second home

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Investing in forest land suitable for producing lumber can provide you income, diversification, inflation protection and more. Timber investing requires careful study of the industry, market and individual parcels, and it’s generally a long-term play, with years required to realize a profit. Timberland is also highly illiquid, so you might need a year or more to turn your asset into cash should you need it. Talk to a financial advisor to learn how investing in timber and other real assets can help you achieve your long-term objectives.

Timber Investment Basics

Investing in timber involves owning land that’s used to grow trees that can be processed into lumber. Timber, which is considered a real asset, is vital to the production of paper, utility poles and furniture, as well as the construction of homes and other buildings.

Timber sales are infrequent, as it can take decades for trees to grow large enough to be harvested. In fact, you may only make a handful of timber sales in your life as a timberland investor. Timber investors can generate income more regularly by selling seeds or renting land for livestock to graze on. Timberland can also be used for recreation.

More than 500 million acres of commercial timberland exist in the United States, according to the United States Department of Agriculture. An acre of timberland can cost from $1,500 to $2,000, with prices varying by location, road access and the type and maturity of trees. The value of timber also varies by tree variety, size and quality. According to TimberUpdate.com, which tracks prices and trends in the timber industry, prices can range from about $5 per ton for low-quality small trees to as much as nearly $50 per ton for mature, straight trees that can be sawn into knot-free boards for decorative uses.

Pros and Cons of Timber Investing

Timberland has a number of features that make it attractive to investors. These include:

  • Income from selling timber to sawmills
  • Inflation protection similar to other commodities
  • Diversification and risk management from owning an asset not correlated to stocks, bonds and other asset classes
  • Favorable capital gains tax treatment for most income
  • Appreciation as trees grow into more mature specimens that command higher prices
  • Sustainability, since trees generally benefit the environment

Owning timberland can also give you the opportunity to personally enjoy an investment. A section of timberland can even provide a site for building a second home or even a primary residence.

But owning timberland also may involve some or all of the following limits and risks:

  • Long time frames waiting for trees to be mature enough to harvest
  • Unpredictable prices when you sell trees due to commodity cycles
  • Time, money and attention required to plant and tend trees and maintain the property
  • Risk of fires, floods, hurricanes and other natural disasters

Low liquidity compared to most other investments can also be an issue. It can easily take a year or more to sell a parcel of timberland and turn your investment into cash.

Investing in Timber ETFs

Rather than directly buying timberland yourself, you can buy shares of exchange-traded funds (ETFs) focused on timber. These specialized ETFs invest in shares of companies that own or lease timberland and harvest the trees for lumber or other forest products. Buying shares of timber-focused ETFs allows you to get asset diversification, inflation protection and other timber investment benefits without the challenge and illiquidity of owning and managing the timberland yourself. You will also get additional diversification within the asset class because these ETFs own shares of a number of timber-related companies, reducing your exposure to weather, fire and other risks.

Timber ETFs include the iShares Global Timber & Forestry ETF and the Invesco MSCI Global Timber ETF.

Bottom Line

Timberland investments offer a way to diversify your portfolio with real assets that can produce both income and capital gains. But buying and owning timberland requires an in-depth knowledge of the industry and significant time and attention. Timberland is also a long-term play, often requiring years or decades to generate a profit.

Investing Tips

  • A financial advisor can help you evaluate alternative approaches to achieving diversification, inflation protection and other benefits of owning timberland. If you don’t have a financial advisor yet, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors in your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • SmartAsset’s Investment Return & Growth Calculator takes a lot of the guesswork out of forecasting how your investment will perform over time. Enter the amount of your initial investment, the timing and amount of any additional contributions, your anticipated rate of return and the number of years you plan to let the investment grow. The calculator will give you an estimate of how much your portfolio will be worth,  assuming all those factors play out as planned.

Photo credit: ©iStock.com/MoreISO, ©iStock.com/anthonyjhall, ©iStock.com/catalby

Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.

Source: smartasset.com

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Today we’ll review yet another online mortgage lender called “Lendova” that says it can provide lower rates with no hidden fees and all the latest technology.

Those are probably the top three things borrowers are looking for these days, which collectively result in a better user experience and a lower monthly payment when all is said and done.

What’s not to like about an easier mortgage process and a cheaper loan? You got me.

Let’s find out more about this direct lender based out of Texas to see if they could be a good fit for you.

Lendova Fast Facts

  • Direct-to-consumer mortgage lender
  • Offers home purchase financing and refinance loans
  • Founded in 2002, headquartered in Dallas, Texas
  • Parent company is American Heritage Capital, LP
  • Licensed to do business in seven states at the moment

Lendova is a direct-to-consumer mortgage lender that operates entirely online.

They are actually a dba of their parent company American Heritage Capital, which also operates brands like Texas Trust Home Loans and AHC Lending.

The company is based out of Dallas Texas and has been around since 2002 – my assumption is Lendova is the much younger digital offshoot.

Like other online mortgage lenders, they strive to make the home loan process a lot less painful and much faster by leveraging the latest technology.

This is accomplished via their “All Digital Mortgage,” which as the name implies means you should be able to complete most tasks electronically.

Currently, Lendova is only licensed in seven states nationwide, including California, Colorado, Florida, New Jersey, Texas, Virginia, and Washington.

How to Apply for a Mortgage with Lendova

  • You can call them directly or schedule a phone consultation online
  • Or simply begin on your own by clicking on “Apply Now” via their website
  • Alternatively fill out a short contact form and a loan consultant will call you back
  • Once signed up you’ll be able to manage your loan via the online borrower portal

You’ve basically got four options when it comes to starting the home loan process with Lendova.

You can visit their website and simply click “Apply Now” and you’ll begin the loan application on your own. Or you can fill out a short contact form and a loan consultant will call you to discuss your needs.

Alternatively, you can simply call them up on the phone directly or schedule a phone call at an allotted time using their online scheduler powered by Calendly.

The nice thing about Lendova is they let you price your loan online without the need for a loan officer, so for those who are comfortable, you can get pricing then dive right into the application.

Those who want a bit more hand-holding, or simply prefer to speak to humans, can go with the other options.

Either way, you’ll be able to review and electronically sign loan documents online, upload necessary paperwork, and manage everything from a borrower portal.

They also offer a mortgage pre-approval process whereby you can obtain your credit scores and a renewable pre-approval certificate in under five minutes.

So if you’re a prospective home buyer looking to determine what you can afford and/or want to show a real estate agent you mean business, this could serve as a quick solution.

Loan Programs Available at Lendova

  • Home purchase loans
  • Refinance loans: rate and term, cash out, debt consolidation
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans
  • Fixed-rate mortgages: 10, 15, 20, 25, and 30-year loan terms
  • Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs

Like most mortgage lenders, Lendova offers both home purchase financing and refinancing for existing homeowners.

They lend on all the usual property types, including single-family homes, condos/townhouses, and 1-4 unit properties.

You can get a mortgage on a primary residence, second home, or investment property.

While they appear to offer both conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans, it’s unclear if they fund government loans like FHA, VA, or USDA loans.

If that’s the case, borrowers seeking such financing will have to look elsewhere unfortunately.

Those who can make do with a conventional loan can take advantage of their fixed-rate or adjustable-rate loan options, which are available in a wide variety of different terms.

Lendova Mortgage Rates

One nice thing about Lendova is they lead with their mortgage rates. That means you’ll find them on their homepage front and center.

Additionally, you can create personalized mortgage rate quotes if you click on the “Rates” tab via their website’s top menu. And you don’t need to sign up or speak to a human!

From what I saw, their mortgage rates were very competitive and they display three main options for each loan program, including the lowest rate, reduced closing costs, and no closing costs.

And even more options beyond that if you really want to drill down and see different rate and fee combinations.

All of their mortgage rates seemed to come free of any lender fees, with only third-party fees like home appraisal and title insurance listed, along with the usual government recording fees.

So it appears they don’t charge their borrowers any fees directly, which is also a plus and makes their mortgage rates look that much better.

They mention on their website that there are “no hidden fees or charges,” so perhaps they simply don’t charge a loan origination fee or underwriting/processing fees.

If that’s the case, you can take their mortgage rates at face value – just pay attention to any discount points required.

Lendova Reviews

On LendingTree, Lendova has a perfect 5-star rating from about 300 customer reviews, with a 99% recommended rate.

In the past, they’ve also made it into the quarterly list of the top customer-rated lenders on the LT platform.

At Bankrate, the company has a 5-star rating from over 200 customer reviews, with nearly all of them totally perfect. Additionally, 100% of reviewers would recommend them to others.

And over on Google, they have a similarly solid 4.6-star rating out of 5 from about 70 reviews.

While their parent company American Heritage Capital isn’t Better Business Bureau accredited, they do have a perfect ‘A+’ rating based on customer complaints.

In summary, Lendova gets high marks for transparency, customer service, and mortgage rate pricing.

So if you’re looking for a deal on your home loan, Lendova might be a lender to consider. They also seem to make things easy for borrowers with their “All Digital Mortgage.”

Lendova Pros and Cons

The Pros

  • Offer a fully digital mortgage application
  • You can apply directly from their website in minutes
  • Mortgage rates are prominently displayed online
  • Can create your own personalized rate quotes in seconds without signing up
  • Excellent customer reviews across all ratings websites
  • A+ BBB rating
  • Say they thrive to close loans in 15-21 days

The Cons

  • Only licensed in a handful of states
  • No physical locations
  • May not offer government-backed mortgages (FHA/VA/USDA)
  • No second mortgages or home equity loans

Source: thetruthaboutmortgage.com

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Although it may seem to be at odds with convention, a growing number of renters are buying second, vacation properties even before they purchase their primary residence.

Real estate industry watchers say the trend is borne from the COVID-19 pandemic, and that with remote work now a permanent fixture of many people’s lives, they’re taking advantage of market opportunities to buy small getaway homes that they intend to use primarily for vacations.

Apartment Therapy reported that many of these second-home first buyers are drawn to country cottages and cabin lodge-style homes even while they continue to rent an apartment or home in the city as their primary residence. One factor driving this is that the housing market is red-hot right now and there’s a very limited supply of homes in many markets. But that isn’t always true for some more remote destinations that may serve as an appealing getaway for many urban dwellers.

Jamie Manning, who runs the real estate blog Exposed Brick DC, told Apartment Therapy that she never expected to buy her vacation home in Charlottesville, Va., before purchasing a primary residence in the Washington D.C. area, where she lives. She said she and her partner see their new property as a “true second home” where they can spend weekends and possibly work remotely during the week, whenever they want a break from the city.

“This idea had been on our radar because real estate costs are so high in D.C. that we felt buying here may not be realistic,” Manning told Apartment Therapy. “We have been diligent and saved and were anxious to make some kind of real estate investment. We were craving a change of scenery and a different pace of life.”

The Mortgage Source reported that many buyers are hoping to buy now due to the low interest rates on most mortgages, that some experts say may not last. But they may be priced out of buying in the area they lives due to escalating home prices in competitive markets.

So the idea of buying a second home first means that first-time buyers can invest in real estate while they continue to live in the city, renting a home there. While people would obviously need a large enough income to be able to pay off a mortgage and rent at the same time, Lisa Greene-Lewis, a certified public accountant, told The Mortgage Source there are some financial benefits to be had from such a situation. For example, buyers can deduct the mortgage interest on a vacation home just as it’s possible to do so on a primary residence, and then deduct property taxes up to the cap, Greene-Lewis said.

Another benefit for second home buyers is that they can rent out those properties when they’re not using them themselves as a source of supplemental income.

Real estate professional John Coleman told Apartment Therapy that many of his first-time buyer clients were excited to purchase a home during the pandemic because their travel options elsewhere are very limited.

“Buying and renting out on Airbnb has been very lucrative for some, and it will be interesting to see if that can hold up moving forward,” Coleman said.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
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Source: realtybiznews.com

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Accounting, Digital, Broker Comp Tools; FHA, VA, USDA Developments; Why Rates are Stubborn

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Accounting, Digital, Broker Comp Tools; FHA, VA, USDA Developments; Why Rates are Stubborn

By:
Rob Chrisman

4 Hours, 13 Min ago

Imagine my surprise at finding tag (like on the playground) is an organized sport. Imagine my surprise at finding two gas stations at the same intersection yesterday in Truckee, California with two different prices for unleaded! Rather than wait for the CFPB to tell me that I could save money by going to the cheapest station, as it did by paying for a study on how different lenders have different mortgage prices, I actually reasoned, all by myself, that I could, and did, buy the least expensive gasoline. Switching gears, but continuing on with the thinking vein, a lot of reasoning went into determining that a) the earth is round, and b) globes are not some newly invented conspiracy theory. Someone needs to let Georgia’s current GOP district chair Kandiss Taylor know globes are globes. What the heck am I missing by subscribing to the round earth concept? And how about this for sensationalist headlines from Auction.com: One-Third of Buyers Expect Home Prices to Decline. Really? “Despite rising expectations for a home price correction in 2023, 87% of buyers said they planned to increase or keep the same their property acquisitions for the year, up slightly from 86% in 2022.” (Today’s podcast can be found here and this week’s is sponsored by Built Technologies. Join Built Technologies on June 20th at 12 PM CST for an exclusive webinar that will dive into proactive portfolio monitoring as Built’s experts share best practices for achieving greater visibility into your construction portfolio.)

Broker and Lender Services and Software

Quorum Federal Credit Union has upgraded its Borrower Paid Broker Compensation Program. The program offers partners the opportunity to earn up to 2.00 percent borrower paid broker compensation on the entire line amount, up to $5,000, for all HELOC products. Primary and Second Home HELOCs offer no minimum draws, no early termination fees, and no annual fees. With minimum loan amounts at $25,000, Quorum offers financing up to $350,000. Investment Property HELOCs also offer no minimum draws and no early termination fees with minimum loan amounts at $50,000 and financing up to $250,000. Contact your Account Executive, visit the Quorum Partner Portal or email [email protected] for more information.

“Unite your mortgage process with an end-to-end digital closing solution. Initially, American Federal implemented the Mortgage Suite without Blend Close, but later realized our digital closing solution aligned with their growth strategy. Find out how they were able to speed up the borrower’s journey, close loans faster, and save more time. Dive into their case study.”

For independent mortgage banks coping with shrinking production volumes and rising costs per loan, outsourcing accounting is an elegant solution to what’s become a very common challenge. Whether you have no accounting expertise in-house or you have a new team with no mortgage experience, you can tap the Richey May Client Accounting and Advisory Services (CAAS) team for the support you need. This team is stacked with mortgage industry experts who can tailor your solution to meet your most pressing needs in a volatile time, with no training needed. Need help transitioning to loan level accounting? Need a fully outsourced function? You got it! Need industry training for your controller? We can do that. In this article, Richey May’s expert Kim Dittmer answers all your most frequently asked questions around outsourced accounting as a mortgage bank.

Ginnie, USDA, FHA, and VA Updates

The industry’s applications include about 25 percent VA, FHA, and USDA. These products continue to garner the lion’s share of production for underserved and, let’s face it, low-quality borrowers. These are the borrowers targeted by the Biden Administration. Freddie and Fannie (the GSEs) ask seller-servicers for these “mission loans” but LOs know that there are few cases where a lender could or should advise a consumer to take out a conventional loan versus FHA/VA. Let’s see what’s going on out there.

Anyone making a living on refinancing FHA or VA loans is in for a rough road. Overall, roughly 33% of all American homeowners wrapped into 30-year agency mortgage bonds are paying 3% or less on their home loans. Chris Maloney with BOKF writes, “Breaking that down across the three segments for how much of the universe is paying 3% or less on their mortgages as of the end of May, for conventional 30-year borrowers that comes to 32%, for FHA 30-year borrowers 21.9% and for VA borrowers 50.7%. And using the Optimal Blue lending rates as a guide, the amount of the 30-year universe that is out-of-the-money (defined as not having at least 50 basis points of incentive) finds 99.6% of the conventional 30-year and FHA borrowers in that state while for the VA borrowers it’s 99.5%.”

FHA posted a draft of Mortgagee Letter (ML), Payment Supplement Partial Claim, on its Single-Family Housing Drafting Table (Drafting Table) for public feedback. The draft ML proposes a new loss mitigation option, the Payment Supplement Partial Claim (Payment Supplement PC), to assist struggling borrowers that are delinquent on their mortgage payments and are unable to obtain a significant payment reduction with other available loss mitigation options. This option will be particularly useful for borrowers who have below market interest rates. View the FHA Press Release for details.

Don’t forget that the FHA is seeking comments on its proposed HECM Mortgagee Default Requirements. FHA recently posted a draft Mortgagee Letter (draft ML) that would expand FHA’s processes related to actual or anticipated mortgagee default on obligations to a borrower under Home Equity Conversion Mortgages (HECMs) insured by FHA.

At the end of May, The Community Home Lenders of America (CHLA) commended FHA Commissioner Julia Gordon for the announcement that FHA is proposing a program to create a flexible partial claim loan modification option for defaulted borrowers, which avoids having to take the underlying loan out of a Ginnie Mae loan pool. CHLA was the first national association to ask FHA to develop such a program option, in a letter to FHA last August.

All Participants Memorandum (APM) 23-08, Ginnie Mae announced updates to the adoption of Single Family and Manufactured Housing Program pooling into the new Single Family Pool Delivery Module (SFPDM) in MyGinnieMae. This transition from GinnieNET to the SFPDM application will enhance user experience and align Ginnie Mae with mortgage industry standards by using the MISMO-compliant Pool Delivery Dataset (PDD).

USDA Rural Development posted a bulletin on 05/30/2023, Interest Rate Decrease for SFH Direct Programs.

FHA announced the availability of 203(k) Rehabilitation Mortgage Program fact sheets for consumers and aspiring and current FHA203(k) Consultants. These materials are designed to help increase awareness and understanding of the features and benefits of the program. The fact sheets include a program overview with features, benefits, and requirements, as well as additional 203(k) Program resources.

PRMG Product Update 23-29, includes Investor Solution update on AirDNA requirement for short term rentals on a purchase. Clarification on UT Utah Housing FHA for wholesale loans regarding the allowance of In-House and Third-Party Processing Fees charges, and multiple clarifications on CO CHFA FirstStep Plus.

AmeriHome Mortgage General Announcement 20230512-CL summarizes previously published changes made during May, additional changes made with the announcement, and recent Agency and regulatory news.

Capital Markets

Why did rates improve Thursday, and this week, especially when there is no “big” data? Well, initial jobless claims, which are a leading indicator, hit their highest level since November 2021. That connotes some softening in the labor market which the Fed would like to see, and which could tip it toward holding, rather than raising, the overnight Fed funds rate.

Supply is also on the radar screen but expected. Investors remain cautious ahead of next Wednesday’s Federal Open Market Committee meeting and fears about the impending sale of $1 trillion of Treasury bills is also not helping sentiment: With the debt ceiling deal in place, the Treasury will issue more than $1 trillion in short-term debt to keep the lights on. This will push up short term rates at least in the near-term, which won’t help those looking for mortgage rate relief.

In addition to rate worries, as mortgage-backed security spreads remain at the widest levels since the 1980’s, home prices continue to move higher. Lower mortgage rates earlier in the year likely played a role in the uptick, however scarce supply of desirable homes continues to add to price pressures. A strong job market helps housing demand, particularly in the face of challenging affordability and last week’s release of the May employment report generally showed a healthy labor market, with the headline reading coming in around 145k above analysts’ estimates to register at 339k. Despite that new robust employment data, downward revisions to earlier numbers suggest a broad cooling trend remains intact. The numbers now show the US added an average of 182k private sector jobs in the past three months, the fewest since January 2021.

Despite a strong labor market, consumer sentiment also slipped in May to register down 9.1 percent from April, according to the University of Michigan Consumer Sentiment Survey. Inflationary expectations for the near term fell, while longer-term expectations rose to 3.2 percent, the highest level in 12 years. The Fed pays close attention to the UM inflationary expectations, so this is bad news for those hoping for rate cuts this year and does not bode well for those hoping for a sudden window of billions of dollars’ worth of mortgages coming into refinance incentive again

Lastly, while we’re waiting for all those recession predictions to come true, yield curve inversion has increased over the past couple of weeks as the market continues to capitulate to the Fed’s “higher rates for longer” message. The latest run up in rates over the past couple of weeks was a function of the market correcting its Fed Funds “hike, pause, cut” path. That upward pressure on the front-end of the yield curve immediately re-flattened the yield curve back into deeply negative territory.

Moral of the story: the Fed is not set to cut rates anytime soon as inflation remains an issue and investors have been forced to unwind bets that rate cuts will be in store later this year. As recently as a couple of weeks ago, three rate cuts were expected before year end. With no economic data on today’s schedule, we begin a slow news Friday with Agency MBS prices worse about .125 and the 10-year yielding 3.74 after closing yesterday at 3.71 percent; the 2-year’s up to 4.55 on continued inflation worries.

Employment

Village Capital & Investment is excited to announce that Pete Tamoney has recently been hired to help grow its Correspondent Lending division. Pete has been in correspondent sales for 20 years, most recently with Northpointe Bank. Village Capital is a GNMA buyer with no overlays and a consistently strong execution. You can contact Pete.

“Equity Resources is pleased to continue our expansion throughout our 19 states along the east coast and mid-west. We are an independent and family-owned mortgage banker that is proudly celebrating our 30th anniversary this year, continuing to create incredible opportunities for our team members, Realtor partners, as well as our B2B partners. We are currently searching for talented and career-focused loan officers that have a demonstrated “self-sourced” business philosophy. Equity Resources is an agency direct lender that offers an exceptional compensation and marketing platform for our loan officers, including a media and video production team, an underwriting “hotline,” a talented marketing and social media group, and an exceptionally tenured leadership team. We offer a full suite of loan products and programs (including several specialty lending programs). To learn more about “Why Equity Resources” and to join our award-winning team, please contact Tom Piecenski, EVP of Sales and Development (614.327.5353).”

“Are you frustrated as a retail loan officer or mortgage banker with the lack of flexibility to provide custom loan options? Take control: follow the lead of over 24,000 MLOs like you who have joined the wholesale channel in the last year. Whether you open your own independent mortgage brokerage or join a team as a loan officer, you’ll have the ability to provide your clients with the personalized solutions they need. Contact our team at BeAMortgageBroker.com today and you’ll be well on your way to a more fulfilling tomorrow.”

A Louisiana based full-service, independent mortgage banker averaging $1 billion in production annually is searching for a proven retail sales leader to run all business development initiatives. The Sales, Recruiting, and Marketing departments will report directly to this head of business development role, and the role will report directly to the CEO. The ideal candidate will have a demonstrated track record of hiring and managing multiple production offices across several states. The IMB is well capitalized, has agency direct approvals, offers niche products, significant technology advancements and a world-class operations team with experienced, tenured sales and fulfillment employees. For confidential consideration, please email resume to Chrisman LLC’s Anjelica Nixt for forwarding.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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Mortgage rates are rising, refinances are trending, and older news is looming. Let’s cover all of it in this week’s Mortgage Monday update!

Rates Update

Last week, mortgage rates hit their highest since October 2019 – but let’s rewind a bit. For the week ending February 3, Freddie Mac actually reported generally stable rates from the average lender. Like many experts, they believe our economic recovery following Omicron will result in rate increases; what their weekly survey didn’t account for, however, was last Friday’s market changes.

On February 4, the US Bureau of Labor Statistics released their monthly jobs report for January. In short, things are looking up – there were significant job increases last month even in the face of Omicron – and markets were forced to respond. A return to a better economy will also inevitably mean a return to higher rates, and last week’s mortgage rate increases are already reflecting that.

We’ll likely see Freddie’s PMMS catch up with last week’s rate spike on Thursday. But for now, get in touch with your Total Mortgage loan officer if you’ve been considering a home purchase or refinance. Rates are rising faster than ever and are projected to continue doing so, especially after the Fed’s recent hinting at further increases in March.

Refinances are Trending as Rates Rise

Because rates are rising, refinance numbers are up and trending. In late January, mortgage refinancing accounted for 57.3 percent of applications in The Mortgage Bankers Association’s Refinance Index. As rates rise, the window to refinance at something lower naturally closes; we predict that refi numbers will continue along this trend through February until mortgage rates hit pre-pandemic levels.

In the meantime, our door is always open if you’re looking to refinance. The opportunity to do so is certainly dwindling, so be sure to act fast and get in touch with us. Find your mortgage banker today!

Older, But Still Important News

The Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:

  • Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
  • Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.

These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1 – more information on that below.

Last month, the borrowing limits for Conventional and Federal Housing Administration (FHA) loan options saw significant increases to help buyers combat rising market prices. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit. To learn more about these changes and your new borrowing options, get in touch with your Total Mortgage loan officer.

In Closing

So far, 2022 has shown us just how reactive the markets (and mortgage rates) can be. In just a couple of months, rates have gradually shifted to their highest in years – meaning that the historic lows we’ve been used to seeing are now behind us. If homeownership is one of your goals for the year, it would be best to act sooner than later. Contact us at any time to get started!

As always, we’ll continue to monitor mortgage rates, industry news, and more to keep you informed. Enjoy the rest of your week!

Source: totalmortgage.com

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With significant increases in mortgage rates and application volumes, 2022 is already showing us the effects of the Federal Reserve’s expedited tapering plan. Things are moving fast, so let’s get right into this week’s update with the latest mortgage industry news.

Rates Update

In the week ending January 13, Freddie Mac reported some of the largest average mortgage rate increases in recent months. According to Freddie’s PMMS, loan products across the board showed increases of upwards of 0.2 percent – bringing rates to their highest since early 2020. Our predictions:

  • Refinance opportunities could be disappearing. Should mortgage rates continue to increase, the window to refinance at a lower rate will subsequently close. Acting sooner than later will benefit you in the long run, so be sure to contact your Total Mortgage loan officer to get started.
  • Mortgage application volume will increase. On January 12, the Mortgage Bankers Association (MBA) reported a 1.4 percent increase in mortgage applications from the week prior; this increase will likely continue in the coming weeks as buyers take advantage of the market before further rate hikes.

As always, we’ll continue to keep you updated as the market develops and mortgage rates shift. The Federal Reserve’s next meeting on January 26 will likely shed more light on the above as we close out the month. For now, contact us if you have any concerns or are ready to lock in a rate before they continue to rise.

Older, but Still Important News

Even with this recent spike in mortgage rate numbers, let’s not forget about older news that will still hold prominence in the months to come.

Earlier this month, the Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:

  • Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
  • Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.

These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1 – more information on that below.

At the start of the month, the borrowing limits for Conventional and Federal Housing Administration (FHA) loan options saw significant increases to help buyers combat rising market prices. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit. To learn more about these changes and your new borrowing options, get in touch with your Total Mortgage loan officer.

In Closing

Despite everything, the market is still in a favorable place for buyers – but for how much longer? Even in the face of Omicron concerns, mortgage rates are rising and are only expected to continue doing so throughout the year. If you’ve been waiting for the perfect rate, now may be one of your last chances to lock it in; contact us to get started and stay tuned for next week’s Mortgage Monday update!

Source: totalmortgage.com

Apache is functioning normally

Mortgage rates may be holding, but for how much longer? With 2022 predicted to be a transition year to pre-pandemic markets, it’s more important than ever to stay updated. Let’s cover the possible future of rates and more in this week’s Mortgage Monday update.

Rates Update

For the week ending Thursday, January 27, Freddie Mac reported general stability in nationwide mortgage rate averages. This was a welcome sight considering the upward trend we’ve seen throughout January; low rates mean continued buying and refinancing opportunities, but most experts – Freddie Mac included – think this won’t last for long.

Our prediction: mortgage rates will continue to increase, but gradually. And because of this ongoing increase, we could see a slight surge in activity from buyers who want to lock in financing before rates are too high.

If you’ve been on the fence, know that the window for record-low mortgage rates is closing. Get started or find your Total Mortgage loan officer for more information.

Federal Reserve Prepares for Rate Increases in March

Last week, the Federal Reserve announced that they will likely conclude their tapering of asset purchases and increase interest rates to combat inflation – all in the coming months and as soon as the Fed’s next meeting in March. By doing so, we could see significant mortgage rate increases that will bring us closer to pre-pandemic levels than ever before. No specific action date has been set as of today (January 31), but the Fed’s strong hinting at future rate increases is more than worth keeping an eye on.

In the meantime, contact your Total Mortgage loan officer for more information. If you haven’t financed or refinanced a home yet but plan to do so, now is the time to act sooner than later.

Older, But Still Important News

The Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:

  • Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
  • Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.

These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1 – more information on that below.

At the start of January, the borrowing limits for Conventional and Federal Housing Administration (FHA) loan options saw significant increases to help buyers combat rising market prices. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit. To learn more about these changes and your new borrowing options, get in touch with your Total Mortgage loan officer.

In Closing

For now, mortgage rates are stable but will almost certainly rise in the weeks and months to come. Opportunities to refinance are still available but have already seen a decline because of January’s mortgage rate increases; so if you’ve been considering home financing in any shape or form, get started now before the transition to pre-pandemic markets continues!

As always, we’ll continue to keep you updated every Monday. Enjoy the rest of your week!

Source: totalmortgage.com

Apache is functioning normally

Hitting your growth goals is a whole lot easier with the right help. On today’s podcast with Jonathan Spears, one of the nation’s top Realtors by sales volume, we discuss how relationships can take a real estate business to the next level. We also explore Jonathan’s daily routine, offer additional information on our upcoming mastermind, and more!

Listen to today’s show and learn:

  • Updates on Florida’s real estate markets [4:03]
  • Differentiating yourself by building relationships [5:50]
  • A day in the life of Jonathan Spears [6:25]
  • Stephanie’s personal goals for the mastermind [8:54]
  • What is a mastermind? [10:01]
  • Conferences vs. masterminds [10:25]
  • Running your business your way [16:56]
  • Getting help with growing your business [18:45]
  • Overcoming the overwhelming aspects of real estate [23:50]
  • The real estate agent’s most valuable resource [26:12]
  • Building relationships to build your business [27:44]

Jonathan Spears

Jonathan has always considered himself an overachiever — someone who is unwilling to settle for the status quo. His exceptional drive was evident even as a teenager, when he enrolled in college before he could legally drive a car. Desiring to develop a greater understanding of the business side of the real estate profession, Jonathan opted to focus his studies at Florida State University on business and finance, graduating with a degree in Business Administration at 19 years old. Coupled with his natural entrepreneurial spirit, Jonathan discovered an opportunity to parlay his degree with his desire to launch a career in real estate when he started off working in the foreclosure resale business in his hometown of Destin, Fla. In 2015, Jonathan joined Scenic Sotheby’s International Realty. Utilizing his “go-getter” attitude and superior knowledge of the Northwest Florida real estate market, Jonathan rapidly developed a stranglehold on the luxury real estate market in the area. With business booming after only two short years, Jonathan began assembling a talented team of his own that would operate under the Scenic Sotheby’s International Realty brand; thus, Spears Group was formed. In 2020, Jonathan and his team closed over $265 million in sales, and for the second consecutive year, Jonathan was named the youngest member of “The Thousand Top Real Estate Professionals,” as published in The Wall Street Journal – inking him in the top one-half of one percent of the more than 1.3 million REALTORS® nationwide by individual sales volume. Jonathan’s greatest passion is to deliver exemplary service and keen expertise to help his customers achieve their real estate goals. He puts that knowledge to work every day, securing the best deal for his buyers and highest sale price for customers selling their luxury properties. He devotes uncompromising dedication and work ethic to his customers in every transaction. Jonathan is a devoted father and husband to his daughter Ella, son Emery and wife Juliane. As a family, they enjoy spending their time together in their backyard oasis of the Emerald Coast and their second home in Vail, Colo.

Related Links and Resources:

Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
-Aaron Amuchastegui

Source: hibandigital.com

Apache is functioning normally

A return to a more traditional market? Last week, Fannie Mae predicted that 2022 will be a transitional year for markets as pre-COVID economic trends gradually return. And with rent prices and mortgage rates rising across the board, now is an important time to evaluate your options and act quickly. Let’s cover the latest news and more in this week’s Mortgage Monday update.

Rates Update

For the week ending Thursday, January 20, Freddie Mac reported general mortgage rate increases in their Primary Mortgage Market Survey. Since the start of this dramatic upward trend, mortgage rates have seen increases of nearly half of a percent – a rise that is only projected to continue throughout 2022. They may have leveled out by the end of last week, but the current rates likely won’t remain the same for long.

With rates at their highest in the past two years and experts commonly predicting a return to a “new normal,” the window to finance a home with long-term savings is closing. Contact your Total Mortgage loan officer now before the increase continues!

Refinance Opportunities are Down; Rent Prices High

January’s mortgage rate increases have not come without consequences. With spikes to 30-year fixed loan options, the number of refinance candidates has been cut nearly in half since the start of the year. The volume of applications to refinance has also been subsequently halved, illustrating fewer opportunities to save by securing a lower rate. Should mortgage rates continue to rise, we’ll likely see further declines in overall refinance volumes as a result.

On the other hand, Redfin reported a 14 percent increase in average rent prices since December 2021 (with some US cities reaching upwards of 40 percent increases!). These are some of the highest numbers recorded in over two years and should serve as a warning to any prospective homebuyers. If you’re in the market for a new home, act now; buyers everywhere are now faced with the choice of securing a low rate (before they continue to increase) or settling for ever-increasing rent prices. Contact your Total Mortgage loan officer to begin your path to homeownership quickly.

Older, but Still Important News

The Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:

  • Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
  • Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.

These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1 – more information on that below.

At the start of January, the borrowing limits for Conventional and Federal Housing Administration (FHA) loan options saw significant increases to help buyers combat rising market prices. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit. To learn more about these changes and your new borrowing options, get in touch with your Total Mortgage loan officer.

In Closing

With continued rate increases, it’s only a matter of time until this projected “new normal” arrives. Of course, the rate at which the market transitions to pre-pandemic levels will likely be determined by the pandemic itself; how it develops, how we react, and (most importantly) how the markets react. For now, our best recommendation is to review your options and act quickly. Our team of experienced loan officers is ready to help you secure your home financing before the rate increase continues – contact us at any time to get started!

In the meantime, we’ll continue to monitor our industry news and provide updates as they come. The Federal Reserve is set to meet later this week, which will likely result in some form of a market reaction. Follow us online to stay informed with the next weekly update!

Source: totalmortgage.com

Apache is functioning normally

Even as mortgage rates continue to rise, buying opportunities remain – especially for the self-employed. Learn more about the current state of the industry in this week’s Mortgage Monday update!

Rates Update

Last week, mortgage rates jumped to their highest since the start of the pandemic. Freddie Mac expects this to continue, citing inflation and economic growth as causes of the increase. Like previous weeks, this is on par with predictions of a “new normal” for rates and the mortgage industry in 2022. But let’s dive deeper…

The start of last week saw relatively little change in mortgage rates. It wasn’t until Thursday, when the Bureau of Labor Statistics released their January Consumer Price Index, that markets reacted and adjusted based on new inflation numbers – the highest in years. Then on Friday, news of Russia’s potential invasion of Ukraine caused markets to shift accordingly; we’ll continue to monitor this variable as it may affect mortgage rates in the future.

For now, contact your Total Mortgage loan officer if you’ve been considering any type of home financing. We only expect rates to continue rising through this year, so be sure to lock yours in sooner rather than later.

FHFA Retires Restrictions for Self-Employed Borrowers

Good news for self-employed borrowers! At the start of February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were originally put in place in response to the pandemic but have since been removed, offering borrowers greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible for the self-employed.

If you are self-employed and considering a new home purchase or refinance, we have many loan officers available to help. Contact us or find a banker to get started.

Older, But Still Important News

The Federal Housing Finance Agency (FHFA) announced upcoming fee increases for certain Fannie Mae and Freddie Mac home loans. Effective April 1, 2022, upfront fees for these options will have the following increases:

  • Upfront fees for high-balance loans will increase between 0.25 and 0.75 percent.
  • Upfront costs for second home loans (non-primary residence) will increase between 1.125 and 3.875 percent.

These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1 – more information on that below.

Last month, the borrowing limits for Conventional and Federal Housing Administration (FHA) loan options saw significant increases to help buyers combat rising market prices. The conforming limit for single-unit home loans is now $647,200 – an 18.05 percent increase from last year’s limit. To learn more about these changes and your new borrowing options, get in touch with your Total Mortgage loan officer.

In Closing

2022 continues to serve as a revitalizing year for the economy (and in turn, the mortgage industry). We expect rates to rise in the coming months as the labor market grows stronger, so be sure to contact us and lock in a low rate now.

In the meantime, we’ll continue to monitor our industry news and keep you updated. Enjoy the rest of your week!

Source: totalmortgage.com