mortgage lender

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Mortgage credit availability dropped in May, a consequence of a tougher mortgage landscape that has resulted in lender consolidation as well as high rates and limited inventory that has stretched consumer budgets.  

The monthly Mortgage Credit Availability Index fell by 3.1% to 96.5 last month, according to the Mortgage Bankers Association. A decline of the index, benchmarked to 100 in March 2012, indicates that lending standards are tightening while an increase suggests loosening credit.

“Mortgage credit availability decreased for the third consecutive month, as the industry continued to see more consolidation and reduced capacity as a result of the tougher market,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “With this decline in availability, the MCAI is now at its lowest level since January 2013.”

While the Conventional MCAI, which does not include loans backed by the government, decreased 2.3%, the Government MCAI, which examines FHA, VA, and USDA loan programs, fell by 3.8%.

Of the two component indices of the conventional index, the Jumbo MCAI fell by 1.5% and the Conforming MCAI dropped by 3.9%.

The jumbo index had its first contraction in three months, as some depositories assess the impact of recent deposit outflows and reduce their appetite for jumbo loans, Kan said.

Wells Fargo, a formerly important jumbo mortgage lender, is reducing its home lending footprint, and JPMorgan Chase’s acquisition of First Republic Bank will result in the discontinuation of its popular jumbo mortgage program.

The drop in mortgage credit availability follows a spike in mortgage rates during the month of May, which rose to 6.43%, according to Freddie Mac.

Single-family home prices also rose to about $450,000 in May, according to data from Altos Research, up from around $443,000 in April.

Source: housingwire.com

Apache is functioning normally

Today we’ll check out “Rate Rabbit Home Loans,” a direct mortgage lender that says it uses a “new, Internet-based method to obtain a home loan.”

This includes the ability to apply in minutes via a digital mortgage application, along with the option to price a loan with live mortgage rates 24/7.

Their advanced technology should make it both quicker and easier to get a mortgage, and ideally cheaper as well thanks to a simplified online experience.

Let’s learn more about them.

Rate Rabbit Fast Facts

  • Direct mortgage lender that offers home purchase loans and refinances
  • Founded in 2011, headquartered in San Diego, CA
  • Offers a One Fee Guarantee including all lender and third-party fees
  • Currently licensed to do business in 11 states nationwide
  • Has funded over $5 billion in home loans since inception

Rate Rabbit Home Loans is a direct-to-consumer mortgage lender based in San Diego, CA that operates entirely online.

They offer both home purchase financing to prospective buyers and mortgage refinances for existing homeowners.

And they rely upon non-commissioned loan consultants, which should translate to a less pushy and perhaps cheaper home loan experience.

With regard to customer satisfaction, over 80% of their clients are either repeat customers or referred by one of their customers.

At the moment, the company is licensed in 11 states nationally, including Arizona, California, Colorado, Florida, Idaho, Iowa, Kentucky, Massachusetts, Michigan, Tennessee, and Wisconsin.

How to Apply for a Home Loan with Rate Rabbit

  • They offer a mostly self-serve loan process, though humans are standing by to help
  • To get started search mortgage rates on their website and select a price/program you like
  • Then simply click on “Apply” or request a call from one of their loan consultants to walk you through it
  • Most tasks can be completed electronically from the comfort of your home

Rate Rabbit is big on technology and makes it super easy to get the ball rolling on your home loan.

First, navigate to their website and search their live mortgage rates to see if their pricing is to your liking.

In about 10 seconds, you’ll be able to price a loan and see dozens of options side-by-side with varying lender costs.

Once you find something you like, simply click on Apply and you can begin filling out their digital mortgage application.

Alternatively, you’ll be given the option to talk to one of their loan consultants if you select that option and fill out a short contact form.

It’s also possible to just call them up on the phone if you’d prefer to speak to a human right away.

After you submit your application, you’ll be able to manage it via an online borrower portal 24/7. This includes the ability to lock your loan at any time, day or night.

Loan Programs Offered by Rate Rabbit

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans
  • Interest-only loans
  • Fixed-rate mortgages: 10, 15, 20, and 30-year terms available
  • Adjustable-rate mortgages: 3, 5, 7, and 10- year terms available

Rate Rabbit offers both home purchase loans and mortgage refinances, including cash out refinances.

They lend on primary residences, second homes, and investment properties, including 1-4 unit properties and condominiums/townhomes.

You can get a conforming home loan backed by Fannie Mae or Freddie Mac, or a jumbo loan that exceeds the conforming limit.

The only real question mark is if they offer government-backed home loans, such as FHA loans, VA loans, and USDA loans.

In terms of specific loan programs, you can get a fixed-rate mortgage, with terms from 10 years to 30 years available.

Or an adjustable-rate mortgage, including a 3/1, 5/1, 7/1, and 10/1 ARM. Their ARMs also come with an interest-only option if you’re looking for a cheaper monthly payment.

In summary, they should have a loan program to suit most homeowners, though you may want to get in touch if you have a unique scenario.

Rate Rabbit Mortgage Rates

One perk to using Rate Rabbit is the ability to search live rates without having to reveal any of your personal information.

In fact, just answer a few basic questions and you’ll see a huge list of mortgage rates in seconds.

Their advanced rate search tool fully discloses the interest rate, APR, lender fees, and third party fees so you get a complete picture, not just a promotional number.

Rate Rabbit says it offers its customers “the most competitive rates available,” and I can confirm that I’ve seen them listed on the Zillow Mortgage Marketplace with the lowest rate and lowest APR for a 30-year fixed.

In terms of fees, Rate Rabbit has created what it refers to as a “One Fee Guarantee.”

They essentially took the many fees you’d find on a Loan Estimate and turned it into a “guaranteed and protected fixed-fee package.” Both lender and third-party costs are included.

Instead of an estimate, you are provided with a fee guarantee that won’t change once when the loan is locked.

For refinances, they provide a guarantee of the total costs of your loan, including all lender and third party fees.

On purchase loans, they guarantee the lender fees, but not other third party fees such as title insurance, inspection fees, recording fees, and so on.

When comparing rates on their website, you’ll see varying one fee guarantees, along with a no cost loan option that charges you nothing out of pocket in exchange for a slightly higher mortgage rate.

If you see something you like, you can click on Apply or request a call from a loan consultant.

All in all, I was impressed with their mortgage rates and their limited lender fees, which collectively result in some of the lowest mortgage APRs around.

As always, put in the time to shop around to ensure there aren’t other lenders offering even better deals.

Rate Rabbit Reviews

While Rate Rabbit doesn’t have a ton of reviews, the ones they do have seem to excellent.

For example, on Zillow the company has a very favorable 4.75-star rating out of a possible 5 from 124 reviews, with many indicating that the interest rate was lower than expected.

They’ve also got a perfect 5-star rating on Google from about 20 customer reviews.

The same goes for their 4.8-rating on LendingTree from about 20 reviews as well, and their 94% recommended score.

On Yelp, it’s a similar story, a perfect 5-star rating from just over a dozen reviews. While not a ton, at least they’re pretty much all positive.

They aren’t an accredited business with the Better Business Bureau and currently do not have a rating, which is due to a lack of sufficient information (maybe not enough feedback from customers).

To summarize, Rate Rabbit Home Loans could be a good choice for an existing homeowner looking for a low-cost mortgage as they seem to offer some of the best rates in the industry.

They could also serve your home buying needs, though first-timers may want more guidance from a brick-and-mortar shop.

Either way, their mortgage rates appear low and their customer satisfaction seems stellar.

Rate Rabbit Home Loans Pros and Cons

The Good

  • Openly display their mortgage rates and lender fees 24/7
  • Mortgage rates appear to be very low
  • Offer no cost loan options and a fee guarantee
  • Can apply for a mortgage directly online in minutes
  • They use non-commissioned loan consultants
  • Lots of loan programs to choose from including interest-only mortgages
  • Excellent customer reviews from past customers
  • Mortgage glossary on their website

The Not

  • Only licensed in a handful of states
  • No physical branches
  • Unclear if they offer FHA/VA/USDA loans

(photo: Marit & Toomas Hinnosaar)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Splitting assets and moving out can be messy during a breakup, even more so if you are buying a house during a divorce. While separation can complicate the home-buying process, it can still be done.

Before you consider buying a house during a divorce, here are some tips to keep in mind.

Buying a House During Divorce or After Separation: What to Consider

Moving forward as quickly as possible may be tempting, but buying a house during a divorce or after separation can get complicated. It’s possible to buy a house if you aren’t legally separated, but there are many factors to consider.

1. Finalize Your Legal Documents

First and foremost, your mortgage lender will require your legal separation agreement. This is a court-ordered document used to divide assets, debts, and other responsibilities between a couple. 

A mortgage is a big financial obligation and your lender will want to make sure you are capable of qualifying for a mortgage as a single homeowner.

2. Figure Out Your Financials

Next, you should figure out exactly how much you can afford. Divorce typically comes with fees and ongoing costs like attorney fees, child support, or alimony, so it’s important to find out what you’re responsible for before determining what you can afford.

Tip: If you are responsible for an existing mortgage, it will be included in your debt-to-income (DTI) ratio and could make it more difficult to buy a home during a divorce. However, if the court awarded your spouse the property, then the lender may exclude that from your DTI.

3. Remove Yourself From First Mortgage

If your spouse was given the house, you will want to make sure you remove yourself from that mortgage so that you are not legally responsible for making monthly payments. This can be done by using a quitclaim deed or by refinancing.

4. Keep Records of Payment History

If you are making payments to your spouse, this will be included in your monthly debt amount. However, if you receive monthly payments, then this can count as qualifying income. Keep records of any payment history and bring this along with your legal separation agreement to your mortgage lender.

5. Get Pre-Approved

After the divorce is finalized, you can take the first step toward getting a mortgage by getting pre-approved. A pre-approval letter can help while shopping for a home. Not only does it say how much you can afford to borrow, but it also lets sellers know that you are a serious buyer.

Is It a Good Idea to Buy a House During a Divorce?

Buying a house during a divorce is possible, but it will be more of a challenge.

If you live in a community property state, then you and your spouse must sign and notarize a quitclaim deed. A quitclaim deed transfers any interest your spouse has in the property over to you or vice versa. 

Community property law says that couples who acquire property during a legal marriage own the property equally, and if a quitclaim deed is not signed, then your ex-spouse will have equal rights to your new home.

As a married couple, your spouse’s debts could also affect your ability to qualify for a government-backed mortgage. Lenders calculate your DTI using both your income and debts. If your ex is on the mortgage and has a high DTI, this could also raise your household DTI.

Evaluate your financials and determine whether this is a good time to purchase a home. While you may be able to qualify for a mortgage, it may be better to build your credit score and save money. Improving your credit score and making a larger down payment could make your monthly mortgage payment more affordable.

Are you in the market for a home loan? Total Mortgage’s loan experts are standing by to help you understand your options. We have branches across the country.

What If You Decide to Stay in Your Old Home After the Divorce?

During a divorce, the easiest way to divide the house is to sell it and divide the proceeds. But what if you want to stay in your home?

If both names are on the title, then you both have equal rights to stay in the home after a divorce. However, equal distribution of assets is typically handled in court during a divorce. For example, a judge could award you a percentage of the property based on your income or how much of the mortgage you personally paid.

If both parties want the house, then a court will decide who gets it and at what cost. If you keep the home, you may have to buy out your spouse. However, the court also takes financial viability and children into consideration.

Can You Buy a House With a New Partner Before Your Divorce?

There is no law saying you cannot purchase a home with a new partner before your divorce, but you and your ex must cooperate so that your new home is not viewed as a marital asset.

A quitclaim deed will need to be signed to transfer any interest in the property, even in community property states. You should also be careful of what funds you use to purchase your new home, like the down payment, closing costs, and other fees. The court could decide those funds were community property, which may complicate the entire process.

Consider a Home Loan With Total Mortgage

Divorces can be messy. Before buying a home during a divorce, you need to make sure you can afford a mortgage, especially if you have additional divorce obligations. A certified divorce real estate expert and a divorce attorney can help you maneuver through this process.

If you’re ready to move forward, Total Mortgage has your back. Start your application with Total Mortgage today and get your free rate quote in minutes. 

Source: totalmortgage.com

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Today we’ll look into “LoFi Direct,” a mortgage lender based in New Jersey that considers itself one of the fastest growing lenders in the industry.

They’re dedicated to providing more, whether it’s more loan programs, support, or overall value to their clients, along with what they refer to as white-glove customer service.

While they offer the latest technology, such as a digital mortgage application and smartphone app, they believe in the need for live, human interaction when it involves a complex process like obtaining a mortgage.

Let’s learn more to determine if their hybrid approach is a good fit for your home loan needs.

LoFi Direct Fast Facts

  • A consumer direct lender that offers home purchase loans and refinances
  • Founded in 2010, headquartered in Mount Laurel, NJ
  • A division of parent company AnnieMac Home Mortgage
  • An approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae
  • Currently licensed to do business in 48 states and the District of Columbia
  • Funded more than $2 billion in home loans last year

LoFi Direct is a direct-to-consumer retail mortgage lender based in Mount Laurel, New Jersey that was founded just over a decade ago.

Despite being a relatively young company, they fund billions in home loans annually across the United States.

They offer both home purchase financing and refinance loans, with the former accounting for about two-thirds of their total annual production.

Their large share of home purchase lending can be attributed to the many real estate agent relationships they’ve forged over the years.

The company is actually a dba of American Neighborhood Mortgage Acceptance Company, or AnnieMac for short.

They are an approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae, meaning they can offer conforming loans and government-backed mortgages, as well as service them.

At the moment, they are licensed to do business in 48 states, with Alaska and Hawaii the only exceptions.

They appear to do the most business in their home state of New Jersey, which accounts for about 30% of total volume, along with neighboring Pennsylvania, which holds another 15% or so.

But they’re also growing out west and making a name for themselves in states like California and Arizona as well.

If you prefer to do business in person, they do have some physical branches in Florida, Maryland, and New Jersey.

How to Apply for a Mortgage with LoFi Direct

  • To get started simply visit their website and click on Apply (or call them directly)
  • You’ll be prompted to create an account for their online Loan Portal
  • A loan originator will get in touch to walk you through the digital application
  • All processing and underwriting is completed in-house for quick turnaround times

As noted, LoFi Direct believes in a hybrid approach that combines the latest technology with real human beings, seeing that getting a mortgage can be complicated.

But you can still get started on your own by visiting their website and clicking on “Apply.”

From there, you’ll be prompted to create an account, which will also serve as your Loan Portal once your application is submitted.

A loan officer will jump in to help once you’re signed up to discuss loan options, mortgage rates, and what to expect from their process.

Most tasks can be completed electronically, including the application itself, the signing of disclosures, and the scanning/uploading of paperwork.

The good news is they’re an approved seller with Fannie Mae, Freddie Mac and Ginnie Mae, and all processing and underwriting is handled in-house.

This means they can get things done quickly without having to send your file elsewhere, or seek permission from an outside investor.

You can also download the AnnieMac Home Mortgage smartphone app (which I believe works with LofiDirect) and track your loan progress on the fly, 24/7.

Home Loan Programs Offered by LoFi Direct

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Home renovation loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable-rate options available

LoFiDirect offers a ton of different loan options, whether you’re a first-time home buyer or a seasoned homeowner looking to purchase a vacation home or refinance an existing investment property.

If you already own a property, you can get a rate and term refinance or a cash out refinance. They also offer home renovation loans, such as Fannie Mae HomeStyle and the FHA 203k.

You can get a conforming loan backed by Fannie/Freddie, a jumbo loan that exceeds the conforming limit, or a government-backed loan, such as a VA loan.

Both fixed-rate and adjustable-rate options, with a variety of different loan terms to choose from like a 15-year fixed or 5/1 ARM.

LoFi Direct Mortgage Rates

For one reason or another, LoFi Direct doesn’t put its mortgage rates on its own website, so it’s not totally clear how competitive they are.

However, they do advertise their rates on third-party sites, including Zillow’s Mortgage Marketplace.

From what I saw, they were offering one of the lowest interest rates on the platform, with nearly the lowest mortgage APR (which factors in lender fees).

So there is hope that they can deliver some of the best rates out there, assuming your loan scenario fits their guidelines.

It’s also unclear what lender fees they charge, such as a loan origination fee or separate charges for things like underwriting and processing.

But the quotes I saw on Zillow were promising with regard to both rates and fees. Just be sure to speak with a loan officer to get a solid estimate and take the time to compare lenders as well.

LoFi Direct Reviews

On Zillow, LoFi Direct has a stellar 4.83-star rating out of a possible 5 from nearly 1,400 customer reviews, which is impressive given the volume of feedback.

Also be sure to check out their individual loan officer reviews, as quality can vary at a large company. Then if you find someone who stands out, you can request that person specifically.

Over at SocialSurvey, it’s a similar 4.51-star rating from about 200 reviews, with many of them perfect 5-star ratings.

Additionally, the company has a 4.4-star rating from 50 reviews on Google, and a 4.2/5 from about 25 reviews on LendingTree, with an 84% recommended score.

Lastly, while the company isn’t an accredited business with the Better Business Bureau, they do sport a perfect ‘A+’ rating based on complaint history.

In summary, LoFi Direct seems to offer low mortgage rates and fees, which their name might imply, and their self-described mission is to provide industry-leading customer service.

They also have plenty of loan programs to choose from, so they could be a good choice for both a prospective home buyer and a current homeowner looking to refi.

LoFi Direct Pros and Cons

The Pros

  • Can apply directly from their website in minutes
  • Offer a digital home loan process and online borrower portal
  • Appear to offer low rates
  • Free smartphone app
  • Lots of loan programs to choose from
  • Excellent customer reviews across all ratings sites
  • A+ Better Business Bureau rating
  • Helpful guides, mortgage calculators, and mortgage glossary on their website
  • Physical branches in several states
  • May service your loan as opposed to transferring it

The Cons

  • Not licensed in Alaska or Hawaii
  • Do not publicize mortgage rates or lender fees
  • Do not offer second mortgages

Source: thetruthaboutmortgage.com

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Let’s learn more about “Triumph Bank Home Loans,” a Tennessee-based community bank that is also one of the larger mortgage lenders in the nation.

At last glance, the company referred to itself as a top-15% lender in the country based on recent HMDA data, with more than a half billion in loan volume annually.

But despite growing larger over the years, their mission remains the same – to provide personalized service and help their customers triumph, whether they’re buying a home or refinancing an existing mortgage.

They say their approach involves less bureaucracy and overhead, which gives them the ability to deliver great rates AND great service. Time to dig into the details.

Triumph Bank Home Loans Fast Facts

  • Community bank that offers home purchase loans and refinances
  • Founded in 2006, headquartered in Collierville, Tennessee
  • Lend in every state other than California and New York
  • A top-15% mortgage lender in the country based on HMDA data
  • Have served more than 13,000 families since 2013 (fund $600+ million annually)

As noted, Triumph Bank Home Loans is an FDIC-insured community bank, meaning aside from originating home loans, they also offer savings accounts and small business loans to their customers.

They also operate both a retail and consumer-direct channel for their home loan business, meaning you can apply online and work remotely with a loan originator.

Or visit one of their retail branches in the Memphis or Nashville area to do business in person if you prefer.

They do an almost equal mix of home purchase loans and refinance loans, meaning they could be a good choice for both prospective home buyers or existing owners looking for a better rate and/or cash out.

While they lend everywhere other than California and New York, they seem to do the most business in their home state of Tennessee, along with Georgia, North Carolina, Florida, and Colorado.

About 80% of the loans they originate are conventional, conforming backed by Fannie Mae or Freddie Mac, but they also offer jumbos and government-backed loans as well.

Since 2013, they’ve helped 13,000+ families get a home loan and are a top-15% mortgage lender nationally, funding more than half a billion in loan volume annually.

How to Apply with Triumph Bank Home Loans

  • You can either call them directly or fill out a free rate quote form on their website
  • When ready you can apply online via their streamlined digital mortgage process
  • Their operations team will process, underwrite, and fund your loan in-house
  • And a dedicated loan officer and support team will be with you every step of the way

Triumph Bank says it offers a simple and fast application process, which can be completed in the palm of your hand via smartphone or on a desktop computer.

They employ the latest cutting-edge technology, but retain the personal touch of a community bank, meaning you get white-glove service from an actual human team along the way.

To get started, you can call them directly, visit their website, or go to a physical branch if one is located near you.

Once at their website, you’ve got the option of requesting a rate quote or simply diving into the application.

I always recommend discussing pricing and products first with a loan officer to ensure they have what you’re looking for, and are competitively-priced.

Assuming they have what you need, you can complete much of the application process electronically, whether it’s eSigning disclosures or uploading documentation.

One plus to using them is the fact that their operations team will process, underwrite, and fund your loan in-house, as opposed to sending your paperwork elsewhere.

This should speed up the process and improve communication and overall efficiency, resulting in a better user experience.

Loan Programs Available at Triumph Bank Home Loans

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Home construction loans
  • Renovation loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • HELOCs
  • Fixed-rate and adjustable-rate options available

While you won’t find a product menu on their website, they appear to offer just about any type of home loan you could ask for.

This includes home purchase loans, mortgage refinances, and renovation loans, such as Fannie Mae HomeStyle or the FHA 203k loan program.

Additionally, you can get your hands on a conforming loan backed by Fannie Mae or Freddie Mac, a jumbo loan that exceeds county loan limits, or a government-backed loan, such as a VA or USDA loan.

Their retail bank offers home equity lines of credit (HELOCs) and portfolio mortgages as well, which may or may not be available in all states via the consumer-direct channel.

They appear to lend on all major residential property types and occupancy types, such as a single-family home, condo/townhouse, or multi-unit investment property.

Both fixed-rate and adjustable-rate mortgage options are available, including 30-year and 15-year fixed programs, along with the 5/1 and 7/1 ARM.

Triumph Bank Home Loans Mortgage Rates

While they don’t post their daily mortgage rates online, Triumph Bank Home Loans does say it offers mortgage interest rates below the national average.

Specifically, their 30-year fixed rate for conventional loans was 0.29% lower than the average from the Ellie Mae Origination Insight Report over a 17-month period from 2019 to 2020.

You might also come across their mortgage rates on comparison websites like Bankrate, where they appear to be some of the lowest listed among the many other lenders there.

They seem to charge a $995 loan origination fee, though loans can be structured at no cost using a lender credit as well.

All in all, their mortgage rate pricing seems to be comparable to other online mortgage lenders, and thus cheaper than the big banks and name brand lenders out there.

Triumph Bank Home Loans Reviews

On Zillow, they have a commendable 4.81-star rating out of 5 from about 200 customer reviews, with quite a few mentioning that the interest rate and/or lender fees were lower than anticipated.

At Bankrate, Triumph has a 4.7-star rating from over 100 reviews and 93% of customers would recommend them to others.

Additionally, they’ve got a stellar 4.9-star rating on Google from more than 300 reviews, along with a perfect 5-star rating on Facebook from 50+ reviews.

Lastly, they are an accredited business with the Better Business Bureau (since 2006), and have an ‘A+’ rating based on customer complaint history, which appears to be complaint-free.

In summary, Triumph Bank Home Loans seems to excel in both home purchase lending and mortgage refinancing, so they could be a good fit for new buyers and existing owners.

They also appear to have a very wide range of mortgage options to fit all different loan scenarios, which is a plus if you’re in need of something more unique.

And because all aspects of the loan process are completed in-house, you should be able to close quickly and efficiently.

Triumph Bank Home Loans Pros and Cons

The Good

  • Offer a digital home loan application process
  • Can apply for a mortgage without human assistance
  • Say they offer mortgage rates below the national average
  • All loan processing, underwriting, and funding is completed in-house
  • Tons of different loan programs to choose from
  • Lots of excellent reviews from past customers across all ratings websites
  • Free mortgage calculators, first-time home buyer toolkit, and learning center on their website

The Maybe Not

  • Don’t lend in California or New York
  • Mortgage rates and lender fees aren’t listed on their website

Source: thetruthaboutmortgage.com

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After falling for three consecutive weeks, purchase mortgage rates jumped 14 basis points, reflecting the expectation that the Federal Reserve (The Fed) will maintain its tightening monetary policy to fight inflationary pressures.

According to the latest Freddie Mac PMMS, purchase mortgage rates this week averaged 5.23%, compared to 5.09% the week prior. A year ago at this time, 30-year fixed rate purchase rates were at 2.96%.

The government-sponsored enterprise index accounts solely for purchase mortgages reported by lenders during the past three days.

“After little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data,” said Sam Khater, Freddie Mac’s chief economist.

Another index also showed higher rates this week.

Black Knight’s Optimal Blue OBMMI pricing engine, which includes some refinancing data — but excludes cash-out refis to avoid skewing averages – measured the 30-year conforming mortgage rate at 5.5% Wednesday, up from 5.42% the previous week. 

Creating a path to success in today’s purchase market

Meeting the needs of a new generation of homebuyers while managing the ebbs and flows of a volatile housing market is a major endeavor for any mortgage lender. So, what should lenders be doing to thrive in the face of a post-pandemic housing market rife with new hurdles?

Presented by: Calyx

The 30-year fixed-rate jumbo was at 5.05% Wednesday, also up from 4.97% the week prior, according to the Black Knight index. 

Higher rates are reducing borrowers’ demand for mortgage loans. This week, mortgage application volume dropped 6.5% from the past week to the lowest level in 22 years: Refi applications declined 6% and purchase apps decreased 7%, according to the MBA.

The housing market is incredibly rate-sensitive, consequently, demand again is pulling back, according to Khater.

“The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home,” he said.

Overall, mortgage rates are following the Fed’s inflation-fighting monetary policy. Minutes from the Fed’s meeting earlier this month showed policymakers emphasized the need to quickly raise interest rates to bring consumer prices closer to the Fed’s 2% goal. 

The central bank raised the interest rate by a half percentage point on May 4 and unveiled a plan to reduce its $9 trillion asset portfolio. The Fed also has repeatedly signaled it will continue to raise rates in 2022 and into 2023.

According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.38% with an average of 0.8 point, up from last week’s 4.32%. The 15-year fixed-rate mortgage averaged 2.23% a year ago.

The 5-year ARM averaged 4.12%, with buyers on average paying for 0.3 point, up from 4.04% the week prior. The product averaged 2.55% a year ago. 

Economists expect the tightening monetary policy to reduce origination volume significantly in 2022 and 2023. The Mortgage Bankers Association expects loan origination volume to drop more than 35% to about $2.5 trillion this year, from last year’s $4 trillion. Meanwhile, the MBA expects 5.93 million home sales in 2022, compared to 6.12 million in 2021.

Fitch Ratings, however, in a May 31 report said the pace of falling mortgage originations has surpassed its expectations and it is likely to fall short of the industry forecasts by MBA and Fannie Mae.  

Source: housingwire.com

Apache is functioning normally

Today we’ll deep dive into “Asset Mutual Mortgage,” a company that claims to have a reputation as one of the best mortgage lenders in Chicago.

It could have to do with their motto of “Less paperwork and more personal attention,” which should appeal to just about anyone who has ever experienced the arduous home loan process.

And thus far, their reviews seem to back up the assertion, so if you’re looking to enter the “frustration-free zone from application to decision,” they could be the lender for you.

Read on to learn about them.

Asset Mutual Mortgage Fast Facts

  • Direct-to-consumer mortgage lender that operates mostly online
  • Offers home purchase loans and mortgage refinances
  • Founded in 1989, headquartered in Lombard, Illinois
  • Currently licensed to do business in six states nationwide
  • Employs about 16 loan officers across two physical offices

Asset Mutual Mortgage is a direct-to-consumer mortgage lender that has been operating since 1989, led by current president Adam Karno.

They are headquartered in Lombard, Illinois, but also have a second physical location in Queen Creek, Arizona, which is a suburb of Phoenix.

At the moment, the company is licensed to do business in six states, including Arizona, Florida, Illinois, Indiana, Michigan, and Virginia.

It’s unclear if they plan to expand to additional states or focus on the ones they’re already approved to do business in.

They refer to themselves as a “local lender,” and as stated previously strive to provide a personal, human experience driven by the latest technology.

Whether you’re a prospective home buyer or existing homeowner, they’ve got solutions to suit all parties.

In Illinois and Michigan, they are also Quicken Loans Mortgage Partners, meaning you could be referred to them if Quicken (soon to be Rocket Mortgage) feels they can’t meet your needs directly.

How to Apply at Asset Mutual Mortgage

  • Call, email, or simply fill out a real mortgage application on their website in minutes
  • They offer a digital home loan experience where most tasks can be completed electronically
  • Once approved you can manage your loan from the online borrower portal
  • They aim to close loans quickly without all the unnecessary paperwork

To begin, you can either call or email to get in touch with a loan officer, or cruise right over to their website.

If you go online, you’ll be given the opportunity to fill out a short contact form on their website or jump right into the long application, which is an actual digital form 1003 that can also be completed via smartphone.

They say their long form takes anywhere from 10 to 15 minutes to fill out, at which point you’ll be prompted to sign disclosures, have your credit pulled, and lock your rate.

Once you’ve completed your application and/or received loan approval, you can log on to the borrower portal via the website to check loan status 24/7.

You’ll also be able to securely upload any necessary documents to satisfy any outstanding conditions.

All in all, they seem to utilize the latest technology to ensure the mortgage process is mostly paperless where possible, and seem to be well organized to avoid unnecessary documentation requests.

Asset Mutual Mortgage Loan Programs

  • Home purchase loans
  • Mortgage refinance loans: Rate and term, cash out, and streamline
  • Conventional home loans backed by Fannie Mae and Freddie Mac
  • FHA loans

One area where information is lacking is their loan product menu. For one reason or another, they don’t list what programs are available to customers.

As such, it’s unclear what they offer, though they appear to originate both home purchase loans and refinance loans, including rate and term, streamline, and cash out refinances.

Additionally, they appear to offer conventional loans backed by Fannie Mae and Freddie Mac, along with government-backed FHA loans.

They don’t seem to offer VA loans or USDA loans, or second mortgages.

So their lending menu looks to be a little thin, though I can’t confirm this since they don’t mention all available loan programs on their website.

You may want to call first to ensure they have the loan program you’re looking for before spending too much time filling out lengthy forms.

Asset Mutual Mortgage Rates

One slight downside to Asset Mutual Mortgage is their lack of disclosure when it comes to mortgage interest rates and lender fees.

Unlike some other lenders, they don’t post daily mortgage rates or list their lender fees online, so you’ll want to get a quote first before you apply.

Another option is to compare mortgage rates on the Zillow Mortgage Marketplace, where Asset Mutual Mortgage is often listed alongside other lenders.

I came across their listing for both a 30-year fixed and a 15-year fixed, both of which were being offered with just $1 in lender fees (basically a no cost mortgage).

And their rates were nearly the lowest on the platform, with only one or two lenders beating them in rate by .125%.

In other words, they should offer very competitive mortgage rates when compared to other online mortgage lenders, which generally are cheaper than the larger, brick-and-mortar name brand lenders.

Additionally, it appears they structure loans with no out-of-pocket fees while remaining economical, so even if they do charge lender fees, the mortgage APR may still be top notch thanks to a lender credit.

As always, put in the time to shop their rates and fees with other lenders, brokers, banks, and so on to ensure you get a good deal on your home loan.

Asset Mutual Mortgage Reviews

On Zillow, Asset Mutual Mortgage has a 4.95-star rating out of a possible 5 from over 500 customer reviews.

Aside from being near-perfect, many of those reviews indicate that the interest rate and/or closing costs were lower than expected.

If you peruse their ratings on Zillow, be sure to drill down to individual loan officer ratings to see how each employee is rated, then you can ask to work with someone specific.

Over at Birdeye, they have a 4.5-star rating from about 20 reviews, which are gleaned from Facebook, Google, and other ratings websites.

The company also boasts an ‘A+’ rating with the Better Business Bureau based on complaint history, though they aren’t an accredited business.

In summary, Asset Mutual Mortgage could be a good choice if you’re looking for a low-cost home loan, whether it’s a home purchase or a refinance.

The only question mark pertains to their product menu, which doesn’t feature on their website. That said, they might be best served for borrowers with straightforward, vanilla loan scenarios.

Asset Mutual Mortgage Pros and Cons

The Good

  • Offer a digital mortgage application and online borrower portal
  • Can apply for a home loan on your own without human assistance
  • Appear to offer low mortgage rates with limited lender fees
  • Excellent reviews from their past customers
  • A+ BBB rating

The Maybe Not

  • Only licensed in six states currently
  • Do not publicize mortgage rates or lender fees
  • May not offer VA loans or USDA loans

(photo: Harshil Shah)

Source: thetruthaboutmortgage.com

Apache is functioning normally

The mortgage and real estate industry is no stranger to disruptors, especially over the past few years as scores of companies have tried to change the way we buy, sell, and obtain a home loan.

One of the latest examples is “Tomo,” a venture-backed fintech with some big-name founders and investors, including former Zillow employees Greg Schwartz, Carey Armstrong, and Spencer Rascoff.

What’s unique about this mortgage lender is they only originate home purchase loans. No refis. That means they’re completely committed to home buyers.

Like other lenders, they’re attempting to level the playing field between cash buyers and those who need a mortgage, an especially relevant concern in today’s ultra-competitive housing market.

Tomo Mortgage Fast Facts

  • Direct-to-consumer, purchase loan-only mortgage lender
  • Founded in 2020, headquartered in Stamford, CT
  • Started by former Zillow executives Greg Schwartz and Carey Armstrong
  • Do not charge lender fees and offer both a low rate and closing guarantee
  • Will also pair you with a real estate agent for an additional mortgage rate discount

Tomo Exists Because Buying a Home Can Be Terrible

Tomo was created because purchasing a property can be a real pain in the neck, and instead of relying on old technologies, they’re going the digital route.

This means you can get started right from their website in minutes, whether by desktop computer or smartphone.

They’re also streamlining the process, simplifying how you can complete tasks, and throwing in a bunch of guarantees along the way.

It all starts with a mortgage pre-approval, which they break down into two options: verified and an underwritten pre-approval.

The verified pre-approval assesses your credit score, income, and debt, and turns around the paperwork in no more than three hours after they receive your information, without a hard pull.

The more robust underwritten pre-approval does all that with a hard credit check and a complete assessment by an underwriter, backed by their Closing Guarantee.

The second option takes about 24 hours to complete, once you’ve uploaded all your necessary documents.

Tomo commits to closing on time, and are confident they can do so by moving critical steps earlier in the process.

But if there is a delay on their end, they guarantee your closing date will not change.

It’s unclear what happens if they aren’t able to meet their obligations, but they appear to not let that be an issue.

The Tomo Price Match

While all that sounds good, there’s even more to like about Tomo when it comes to their pricing.

For one, they do not charge lender fees, similar to companies like Better Mortgage, Filo Mortgage, and PenFed Mortgage.

On top of that, they offer the Tomo Price Match if you happen to find a better mortgage rate elsewhere.

Just provide a valid, comparable Loan Estimate (LE) dated within one business day of submission to Tomo and they’ll lower their rate if need be to match it.

But they’re confident they can offer some of the lowest rates around because they’ve simplified the home loan process and made it more cost-efficient.

Speaking of mortgage rates, they’ve got them on full display on their website, so they’re not hiding anything.

Simply navigate to “Find your rate” and you’ll see a list of rates and corresponding costs (discount points) or rebates (lender credits).

You can also fine-tune the rates by entering in your borrower and property information for a more accurate gauge of pricing.

Tomo Brokerage Partner Agent

Speaking of pricing, to sweeten the deal even more, they’ll throw in a .125% (eighth) discount in mortgage rate if you use a Tomo Brokerage Partner Agent.

This is essentially their real estate referral network that pairs you with a local real estate agent, which makes a lot of sense because both Schwartz and Armstrong worked on Zillow’s Premier Agent product previously.

In truth, Tomo might be even more similar to Redfin Mortgage, which doesn’t charge fees and has an obvious real estate agent affiliation.

It also plays into the trend of controlling more of the home buying process instead of just the lending piece, or merely the agent portion.

Assuming you don’t already have a real estate agent, you could save some money by going with one of their recommendations.

This is known as “Tomo Perks,” and on a $300,000 loan amount could save you more than $7,000 over the life of the loan.

To get paired up, you simply provide your info to Tomo and they’ll send video profiles for three local real estate experts they love. Then it’s up to you who to pick, if any of them.

For the record, it is possible to take advantage of both the Tomo Price Match and Tomo Perks.

Where Is Tomo Mortgage Available? And What Loan Types Are Offered?

  • Currently serve just five states: CO, CT, FL, TX, WA
  • Offer home purchase loans only
  • Fixed-rate mortgages: 15- and 30-year loan terms available
  • Minimum loan amount of $150,000 and min. credit score of 660 required
  • Jumbo loans available with loan amounts up to $3 million
  • Single family homes, townhomes, condos, and 2-4 unit properties acceptable
  • Do not offer FHA/VA loans

At the moment, the company is licensed in just five states, including Colorado, Connecticut, Florida, Texas, and Washington.

And currently only operates in three markets, Dallas-Fort Worth, Houston, and Seattle. My assumption is they’ll expand fairly quickly with their big venture cap backing.

They also only offer home purchase loans, as stated above, though it’s possible they may expand into mortgage refinances in the future.

In terms of loan choice, you can get a conventional mortgage starting with loan amounts of $150,000, or a jumbo loan up to $3 million.

You can’t yet get your hands on an FHA or VA loan, though that could change in the future.

A minimum 660 credit score is required, and they only offer 15- and 30-year fixed mortgages. No ARMs just yet.

While it seems like a limited product menu, something like 90% of home buyers go with the 30-year fixed, and most home loans are conforming.

In summary, Tomo is yet another mortgage/real estate startup looking to shake up the status quo.

While it’s a crowded place, their low rate guarantee and on-time closing guarantee, combined with their fresh modern look, might be enough to help them stand out.

Source: thetruthaboutmortgage.com