Can I afford a $350K house with a $70K salary?

Related

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.