report

Apache is functioning normally

Apache is functioning normally

Watch out, pumpkin.

This fall, the rising botanical décor darling is… an artichoke.

Thistles, chickens, mushrooms and mermaids are among the trending themes for fall, at least in Etsy’s corner of retail. Etsy looked at what people are typing in the search bar. Combined with industry forecasting and social media trends, the company created a guide to fall trends. While the report ranges from style (opal charm bracelets are hot) to special occasions (blush pink wedding dresses are popular), read on for fall home décor trends with examples from Lancaster County makers and businesses.



Chicken products, like this personalized mug, have been popular for Zookaboo.


Zookaboo


Barnyard imagery

Blame Carrie Underwood for at least some of the chickens you spot this fall. The country singer posted a selfie on Instagram earlier this year wearing an olive sweatshirt decorated with chickens. “Makes nice living… Lots of fancy clothes in closet… Wears chicken sweats she bought off Etsy…” she wrote in the caption.

Searches for “chicken sweatshirt” soared.

Farm scene-inspired clothing and décor leans heavily on chickens as well as cows and barns.

This personalized chicken mug has been a hot seller for Zookaboo in New Holland, says owner Michele Zook.



Chicken products, like these laser-cut earrings, have been popular for Wilder Mind Designs Co.


Wilder Mind Designs Co.


Laser-cut chicken ornaments and earrings from Wilder Mind Designs, Lancaster, have been popular this year as well, says owner Trista Ambs.



Throwback Halloween finds, like this 1920s Halloween bee costume from Guermantes Vintage, are a rising fall trend.


Guermantes Vintage


Throwback Halloween

Vintage Halloween fans might turn to secondhand for sustainability, for an upcycled project or for nostalgia.

Guermantes Vintage’s closet in Lancaster (run by Janine D’Agati) includes rare handmade costumes like two from the 1920s. The red cotton dress is appliqued with bats, black cats and witches on broomsticks. The twin bee costumes are made of delicate crepe paper on black cotton. The hats have bendable wire antenna.



Vintage Culture Shop has vintage Halloween items, including this vintage postcard from the 1910s.


Vintage Culture Shop


Vintage Culture Shop, Lancaster Township, had four circa-1955 Weeny Witch party booklets filled with recipes and directions on how to make a witch diorama centerpiece from hot dogs. They sold out quickly, says co-owner Karen Foerstel.

The Lancaster Township business still has other vintage Halloween items available, including a 1910s postcard with a hand-written invitation to a long-ago Halloween party asking guests “be sure and mask.”

Mary Charles Folk Art call her paintings and prints whimsical, enchanting and heartwarming. Some of the Lancaster artist’s woodland scenes feature mushrooms, including “Toadstool Cottage” and “The Getaway.”



Mushroom art, like this design, has been popular for Jain Makes Art.


Jain Makes Art


Mushrooms also sprout on some of Jain Falcon’s artwork. The Lancaster artist prints her artwork on greeting cards, notebooks, stickers, tote bags as well as prints.



Speckled textured ceramics, like this mug made by Deez Things Art, are a rising fall trend.


Deez Things Art


Earthy ceramics

For ceramics, perfectly smooth surfaces aren’t a must. “Pieces spotlighting terracotta, speckled textures, and uneven glazes that reveal the natural components and handwork are growing in popularity,” Etsy reports.

Speckled ceramic mugs are part of the inventory of Deez Things Art. Michael Diesner makes them at his Rapho Township home during summer breaks from teaching.

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Source: lancasteronline.com

Apache is functioning normally

Apache is functioning normally

The nation’s largest home builder, D.R. Horton, also has its own affiliated mortgage lender known as “DHI Mortgage.”

Recently, new home sales have surged in popularity due to the mortgage rate lock-in effect.

Essentially, existing homeowners aren’t selling their properties because they’ve got ultra-low fixed interest rates on their home loans.

At the same time, mortgage rates have surged higher, resulting in big financing incentives from home builders to move their newly-built home inventory.

Let’s take a hard look at what DHI Mortgage has to offer and whether an in-house lender is the way to go.

DHI Mortgage Fast Facts

  • Full service mortgage lender offering home purchase loans and refis
  • Founded in 1997, headquartered in Austin, Texas
  • Parent company D.R. Horton is the nation’s largest home builder
  • Publicly traded company (NYSE: DHI)
  • Also operate DHI Title and D.R. Horton Home Insurance Agency
  • Aim to be a one-stop shop for newly-built home buyers
  • Funded roughly $20 billion in home loans during 2022
  • Most active in the states of Texas, Florida, and California
  • Licensed to do business in 34 states

DHI Mortgage is a full-service mortgage lender owned by parent company D.R. Horton.

They were founded in 1997 and are headquartered in Austin, Texas.

D.R. Horton is the largest home builder in the United States, slightly bigger than competitor Lennar, which also has a captive mortgage company called Lennar Mortgage.

The home builder got its start back in 1978 when Don R. Horton built his first home in Fort Worth, Texas.

Since then, the company has grown into a near-$35 billion dollar company that is publicly-traded on the New York Stock Exchange (NYSE: DHI).

The company’s shares are owned by legendary investor Warren Buffett, who sees strength in home building given the lack of existing home supply.

Aside from operating their in-house mortgage lender DHI Mortgage, they also run an affiliated title company and insurance agency.

This means home shoppers can use DHI Title for their title insurance needs and D.R. Horton Home Insurance Agency for their homeowners insurance, assuming it’s competitively priced.

The goal is to create a one-stop shopping experience for home buyers and streamline what is often a daunting process.

Last year, they funded about $20 billion in homes, with nearly 30% of overall volume coming their home state of Texas, per HMDA data.

They are also quite active in Florida, California, Arizona, Georgia, Nevada, and The Carolinas.

How to Apply with DHI Mortgage

While you can get pre-qualified for a mortgage online via the DHI Mortgage website, they say to get in touch with your mortgage loan originator to submit a full loan application.

It’s unclear if this means you can still apply electronically after speaking with a loan officer, or if you have to apply in-person.

They do have branch locations and sales offices at their home builder developments, which could facilitate this process.

Unfortunately, their website is a bit limited when it comes to information, so you’ll probably need to speak with a human before proceeding to an application.

Their online system, powered by fintech company Blend, does seem to allow for online refinance applications along with the pre-qualifications.

If you visit their website, it’s also possible to search for a local loan originator by state, branch, or by name.

They say they have digital options for buyers, but don’t make clear what those are. My assumption is they do offer some sort of online loan submission process.

And likely the ability to complete tasks electronically, whether it’s satisfying loan conditions or checking loan status.

However, I would like to see more information in this department.

Loan Programs Offered by DHI Mortgage

  • Home purchase loans
  • Refinance loans
  • Conventional loans including Fannie/Freddie 3% down
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable-rate options
  • Temporary buydowns
  • Affordable housing loans

DHI Mortgage offers the most popular loan options out there, whether it’s 3% down conforming loan backed by Fannie Mae or Freddie Mac or an FHA loan.

You can get both a home purchase loan or a mortgage refinance, though I doubt many existing homeowners would use them for a refinance unless mortgage rates were ultra-competitive.

The full menu of government-backed mortgages is offered, including FHA loans, VA loans, and USDA loans.

And both fixed-rate and adjustable-rate options are available, including the 30-year fixed, 15-year fixed, 7/1 ARM, and 5/1 ARM.

They also appear to offer jumbo loans that exceed the conforming loan limit in pricier regions of the country.

However, they don’t appear to offer any second mortgages, such as HELOCs or home equity loans.

But temporary buydowns, such as 2-1 buydown, are offered, as well as other affordable housing loans if buying in specific locations or with low-to-moderate income.

DHI Mortgage Rates

Speaking of mortgage rates, DHI Mortgage doesn’t have a page on their website dedicated to rates or lender fees for that matter.

So you’ll be a little bit in the dark there. Be sure to ask your loan originator what fees they charge, such as loan origination fees, application fees, processing and underwriting, etc.

The good news is I did see special interest rate offers on the D.R. Horton website, which is typical of home builders.

They often offer special incentives to their home buyers who also use their affiliated lender.

In this case, I saw a 5.50% fixed rate FHA loan offer, which was also available on VA and USDA loans.

And a 5.75% fixed rate conventional loan offer that only required a five percent down payment.

So chances are they can offer some pretty competitive rates if you buy a D.R. Horton property and use DHI Mortgage.

DHI Mortgage Home Buyers Club

Those with imperfect credit can take advantage of the “DHI Mortgage Home Buyers Club.”

It pairs in-house credit consultants with prospective home buyers to prepare them for homeownership.

While it doesn’t guarantee loan approval or improved credit scores, they will work with you to boost your overall credit profile.

They’ll also ask you to complete a HUD-approved homebuyer education course while your credit consultant comes up with a credit profile improvement strategy.

This might entail removing inaccurate items on your credit report, paying down high balances, and getting current on any past due accounts.

The goal is to clean up your credit history and improve chances of mortgage approval, and potentially snag a lower mortgage rate depending on credit score improvement.

DHI Mortgage Reviews

As always, I try to track down customer reviews online to see what past customers think of the lender in question.

And they don’t appear to be great, based on what I could find. Their headquarters in Austin has a 2.6/5 rating from about 40 Google reviews.

Over at WalletHub, it’s a similar 2.6/5 rating from just over 30 reviews, with some customers citing poor communication and delays.

You can also find reviews for individual loan officers if you go on Zillow and search by name or location.

DHI Mortgage currently has a ‘B+’ rating with the Better Business Bureau (BBB), which isn’t fantastic and likely due to customer complaints.

They also have a 1.14/5 rating on the BBB website based on customer reviews.

To sum things up, their website could do with improving and their mixed reviews raise some questions about customer service.

On the bright side, they offer a good amount of loan programs and might have financing specials that beat out the competition.

Ultimately, it would probably come down to price if deciding between them and a different lender.

Though I assume most DHI Mortgage customers are also likely D.R. Horton home buyers, so there will likely be a big push to stay in-house.

Just be sure to speak with other mortgage companies, independent mortgage brokers, and so on to weigh your options.

Convenience is great, but not at the price of higher closing costs and/or interest rates. So definitely shop around.

Lastly, note that DHI Mortgage sells most of the loans it originates, meaning it’s likely your loan will be sold and transferred to a new loan servicer shortly after closing.

DHI Mortgage Pros and Cons

The Good

  • Special financing incentives to D.R. Horton home buyers
  • Might be a quicker/easier home buying process using affiliated companies
  • Branch locations allow borrowers to work with in-person if preferred
  • DHI Mortgage Home Buyers Club helps credit challenged buyers
  • Free mortgage calculator and homebuyer education resources online
  • Lots of loan programs to choose from including fixed-rate loans and ARMs

The Perhaps Not

  • Only licensed in 34 states
  • No mention of mortgage rates or lender fees online
  • Clunky website with limited information
  • Don’t seem to able to apply for a home loan electronically
  • Do not offer second mortgages or home equity products
  • Do not service the majority of their loans
  • B+ BBB rating and poor customer reviews

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

According an SEC filing dated May 28, Bank of America originally offered Countrywide shareholders nearly $10 per share in its bid to takeover the nation’s top mortgage lender.

But after significant deterioration in the credit markets, namely involving a number of home equity loan securitizations, Bank of America reevaluated its position and came up with the current offer of about $6 per share.

Beginning in November 2007, Countrywide and Bank of America began merger talks after it became clear that additional capital raising and/or a private equity investment wouldn’t be enough to the keep the giant afloat.

At the time, Countrywide also began mitigating risk by eliminating the loan origination of subprime mortgages, increasing the origination of government-backed loans (FHA loans, VA loans), and reducing headcount.

During a meeting held on December 28, a Bank of America representative provided Countrywide representatives with a preliminary estimate for the proposed takeover, offering a 10 percent premium to the current Countrywide share price.

That implied an exchange ratio of 0.2353 shares of Bank of America common stock for each share of Countrywide stock, valuing the ailing mortgage lender at $9.96 per share.

But during that same meeting, Countrywide representatives fessed up about their home equity problems, prompting Bank of America to do their due diligence before moving forward.

Later in January, the groups met again, at which point Countrywide revealed that it would likely report a fourth quarter loss, and as a result, could face negative ratings action that would put further strain on the company.

Despite the bleak outlook, Bank of America agreed to push on in a call initiated by Countrywide representatives on January 8, offering an exchange ratio of 0.1822 of Bank of America stock for each share of the stressed lender’s.

Days later, the boards approved the merger and it was quickly announced to the public on January 11, just around the time when bankruptcy rumors were causing panic selling on Wall Street.

Check out the entire filing here if you want to hear more about the merger and the hundreds of pages of related detail.

Shares of Countrywide fell 13 cents, or 2.41%, to close at $5.26 on Friday.

(photo: shizhao)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

Zillow released the second edition of its new Zillow Negative Equity Report today, revealing some interesting statistics about age and underwater borrowers.

The company noted that the youngest underwater borrowers, those aged between 20-24, were the least likely to be delinquent on their mortgages.

Just 5.9% of underwater borrowers in this age bracket were 90 days or more behind on the mortgage, versus 9.2% of all other underwater homeowners.

Of course, Zillow didn’t have an explanation as to why younger homeowners are better at staying current.

If I had to take a stab at it, I would think it has to do partially with the fact that these younger homeowners have only been in their properties for a few years at best, so they just haven’t had the time to give up.

And maybe they’re just more optimistic than the older generations, who have watched much of their home equity get zapped in recent years. They’ve also got more time on their hands to ride things out.

They may also not be as savvy about strategic default, or in exploding option arms and other high-risk loan programs that would make payments unmanageable after a few years.

Or it could just be that young people are more responsible than we give them credit for…either way, they’ll pave the way for the future of the housing market, so it’s important to keep an eye on what they’re up to.

Younger Homeowners More Likely to be Underwater

Delinquency rates aside, younger homeowners are the most likely to be upside down on their mortgages.

Nearly half (48%) of all borrowers under the age of 40 were underwater in the second quarter, which is certainly a startling statistic.

Those suffering the most are aged between 30-34, most of which were probably first-time homebuyers who scooped up houses near the top of the housing bubble right before they eventually nosedived.

Sadly, many of these 30-something borrowers are trapped in their homes thanks to a lack of home equity, preventing other young buyers from finding suitable properties for themselves.

This explains the inventory issues seen at the moment, with very few viable options for those looking to buy in popular regions of the country.

As the homeowner ages, the negative equity rate drops pretty steadily because many of these older borrowers probably paid their mortgages down considerably over the past couple decades.

[Should I pay my mortgage down early?]

The older ones that got “burned” likely pulled cash out of their homes as prices marched higher and higher.

Negative Equity Keeps Dropping

The good news is negative equity levels continue to fall as home prices stabilize and even rise in some areas.

A total of 15.3 million homeowners were underwater in the second quarter, down from 15.7 million a quarter earlier.

That amounts of 30.9% of U.S. homeowners, down from 31.4%. In dollars, the total amount of negative equity fell $42 billion to $1.15 trillion.

So there’s definitely more work to be done, but at least it’s moving in the right direction.

Negative equity fell the most in the Phoenix metro, from 55.5% to 51.6%, thanks to a major reversal in home prices in the desert.

The hard-hit Miami-Ft. Lauderdale metro also saw a nice improvement, with negative equity dipping to 43.7% from 46.4%.

Las Vegas is still the hardest hit, with 68.5% of homeowners underwater, though it was a staggering 71% in the first quarter.

Every single metro tracked by Zillow saw their negative equity levels drop except for Philadelphia, where it increased from 25% to 25.4%.

This further supports the fact that the recovery won’t be the same across the nation.

Yes, the trend is improving overall, but you really need to focus on your own region if you want to know which way things are going.

For the record, Zillow’s report only looks at owner-occupied homes – investment properties probably exhibit even higher levels of negative equity thanks to the many speculators present before and during the housing bubble.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

Owning a home is a lifetime goal for many of us, and a home loan helps a great deal to achieve this target. Accordingly, it’s not a surprise to see several companies offering home loans for people from different walks of life.

A report by the Reserve Bank of India (RBI), released in March, indicated that there was a significant decadal growth in home loan advances of almost 6 per cent to 14.2 per cent in March 2023 from 8.6% in March 2012. The report was a testimony to Indians’ increasing reliance on home loans.

Home loans are most likely to be high in amount and for the longer term. A borrower spends her/his hard-earned money to repay these loans, which come with a heavy interest. The prevailing home loan interest rates range from 8.50 percent to 14.75 percent. The longer the duration of the loan, the more interest you end up paying.

So, how do you save up enough to finish the loan? How do you ensure you have sufficient money left in your wallet for the rest of the month once the home loan EMI has been deducted? One of the best ways is to repay the loan earlier than its actual duration. It requires commitment, discipline, and strategic financial planning to pay it earlier.

But, if paying off a little extra comes at a great financial strain for you, here are a few other ways that you could explore to repay your loan quicker.

Refinancing

In the refinancing method, you should choose a bank that offers you a home loan at a lower interest rate and close your running loan with the money sanctioned by the new bank.

Since home loan interest rates of different banks vary, a little research should help you find a bank with a lower interest rate to get your home loan refinanced.

For those who can afford to pay a higher EMI, you should try and opt to refinance your loan with a shorter repaying term. This readjustment to your finances — although may sting you for a bit in the short term — will be a blessing for you in the future.

Switching to fixed rate

If you have a home loan with a floating interest rate, consult a financial advisor and switch it to a fixed rate through another bank.

In a floating interest rate home loan, you pay extra money when the lender increases loan interest rates, as and when the RBI hikes repo rates. Switching to a fixed rate will keep you immune from rising interest rates.

Avoid accumulating new debts

Any new loan or a defaulted payment, such as a credit card, can derail your financial planning, forcing you to miss your home loan payment. It’s better not to take a new loan if you are already paying a high monthly instalment on your existing loan.

Set up automatic payments

This is an effective way to inculcate good money habits. You can set up automatic home loan payments for the date you receive your salary. It will ensure your payment is on time, and you won’t incur any penalty from the lender.

Make additional payments

If you have the resources to make extra payments on the home loan, do not hesitate. You can opt for weekly or fortnightly payments instead of monthly for early repayment. Additional payments will reduce your overall loan repayment amount and help you save money.

Allocate windfalls and bonuses to loan payments

To make early payments on your home loan, you can allocate windfalls, tax refunds, work bonuses, or any unexpected financial gains to repayment. Not just that, you can also channel your inheritance or gifts towards paying off the home loan.

Closing a home loan and living debt-free, comfortably in that cosy home should not take you a lifetime. The better you manage your finances, the higher your savings will be. Now, hurry up and get to your excel sheets before the next EMI.

Atul Monga, CEO and Co-Founder, Basic Home loan

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Updated: 18 Oct 2023, 01:47 PM IST

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Apache is functioning normally

Whether you’re selling your home to begin a new adventure or refinancing your existing home, getting an appraisal with the value you want is an important hurdle to clear. You may feel that the appraisal process is out of your control, but there are many easy and inexpensive ways to get both yourself and your home ready.

We put together a checklist of our top tips below. But first, let’s quickly cover the basics of home appraisals.

What Is a Home Appraisal and Why Is It Important?

A home appraisal is an unbiased report on the value of your home performed by a trained and state-licensed individual. Appraisals are an essential part of the home financing process, ensuring the homebuyer, seller and mortgage lender each have an impartial, consistent and accurate assessment of the value of the property under consideration.

The lender is responsible for ensuring that your home provides adequate collateral for the mortgage. For most loans, the lender obtains a signed and completed appraisal report that accurately reflects the market value, condition and marketability of the property.

It’s the appraiser’s job to provide a factual, unbiased and detailed description of the property and the neighborhood. They must take into account all factors that influence a home’s value when developing the market value opinion in the appraisal report.

Home Appraisal Cost

While home appraisal costs can vary by state and property size, the fee can range between $300 and $1,200. Most fall somewhere around $600-$1,000, with costs based primarily on the geographical area of the home.

How Long Does a Home Appraisal Take?

From start to finish, the home appraisal process usually takes approximately 7-10 days to complete.

The required in-person visit by a home appraiser can take over an hour, depending on the size of your home. However, several other steps are involved in making an unbiased and professional assessment of your home’s value. Your appraiser will research trends, local county records and recently closed comparable homes in your area, known in the industry as “comps.”

Once your appraiser compiles and analyzes all the information and data, they will present a final report of your home’s value.

What Do Home Appraisers Look For?

A home appraiser uses several sources of information to determine a property’s value. As part of the assessment, the appraiser will visit the property in person and review recently completed sales of comparable homes. Common factors examined during home appraisals include:

Property size. In real estate appraisals, size significantly affects the final number. In general, the higher the square footage of a home, the higher its value. An appraiser will also look at the kitchen, number of bedrooms, bathrooms and closets.

Exterior condition. When assigning a value to your property, the appraiser will consider not only the exterior appearance of your home but also its condition. They will check the following:

  • The condition of the roof, foundation, siding, gutters, chimney and walls, looking for signs of leaks, mold and other safety hazards
  • Lot size, including front and backyard square footage
  • Pool, outdoor kitchen, deck, porch and other amenities

Interior condition. Again, this refers not only to the appearance of the interior but also to the working condition of standard household assets such as:

  • Plumbing
  • Electrical and HVAC systems
  • Doors and windows
  • Light fixtures
  • Any kitchen appliances to be included in the sale

Attic, basement and foundation. A finished basement or attic may impact a home’s value, but these areas must meet specific requirements to be considered part of the Gross Living Area (GLA). An appraiser will also evaluate your home’s foundation and its condition.

Home improvements and renovations. Tell your appraiser about any work or upgrades you have done to spruce up your home. This can include anything from the central air system you installed 10 years ago to the kitchen flooring and countertops you just renovated (along with the new oven and fridge to match, of course).

What Hurts a Home Appraisal?

If an appraisal is in your future, it’s essential to understand the factors that could negatively impact it, such as the following:

  • Low-value comps and decreasing neighborhood property values
  • Poorly maintained interior or exterior
  • Age of the home
  • Location, such as a flood zone or busy road
  • Signs of mold, insect infestation, leaks or other safety concerns
  • Issues with the home’s systems, such as plumbing, electric or HVAC
  • Lack of parking
  • Hazardous construction materials like lead paint or asbestos tile
  • Outdated or faulty plumbing, electrical and heating systems

Some issues are in your control and some may not be. Whether you choose to address the correctable concerns or not, being aware of crucial appraisal criteria can help you avoid the potential unwelcome surprise of a lower-than-expected home value.

Top 7 Tips Home Appraisal Checklist

How does one best prepare for a home appraisal? We put together a checklist of common (and not-so-common) tips to help you get a high valuation from your appraiser.

1. Do Your Own Appraisal

Imagine that you are the appraiser. Walk around your home’s interior and exterior and really scrutinize it as if you were going to complete the appraisal report yourself. Take note of any obvious damage or deferred maintenance that needs your attention. Leaks, broken systems and damaged surfaces should all go on your list of things to repair.

Thoroughly inspect safety equipment like smoke alarms, carbon monoxide alarms and home security systems. Are they all functioning, or do parts or entire systems need to be replaced? Make a plan to repair these issues and clean up any cosmetic issues that may have occurred as a result.

2. Investigate Comps

Check out recent home sales in your neighborhood. What has the price range been for homes with features and updates similar to yours? The values of these comparable homes should be similar to what your home will appraise for. This information can help you know where to focus your time, efforts and funds.

If you know a neighbor (or real estate agent) who recently sold a home in your area, contact them to find out if there were any appraisal issues or insights that they can share.

If you’re working with a real estate agent, you can request that they collect some comps for you and your appraiser to review. Particularly if your home has unique or uncommon features, your agent may need to get creative while staying within the guidelines for selecting comps.

A quick way to get a rough idea of how much your home is worth is to use a home value estimator calculator. Add some basic information to gauge your home’s current value and view recent home sales in your area.

3. Get Superficial

Clean your house from top to bottom and remove extra clutter. Once you’ve scrubbed and straightened up everything possible, consider making some easy, low-cost cosmetic updates that can have a big impact, like the following:

  • Paint or touch up existing paint
  • Hang updated window treatments
  • Replace worn faucets, doorknobs and cabinet hardware

If you’ve been planning to update your decor after you move, consider bringing in a few of the newer pieces to make the old house look fresh and modern. Downsizing or packing for a long-distance move? Ask your real estate agent if they have staging furnishings you can borrow or recommendations for a service you can use.

4. Make Your Outdoor Areas Truly Great

Now that your home’s interior looks fantastic, it’s time to pay attention to the exterior. Make sure that your landscaping is looking its best by doing the following:

  • Mow your lawn, trim your trees and bushes
  • Remove weeds and dead vegetation
  • Add color with inexpensive, seasonal flowers in the spring, summer or fall, and ensure that snow removal is neat and tidy in the winter

You’ll also want to:

  • Remove outdoor clutter, like yard tools and stray toys, from everywhere on the property
  • Consider staging any outdoor living spaces with new furniture or accessories
  • Power wash your home’s exterior, as well as your driveway and any deck or patio surfaces
  • Ensure your pool is well-maintained and in safe operating condition

Most of this can be accomplished in a weekend, and the increased curb appeal will be worth it.

Check out expert tips for outdoor home renovations — you may find just the right improvement to increase your value!

5. Be Sure To Share Your Upgrades

Tell your home appraiser about the improvements you’ve made to your home. Inform them of upgrades like the following that will positively impact your appraisal value:

  • New features that you have added, like a security system
  • Updated HVAC units
  • Exterior improvements like siding, gutters or a new roof
  • High-value room remodels like kitchens and bathrooms

An easy way to make sure that your appraiser remembers all of these improvements is to create and share a short, one-page list detailing each. You should have this list ready in advance and include any applicable permit information.

6. Know Your Neighborhood

Make your appraiser aware of any recent improvements in your overall neighborhood. It’s worth mentioning things like:

  • New or highly rated schools
  • Parks
  • Transportation enhancements
  • Shopping
  • Other beneficial amenities

These kinds of changes can add significant value to your home, and if your appraiser is not a local resident, they may not be aware of them. Appraisers are often familiar with the general area, but you probably know your specific neighborhood better than they do.

7. Stay Focused

While you are working your way through the tasks and updates listed above, it’s important to remember not to go overboard and take on too many projects. Invest your time, money and effort only on issues that clearly need attention. If you’re getting an appraisal for a home you’re selling, you most likely already have a buyer who liked your home enough in its current state to make an offer on it. Making unnecessary major changes could end up being a waste of your time and resources.

Your home’s selling price is affected by much more than just the appraisal! Find out how the time of year can increase your sale price.

Although it’s not possible to change your bungalow into a country estate overnight, taking the time to tackle a few strategic projects before your appraisal can help put you in a better position to get the outcome you want. If you’re ready to move or refinance the home you love living in, get a custom mortgage rate quote from Pennymac today. Our Loan Experts can answer your questions and help guide you through the mortgage loan process.

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Source: pennymac.com

Apache is functioning normally

Apache is functioning normally

Lenders and vendors are seeking guidance from the Federal Housing Finance Agency on what the expense involved in its congressionally-mandated credit score update will be and how to manage it, but an FHFA adviser recently said that’s a question the industry itself must answer.

“Are there ways to mitigate costs? Frankly, you’re all going to know better than me or any of my colleagues at FHFA how to go about doing that,” Dan Fichtler, senior adviser, capital markets, when asked about this at the Mortgage Bankers Association’s annual convention.

He encouraged stakeholders to offer feedback that the FHFA could design policy around, which was in line with the agency’s tendency to respond to concerns about policies that affect the two mortgage investors it oversees by asking for direction on how critics think the matter should be handled.

But providing input on the issue is tough for lenders and vendors given that the move from one older score to two newer ones is still somewhat open-ended.

The version of the subject-to-change timeline for the transition — currently set for completion by the fourth quarter of 2025 — confirms its end goal is a move to two updated scores from a single older one with optional flexibility to pull two reports rather than three.

Shawn Jobe, vice president and head of business development, Informative Research (left); Piper Beveridge, vice president, strategic relations, ICE Mortgage Technology; and Dan Fichtler, senior adviser, Federal Housing Finance Agency at the MBA’s 2023 annual convention.

That fact that lenders have recently been through a score price hike, and may have to juggle potentially three credit metrics of that type during the transition has made the industry wary of the future costs, even with the potential savings from dropping one of the three reports.

While dropping a report could be efficient on its face and the FHFA and Standard & Poor’s have said they find the difference between two and three negligible, one credit bureau recently pushed back with research questioning whether that’s true for individual borrowers.

There are still a lot of uncertainties on implementation that may play into costs, like how to manage the two-step process involved in vetting the new score data before using it, said Shawn Jobe, head of business development, Informative Research.

“The enterprises need to start seeing this data. So they’re really looking to develop a milestone that will be just around the capturing of the information itself, versus actual utilization of it,” said Jobe, who moderated the panel.

Adding further complication to figuring out the costs is the fact that credit scores and reports expenses are embedded throughout the full span of the mortgage process from origination to servicing, said Piper Beveridge, vice president, strategic relations, ICE Mortgage Technology.

“There’s at least 30 integrations with our partners that need to be updated,” she said.

Counterparties that work with lenders, such as mortgage insurers, also will need to vet the new score changes and data, Beveridge said.

“That’s not to say this can’t be done … this is more of an exercise of saying this isn’t as simple as just adding a score and dropping a bureau,” Beveridge said.

FICO, the provider of the “classic” score Fannie Mae and Freddie Mac have used and one of the advanced credit metrics they’re moving to, 10T, can provide data that users can vet for governance purposes, said Joanne Gaskin, a vice president at the company.

VantageScore, the provider of the 4.0 credit metric that Fannie and Freddie also will be using in the future, was not represented on the panel and was not immediately available for comment. VantageScore has ties to the credit bureaus but says it operates separately from them. 

Concern that the switch to the two advanced scores or reduction in the number of credit reports allowed could create a separation between what Fannie and Freddie require and the rest of the market does was another theme in discussions during the panel. 

“Fannie and Freddie only are going to buy scores that are part of their underwriting guidelines, and which make up about 60% of the volume that has generally been in the mortgage origination space. So that means that there’s 40% of the market still out there,” Gaskin said.

Lenders don’t always know who the end-investor for the mortgages they originate will be when they pull credit, so the bifurcation could create challenges in terms of choosing which measure to use, one questioner noted in asking whether other government programs will update scores.

No representatives from agencies like the Federal Housing Administration or Department of Veterans Affairs were present on the panel, but Jobe said he was aware they’d had discussions about the number of credit reports they’d require.

“They’re still going through an analysis of looking at whether or not they will use a tri-merge or bi-merge. The initial thought right now is that they’re going to continue to use a tri-merge, but they would accept a bi-merge in this scenario where one bureau may be unavailable,” he said.

While adoption is easier with a common standard for all loans, a lender in the private market can implement advanced credit scores without waiting for a broader change in policy if they choose. This may be particularly accessible to a portfolio lender.

“Sometimes people in the mortgage market think that they can’t do anything outside of Fannie-Freddie guidelines, but if you can do portfolio you can use whatever you like,” Gaskin said in an interview with this publication.

So long as their costs aren’t prohibitive, advanced scores designed to make it possible to size up more borrowers than traditional measures can be attractive to lenders contending with market conditions that have reduced their leads for new loans.

Lack of credit history has been a significant barrier to obtaining a home loan, second only to the inability to achieve a low enough debt-to-income ratio, according to an iEmergent analysis of 2022 Home Mortgage Disclosure Act data presented during a separate panel.

Making more modern scores available could help loan officers avoid conversations with borrowers about needing to make their credit history look more in line with traditional measures, communication about which can hurt chances to make loans if not done correctly.

A term like  “credit repair” can be a turnoff because it suggests a borrower is damaged in some way, Mosi Gatling, sales manager at LoanDepot, said during the panel on ways to reach more first-time homebuyers.

Source: nationalmortgagenews.com

Apache is functioning normally

Apache is functioning normally

This program can reduce the time needed to save for a down payment and provide another option for those who are otherwise ready to take on a mortgage payment

SEATTLE, Aug. 24, 2023 /PRNewswire/ — Zillow Home Loans announced its 1% Down Payment program to allow eligible home buyers to pay as little as 1% down on their next home purchase. This program is initially being offered on properties located in Arizona, with plans to expand to additional markets. With the 1% Down Payment program, borrowers who qualify can now save just 1% to cover their portion of the down payment and Zillow Home Loans will contribute an additional 2% at closing. The 1% Down Payment program can reduce the time eligible home buyers need to save and open homeownership to those who are otherwise ready to take on a mortgage.

Most markets are in the midst of an affordability crisis, and saving for a down payment remains one of the biggest barriers for many potential home buyers. This is especially true for first-time buyers, who are often paying high rents. Typical asking rent nationwide is $2,062, or 3.6% higher than one year ago and up 31% since the start of the pandemic. (The typical rent in the U.S. in February 2020 was $1,597.)  The combination of record-breaking home price appreciation and rising interest rates means a majority of first-time buyers (64%) are putting down less than 20%, and one-quarter of first-time buyers are putting down 5% or less.  

Zillow Home Loans’ 1% Down Payment program lowers the down payment barrier and increases access to the housing market for eligible borrowers. An analysis by Zillow Home Loans’ shows that by reducing the down payment burden to 1% of the purchase price, a home buyer looking to purchase a $275,000 home in Phoenix, Arizona, who makes 80% of their area’s median income and saves 5% of their income would need only 11 months  to save for the down payment. By comparison, the same buyer who needed to save 3% of the purchase price would require two and half years (31 months) to save that amount.

“For those who can afford higher rent payments but have been held back by the upfront costs associated with homeownership, down payment assistance can help to lower the barrier to entry and make the dream of owning a home a reality,” said Zillow Home Loans’ senior macroeconomist Orphe Divounguy. “The rapid rise in rents and home values means many renters who are already paying high monthly housing costs may not have enough saved up for a large down payment, and these types of programs are welcome innovations in lowering the potential barriers to homeownership for those who qualify.”

Home buyers looking to purchase in the next year should take steps to research and prepare for getting a mortgage as they start on their home-financing journey. Among those steps:

  1. Understand your credit profile: Credit scores are key to getting approved for a mortgage, but for many home buyers, understanding credit is complex.
  2. Improve your credit score: Once buyers familiarize themselves with what’s in their credit report, they can take steps to pay down existing debts, pay bills on time, and review their credit report and dispute possible errors. 
  3. Avoid closing accounts: Don’t close an account to remove it from your report. Those accounts aren’t automatically removed and will continue to show up on your report.
  4. Hold off on financing large new purchases: Wait to make purchases that need to be financed, such as a car, until after you close on a home. This type of purchase will impact your debt-to-income ratio, which will negatively affect the amount of home loan you qualify for.
  5. Determine what affordability looks like: Once buyers have a good understanding of their credit report and their credit score is at least 620 (generally the lowest score accepted by mortgage lenders) it’s time to understand how much home they can afford. Use Zillow’s mortgage affordability calculator to customize payment details.

Zillow Home Loans’ 1% Down Payment program is currently available to eligible borrowers in Arizona, with plans to expand. Through the 1% Down Payment program, Zillow Home Loans will pay 2% of the down payment for eligible borrowers. The 2% is paid through closing and not as a payment to the borrower. Interested applicants should call 1-833-372-1449 to speak with a Zillow Home Loans representative to learn more about the program and determine if it’s the right fit for their circumstances. 

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease. 

Zillow Group’s affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). 

SOURCE Zillow Home Loans

For further information: Media contact: Jessica Drum, Zillow Home Loans, [email protected]

Source: zillow.mediaroom.com

Apache is functioning normally

Apache is functioning normally

Washington, DC
CNN
 — 

US mortgage rates rose for the third week in a row but stayed just under the 7% threshold.

The 30-year fixed-rate mortgage averaged 6.96% in the week ending August 10, up from 6.90% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.22%.

Elevated mortgage rates in the wake of the Federal Reserve’s historic rate-hiking campaign have taken home affordability to its lowest level in several decades. Buying a home is more expensive because of the added cost of financing the mortgage, and homeowners who previously locked in lower rates are reluctant to sell. The combination of low inventory and high costs has squeezed would-be homebuyers.

Rates have been above 6.5% since the end of May, and this week’s average rate matches the highest level since November.

“There is no doubt continued high rates will prolong affordability challenges longer than expected,” said Sam Khater, Freddie Mac’s chief economist. “However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

All eyes on employment and inflation data

The rate stayed elevated this week after the Federal Reserve highlighted its reliance on jobs and inflation data in its July monetary policy meeting and in recent comments.

Markets had been waiting for July’s inflation report, released Thursday morning. That report showed inflation rose in July to 3.2% annually, compared to a 3% annual increase in June. That was the first time inflation picked up in a year. The data also showed that shelter costs contributed 90% of the total increase in inflation last month.

“July’s Consumer Price Index holds significant importance for the Fed’s upcoming decisions,” said Jiayi Xu, an economist at Realtor.com.

That faster pace of price increases could support the Fed’s concern that the battle is not over, Xu said. The Fed also will consider the forthcoming August employment and inflation data prior to the next policy meeting, in September.

In addition, the most recent jobs report offered some mixed signals about the labor market, Xu said, including a smaller number of net new jobs added and a dipping unemployment rate.

“While July’s jobs report itself is very unlikely to have a direct impact on the Fed’s upcoming decision, the decline to a 3.5% unemployment rate may imply that more significant slowing is needed to align with the Fed’s projected year-end rate of 4.1%,” she said.

Affordability challenges remain

Borrowing costs will remain elevated until financial markets see an “all clear” signal from the Federal Reserve, accompanied by a stop in interest rate hikes, said George Ratiu, chief economist at Keeping Current Matters, a real estate market insights and content company.

While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

Currently mortgage rates are running higher than they should be in relation to the 10-Year Treasury, given historical trends, he said. The spread between the 30-year fixed rate mortgage and the 10-year Treasury hovers around 300 basis points, Ratiu pointed out, a level seen only a handful of times in the past 50 years and mostly during periods of high inflation and economic turbulence.

“In the absence of the elevated risk premium and hewing closer to a historical average of 172 basis points, today’s 30-year fixed mortgage rate would be around 5.7%,” Ratiu said.

Homebuyers remain sensitive to elevated interest rates, with applications for mortgage rates dropping last week, according to the Mortgage Bankers Association.

“Due to these higher rates, there was a significant pullback in mortgage application activity,” said Bob Broeksmit, MBA president and CEO. “Both prospective buyers and sellers are feeling the squeeze of higher rates as well as low housing inventory, which has prompted a pronounced slowdown in activity this summer.”

While real estate markets are benefiting from more people gaining jobs and better paychecks this year, sales of existing homes have been lagging, said Ratiu.

“The challenge comes mainly from too many buyers chasing not enough available properties,” he said.

Looking to history as a guide, Ratiu said mortgage rates tend to start cooling once inflation abates, with a six-to-eight-month lag.

Source: cnn.com