Credit unions

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A variety of significant mortgage rates inched upward over the last seven days. The average interest rates for both 15-year fixed and 30-year fixed mortgages both were driven higher. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also climbed.

As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate — a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.

After hiking interest rates 10 times since March 2022, the Fed pumped the brakes at its June meeting. The central bank’s federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate. The Fed will decide whether or not to raise rates at its next meeting on July 26.

The most recent Consumer Price Index, a popular gauge of price growth, shows that the Fed’s string of rate hikes is having its intended effect. Annual inflation is now at 3.0% for the 12-month period ended in June, which is the lowest it’s been in more than two years.

The Fed doesn’t set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.

“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree.

Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.

To increase your odds at qualifying for the lowest rate available,take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 7.19%, which is an increase of 1 basis point from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.52%, which is an increase of 1 basis point from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.25%, a rise of 6 basis points compared to a week ago. You’ll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But since the rate changes with the market rate, you might end up paying more after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an ARM may be a good option. If not, changes in the market could significantly increase your interest rate.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease. But that’s only part of the home affordability equation.

“Interest rates have been much higher in the past and people bought homes and financed homes at those rates,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “But it’s been hard for people to react to such a rapid increase in just a short amount of time.”

Even though the Fed hit pause on rate hikes in June, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs.

As long as inflation continues to trend downward, though, mortgage rates should decline slightly towards the end of 2023. The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.3%.

“Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy,” Channel said.

We use data collected by Bankrate to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 7.19% 7.18% +0.01
15-year fixed rate 6.52% 6.51% +0.01
30-year jumbo mortgage rate 7.21% 7.20% +0.01
30-year mortgage refinance rate 7.34% 7.33% +0.01

Rates as of July 24, 2023.

How to find the best mortgage rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. When looking into home mortgage rates, think about your goals and current financial situation.

Things that affect the mortgage rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.

The interest rate isn’t the only factor that affects the cost of your home. Be sure to also consider other costs such as fees, closing costs, taxes and discount points. Be sure to speak with multiple lenders — like local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.

How does the loan term impact my mortgage?

One important factor to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are stable for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the current interest rate in the market.

When choosing between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to stay in your house. Fixed-rate mortgages might be a better fit for people who plan on living in a home for a while. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable in the long term. However, you may get a better deal with an adjustable-rate mortgage if you only intend to keep your house for a couple years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and understand what’s most important to you when choosing a mortgage.

Source: cnet.com

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Michigan State University Federal Credit Union in East Lansing is opening five branches in Chicago. This is its first expansion outside of its home state.

Semma Burba

The Spartans are invading the Windy City.

Michigan State University Federal Credit Union said this week that it will make its first-ever expansion outside of Michigan by opening five branches in Chicago next year.

The $7.5 billion-asset credit union in East Lansing said the institution’s strategy has been to locate branches where its members live, and more than 10,000 Michigan State University students and alumni now reside in Chicago.

“Many MSU alumni move to Chicago post-graduation,” President and CEO April Clobes said in an interview. “In addition, the incoming MSU student class has a high number from Illinois.”

The branches will be located in the Lakeview, Lincoln Park, Wicker Park, Gold Coast and Old Town neighborhoods.

Clobes said MSUFCU has been evaluating the Chicago region for some time, and the right mix of retail locations near where its existing and eligible members reside became available. 

Post-covid, there were more available location options to consider, she said.

MSUFCU is the second largest credit union in Michigan behind only the $12.4 billion-asset Lake Michigan Credit Union in Caledonia.

“Many MSU alumni move to Chicago post-graduation,” President and CEO April Clobes said.

Dave Trumpie-Trumpie Photography

MSUFCU has offered services digitally to members outside of Michigan for many years, including selling mortgage products in 18 states across the country. 

But Clobes said physical locations grow membership and existing member balances faster than digital services alone. 

“Our members and eligible members are able to do all of their business with the credit union online, yet when we move into a market, the members appreciate having a branch location for complex transactions and financial education,” she said.

Whether digital or physical, credit unions need to be able to differentiate themselves to their members and ensure they have the product mix and delivery channels. 

While members make nearly 2 million visits a year to MSUFCU branches, they log in to its mobile app 36 million times a year. 

“Their branch visits are purposeful for when the member would like to be assisted by our team versus self-serve. Physical locations help to support a growing community through employment and economic activity as well,” Clobes said.

Michael Fryzel, a Chicago attorney and former chairman of the National Credit Union Administration, called the entry into the Chicago market by Michigan State University FCU an “excellent move.”

“The potential exists for substantial membership growth for the credit union. There are thousands of MSU graduates and family members who live and work in the city and surrounding suburbs,” Fryzel said.

Michigan State University FCU has more than 350,000 members. Clobes said historically when the credit union adds a branch to a digital-only region, it grows about 30% in both balances and new members in that area. 

She anticipates the Chicago market will see similar growth.

“Our annual new member growth is between 5% and 6%, and we anticipate that moving to a new market area will help us maintain this level of membership growth through better retention of existing members as well as attracting new eligible members,” Clobes said. 

So will the Chicago expansion serve as a springboard for moves into more out-of-state markets?

Clobes was noncommittal.

The credit union already has plans for growth in new markets and in the areas it already serves in Lansing, Traverse City Grand Rapids, Oakland County and metro Detroit.

“We will evaluate the success of these locations to determine possible additional locations in the Chicago suburbs,” she said. “While we are moving into the Chicago market, we are still branching throughout Michigan where our members are concentrated without a convenient branch location.”

MSUFCU’s plans continue the broader industry pattern of credit unions continuing to build branches. There were 20,694 branches among federally insured credit unions in March 2023, up 87 branches from a year ago, according to recent data from the National Credit Union Administration. 

Source: nationalmortgagenews.com

Apache is functioning normally

A few notable mortgage rates slumped over the last seven days. The average interest rates for both 15-year fixed and 30-year fixed mortgages slid down. We also saw a cut in the average rate of 5/1 adjustable-rate mortgages.

As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate — a short term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.

After hiking interest rates 10 times since March 2022, the Fed pumped the brakes at its June meeting. The central bank’s federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate. The Fed will decide whether or not to raise rates at its next meeting on July 26.

Current Mortgage Rates for July 2023

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

The most recent Consumer Price Index, a popular gauge of price growth, shows that the Fed’s string of rate hikes is having its intended effect. Annual inflation is now at 3.0% for the 12-month period ended in June, which is the lowest it’s been in more than two years.

The Fed doesn’t set mortgage rates directly, but it does play an influential role. Mortgage rates move around on a daily basis in response to a range of economic factors, including inflation, employment and the broader outlook for the economy. A lower inflation rate is good news for mortgage rates, but the potential for additional hikes from the central bank this year will keep upward pressure on already high rates.

“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree.

Rather than worrying about mortgage rates, though, homebuyers should focus on what they can control: getting the best rate they can for their financial situation.

To increase your odds at qualifying for the lowest rate available,take the steps necessary to improve your credit score and to save for a down payment. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you make an apples-to-apples comparison among lenders.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 7.23%, which is a decrease of 14 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.48%, which is a decrease of 11 basis points compared to a week ago. You’ll definitely have a larger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, if you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll most likely get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.19%, a fall of 5 basis points compared to a week ago. With an adjustable-rate mortgage mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you could end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, changes in the market mean your interest rate could be much higher once the rate adjusts.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease. But that’s only part of the home affordability equation.

“Interest rates have been much higher in the past and people bought homes and financed homes at those rates,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “But it’s been hard for people to react to such a rapid increase in just a short amount of time.”

Even though the Fed hit pause on rate hikes in June, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs.

As long as inflation continues to trend downward, though, mortgage rates should decline slightly towards the end of 2023. The most recent housing forecast from Fannie Mae calls for the average 30-year fixed mortgage rate to close out the year at around 6.3%.

“Mortgage rates have been volatile for some time now and while they could eventually start trending down over the next six months to a year as inflation growth continues to cool, their path is probably going to be bumpy,” Channel said.

We use data collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 7.23% 7.37% -0.14
15-year fixed rate 6.48% 6.59% -0.11
30-year jumbo mortgage rate 7.26% 7.39% -0.13
30-year mortgage refinance rate 7.33% 7.44% -0.11

Rates as of July 18, 2023.

How to find the best mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. When shopping around for home mortgage rates, consider your goals and current financial situation.

Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate.

Apart from the interest rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your house. Be sure to comparison shop with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that’s the best fit for you.

What’s the best loan term?

When picking a mortgage, you should consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (typically five, seven or 10 years), then the rate adjusts annually based on the market rate.

When choosing between a fixed-rate and adjustable-rate mortgage, you should consider the length of time you plan to live in your house. Fixed-rate mortgages might be a better fit if you plan on staying in a home for quite some time. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and think about your own priorities when choosing a mortgage.

Source: cnet.com

Apache is functioning normally

Guild Mortgage is one name you may have come across lately while searching for a mortgage.

They’re a rapidly growing independent mortgage banker with over 300 physical branches nationwide.

Those branches are located in 49 states nationwide, with their employee headcount around 4,000 at last glance. New York seems to be the one state missing.

They also recently beat out Rocket Mortgage (formerly Quicken Loans) for the number one spot in customer satisfaction for primary mortgage originations by J.D. Power, which is a very big deal given Quicken’s hold on the top spot.

Let’s learn more about this privately held company to determine if they might be a good choice for your home loan needs.

Guild Mortgage Started in San Diego

  • Founded in 1960, originally known as Guardian Mortgage
  • Initially offered FHA loans and financing for homes built by American Housing Guild
  • Now a top-30 mortgage lender nationwide that offers all types of home loans including mortgage refinances and renovation loans
  • A publicly traded company under the symbol NYSE: GHLD

Originally known as Guardian Mortgage, the company began in 1960 in San Diego, California, founded by Martin Gleich.

In the beginning, they offered FHA loans to first-time home buyers and home purchase loans to buyers of homes built by American Housing Guild.

Today, they are a top-10 mortgage lender by purchase loan volume that offers everything from conventional loan programs to USDA loans and jumbo loans, and everything in between.

They are also a correspondent mortgage lender with banking relationships in 47 states, and a major home loan servicer with a loan portfolio worth nearly $40 billion.

In 2021, the non-bank mortgage lender originated $34+ billion in loan volume, and now services more than 200,000 mortgage loans. That means they keep many of the loans they fund.

Guild recently had the best year in their history, with a record $14.6 billion funded in just the first half of 2020.

Guild Mortgage Co. has grown a staggering 27X from 2007, making them one of the fastest growing mortgage companies around.

They’ve also acquired smaller companies along the way, with the most recent Cherry Creek Mortgage, and previously Wisconsin-based Inlanta Mortgage and Cornerstone Mortgage out of St. Louis, Missouri.

Guild is one of the top mortgage lenders in the Northwest, including Portland and Seattle, and also has a growing presence in places like Austin, Texas, Columbia, South Carolina, and Reno and Las Vegas, Nevada.

In 2021, Guild Mortgage acquired Portland, Maine-based Residential Mortgage Services (RMS) to expand their footprint in the Northeast.

Guild Mortgage Quick Facts

  • Retail direct mortgage lender headquartered in San Diego, CA
  • Has 4,000+ employees and 300+ retail branches in 49 states and D.C.
  • Appear to be licensed in all states except New York
  • Recorded $34.2 billion in total loan volume in 2021 (top-30 overall)
  • Did a near-equal split of mortgage refinance and home purchase loans
  • Operates a correspondent banking division with credit unions and community banks in 43 states
  • Services more than 237,000 home loans throughout the nation

What Guild Mortgage Offers

  • Conforming loans
  • Conventional loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Reverse mortgages
  • 1% down loans
  • Renovation loans
  • FHA Solar
  • Manufactured home loans (via Fannie Mae MH Advantage)
  • Doctor mortgages
  • Bridge loans
  • Buydowns

Guild Mortgage offers all types of home loans, including government and non-government mortgages, along with both fixed-rate and adjustable-rate mortgages.

You can get a purchase loan, or a refinance loan, including a rate and term refinance or cash out refinance, and also streamline refinances.

You can apply for a home loan online or visit a local branch, of which there are many (338 at last count).

In the fixed-rate loan department, you can get anything from a 10-year fixed mortgage to a 30-year fixed up to 97% LTV. And they also let you choose your own loan term if you’re looking to refinance without extending the term of your mortgage.

They also offer a 1% down mortgage via their 3-for-1 equity program whereby Guild provides a 2% grant.

When it comes to ARMs, you can choose between 3-, 5-, 7- and 10-year adjustable terms, up to 95% LTV.

If a conforming loan amount isn’t large enough to suit your needs, you can also get a jumbo loan from Guild, including a loan amount as high as $850,000 with just 5% down payment known as the Guild Mortgage Elite Jumbo Program.

They also offer the full spread of government loans, including FHA loans, USDA loans, and VA loans, the latter two of which offer no down payment mortgages.

And while many of these loan options allow for very low credit scores, Guild seems to require higher scores than most competitors.

For example, they want a minimum credit score of 600 for a VA loan, though they allow loan amounts as high as $1 million. Their minimum score for a USDA loan is 620.

You can also get an FHA 203k renovation loan via Guild if you’re buying a fixer-upper.

Guild Mortgage recently launched a loan program called “FHA Solar” that allows borrowers to finance their home and solar panels in one transaction.

Like normal FHA loans, the minimum down payment is 3.5%, which is based on the purchase price of the home before the panels are added to the total cost of the mortgage.

If you’re looking to finance something other than a single-family home, it might be possible to get a mortgage on a non-warrantable condo, something not all lenders offer.

And if you’re a medical professional, their doctor mortgage program allows you to exclude student loan debt and get a mortgage with no money down.

Their most recent offering is a buydown loan that provides a lender-paid 1% interest rate reduction the first year, known as Payment Advantage.

Lastly, Guild offers the Unison HomeBuyer program, which allows home buyers to borrow a down payment in exchange for future home price appreciation. It is available for properties in Arizona, California, Oregon, and Washington.

Guild 3-2-1 Home Program

  • They also offer a special for first-time home buyers known as the 3-2-1 Home program
  • It requires just a 3% down payment to purchase a home
  • And provides a $2,000 Home Depot gift card
  • Lastly it features a grant ranging from $1,000 to $2,500 to offset closing costs or increase down payment

Guild Mortgage recently launched its “3-2-1 Home Program” to help more first-time buyers get their hands on some house keys, even if the property needs a little bit of work.

It allows home buyers to bring in just three percent down payment (which can be funded with a gift) and only requires a minimum 620 credit score.

Additionally, eligible borrowers will receive a $2,000 gift card to The Home Depot and another $1,000 to $2,500 in grant money that can be applied toward closing costs.

The property has to be located within 100 percent of the area median income for the family size of the borrower, unless it’s in an underserved area.

Guild Mortgage CashPass

The lender recently launched “CashPass,” which is their take on the quasi-all-cash offers many mortgage companies have rolled out in recent years.

The way it works is fairly straightforward. When obtaining your mortgage pre-approval, Guild goes a step further by providing a fully underwritten credit approval and a so-called “CashPass Certificate.”

This allows you to shop for a home and then make an offer with no appraisal or financing contingencies.

Guild will then work to close your loan with a traditional home loan before the close of escrow.

If financing isn’t in place by the escrow closing date, Guild or one of its affiliates will guarantee to pay cash for the property and provide permanent financing thereafter.

Simply put, CashPass enables home buyers to compete against other all-cash bidders and/or multiple offer situations.

CashPass is available on primary residences, second homes, and investment properties.

A minimum credit score of 680 is required and it must be a conventional loan.

It’s currently available in the states of AZ, CA, CO, MA MO, NV, OR, PA, SC, TX, and WA.

There is a $1,350 participation fee, which is not charged in the state of Washington.

It can also be combined with Guild’s proprietary bridge loan offering so you can buy before you sell.

Guild Mortgage Rates

  • Guild mortgage rates aren’t publicized online
  • Unlike some of the other major banks out there that do openly share them
  • Hard to know if they’re good, bad, or average without getting a quote and comparing it to other lenders
  • Also be sure to pay attention to any lender fees charged to determine APR

In terms of mortgage rates, it’s hard to say what their current rates are because they don’t advertise them on their website, nor do they have a ratesheet available to the public.

This counters other major lenders like Wells Fargo and Chase, which both advertise their daily mortgage rates on their respective websites.

Of course, advertised mortgage rates make a lot of assumptions, and aren’t necessarily the rates you’d receive anyway. To that end, it might not matter.

My guess is they’re probably on par with or close to what other major home loan lenders offer, though I can’t be sure without seeing them.

As always, take the time to shop around with other lenders to see how they match up. And factor in the closing costs as well when you do.

Mortgage rates aren’t everything (customer service and the ability to close loans also matter a great deal), but they’re certainly very important.

Guild Mortgage eClose Option

The lender recently launched a so-called “eClose option” that allows customers to electronically sign most of their loan documents and substantially reduce the typical paperwork burden seen at loan signing.

Aside from saving more than 250 trees per year, the eClose option comes with enhanced security protections to ensure only those who are authenticated have access to the documents.

The eClose process, which is powered by DocuSign, seems to be a hybrid of sorts with not all documents available for e-signing. Some will still require an ink signature at closing, at least for now.

However, another perk is that loan documents can be viewed as soon as they are released by Guild, meaning customers can review them at any time they desire to avoid feeling rushed at the closing table.

This means they can go into the closing appointment feeling confident and also reduce the time spent there to just minutes instead of potentially hours.

Guild Mortgage Reviews

Guild Mortgage has a 4.96-star rating out of 5 on Zillow based on roughly 7,300 customer reviews.

That near-perfection aside, many past customers indicated that the interest rate they received was lower than expected.

When searching the reviews on Zillow, you can see who the customer worked with, then click that loan officer’s name to see all their personal reviews.

Handy if you’re trying to determine who you want to work with at Guild Mortgage.

On Google, they have a perfect 5-star rating from nearly 2,000 customer reviews, which is pretty impressive given the volume.

Guild Mortgage currently has an A+ BBB rating and has been an accredited business since 2016. Their BBB customer reviews aren’t great, but they often aren’t for any company.

As noted, they also frequently top the J.D. Power mortgage originator rankings, so you should be good in terms of customer service.

Why Choose Guild Mortgage?

  • The number one reason seems to be customer satisfaction
  • They recently matched Quicken atop the J.D. Power rankings
  • Guild also offers lots of different home loan options to choose from
  • And their loan officers may be better educated than the competition thanks to GuildU
  • Also boast an A+ BBB rating and is an accredited business
  • Can get started online via a digital mortgage application in minutes

There are lots of options when it comes to obtaining a mortgage. So why choose Guild Mortgage?

Well, as noted, they’ve got a variety of home loan programs available, including some unique offerings, so they’ve probably got you covered in most situations.

This is especially true if you have little or nothing in the way of a down payment, though they may require higher credit scores than other lenders.

They are also one of the top rated mortgage companies in terms of customer satisfaction, matching Quicken Loans in the most recent rankings from J.D. Power.

That doesn’t guarantee a good loan experience, but it means something compared to other large lenders that rank below them.

Part of that might have to do with their GuildU corporate university that educates its loan officers in an effort to make them more knowledgeable than the competition.

But loan officer quality can vary within a single company, especially at a large one with thousands of employees.

Guild Mortgage also has a helpful website, complete with tips and a variety of mortgage calculators to help guide your decisions.

All in all, they’re certainly worth including in your home loan search seeing how popular and large they’re becoming. My guess is they’ll be a household name in the near future.

Lastly, because Guild Mortgage is a major home loan servicer, they may not sell off your loan to another company, which can be nice to avoid any confusion in making future monthly payments.

(photo: Sean O’Neill)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Farm loans help farmers and ranchers start, grow or maintain their farming businesses. These small-business loans can be used to cover operating expenses, purchase livestock, buy farm machinery and agricultural equipment, as well as construct farm buildings, among other purposes.

Loans for farms are available from a range of sources, including government agencies and lenders that specialize in agriculture. The best farm financing for your business will be the most affordable option you can qualify for that meets your needs.

How Much Do You Need?

with Fundera by NerdWallet

Best farm loan options for agricultural businesses

1. Farm Service Agency (FSA) loans

Best for: Low interest rates; the variety of loan options.

Through the U.S. Department of Agriculture (USDA), the FSA offers several types of farm loans. FSA loans can be a good choice for first-time and established farmers alike. These loans have competitive interest rates, long repayment terms and can be used for a range of different purposes. Here are your options:

  • Direct operating loans. These loans can be used to cover daily operating costs and family living expenses. They can also be used to purchase livestock, seed and equipment. Loans are available in amounts up to $400,000 with repayment terms up to seven years. The FSA sets monthly interest rates — and as of July 2023, the interest rate on these loans is 4.5%

    . No down payment is required.

  • Direct ownership loans. Farm ownership loans are used to buy or expand a farm or ranch. These loans are available in amounts up to $600,000 with repayment terms up to 40 years. As of July 2023, the interest rate on these loans is 4.875%.

  • Microloans. FSA microloans are designed to provide financing to small and beginning farmers, as well as niche and nontraditional farm operations, such as truck farms, farms participating in direct marketing and sales, and Community Supported Agriculture (CSA). You can choose between an ownership and operating microloan; interest rates and eligible use cases mirror their standard loan counterparts. Funding amounts for either microloan max out at $50,000.

  • Guaranteed loans. Unlike FSA direct loans, which are issued directly from the agency to the farmer, FSA guaranteed loans work similarly to the SBA loan program. With these farm loans, the FSA guarantees up to 95% of the financing, and the loans are issued by USDA-approved commercial lenders. Rates and terms are negotiated between you and your lender, subject to the FSA’s maximums.

  • Additional loans. The FSA also offers youth loans, Native American tribal loans and emergency loans. Rates, repayment terms and maximum funding amounts vary based on the individual program.

To qualify for one of these FSA farm loans, you’ll need to meet a variety of industry- and loan-specific requirements. You’ll need to prove your operation is an eligible farm enterprise, show your managerial experience, as well as describe your acceptable loan purpose.

As a borrower, you’ll need to show your ability to repay the loan. Although the FSA doesn’t rely on credit scores to make eligibility determinations, it’s helpful to have a good credit history. However, the FSA will not deny applications based on credit problems or a lack of credit history.

Applications for these government business loans will require extensive documentation. You have the option to apply online through the e-Gov system, by mail, in person at your local FSA office or by phone. You can expect to receive funding within 60 days after the FSA has received your application and corresponding paperwork.

2. SBA loans

Best for: Established businesses with good credit.

Like FSA farm loans, SBA loans offer long repayment terms and competitive interest rates. Plus, SBA loans have larger maximum funding amounts — up to $5 million.

Although the U.S. Small Business Administration recommends that farms and agricultural businesses look at FSA loans before applying for SBA loans, SBA 7(a) and SBA 504 loans can both be good options for established farmers with strong credit

.

SBA 7(a) loans can be used for a variety of purposes, including working capital, buying inventory and purchasing equipment. Interest rates range from 10.5% to 13%, and repayment terms are up to 10 years for working capital, inventory and equipment purchases and up to 25 years for real estate.

SBA 504 loans, on the other hand, are specifically designed for equipment and real estate purchases. Unlike 7(a) loans, which are issued by banks or credit unions, 504 loans come from three places:

  • A bank (50%).

  • A Certified Development Company, or CDC (40%).

  • The borrower (10%).

Typically, the borrower would provide 10% of the financing, but because farms are considered a “special purpose property” by the SBA, you’re required to provide 15% of the loan amount.

SBA loan rates on 504 loans are tied to the 10-year U.S. Treasury notes. You’ll also have to meet a job and retention requirement to qualify, which is not an element of the 7(a) loan program.

You’ll generally need multiple years in business, good credit and strong finances to qualify for either of these SBA loan options. Although — like FSA loans — SBA loans can be slow to fund, you can expedite the process by working with an SBA preferred lender. These lenders have extensive experience with SBA loan applications and are authorized to accelerate the underwriting process.

3. Farm Credit organizations

Best for: Industry expertise; personalized experience.

Farm Credit is a network of lending institutions across the U.S. that are owned by farmers, ranchers and other agricultural businesses. These institutions are divided into four districts and each district has its own regional wholesale bank.

In each of these districts, you can find organizations that offer loans exclusively for farms and other agricultural businesses. These banks offer farm equipment loans, first-time and beginning farm loans, livestock loans, poultry loans, land loans and lines of credit, among other options.

Loan amounts, repayment terms and interest rates will vary based on the specific institution and loan program — but regardless of which Farm Credit institution you work with, you’ll receive guidance and expertise that’s unique to your industry.

Representatives at these institutions can offer a personalized experience, as well as educational resources and a continuous relationship with your business. If you’re looking to work closely with your bank throughout the loan process and beyond, a local Farm Credit organization may be an option to consider.

4. Farm Plus Financial

Best for: Beginning farmer loans.

Farm Plus Financial is an asset-based lender that offers both farm loans and lines of credit. All of the lender’s available products are secured by agricultural real estate, making it a good choice for newer farmers who may not have the financials to qualify for other options.

Farm loans from Farm Plus Financial are available in amounts that range from $200,000 to $50 million. For term loans, the company can finance up to 75% of the loan-to-value (LTV). For lines of credit, on the other hand, this amount falls to 50% LTV.

Interest rates vary based on the product you choose, your repayment terms and your qualifications, among other factors. You can reach out to a lending representative to receive more information about current interest rates.

Although the value of your farm’s real estate will be one of the most important factors in your business loan application, Farm Plus Financial also requires that all borrowers have a minimum personal credit score of 660 or higher. In addition, your farm property must be five acres or greater to be eligible.

You can start an application by submitting an online inquiry form with basic information about your farm and its financing needs. Once you’ve sent the form, a farm loan specialist will reach out to discuss your options and help you with the application. In general, it can take anywhere from one to three months to get funded.

5. National Funding

Best for: Bad credit; quick access to capital.

If you need capital quickly — or you have bad credit (a personal credit score of 620 or below) — you might consider National Funding for a farm loan. National Funding is an online lender that offers two distinct options: short-term loans and equipment financing.

With National Funding’s short-term loans, you can access up to $400,000 and can use the money to cover working capital needs, inventory purchases and other day-to-day expenses. These loans are available with repayment terms up to 24 months and interest is quoted as a factor rate, which starts at 1.1 for borrowers with strong credit.

The lender’s equipment financing program, on the other hand, provides equipment loans and leases in amounts up to $150,000. You can finance or lease new and used equipment, such as combines, tractors and trucks.

These farm loans have repayment terms up to five years and factor rates that also start at 1.1 for borrowers with strong credit.

Regardless of which option you choose, National Funding offers flexible business loan requirements and a streamlined application process. To qualify, you’ll need to have been in business for at least six months, a personal credit score of 600 or higher and an annual revenue of $250,000 or more.

When you’re ready to apply, you can fill out a simple form on the lender’s website. Next, you’ll talk to a funding specialist who will help you decide which type of farm loan is right for your needs. This representative will also guide you through the application — and once you’re approved, you’ll receive funds in as little as 24 hours.

How to get a farm loan

To get a farm loan for your agriculture business, you can follow these steps:

Understand your financing needs

Think about why you need capital and what you’re going to use it for — this will help you determine which type of financing is right for your business.

You should also consider how much debt you can afford to take on. You should make sure that you’ll be able to handle any potential loan payments based on your current income.

Evaluate typical farm loan requirements

Overall, the farm loan requirements you’ll need to meet will vary based on your loan type and business lender. Most lenders, however, will consider your personal credit score, time in business and annual revenue.

Additionally, as an agriculture business, lenders will likely pay close attention to industry-specific criteria, such as your farm management experience, the amount of land you have, your farm business plan and assets.

Research and compare lenders

With a better understanding of your needs and qualifications, you should be able to focus your lender search to find the options that will be best suited to your business. In general, if you think you may qualify for an FSA loan, you might consider starting your search with these low-interest options.

As you explore different lenders, you should compare them based on factors such as:

  • Loan types.

  • Maximum funding amounts.

  • Repayment terms.

  • Down payment requirements.

  • Funding speed.

  • Application process.

  • Customer service.

  • Industry experience.

  • Lender reputation.

Gather your documentation and apply

Once you’ve found the right lender for your needs, you can gather all of the documentation you need to submit your application. In many cases, you’ll be able to work with a lending representative who will be able to help you through the process and answer any questions you may have.

Once you’ve submitted your application, approval and funding times will vary. Government and commercial lenders tend to have longer timelines, ranging anywhere from several weeks to several months. Online lenders, on the other hand, can fund applications much faster — with some companies providing capital in just 24 hours.

Frequently asked questions

Can I get a farm loan with bad credit?

Yes. Although there may be fewer farm loan options available to borrowers with bad credit, it is still possible to get financing. The FSA, for example, does not exclude its loan applicants for poor or non-existent credit histories. Online lenders are also more likely to accept borrowers with bad credit.

Can you get a loan to buy a farm?

Yes. In fact, the FSA offers a direct farm ownership loan specifically designed to help borrowers buy a farm or ranch. Commercial and online lenders may also issue business loans that can be used to buy a farm.

How can you get a farm loan with no down payment?

If you want a farm loan with no down payment, you can start by looking into FSA loans. Some of the FSA direct farm loans do not require a down payment.

You might also consider online lenders, such as National Funding, many of which don’t require down payments for their loan options. However, to get a loan with no down payment, it will be helpful to have strong qualifications.

And it’s essential to keep in mind that lenders may charge higher interest rates on no-down payment loans than they would if you provided a down payment on your financing.

Source: nerdwallet.com

Apache is functioning normally

There’s still overcapacity in the market and as part of lenders cutting costs, Fannie Mae expects more layoffs in the industry.

“It’s expensive to let people go and then rehire. So there is usually that six month or so lag before you see the layoffs as they’re calibrating, will the market come back or not,” Doug Duncan, chief economist and senior vice president at Fannie Mae said in an interview with HousingWire. 

“Our view is there’s not going to be a sufficiently large turn in the market to justify the current amount of labor that’s been held,” Duncan noted.

‘Business process streamlining’ ranked second (32%) as lenders seek to reduce costs through streamlining, minimizing manual tasks, and improving accuracy. Both ‘consumer-facing technology’ and ‘talent management & leadership’ ranked in the top three (24%) to help improve customer experience and drive sales.

“[We are] looking at technology that will help streamline and reduce appraisal costs for the borrower. Additionally, [we’re] reviewing technology to improve accuracy in determining income of self-employed borrowers,” an executive at a large lender, said.

Fannie Mae conducted an online survey consisting of 10 questions among senior executives — such as CEOs and CFOs of Fannie Mae’s lending institution partners. 

Among a random selection of 3,000 senior executives, 253 senior executives completed the survey between May 2 and May 15 representing 232 lending institutions — including mortgage banks, depository institutions and credit unions.

Surveyed lending executives had a pessimistic outlook toward the economy.

About 73% of the respondents believe the U.S. economy is on the wrong track. 

About 93% of lenders believe the U.S. economy is “very likely” (57%) or “somewhat likely” (37%) to enter a recession in the next two years. Among them, 68% of lenders expect the recession to start in Q3 (24%) or Q4 of this year (44%). 

Fannie Mae’s Economic & Strategic Research (ESR) group in its July commentary projected that if a recession were to occur it would be a modest one, which is likely to begin in Q4 2023 or Q1 2024.

The economy — coupled with resilience in the labor market and active new home construction — experienced a stronger pace of economic growth than Fannie Mae previously expected.

“The reason, if a recession occurred was going to be mild, was because of housing. We also said that while our base case was a mild recession, the alternative case was a soft lancing and it would be housing that would be the cause,” Duncan said.

Source: housingwire.com