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

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

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

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

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

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

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

Spring likely to bring higher home prices

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: foxbusiness.com

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The Fannie Mae Home Purchase Sentiment Index (HPSI) declined for the first time in four months, dropping 0.9 points to 71.9 in March. This dip marks the first decrease since November 2023 and is primarily attributed to increased pessimism about future mortgage rates. Thirty-four per cent (34%) of consumers now believe rates will rise in … [Read more…]

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Do you want to learn how to make $10 a day? Whether you want to make an extra $10 every day or if you just need an extra $10 fast right now, you have options. Plus, if you are looking to make $10 a day every day, this is about $300 each month or $3,650…

Do you want to learn how to make $10 a day? Whether you want to make an extra $10 every day or if you just need an extra $10 fast right now, you have options.

Plus, if you are looking to make $10 a day every day, this is about $300 each month or $3,650 extra each year!

Surprisingly, you might not need to spend much time to reach this goal – maybe just an hour or less each day. The great thing about this is that many of the ways mentioned below are flexible and can be done on your own schedule.

Whether you work full-time, stay home with kids, or have a packed student schedule, there are lots of ways to make that extra $10. And even though $10 may seem small, if you do it every day for a month, it adds up to a few hundred dollars, which can be a big help for your budget or savings.

Getting some extra money can be easy by using what you already have online. You don’t need a second job to make $10 more each day. There are lots of online ways to do this. Maybe you want more money or just some spending cash without working a lot. Either way, you can find ways to meet your money goals.

Recommended reading: How To Get $20 PayPal Now

Best Ways To Make $10 a Day Fast

Below are the best ways to make $10 fast.

1. Paid online surveys

Earning $10 by taking surveys is a real possibility and a simple way to make money from home. Some survey companies will even give you $5 or $10 just for signing up and becoming a new member.

When I was repaying my student loans, I filled out surveys every week. I did this before work, during lunch, or after work. It was easy because I could do it whenever I had some free time and could do it on my own schedule. I enjoyed doing them because it was super flexible and would earn me some extra money without any physical labor or really even any brain power.

Survey companies pay you for answering surveys, watching videos, and trying out products. Sometimes, they might even send you free products to test. The best part is, signing up with these companies is completely free!

The paid online survey companies I recommend include:

These survey websites typically give out rewards as cash deposited into PayPal accounts or as free gift cards for places like Amazon.

2. Start a blog

Starting a blog is a creative way to make $10 a day.

Starting a blog won’t immediately earn you $10 a day because it takes time to set up. However, with time and effort, bloggers can usually start earning at least $10 a day in the future.

A blog is a website that contains articles, similar to what you’re reading now. You can start a blog on many different niches and topics like personal finance, recipes, travel, pet care, family life, and more. There are many different kinds of blogs available on the internet.

You can earn money from a blog by teaming up with companies for sponsorships, displaying ads, doing affiliate marketing (such as promoting products from Amazon), and selling items like ebooks, candles, T-shirts, and more directly on your blog.

This is how I make money online, earning well over $10 a day. It took me about 6 months to make my first $100 with my blog, so getting started does take time. It took around a year to reach about $5,000 a month and approximately 2 years to reach $10,000 a month.

You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).

3. High-yield savings accounts

A high-yield bank account is a low-risk way to earn extra money. These accounts offer a higher interest rate than regular savings accounts, so your money grows faster.

While you might not earn $10 every day from a high-yield savings account, it’s quite easy to earn $10 or more over time. You can then stack this with other methods to make $10 every day or $300 a month.

I personally use Marcus by Goldman Sachs because they have a very high interest rate. At the time of this writing, you can get up to 5.40% through a referral link bonus. So, if you have $10,000 saved, you could earn $540 in a year with a high-yield savings account like this. In comparison, with normal banks, your earnings would only be around $50 for the same amount saved.

4. Sell printables on Etsy

One way to make $10 a day from home is by selling printables on Etsy. Printables are digital products that buyers can download and print at home. Think planners, art, or even educational materials.

You have probably used printables in your life, just like most people have. I purchase printables all the time because they make my life much easier. It’s convenient to print things out and have them readily accessible when needed. I recently downloaded a digital printable that is a calendar of new activities to do with my toddler, in fact. (It has a specific new activity to do each day for her age group.)

You can learn more at How I Make Money Selling Printables On Etsy.

Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.

5. Mystery shopping

Mystery shopping can be a fun way to earn money. If you enjoy shopping and going out, this option can help you make $10 a day.

Companies hire mystery shoppers to visit stores and behave like regular customers. You’ll make purchases, ask questions, and then give feedback on your experience.

Secret shoppers evaluate places like restaurants, stores, car dealerships, banks, and more.

My favorite mystery shopping company that I have personally used is BestMark. There are many other good mystery shopping companies as well.

I have mystery shopped a lot over the years. At one point, I was earning around $150 to $200 a month from it, as well as getting free restaurant meals, free retail items, and more. Most of the shops were very easy to complete and I could do them on my own schedule.

6. Get a raise at work

If you’re wanting to increase your daily earnings by $10, asking for a raise at your current job can be a great strategy as you would be simply continuing the job you already have and not having to find a second job.

Start by evaluating how your skills and experience contribute value to the company. Are you taking on additional responsibilities? Have you achieved any big goals or improved anything at work lately?

Remember, timing is everything when it comes to asking for a raise. I recommend setting up a private meeting with your boss to talk about your raise and make sure it’s a calm period in the work cycle, not the middle of a big project or problem.

Then, during your meeting, be direct about your request and explain how your hard work deserves additional compensation and talk about the value you bring to the company.

7. Answer questions in a focus group

Joining a focus group is a great way to earn $10 quickly, or potentially more! Now, you typically won’t be able to make $10 every single day with a focus group because they are more limited in availability, but you can make well over $10 in a single day with them.

A focus group is a small gathering of people who share their opinions about new products or services. Companies use these insights to improve their offerings.

I have participated in a focus group that paid me approximately $400 for just 75 minutes of my time. While this payment was higher than usual, most focus groups typically pay anywhere from around $50 to over $100 per hour. The amount you get paid can vary greatly depending on the length and topic of the study, but there are certainly studies that offer higher compensation than others.

One focus group company that I recommend joining is User Interviews.

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User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.

8. Donate plasma

Donating plasma can earn you between $20 to $50 each time you donate, and you can earn up to $300 a month if you donate regularly.

Plasma is the liquid part of your blood, and it’s in high demand for medical treatments. Your plasma can help individuals with immune deficiencies, bleeding disorders, and other health problems.

The process is similar to donating blood, but it takes a bit longer – usually about an hour. You’ll be comfortably seated during the procedure, and a machine will take your blood, separate the plasma, and return the blood cells to your body.

Typically, you can donate plasma twice a week. Most donation centers require a 48-hour gap between sessions to make sure that your body has time to recover.

Recommended reading: How to Make Money in One Hour: 15 Real Ways

9. Food delivery

If you want to make an extra $10 a day, food delivery is a good choice. It’s a flexible way to earn cash by helping people get their meals delivered right to their doorstep. With apps like Uber Eats, DoorDash, and Postmates, you can sign up and start delivering right away.

When you choose to be a food delivery driver, you work on your schedule. All you need is a reliable way to get around, like a car, bike, or scooter, and a phone. The exact amount you’ll make can depend on the time of day, your location, and how many orders you take.

Typically, you receive more than $5 for each delivery. Plus, customers may tip you for your service as well.

Recommended reading: How To Make $5 Fast

10. Deliver groceries

If you’re looking for a way to make an extra $10 a day, delivering groceries might be the perfect side gig for you. With many people busy or preferring to stay home, you can help by bringing their food shopping right to their doorstep.

Popular apps like Instacart and Shipt are always looking for shoppers. You’ll need to meet some basic requirements, like having a car and a phone. After you’re approved, you can start to accept delivery jobs through the app.

You can choose when you want to work. Maybe it’s after your day job or just on weekends. Each trip to the store and delivery earns you money, and you can see your earnings add up with every order you complete.

I have ordered groceries through Instacart many times when I’m too tired to shop, when I’m on vacation and want groceries delivered straight to the vacation home, and when I’m running low on time at home. It is a great service to have!

11. Transcribe

Transcribing is when you get paid to type out what you hear, and it’s a way to make $10 a day if you have a good ear and can type fast.

Transcription jobs are found online and offer flexible schedules. To start, you’ll need a computer and a solid internet connection.

As a beginner, you can earn around $15 an hour, but with more experience, that number can go up.

Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly

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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.

12. Freelance on Fiverr

If you’re looking to earn an extra $10 a day, Fiverr is a platform to try out if you want to freelance.

Fiverr lets you sell skills you’re good at, such as graphic design, data entry, social media management, writing blog posts for others, and more. You can sell thousands of different kinds of freelance gigs, and you can make your service as customized as you want.

I have freelanced a ton over the years, and it’s a great way to make money from home without having to pay anything to get started. You just need your skills and time!

13. Walk dogs

If you love dogs and want to learn how to make $10 a day (or more) without paying, then walking dogs is a side hustle you can easily get started with.

Dog walking apps like Rover help you to list your dog walking services. This is an in-demand service where you may be able to earn $15 to $30 an hour walking dogs.

Once you’re signed up on a dog walking platform, you’ll get alerts for dog walking jobs in your area. You can choose the ones that fit your schedule. A typical session lasts about 30 minutes, and you might walk one or more dogs during this time.

If you have the chance to walk multiple dogs at once, then you may be able to earn more money by aligning many dog walking gigs at the same time. Some clients do pay more for their dog to be walked alone if that’s what they want.

I have two close family members who are dog walkers and they both really love it!

14. Invest in stocks for dividends

If you’re looking to make some extra money daily, you can try dividend stocks. These are shares of companies that give you money back, called dividends, just for owning them. This is like getting a “thank you” for investing in the company.

To make $10 a day, you’d need to earn around $300 a month from dividends.

Dividends work by paying shareholders a portion of a company’s earnings per share of stock they own. For example, if you own 10 shares of Company ABC and they pay $5 in cash dividends per share each year, you will receive $50 in dividends annually. Dividends are usually paid on a monthly, quarterly, or yearly basis, with quarterly payments being the most common (four times a year). In this scenario, the $5 in cash dividends per year would likely be distributed as $1.25 per quarter for each share of stock you own.

Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide

15. Play games online

If you enjoy playing games, you can actually make money from it! While you might not consistently earn $10 every day, you can likely make $10 occasionally by doing something in your spare time.

Game apps can pay you real money because they generate revenue from ads and in-app purchases. They then share a portion of their earnings with players to keep them engaged and playing their games.

Here is a quick list of popular online game platforms that offer real cash rewards:

  1. Swagbucks
  2. KashKick 
  3. InboxDollars

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Swagbucks is a site where you can earn points for answering surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.

16. Sell things you no longer need

A simple way to earn $10 quickly (or even more) is by selling items you no longer need around your home.

Everyone has things like old books, clothes, unused gift cards (to many places such as Walmart, Starbucks, Target, Amazon, and more), or electronics that they no longer use. Selling these items can help you make money fast.

You have several options for selling your old stuff, like eBay, Facebook Marketplace, Mercari, Craigslist, or even holding a garage sale at your home.

17. Charge scooters

If you’re looking to make an extra $10 each day, then you may be able to find a side gig as a scooter charger for companies like Lime or Bird. These companies pay individuals to pick up, charge, and redeploy their electric scooters around the city.

You can get started by signing up on the company’s website by submitting your name, email, and location. You’ll need to download an app that will guide you to scooters needing to be charged.

Typically, a single scooter gives you around $3 to $5 once fully charged. It might sound small, but charging just a couple of scooters can quickly add up to your $10 daily goal.

18. Babysit

Babysitting is a popular way to bring in some extra cash. If you enjoy spending time with children and have some free hours, this could be a smart pick for making $10 a day or even more.

On average, you could earn between $15 to $25+ per hour for watching kids. The rate might go up if you’re taking care of more than one child or if the children need special attention.

Jobs can range from a couple of hours after school to full days. This makes babysitting a flexible job that can fit into your schedule.

19. Sell on Amazon

If you’re looking to make some cash each day, you might try selling retail items on Amazon. Amazon’s Fulfillment by Amazon (FBA) program can be a great way. You send your products to Amazon, and they handle shipping and customer service for you.

Here’s a quick start guide:

  1. Sign up – Creating an Amazon seller account is your first step. It’s pretty easy and you can do it online.
  2. Choose your products – Find items you want to sell.
  3. List your items – Describe what you’re selling, add pictures, and set your price. Make sure it looks good so people want to buy it.
  4. Ship to Amazon – Box up your items and send them to an Amazon warehouse.
  5. Sell and earn – Once your products are listed, you can start making sales. Amazon gives you a part of the sale price, and that’s how you make your money.

If you want to learn more about starting an Amazon business, I recommend signing up for this free training that will teach you how to sell products on Amazon and make $100 to $500 per day.

20. Rent out your storage space

If you have unused space in your home like a closet, garage, or even a spare bedroom, you can turn it into money! Yes, by renting out your storage space, you could easily make a payout of around $10 a day or $300 a month without much work.

A site to use to rent out your space is Neighbor.

Frequently Asked Questions

Below are answers to common questions about how to make $10 a day fast.

How can I make $10 a day?

You can make $10 a day by doing small freelance gigs, completing online surveys, or selling items that you no longer need. Another way could be to save your spare change from everyday purchases (such as with the Acorns app).

How to make $10 an hour online?

You might be able to earn $10 an hour online by selling virtual assistant services, content writing, graphic design, or tutoring through platforms made for freelancers. Your hourly rate will depend on the skills you have and the demand for them.

How to make $10 a day for free? Can I make $10 daily without any upfront investment?

Making $10 a day for free is possible through apps that reward you for participating in surveys or completing certain tasks, freelancing services like writing or virtual assisting, and walking dogs. You can learn more about this at 22 Ways To Make Money Online Without Paying Anything.

How can kids make $10 each day?

Kids can make $10 a day by doing chores for neighbors (such as by going around the neighborhood and seeing who needs their lawn cut or leaves raked), setting up a lemonade stand, or pet sitting. It’s great for teaching them about the value of work and earning at a young age.

How To Make $10 a Day – Summary

I hope you enjoyed this article on how to make $10.

There are many ways to make an extra $10, whether you need $10 right now or if you want to make $10 each day.

Making an extra $10 can be helpful, whether you have a full-time job, are a stay-at-home parent and just need to make a little extra money, or whatever else.

If you like sharing your thoughts, you can make money doing online surveys. If you’re good at crafts and art, selling printable designs on Etsy could be a good fit. For those who love pets, walking dogs using apps can bring in extra cash. And if you prefer working at night, you can offer your skills on freelance websites after the day is over to make that extra $10.

These little bits of money each day can add up and give your budget more room to move each month.

Are you looking to learn how to make $10 a day or fast?

Recommended reading:

Source: makingsenseofcents.com

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If you’re having trouble getting a car loan, using a cosigner could help. Before you take this step, it’s important to understand what a cosigner is and how having one on your car loan works. For instance, is a cosigner on the title of a vehicle?

It’s crucial to understand the role cosigners play when purchasing a vehicle. In this article, we’ll cover what you need to know about using a cosigner and the impact it could have on your credit and vehicle ownership.

What Is a Cosigner?

A cosigner is a person, usually a close friend or family member, who agrees to be responsible for repaying your car loan if you fail to do so. Lenders are more willing to approve a car loan with a cosigner because it reduces the risk of nonpayment.

During the application process, the cosigner provides their information, including their name, income details, and Social Security number. The lender uses this information to check their creditworthiness when considering the loan. Even if you have bad credit or no credit, you may still be approved for an auto loan based on your cosigner’s credit history.

Once approved for a loan, both you and your cosigner are listed as borrowers. Additionally, both parties must sign all paperwork associated with the loan. Signing these loan documents makes both you and your cosigner responsible for repaying the loan.

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Is a Cosigner on the Title of a Vehicle?

In most cases, the cosigner isn’t listed on the title of the vehicle. The cosigner only pertains to the financial portion of the transaction and is not an owner of the car.

This makes it a risky transaction for the cosigner because while they’re financially responsible for the car loan, they don’t receive any benefits (aside from potentially helping their credit). This means that if the actual owner of the car fails to make payments, the cosigner could end up paying off the loan without having any ownership of the car.

Cosigners who are hesitant to make this type of commitment may request that their name be on the title of the vehicle as added protection. In some cases, a cosigner’s name may be added to the title. However, this must be done during the initial lending process as most creditors aren’t willing to make this change after the loan documents are signed.

In many cases, if a cosigner insists their name be listed on the title, it becomes a co-ownership process rather than a cosigner. In these cases, both parties are part of the lending and purchasing process. Depending on how the title of the vehicle is handled, the original purchaser of the car may have trouble selling the vehicle without the co-owner’s permission.

Impact on Owner’s Credit

If you have bad or limited credit, using a cosigner on a car loan can have a positive impact on your credit score—as long as you make your loan payments on time each month.

Your payment history accounts for up to 35% of your overall FICO® credit score, making it extremely important. Because many car lenders do report payments to the major credit reporting agencies, including TransUnion®, Equifax®, and Experian®, consistent, on-time payments can really help improve your credit.

However, if you miss one or more payments or frequently make late payments, it can have the opposite effect on your credit. It’s crucial that you set a realistic budget before you start shopping for cars.

Obtaining a car loan can also help diversify your credit, especially if you don’t already have an installment loan, such as a home mortgage or personal loan. Your credit mix can account for up to 10% of your FICO credit score. So, building a good mix of credit and maintaining a good payment history can help improve your credit health.

Impact on Cosigner’s Credit

Before agreeing to be a cosigner for a car loan, you should consider the impact this decision could have on your credit.

Applying for a car loan will incur one or more hard inquiries on your credit. This factor could temporarily hurt your credit.

As a cosigner, the entire debt of the car loan appears on your credit report. This new loan will likely increase your credit utilization ratio, which could negatively impact your credit score. Most experts recommend keeping this ratio below 30% if possible. Before you sign for the loan, take the time to calculate your credit utilization and make sure that even with the addition of a new loan, your rate is below this threshold.

Finally, if the owner of the car makes on-time payments every month, cosigning this loan can have a positive impact on your credit. However, if your credit is high enough to be a cosigner, you may already have a strong payment history. In this case, being a cosigner likely won’t have a big impact on your credit.

However, if the owner fails to make payments or makes late payments, it could impact both your credit and your wallet. Because your payment history accounts for as much as 35% of your overall FICO credit score, just a few missed payments could have a significant impact on your credit. Additionally, if the owner fails to make payments, you’re then responsible for making them—even if that means paying off the remainder of the loan. You should never cosign for a car loan unless you can comfortably make these payments.

Alternative Options

Before asking someone to be a cosigner, you should consider other options, such as:

  • Making a bigger down payment. If you’re having trouble securing a car loan, consider offering a bigger down payment. This may help you get the car you want by lowering the risk to the lender.
  • Looking for cheaper cars. If you don’t qualify for a new car, consider buying a used car. Most consumers can find some type of car loan even with bad credit—it just may be for a car of lower value.
  • Requesting a personal loan. If your friends or family members are hesitant to cosign a loan for you, maybe they can loan you the money to buy a more affordable car. This step could be less risky for the lender.
  • Building your credit. If buying a car isn’t an emergency, you can take time to build your credit and apply for a car loan later.

The first step to improving your credit is to check your credit score and report, and then you can take the necessary steps for your situation specifically. Credit.com’s Free Credit Report Card or ExtraCredit® subscription can help you get started with this process.

Source: credit.com

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Servicing, Non-QM DSCR, RON Products; Freddie and Fannie News; Rate Cut Outlook

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Tue, Apr 9 2024, 11:37 AM

Here in the Hill Country near Austin, Texas, there’s an active market of sellers and buyers of real estate. It is a safe bet that most use agents; around 90 percent of buyers use them, and Clever released data on average real estate commission rates in the U.S. as they stand now. Clever found that on the median-priced home of $431,000, the average U.S. home seller pays real estate commission fees of about $23,662. In a survey of 630 partner agents, the average real estate commission rate in the U.S. is 5.49 percent, divided between the listing agent (2.83 percent) and the buyer’s agent (2.66 percent). The average commission rate rose from 5.37 percent in 2023. Most real estate agents typically work within a range of 2.5 percent to 3 percent. Several key factors influence this, such as property value, client relationship & circumstances, sale complexity, services provided, and market conditions. Hawaii is home to the lowest average real estate commission rate (4.78 percent), while West Virginia has the highest (6.67 percent). (Found here after 8:30AM ET, this week’s podcasts are sponsored by PHH Mortgage. From subservicing to correspondent lending, MSR/co-issue transactions, portfolio retention, reverse mortgages, and commercial servicing, PHH has solutions for the entire mortgage lifecycle. Hear an interview with Cross Country Mortgage’s Nicole Perrone on ways lenders are expanding production and capturing market share.)

Lender and Broker Products, Software, and Services

ICE Mortgage Technology® customers are experiencing exciting benefits from the integration between Simplifile® and The Closing Exchange, a leading provider of notary services and order management technology. This integration supports settlement agents and lenders who wish to conduct remote online notary (RON) transactions but may not have the necessary staff or infrastructure in place to facilitate such closings. By leveraging The Closing Exchange’s extensive network of notaries, and their expertise in performing signings, customers can now drive a better borrower closing experience by seamlessly leveraging a RON notary who is already set up in Simplifile® eSign Events™. Click here to learn more.

Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.7 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Now choose your own title company (including on refinances). Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

Understanding what you’re up against in this economy is paramount for every originator. You need to find opportunity, and we want to help you do just that. Join us Thursday, April 25 at 2 p.m. Eastern for a roundtable discussion featuring MAXEX President, COO and Co-founder Bill Decker, South Street Securities Managing Director Buck Thompson and AmeriVet Securities Head of U.S. Rates Greg Faranello. We’ll dive into the current headwinds, where customers are finding success and how you can break away from the traditional business as usual to build a more resilient foundation for the future. Register today to join the discussion.

Servicing Products

How does Servbank maintain such low delinquency rates? Because Servbank identifies and addresses delinquency risk before it has a chance to grow. They utilize their leading-edge technology to drive precise customer outreach and combine it with caring specialists, who work in partnership with customers to achieve positive resolutions. Together, this combination of people and tech, allows Servbank to stay ahead of the DQ curve, not to mention the rest of the market. And when delinquencies are kept low, everybody wins: It’s good for homeowners, the communities they live in, and you, the lender, by reducing your servicing advances, resulting in more monthly cash flow for you. Servbank blends the best of human – and tech-powered service to create excellence with superior performance. Learn more here.

DOWN TO THE ROOTS OF DARA CLAIMS. Dara by Sagent is a unified platform that includes a complete suite of tools for default servicing, and this is where Dara Claims makes a positive impact. It’s the first-of-its-kind tool designed to improve recoverability while reducing risk and cost. Integrating automation and real-time data to simplify the claims process helps reduce manual data entry for servicers, opening up the opportunity to focus on nurturing stronger relationships with homeowners. For a deep dive into all things Dara Claims, read our blog here.

Fannie and Freddie Updates

Given that the lion’s share of mortgages is underwritten to Freddie & Fannie’s guidelines, or are processed to their guidelines, or are sold to them either directly or via a correspondent investor, the changes they make are closely followed.

Fannie Mae posted the March Appraiser Quality Monitoring (AQM) list.

Fannie Mae is taking a phased approach to Uniform Loan Delivery Dataset (ULDD) Phase 5 implementation to allow lenders time to begin providing new and updated values prior to the July 28, 2025, mandate. Refer to its new implementation guide for important transition information.

Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2024-4 announced updates pertaining to Manufactured Home certification requirements as well as other updates that can impact your business and our borrowers.

On April 5, Fannie Mae updated its Selling & Servicing Guide pages to improve the user experience, with enhancements to content navigation and search functionality. These enhancements do not impact the Selling & Servicing Guide content or layout. While the Guide URLs and redirects will remain active until January 2025, bookmarks should be updated as soon as possible after April 5. View Fannie Mae’s Enhancements to Your Selling & Servicing Guide Experience.

Fannie Mae and Freddie Mac (the GSEs) announced the timeline and scope for the Uniform Closing Dataset (UCD) v2.0 Specification updates, and postponed UCD critical edits Phase 4 and 3B requirements.

Capital Markets

Bond yields hit 2024 highs to open the week with inflation in focus as investors continue to walk back interest rate cut expectations in the wake of Friday’s robust March NFP data. As a reminder, March’s jobs report was yet another this year that exceeded economists’ expectations and saw the prior two months of data revised upward. Monthly job gains in the first quarter of 2024 averaged 276,333 compared to last year’s 251,083 monthly average. The continued strength in the labor markets means policy makers at the Federal Reserve have little incentive to lower the target for the fed funds rate.

The robust March payrolls report continues to weigh on bond markets as it means that any change to Fed policy will be likely pushed back to later in the year. The front-end of the yield curve was more reactive to changing rate cut expectations yesterday than the long-end, though rate cut expectations will be a moving target the next couple of days with the release of the March Consumer Price Index on Wednesday and March Producer Price Index on Thursday. CPI will be the most closely watched, and the headline number is expected to tick slightly higher to a 3.4 percent annualized rate compared to the previous report’s 3.2 percent. This would be the highest rate of inflation since December. The core is expected to come in at a 3.7 percent clip, down from 3.8 percent in February.

“Fed speak” lately has been hawkish, and the sentiment for rate cuts seems to be fading fast. Minneapolis Fed President Kashkari last week raised the possibility of rate hikes if inflation doesn’t continue to work its way lower, while Fed Governor Bowman declaring that progress on inflation “has stalled,” and Dallas president Logan added to the malaise when she declared it “much too soon” to think about rate cuts. Gasoline prices rose again in March as OPEC+ producers extended supply cuts, the Middle East conflict threatened to broaden, Ukraine attacked Russian refineries, and U.S. crude production leveled off near a record high. Nothing here points to a near-term rate cut, and investors have decreased their forecasts of Fed rate cuts this year to two as the most likely outcome, their most pessimistic outlook since late October. June fed funds futures now see slightly less than a 50-50 chance of a cut.

Today’s calendar began before the open with the NFIB Small Business Optimism Index for March. Later today brings Redbook same store sales for the week ending April 6, and Treasury auctions that will be headlined by $59 billion 3-year notes. We begin the day with Agency MBS prices better by about .125 and the 10-year yielding 4.39 after closing yesterday at 4.42 percent; the yield curve inversion continues with the 2-year at 4.77.

Employment

Be The Key at Movement! Movement Mortgage’s new Be the Key program empowers loan officers and realtors to serve the Black community. Collectively we are unlocking the doors to homeownership, equity, and generational wealth across the country. Be the Key is part of Movement’s over-arching Grab the Key program, which also includes Grab the Key, Jr. These programs offer consumers and young students educational classes, community events and practical mortgage resources. For more information on these programs and how Movement’s diversity lending initiatives equip loan officers in a unique way, contact Montell Watson or visit grabthekey.com. Be a part of the change. Be the key.

Banner Bank, a top performing and globally recognized financial institution, has a unique opportunity for a VP, Mortgage Servicing Director in Southeast Washington. This part of the country offers breathtaking views of the panoramic wine country, a temperate climate, and some of the best outdoor opportunities in the West. Banner is seeking a visionary expert in Mortgage Loan Servicing with superior knowledge of the technical landscape and outstanding leadership experience. The role is relocation approved. To apply visit, Banner Careers. Resumes should be submitted there, but any questions should be directed to Ken Larsen, EVP & Mortgage Banking Director.

Canopy Mortgage is making waves nationally, with a rapid influx of high-performing loan officers, averaging one every other day. What’s the draw? It’s their streamlined corporate structure, integrated proprietary technology, unique profit and loss model, and empowering ethos highlighted by Forbes. This growth is fueled by strong relationships and referrals, establishing Canopy as a leader in mortgage lending innovation. Haven’t heard of Canopy yet? Ask around or reach out to Josh Neumarker at 888-696-9076 for a Tech Demo or consultation.

NAN (Nationwide Appraisal Network) is pleased to announce the appointment of William “Bill” Waltenbaugh, SRA, AI-RRS, as its new Chief Appraiser. With a distinguished career spanning over three decades in the property valuation industry, Bill brings a wealth of expertise and leadership to his new role. Bill is eager to collaborate with the NAN team and like-minded professionals to drive innovation and elevate industry standards. His leadership will be invaluable as NAN continues to enhance their services and drive growth. Bill will leverage his extensive experience and deep industry knowledge to advance NAN’s commitment to technology, communication, and accountability. He is deeply passionate about the evolution of the valuation industry, with a keen focus on product development and modernization. His appointment as Chief Appraiser underscores NAN’s commitment to excellence and innovation in the property valuation industry. NAN looks forward to continued success and growth under his leadership.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Real joins several major players, including Anywhere Real Estate, RE/MAX, Keller Williams, Compass, and the National Association of Realtors, in reaching settlements in commissions lawsuits. With sales exceeding $12 billion in 2022, Real was one of over 90 brokerages not covered by NAR’s settlement agreement. While Real could have pursued a streamlined settlement path outlined … [Read more…]

Apache is functioning normally

Uneventful, Sideways Day After Initial Losses

Mon, Apr 8 2024, 4:42 PM

Uneventful, Sideways Day After Initial Losses

Today had the dubious distinction of seeing the highest yields in more than 4 months while also being uneventful and largely sideways in terms of bond market momentum.  The steeper losses were limited to the overnight session with 8am bringing a quick but shallow correction.  Bonds were back to levels that would only be considered modestly weaker by 10am and the rest of the day was spent drifting sideways in the same territory.  There were no standout market movers, news headlines, or Fed comments.

    • Nonfarm Payrolls
      • 303k vs 200k f’cast, 270k prev
    • Unemployment Rate
      • 3.8 vs 3.9 f’cast, 3.9 prev
    • Earnings
      • 0.3 vs 0.3 f’cast, 0.2 prev (revised up 0.1)

09:33 AM

Follow-through selling overnight with 10s opening as high as 4.463.  Now up only 2.5bps at 4.427.  MBS down an eighth after opening down more than a quarter point.

11:51 AM

Rally stalled.  MBS an eighth off highs and 6 ticks (.19) lower day over day.  10yr down 2.4bps at 4.425

02:18 PM

bouncing back a bit heading into the 2pm hour.  MBS down only an eighth.  10yr up 1.1bps at 4.413

04:28 PM

Gliding flat into the 5pm close.  MBS still down an eighth.  10yr up 1.9 bps at 4.421.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

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Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff.

Key takeaways

  • Portfolio loans are a type of mortgage that lenders originate and retain instead of selling on the secondary mortgage market.
  • Portfolio loans offer more flexible underwriting standards and faster funding times than conventional loans, but often come with higher interest rates, closing costs and down payments.
  • Borrowers who don’t qualify for traditional loans may be eligible for portfolio loans.

With most mortgages, the lender who originates the loan doesn’t actually hold onto it. Instead, it sells the mortgage on the secondary mortgage market, which helps free up capital so it can loan money to more borrowers. There are, however, some exceptions to the rule: loans that don’t wind up being bought and sold. These are called portfolio loans.

What is a portfolio loan?

A portfolio loan is a kind of mortgage that a lender originates and retains instead of offloading or selling on the secondary mortgage market. A portfolio loan stays in the lender’s portfolio, or “on the books,” for its full term.

Why does that matter? With a portfolio loan, the lender gets to set the standards — what kind of credit score it’ll approve and how much money it’ll offer to the borrower, for example. The lender does not have to adhere to the Federal Housing Finance Agency’s (FHFA) standards used by Freddie Mac and Fannie Mae, the government-sponsored enterprises (GSEs) that back and buy most mortgage loans in the U.S.

How portfolio loans work

A portfolio loan has plenty in common with non-portfolio mortgages. You’re still going to apply to borrow a chunk of money, and a lender will assign you a risk level based on the likelihood that you’ll pay it back. That risk level helps determine the loan interest rate and other terms. If you agree to these terms and take out the mortgage, you’ll receive a lump sum that you agree to repay in monthly installments over a set time.

While the application process is largely the same, portfolio loans can offer faster access to financing, more flexible repayment terms and potentially higher loan amounts than other mortgage types.  

How do portfolio loans differ from traditional mortgages?

It depends somewhat on how you define “traditional mortgage.” Like most mortgages that originate in the U.S., portfolio loans are conventional loans — that is, issued and funded by a private lender. However, they do vary from the most common types of conventional loans. Here’s how portfolio loans differ from other conventional loans:

  • They are non-conforming loans. Most conventional loans — around 70 percent — are conforming loans. That means they follow the criteria set by the FHFA, which makes them eligible to be purchased by Fannie Mae and Freddie Mac. Since portfolio loans don’t aim to be bought by the GSEs, they are often non-conforming, meaning they don’t necessarily meet the FHFA criteria.
  • They are non-qualifying loans. Portfolio loans are also a type of non-qualifying loan (non-QM loan for short). Such loans differ from the norm in that they don’t adhere to the home loan standards set by the Consumer Financial Protection Bureau (CFPB). These standards mandate certain features mortgages may or may not have, and certain underwriting practices lenders must follow, to ensure borrowers can repay the debt.
  • Eligibility requirements for portfolio loans are less strict. In general, portfolio loans offer more lenient underwriting standards for borrowers. As a result, portfolio loans may be more accessible for aspiring homeowners who are struggling to get approved for a mortgage.
  • Portfolio loans often have higher interest rates and more fees. With more lenient standards can come higher interest rates, larger down payment requirements, bigger closing costs and additional fees. All this reflects the risk the portfolio mortgage lender is taking by keeping the loan on their books, and not selling — or being able to sell it — on the secondary mortgage market.

What are the expected interest rates, fees, and payment terms for portfolio loans?

In the case of portfolio loans, mortgage fees and closing costs are often a little higher than with traditional loans to compensate the lender for their added risk. Here’s what you can expect to pay:

  • Interest rates: A portfolio loan usually comes with the same features as a traditional mortgage: a fixed interest rate over a 30-year term that reflects the financial profile and assessed creditworthiness of the borrower. But the interest rate is almost always greater than that of comparable government-backed or conventional loans, varying from 0.50 to 5 percent above market rates.
  • Payment terms: Most portfolio loans offer similar repayment terms to traditional mortgages (15-year or 30-year repayment terms).
  • Fees: Fees vary by lender, but often portfolio loans have higher fees than traditional mortgages. For example, an origination fee might be as high as 4 to 5 percent (in contrast, qualifying loan fees are capped at 3 percent). Points are negotiable, especially if you are the type of depositor they want as a customer
  • Other costs: Additional costs, such as the down payment requirements may differ. A portfolio loan will typically require more upfront money than other types of mortgages — often at least 20 percent. In comparison, FHA loans allow down payments as low as 3.5 or 10 percent. You may also find higher fees for prepayment penalties, grace periods for missing payments and the right to assign a loan (that is, for the borrower to let someone else assume the mortgage).

Who is a portfolio loan best for?

Portfolio loans allow borrowers who don’t meet Fannie and Freddie’s conforming loan requirements the ability to still qualify for a loan. This borrower might be someone who doesn’t have earned income but does have significant assets; a real estate investor; a small business owner or a self-employed worker. Borrowers with high debt-to-income ratios (DTIs) or credit scores below 580 may still be eligible for portfolio loans, and those who have declared bankruptcy might qualify in a shorter time.

For example, North American Savings Bank‘s website features a portfolio loan that requires a 20 percent down payment (vs. 3 to 10 percent for conventional loans), a debt-to-income ratio of 48 percent (vs. the standard 43 percent for conforming/qualified loans), and two years of seasoning after bankruptcy (vs. four years for conventional loans).

Pros and cons of portfolio loans

There are benefits and drawbacks to portfolio lending to consider, including:

Pros

  • Bigger loan options: Borrowers who need an outsized mortgage or other special terms might find more flexibility with a portfolio option.
  • Flexible underwriting requirements: Borrowers who don’t have a stable earned income, holes in their credit histories or scores that don’t fit other standard criteria might qualify for a portfolio loan.
  • More hands-on or personalized service: Many portfolio lenders are community banks with a connection to the area. That can mean better customer service or more willingness to find creative solutions.

Cons

  • Potential for a much higher interest rate: Remember that with a portfolio loan, the lender is losing the chance to resell the debt in the secondary market. That’s an opportunity cost, and the lender might charge you a higher interest rate to make up for it.
  • Bigger fees: The lender might also charge more or more onerous fees in exchange for its flexible underwriting and additional risk.
  • Still some standards to meet: Sometimes, lenders still want the option to sell the portfolio loan down the line. In that case, you might have to meet many of the usual underwriting requirements imposed by Fannie and Freddie.

How to get a portfolio loan

Portfolio loans aren’t advertised outright; you won’t find a lender simply by comparing mortgage rates. Follow these steps to find a portfolio mortgage loan:

  1. Search for lenders: Check first with any banks you already have accounts at, personal or business, to see if they can give you a good deal for being an existing customer. You can also check with a local community bank or online lenders. You might need to work with a mortgage broker who can match your specific needs with a lender who specializes in, or at least offers, portfolio loans.
  1. Verify your lender: Predatory lenders often advertise portfolio and other kinds of non-traditional loans. Make sure any institution you deal with is an FDIC member and listed with the Nationwide Mortgage Licensing System (NMLS). You can also ask for blank copies of the mortgage documents the lender will use for your loan, and have a real estate attorney review it for any unusual features, charges or conditions.
  1. Make sure you qualify: Portfolio loans often have looser requirements for borrowers, but they still have eligibility requirements. Make sure you fit the criteria needed to get a portfolio mortgage. Lenders usually look at your credit score, job history, income and debt-to-income (DTI) ratio.
  1. Apply for a portfolio loan: Once you find a portfolio lending option, you’ll need to fill out an application, either online or in person. Gather all the necessary documents, such as pay stubs, personal identification, recent tax returns and W-2 forms.
  1. Wait for approval: Once you submit your application, the lender will review all your information to determine whether to approve you for the loan. If you are not approved, the lender must indicate why. Depending on the reason, you might be able to adjust your application for approval, like applying for a smaller loan amount.

Source: bankrate.com