Good Morning! If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender. No one likes paying monthly mortgage insurance. It’s extra money added to your payment every month, and it doesn’t help pay down the balance of the loan.…
Good Morning! HUD came out with three important changes to FHA loans. Specifically regarding how they underwrite student loan payments used to calculate a debt to income ratio. These changes take effect August 16, of 2021. 1) Previous rule: If you have a student loan we have to use at least 1% of the balance…
Good morning! Sometimes we have people apply for mortgages that have recently changed jobs. Here are a few things to keep in mind if you or someone you know is about to change jobs and apply for a mortgage… The underwriter will want to see your first paycheck at the new job at a minimum,…
Good Morning! Mortgage rates are on the rise today. This is due to the Fed’s announcement yesterday that they may be increasing their lending rate in 2023. Even though the Fed lending rate has no direct impact on mortgage rates, an announcement like that still affects the mortgage rate market. The Fed didn’t say when…
Good Morning! I have people ask me about no cost refinances. I wanted to take a minute and tell you exactly how a no cost refinance works. There are two pools of funds you have to address when you refinance… 1) Closing costs. 2) Pre paids. (taxes, interest, and insurance) A no cost refinance will…
Good Morning! One of the most common questions I get from borrowers is “How much will I have to put down to get a mortgage?” Here are your minimum down payment options on the loan products currently available in the marketplace. Loan Programs… VA loan: No down payment necessary. No monthly MI. This is the…
Good Morning! I’ve written about this before, but we have more and more people passing the age 62 threshold, so I wanted to show you how to buy a house with a reverse mortgage. I had a borrower that was recently retired, and now living on a fixed income. They owned their home free and…
Good Morning! Mortgage tip: If you are about to get into the loan process to buy or refinance a house – don’t go out and buy things on credit. It sounds simple, and you would think most people would know this without being told. …but, I have a loan right now where a borrower got…
Good Morning! When you give someone option money at the onset of a lease option agreement – you are going to have to prove you gave that money when you get a loan to buy that house. How do you prove it? If it’s certified funds you need to keep a copy of the certified…
Good Morning! If you get bonus income please be aware of how the mortgage company will treat that income when you try to get a mortgage. 1) We can’t use bonus income or overtime income unless you can prove you have been receiving this income for 2 years. 2) The employer has to indicate that…