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REFI ALERT: A hole in one for this Broomfield resident

That’s right, our borrower just scored a hole in one! He refinanced his corner lot nestled inside a golf course community and saved big! It’s crazy how much you can cut back on your monthly payment when you make the decision to refi. And hey, rates are still low. Are you gonna keep taking bogey’s or are you ready to step up your game?

Our team is available to help you get pre-approved 7 days a week almost 24 hours a day – give or take the 5 minutes a day that Brian sleeps for. Ha! All jokes aside, we take pride in having flexible hours and would love to chat with you if you’re interested in starting the refinance process. Reach out and let’s get you pre-approved.

-The Brian Manning Team

303-500-3839

brianm@rate.com

REFI ALERT: Self-Employed Borrower Closes on Deal

When you’re self-employed, the thought of financing a home can be stressful one! Lucky for you, our team makes is easy as possible by providing a Self-Employed Documentation Expert to take some of that pressure off of your shoulders! Our expert, Allan will be assist you throughout the entire documentation process to ensure that we have everything necessary to get you clear to close ASAP!

Today we are celebrating the successful closing on our clients refinance in Westminster! Their beloved home has fostered so many memories in the past few years, an especially this last one as more time was spent at home than ever before. Here’s to making even more memories in the futer — just at a lower rate!!

If you’re self- employed and are feeling the impending stress – stop right there!! Give me a call today and let’s get you pre-approved and chatting with Allan before you know it. Trust us, the process doesn’t have to be stressful! Set yourself up for success with our team of qualified mortgage professionals!

303.500.3839 or brianm@rate.com – I’m looking forward to hearing from you!

Pending New Home Sales: Update 2/26

Pending Home Sales, which measures signed contracts on existing homes, fell 2.8% in January.  Year over year Pending Sales are up 13%, which is amazing in the face of record-low inventory levels, which are down 24% from last year.

Requirements for Refinancing Mortgages

mortgages

The plunging interest rates have prompted many homeowners to refinance mortgages. An online survey by Harris Poll found that 17% of U.S. homeowners with a mortgage on their primary properties had refinanced towards the end of 2020. The survey also showed 31% of homeowners with loans on primary residences were planning to refinance within the next 12 months. Not all homeowners are eligible for refinancing; they need to meet specific criteria to qualify. According to research qualifying borrowers can get refinancing as high as 125% of their home’s value. So what requirements do homeowners need to meet to qualify for refinancing?

What is Refinancing a Home Loan?

It is the process of applying for a new loan from another or existing lender to pay off the original loan. Homeowners refinance loans to take advantage of a low-interest rate as is the case with the current U.S. mortgage market, reduce monthly repayments, or the loan-term. Another reason homeowners refinance is to move from floating rate loans to fixed loans. High floating rates translate into high monthly repayment costs, and moving to fixed-rate loans can reduce the expense significantly.

Qualification Requirements

While the requirements vary by loan type and lender, there are a few similar things:

Have Owned the House For a Long Time

Lenders want to know how long you’ve owned the house. The rule of thumb states your name must be on the property title for a minimum of six months. This rule applies to borrowers who have applied for the traditional mortgage, V.A. (Veterans Affairs), or jumbo loans and want to apply for a cash-out refinance. However, if the borrower wants to refinance an FHA (Federal Housing Administration) loan, they may need to wait longer, sometimes up to a year.

Decent Credit Score

Credit scores have a direct impact on a homeowner’s ability to refinance mortgages. Lenders use the score to determine if you’re eligible for another loan and the interest rate to charge. For conventional loans, a credit score of 620 and above is befitting. If refinancing an FHA loan, you need a minimum credit score of 580.

Your Income Amount

If your income has changed since you applied for the current loan, you’d need to prove that you can repay the new loan. This means analyzing the new monthly payments and determining if your income covers them. Lenders use the debt-to-income ratio to calculate the amount of income available to repay mortgages.

The ratio is expressed as a percentage and calculated by dividing the total monthly debt by your gross income. As such, if your monthly debt comprises student loans, car loans, credit card debt, and any other recurring debt, they’re all added to determine the total monthly debt. Generally, lenders prefer a debt-to-income ratio of 50% or lower; a higher ratio disqualifies you from refinancing.

Enough Home Equity

Home equity is the percentage of the property the borrower owns. It’s also referred to as the loan to value ratio and is an essential metric that lenders use to determine one’s eligibility for refinancing, the new loan terms, and annual percentage rate. The general rule of thumb states the homeowner should own at least 20% of the equity in a home if they want to refinance.

Borrowers who have a loan-to-value ratio less than 20% but have a good credit rating are still eligible, but the lender charges a higher interest rate. Alternatively, you may be required to take out mortgage insurance.

Are There Other Ways of Refinancing a Home Mortgages?

If the selection criterion disqualifies the homeowner from refinancing the loan, they can explore other options like

  • Looking for a cosigner: A cosigner agrees to repay the loan if the borrower defaults. Asking a cosigner to sign the loan with you increases your odds of loan approval
  • Find out about government loan programs: Organizations like the Federal Housing Administration, the U.S. Department of Veteran Affairs, and the U.S. The Department of Agriculture offers refinancing programs

Refinancing your mortgages are an excellent way of reducing your loan term, taking advantage of lower interest rates, among other benefits. With these points, you can quickly determine if you’re an eligible candidate.

Benefits of Getting a Home Loan through an Online Mortgage Company

home loan

They say that buying a home is one of the most stressful times of your life, and getting your home loan is one of the reasons why. Unless you have the cash on hand to buy a home, which almost no one does, then you need a home loan. There are tons of things that can go wrong when you’re getting a loan, you could fill out the paperwork wrong, get a bad mortgage rate, or even be denied. That’s why a lot of people are turning towards online companies that specialize in mortgages, rather than a bank that serves multiple roles, and there are several reasons why. Here are just a few of those reasons:

It’s More Convenient

Most mortgage companies let you apply online, which saves you a ton of time and energy when applying for your loan. There’s no need to go into a bank, only to have their loan originators try to sell you on more than you need. Instead, you can choose what you want and go forward with it.

Furthermore, when you work on a mortgage application online you have more access to tools and research that you wouldn’t otherwise have. Do you need a loan calculator? Do you have a quick question that doesn’t seem worth bothering a mortgage broker, but needs to be answered anyway? By applying for your mortgage online you have access to all this information and more.

You Can Get a Better Mortgage Rate

For most people, whether or not they can afford their home comes back to the mortgage rate that they get. If someone’s rate is too high, usually due to poor credit, then a person usually wouldn’t be able to afford their monthly payment. If you can’t afford the monthly payment, you can’t take out the home loan. This can be devastating to people who thought they had found their dream home, only to be denied at the last moment by the bank. Mortgage companies often offer better rates than banks, however, and when you go online to find a home loan it’s easier to see all the different options available to you. This means that you get the best possible rate and are going to be able to move into your dream home sooner.

The Process is Quicker

When you apply for a loan online, the process tends to be quicker than applying in person, because the process is more streamlined. This is from start to finish as if you go to one in person mortgage lender and they tell you their rates will be more than you can afford, you then have to physically go to a new lender. However, if this happens online you don’t need to even stand up. You just search for a new option. Add in that the actual application process is quicker and it’s easy to see why applying for loans online is increasing in popularity. By being a more streamlined process, it lessens some of the stress that comes with trying to get a home loan.

You Don’t Lose Expert Advice

One of the reasons people still prefer to apply for mortgages in person is that they get to meet with someone in person to ask questions and get help from the process from. However, when you apply for a mortgage online, you don’t lose that expert advice from actual mortgage lenders and consultants. This means that you’ll still get that personal touch and will be able to ask any question you need to, particularly ones that may be difficult to research or don’t have a clear answer online. This relationship won’t be in person, rather it will be over the phone, but the relationship will still exist and that’s what’s most important.

The mortgage process can be complicated and anxiety-inducing. However, without a home loan, you won’t be able to buy a house. It’s vital to get the best loan possible, as 26% of homebuyers say that paying down debt is the biggest reason they struggle to afford their first home. So, it’s worth going online and checking to make sure you’re finding the best option for you.

Friday Market Update for the Week of November 13th

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it.

So, Monday of this week, stocks went crazy because on Sunday, Pfizer came out with some news about a vaccine and stocks just went on a tear and just crushed it on Monday, Tuesday and Wednesday of this week. But kind-of by Thursday, I think stock markets started to realize like, wow, this is not as easy as we thought. Even though you have some great news from Pfizer in regards to a vaccine, you know, we don’t really have good proof of this yet the distribution is going to be difficult so I think, really, it’s all starting to settle in that yes, we all want great news in regards to a vaccine for COVID, but just because Pfizer says they have some good progress here, doesn’t mean that this is going to be released relatively quickly and there’s still some time in front us. So, you saw stocks just take off, they’ve been pretty consistent all week. And it’s just, kind of, irrational to see how they’re reacting but here we are.

 

Thursday this week, we get CPI. CPI is the consumer price index, this is a gauge of inflation. The CPI was relatively flat and looks like a lot of consumers were you know, fairly nervous in the month of October and spent less money and instead of seeing the CPI increase which we did for 4-5 months in a row, it just went flat, so the core rate was stripped of the volatile cost of food and energy and went from 1.7% to 1.6%. So it was good to see a little bit of calming down of inflation there because we talked about this in the past and inflation is just the enemy of interest rates. Also, rents on a year-over-year basis stayed flat on an annual increase of 2.7%. Overall, landlords are just relatively nervous right now, especially coming into the winter. with a spike in COVID cases and they’re just nervous about collecting their rents so you’re not seeing very strong rental increases there.

Also on Thursday, we got unemployment, so unemployment and new unemployment claims for the month of October where… I’m sorry, this is on a weekly basis. Unemployment claims for last week were at 709,000 people and that’s for new people filing for unemployment and then, continuing claims still sit at 6.8 million people so still, some high numbers, it’s good to see them come down a little but they’re still definitely well above where we were in pre-pandemic numbers. Also, don’t forget that we have the pandemic unemployment assistance so once you have run the course of unemployment, you can then re-apply for pandemic unemployment assistance and those numbers increase by 160,000. So, still seeing everything calm down a little bit but these numbers are still at record highs.

Today, a lot of media today about median home price. So median home price for the third quarter on a year-over-year basis was up 12%. I look at the media and they’re just all out there right now saying, oh my Gosh! Home prices are outpacing income 4 times by 4 times and it’s just not the case. Okay, so the median price of a home in America is $313,000. So what that means is that historically, half the homes sell above $313,000 and half the homes sell below a price of $313,000. Well, and that lower price range across America inventory is at an all time low. So you’re not getting as many sales that would normally take place that would nationally split the 50-50 there. So now what we’re seeing is less sales that took place below $313,000 and more sales that took place above the price range of $313,000 and because those numbers are off due to a lack of inventory it skews the numbers and it makes it look like the median home price is up 12% when really it’s not, it’s just a lack of inventory that’s causing less home sales to take place below $313,000 and more to take place above. I would not say it’s very accurate and be careful of how you interpret it in the media because it’s not really that correct.

Overall, we did see mortgage rates worsen a little bit this week when we got this news from Pfizer on Sunday and stocks took off. There was some impact in the bond market we saw mortgage rates worsen a little bit nothing horrible but we did see a little bit of an increase. We’ll have to wait and see what happens next week as far as rates are concerned, it’s so volatile right now that it’s really tough to predict.

I’m around all weekend, if you have any questions, let me know. I’d love to help you in any way I can if you want a re-approval, you want to run some numbers, call me on my cell-phone, text me. Hope you have a happy Friday the 13th and I’ll talk to you soon.

-Brian

Friday Market Update for the Week of October 9th

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it.

So, stocks were on a wild ride this week, with on-again-off-again negotiations regarding the stimulus package. I mean, it’s something that’s desperately needed. You have airlines in trouble, small businesses that need help… Hopefully, we get our act together there and see what can get put together. But yes, it did create a wild ride for stocks this week.

Wednesday of this week, we got the Fed minutes. So the Fed minutes were from the Federal Reserve meeting last month, and last month is when they announced that they will keep the Fed rate at 0% until 2023. And the minutes showed that this was really not a unanimous decision on all of the Fed voting members, so one thing to keep in mind and really to be aware of is that the Fed funds rate is an overnight rate, this is not mortgage rates. So this doesn’t mean that mortgage rates will be at 0% because they’re not. In fact, the last time the Fed had a long-term approach and they left rates at 0 mortgage rates went from 3.5% on a 30-year-fix to 4.625%. So mortgage rates are not directly tied to the Feds funds rate and you can see a difference there. And I will definitely anticipate, you’re going to see rates go up in the future for multiple reasons. One of them is what we’ve talked about in the past, this is going to be inflation. As the world has really, kind of, gotten itself back together and I know everywhere you go right now you see more traffic on the highways, airports are slightly busier, people are buying more goods, etc. So as you see more and more activity, that means that there’s a stronger demand. And the supply chains are being challenged right now, because not everyone is going back to work for various reasons, so as we’ll potentially see inflation coming into the future. And this is something that’s going to cause mortgage rates to go up and there’s just no way around it.

Thursday of this week and every Thursday, we get initial jobless claims. We’ve been paying very close attention to this because of the pandemic situation that we’re in, but this week California messed up and they were not able to report their numbers, and the challenge is that, for initial jobless claims California makes up 20%-25% of initial jobless claims across the country. So the numbers this week, just really weren’t that accurate there. Still currently floating at around 25.5 million people unemployed which is insane. if we look back at the same exact week last year, in last year, in 2019 we had about 1.4 million people unemployed so it’s just crazy to see the impact that this is having right now. Today, we got some information on forbearance, and forbearances are down 18%, so many people that went into a forbearance program for their mortgage, they went into it about 6 months ago, most forbearance programs were a 6-month program and we’re starting to see people drop off there now which is really good to see. So, 18% is the reduction of people and forbearance for their mortgages.

Don’t forget – next week, Thursday October 15th, Fall Fiesta. McDevitt’s Tacos, we’d love to have you. It’s a socially-spaced event, there’s two options. You can do a drive-thru meal pickup or you can pick up in person, there’s going to be live music we’re super excited to pull this event off this year, we’d love to see everyone. Please make sure you are RSVP, the link is in this email and we’d love to see you out there. I’m also available all weekend, if you have any questions – let me know. I’d love to help you with your pre-approvals and answer any questions you have. Reach out to me in any time.

Call me or text me on my cellphone. Happy Friday, have a great day.

Friday Market Update: September 11th 2020

Happy Friday, Brian Manning here with the weekly update. Let’s get right to it, so… Monday of this week, everything was closed for labor day, it was a wonderful, 3-day weekend but we’re back at it on Tuesday. Tuesday, there was a lot of talk about the Federal Reserve and inflation and what they’re going to do. So, the Federal Reserve really looks at inflation as gauge-through reading called the PCE, which is the personal consumption expenditure and we just think it’s a lie, we think it’s the wrong gauge to look at. And the reason why we disagree with using the PCE is because the PCE doesn’t take into account for us as consumers, out-of-pocket medical expenses or cost of living or cost for housing.

So it was really hard for us to really wrap our head around how are you going to measure a gauge of inflation for the entire country when medical and housing expenses are not being looked at? It is what it is, I’m not going to tell you I agree with it but it’s something to keep a close eye on because the Federal Reserve is in the process of changing their monetary policy in regards to inflation and inflation is the biggest enemy to bonds and interest rates going up, so we have to really watch this closely.

We also got some information from CoreLogic looking at delinquency, so delinquencies on people that have mortgages that are 60-89 days late was down to 1.8% so that was good to see. And then, 90+ late payments was up from 1.5% to 3.5%. It kind of makes sense right now, we’re going through this pandemic where we had people 90 days ago that stopped making their mortgage payments. Yes, we’re going to see some fall-out from this, yes we’re going to see some fore-closures. It is nothing like 2008-2009. Trust me, I lived in Miami at that point in time, I saw the worst of it, and this is nothing like what happened there but in the short term, it’s really good to see that currently, people that are late on their mortgages now is a declining number which is really great.

This Wednesday and every Wednesday, we get Mortgage Bankers Association and information on applications. And on a year-over-year basis purchase mortgage applications are up 40%. This is unbelievable, the housing market is still very strong, it’s very robust, purchases are on the rise and it’s just really good to see.

Today, we get the CPI, that’s the consumer price index. So this is actually the gauge of inflation that we get on a monthly basis that we really believe to be more accurate because it does include out-of-pocket medical expenses, and it does include housing. So, we specifically look at the core rate on the CPI, and the reason why we look at the core rate is because the core rate excludes volatile items such as energy construct, oil and food. So if we strip out the core rate on a month-over-month basis, the CPI was up 4/10th of a percent, that’s the hottest number we’ve seen in a while, that’s a pretty substantial increase and on a year-over-year basis the core rate for CPI is up from 1.6% to 1.7%. So this is the hottest ratings that we’ve seen in 6 months. The reason why this is really important right now is because if you or anyone you know is considering refinancing, right now is the time, do not wait, rates are at all time lows.

There’s going to be one of two things that’s going to be a catalyst for mortgage rates to go up here, in the future. What are they? Number one is going to be COVID. If we start to see good news on something COVID related, such as a vaccine. Something promising from a reputable sources, stock markets are going to rally because the economy is likely going to do better and that’s going to cause mortgage rates to go up. Number two is going to inflation, we’ve talked about this a lot lately and inflation is the enemy of bonds, inflation is the enemy of interest rates. So as the economy starts to rebound and consumers are out there spending more money and buying more goods. When there is a breakdown or purchases that outpay supply, just purely looking at supply and demand, you’re going to see cost increasing and you’re going to see inflation increase as well, so that’s going to be an enemy of interest rates, as well. So, if you’re interested in refinancing I’m telling you, right now is the time. Mortgage rates are at rock bottom, something here is going to be a catalyst for rates to go up in the future, don’t get caught.

Give me a call, I’d love to help you in any way I can. Also, I’m around all weekend, if you have any questions, call me, email me, text me, call my cellphone, texting is the best way to catch me over the weekend. I would love to help you in any way I can. Happy Friday, hope you have a great day.

Friday Market Update: Week of September 4th 2020

Happy Friday, Brian Manning here with the weekly update, let’s get right to it. I can’t believe another month has already gone by and it’s jobs week, so Wednesday of this week and the first Wednesday of every month, we get ADP, so ADP is a large provider of private payrolls and they give us a report every month of new jobs created, these are not government jobs, these are private jobs and the expectation for the month of July was at 1.2 million jobs would have been created and ADP said “Oops! Only 167,000 new jobs were created”. But they revised the month of June.

In the month of June they had originally reported that 2.4 million jobs were created which was a BlockBuster report and they said, “Oh! We messed that up”. It was actually 4.3 million people that had new employment in the month of June that were in the private payroll sector. No idea how you miss almost 2 million people but, but they did.

 

Thursday this week and every Thursday we get unemployment filings. So we had 1.2 million new unemployment claims that were filed in the United States and then we also got some feedback from the Federal Reserve which is really interesting and something we’re going to have to watch. The Federal Reserve currently has an inflation target at 2% and what that means is as the personal consumption expenditure and they look at the quarter rate, so the quarter rate strips out volatile items such as food and energy, so when that PCE rate approaches 2% that’s when the Federal Reserve will start to raise their rates. Well, the Federal Reserve is talking about taking that benchmark and changing it from 2% to 2.5%. So that means that they would not look at raising the Fed Funds rate until the inflation target on the personal consumption expenditure hit 2.5%.

Well, don’t forget, although not important at this present moment in time, inflation is the enemy of bonds and inflation is the enemy of interest rates. So as you start to see inflation go higher and higher and higher and the Federal Reserve not doing anything about it, that means that mortgage rates would rise. That is not the case right now, we’re in an incredibly low rate environment but if they do make this change in the future, when rates do start to move higher that will certainly propel mortgage rates to move even higher because that cap would not be in place at 2%. So we’ll have to watch this and kind of keep an eye on it.

And then today, first Friday of the month, we get the BLS, that’s the Bureau of Labor Statistics. This is the government’s report on what’s happening with employment, unemployment so they said that for the month of July 1.8 million jobs were created and unemployment was down, at a number now, at 10.2% but it’s not fully accurate and here’s why. First of all they have a 1% miscalculation into there and the miscalculation covers a bunch of different things. Also, there are 7.7 million people not counted right now that are either not part of the labor or participation force or not looking for a job. These might be people that don’t want to go back to work because they’re worried about COVID or they can’t go back to work because they’re in the music industry or they’re in the food industry and their job is just not open yet, so 7.7 million people right now not factored into this. So if we actually took those 7.7 million people, factored them back in and factored back in that 1% miscalculation, the true number for unemployment right now would probably be around 15.3% which is still unprecedented numbers.

I’m around all weekend, if you have any questions – let me know. If you have any buyers that need to get pre-approved, call me call me on my cellphones or text me, that’s always the best way to get a hold of me over the weekend.

Happy Friday, hope you have a great day, we’ll talk with you soon

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