Mortgage interest rates may not be at the record low rates that we’ve seen over the last year or so, but they “are what they are”. By that, we mean that, although interest rates are not at their all-time lows, they are still low enough for borrowers to accomplish what they need to. Borrowers are
When purchasing a home, there are many rules and requirements a borrower must follow. Previously, we touched on the source of funds and laws that are designed to prohibit money laundering. Let’s expand on how lenders verify the funds in bank accounts and investment accounts. When funds to close a home loan are required, mortgage
When you’re getting ready to purchase a home and need funds for the down payment and closing costs, it’s important that borrowers follow the rules in mortgage lending. One important factor is the source of funds. Where did the funds for closing come from? Source of funds falls under the Federal anti-money laundering law. In
When we had the last big mortgage meltdown, the feds said mortgage lenders can no longer lend on just a credit score and use income without verification of that income. These were known as stated income loans. All mortgage loans that fall under conventional, FHA and VA mortgages must now have income verified, either with
As consumers know, the feds are determined to raise interest rates beginning in March 2022 and have announced at least three more increases during 2022, in an effort to slow inflation. Mortgage rates are not directly tied to the feds raising interest rates and home loan rates look like they’ll settle somewhere in the low
Even mortgage brokers get refinance offers touting low mortgage interest rates from mortgage companies! Recently, Ben Lucero, the owner of Indigo Mortgage, received a mortgage refinance flyer in the mail, touting a 1.75% interest rate for a cash-out refinance. So he turned the flyer over and read this in the fine print: “a 10 year
By now, people have heard that the Feds are raising interest rates throughout the rest of the year to address rising inflation, and mortgage rates have already begun to increase from their all-time lows. However, we want people to realize that the ship has not sailed yet. Mortgage interest rates are still very low and
It’s just become harder to get a mortgage on a second home. First, let’s define a second home or a vacation property versus an investment property. An investment property is purchased to rent out and not used as a permanent residence. A second home or vacation property is not a permanent residence but it also
Do you know the difference between an Interest rate and an APR and why it’s important to know what an APR represents when you’re buying a home? The difference between APR and interest rate is this: the APR (annual percentage rate) is not an interest rate but rather is a marker that illustrates the total cost of
Every day, we get borrowers who call and say they have seen ads with mortgage interest rates to purchase or refi their home as low as 1.75%. They want to know if we can offer them that kind of low rate. Our response is that we can offer any rate they want, but it’s a