3% or 20% – What’s Best For Me?

Down Payment

Image source: Google

It is no secret that times have changed since our grandparents and even our parents have purchased homes. So much so, that with new programs and requirements, brokers/lenders have stated, you aren’t required to have the 20% down payment that you heard about growing up.

But now you are thinking… how much should I save for a down payment?

Here’s the good news it doesn’t have to be difficult, and you can do what works best for you and your family. To put it in perspective, if we were still required to put down 20% on a home loan, based on Mr. Cooper’s math, it would take renters nearly seven years to save for a 200K home on an average salary of 56K a year. Seven years!

However, there is a benefit to putting 20% down.

1.     Right away, there is more equity in your home.

2.     Lower monthly payment.

3.     Lower rates.

4.     You aren’t that high of a risk to your lender.

5.     You won’t need mortgage insurance.

6.     Future buying power.

Click here to calculate your ideal mortgage down payment.

 

Mortgage Rates Hit Another 3-year Low

Mortgage Market Update (1)

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage fell to a 3-year low. The 30-year fixed-rate mortgage averaged 3.55% for the week ending August 22, 2019, down from last week’s 3.6%, which is close to 2018’s lowest percentage point. The drop-in mortgage rates benefit not only the housing market but also the economy as a whole. Home purchase demand is up 5% since 2018, and the refinance market has hit a significant surge. Homeowners that have refinanced are seeing close to a $140 of savings per month. The benefits of lower mortgage rates are also helping homeowners gain more equity.

Market Update: The Fed Rate Cut

Mortgage Market Update (1)

Last week the Federal Reserve made the decision to cut rates for the first time since 2008. With wages on the rise and unemployment rates at a 50-year low, the decision was made to help boost the economy. This means potential savings for homeowners across America looking to refinance or sell their home since home equity is also on the rise.

Fed news pic

*These numbers are based on the weekly average data pulled in from Freddie Mac

With rates being at their lowest point in 3 years, now is an optimal time to purchase and refinance. We want you to take full advantage of the housing market’s favorable conditions!

Give us a call for a free 5-minute mortgage review!

Unpack & unload: the best way to unpack and relax!

Upacking & organizing

{Image source: Google}

You’ve just moved into your new home, now what? Well, might I suggest first unpacking your unpacking kit? That may sound like an oxymoron, but I promise you it will save you as you work tirelessly to put your home into order.

What goes into an “unpacking kit”:
-a box cutter and or scissors
-trash bags
-hand soap
-toilet paper
-shower curtain and liner
-shampoo and conditioner
-all-purpose cleaning wipes or spray
-pain relief (Tylenol or Advil)
-pet food (if applicable)
-paper plates and bowls
-plastic utensils

Everything inside of this box should be self-explanatory, but you don’t want to have to unpack and starve or remain dirty after cleaning!

Now that you have your lifeline, here are our top two hacks for unpacking:

  1. This should go without saying, but just in case, as you unload your boxes from your car or from the moving truck, DO NOT LIFT WITH YOUR BACK!!! This is number one for a reason. Don’t cause a serious injury, instead, lift with your legs!
  2. Go with the flow: the unpacking flow. My recommendation:
    First, unpack your bathroom. The human body doesn’t wait for anyone! If you don’t want to unpack ALL your bathrooms, unpack at least one. Next, unpack your kitchen. There shouldn’t be terribly too many things, and you will, of course, need to refuel at some point. Then, move on to your bedroom. After unpacking most of your things, you will need rest! And of course, if you don’t get everything finished, you can at least sleep comfortably. Finally, everything else. Decorations, of course, should be last, as you must see where everything else fits first.

Bills, Bills, Bills

Bills, bills, bills

{Image courtesy of Google}

You toss and you turn as payday approaches and all you can think about is as soon as your paycheck hits… so do your automatic payments. As soon as the money comes in, the money goes out and that’s just the revolving door we watch as working middle-class individuals. However, today’s mortgage market update comes with some positive money saving news!

CoreLogic released it’s latest “Loan Performance Insights Report” and over the last 16-months, the national delinquency rate has been declining. Nationally we are currently sitting at 3.6% which is the lowest it has been in over 20 years.

Core logic pic

{Image courtesy of CoreLogic}

In other national news, two housing bills were passed on Tuesday, July 9th, 2019, to await Senates vote before heading over to Trump’s desk for final approval. The first bill that passed was the “Protect Affordable Mortgages for Veterans Act of 2019”. This law will now allow a 210-day window of time to pass after the loan is established to start on the due date of the initial loan. This will help brokers and lenders remain compliant and allow those who are helping clients refinance know when the 210-day seasoning period starts.

The next bill that passed yesterday was the “Housing Financial Literary Act of 2019”. This bill will specifically help those who are purchasing a home for the first time.

How? You ask?

If the bill is to pass the Senate, those first-time homebuyers who take a pre-ownership counseling course, they will receive a 25-basis-point discount on their mortgage insurance. However, the bill is specific to only FHA loan products. In hopes that this bill passes it would allow first-time homebuyers to take more advantage of their financial futures and opens up more opportunity for those who are on the fence of being able to purchase their first home.

Mortgage Rates Are At A Three-year Low

low-mortgage-rates
Picture source: Google

This week mortgage interest rates have hit historical marks by reaching three-year lows. This significant marker of low rates comes just two months after The Federal Reserve announced rates have fallen and are not anticipated to rise again for the remainder of 2019. Low rates in conjunction with a surplus of home sales, the housing market is expected to continue to improve and show favorable conditions. Not only are the lower rates good news for potential homebuyers that are looking to enter into the market, but also continues to open opportunities to homeowners that are looking to refinance.

Market Update: The Federal Reserve Holds Rates

The Fed BuildingImage Source: Investopedia

No news is good news for the mortgage industry right now. The Federal Reserve announced; rates are holding steady! This recent announcement comes just 2 months after the initial Fed meeting that resulted in the decision to drop rates and is anticipated to keep them low for the remainder of 2019. Weaker inflation and labor economic data has also aided in keeping rates low. With the excitement of rates remaining steady and purchase season in full swing, now would be an optimal time to purchase a new home. The Federal Reserve holding mortgage rates provides optimism surrounding refinancing to lower mortgage payments, removing or lowering mortgage insurance and pulling cash out for Spring home projects.