When you read about the housing market, you’ll probably come across some information about inflation or recent decisions made by the Federal Reserve (the Fed). But how do those two things impact you and your homebuying plans? Here's what you need to know.

The Federal Funds Rate Hikes Have Stalled

One of the Fed’s primary goals is to lower inflation. In order to do that, they started raising the Federal Funds Rate to slow down the economy. Even though this doesn’t directly dictate what happens with mortgage rates, it does have an impact.

Recently inflation has started to cool, a signal those increases worked and are bringing inflation back down. As a result, the Fed’s hikes have got...

Mortgage rates are staying VERY LOW, despite some inflationary trends...

Home Owners: Have you refinanced recently? If your rate is at least 1% above these rates, I would strongly suggest you look into refinancing you mortgage loan. Try our affiliate company KELLER MORTGAGE, with ZERO LENDER FEES, COMPETITIVE rates and $1,000 cashback at closing: https://preapproval.kellermortgage.com/#/disclaimer?KWUID=220700&campaign_id=15

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Home Sell...

One of the most challenging aspects of home ownership is selling an existing property while buying a replacement. It can be a very stressful and sometimes impossible task due to financial constraints and undesirable contingencies.

In a “normal” market, purchasing the new home with a “Contingency on Sale” of the old home is an acceptable alternative, and “back to back” closings are more feasible.
However, in an under-supplied “Hot Market” many buyers are competing for a few properties and sellers will not look favorably on such contingencies. Buyers that include a contingency on sale will likely lose out, unless they are willing to pay a large premium and waive the appraisal contingency, ...

Lowest Mortgage Rates in History: What It Means for Homeowners and Buyers

In July, the average 30-year fixed-rate mortgage fell below 3% for the first time in history.1 And while many Americans have rushed to take advantage of this unprecedented opportunity, others question the hype. Are today’s rates truly a bargain?

While average mortgage rates have drifted between 4% and 5% in recent years, they haven’t always been so low. Freddie Mac began tracking 30-year mortgage rates in 1971. At that time, the national average was 7.31%. As the rate of inflation started to rise in the mid-1970s, mortgage rates surged. It’s hard to imagine now, but the average U.S. mortgage rates reached a high o...

How to Save Thousands of Dollars in Interest on Your Mortgage

One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your loan.

Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well.

When you make ‘extra’ payments toward your loan, the key is to let your lender/bank know that you want the...

Interest rates for a 30-year fixed rate mortgage have climbed from 3.95% in the first week of January up to 4.61% last week, which marks a 7-year high according to Freddie Mac. The current pace of acceleration has been fueled by many factors.

Sam Khater, Freddie Mac’s Chief Economist, had this to say:

“Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week.

Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”
But what do gas prices have to do with interest rates?
Investopedia explains the relationship like this:

“The p...

Recently, Freddie Mac published an Insight Report titled Nowhere to go but up? How increasing mortgage rates could affect housing. The report focused on the impact the projected rise in mortgage rates might have on the housing market this year.

Many believe that an increase in mortgage rates will cause a slowdown in purchases which would, in turn, lead to a fall in house values. Ultimately, however, prices are determined by supply and demand and while rising mortgage rates may slow demand, they also affect supply. From the report:

 “For current homeowners, the decision to buy a new home is typically linked to their decision to sell their current home… Because of this link, the financing...

BREXIT! How May This Affect Us?

Frankly, more than a little perplexing! The UK has voted to leave the European Union, after 40 years in it! And from a geopolitical perspective, a bit unsettling. 

This event may have both positive and negative repercussions...

How could this affect us here in the U.S? 

Long term it's hard to say, but short-term one thing is for sure: This move will create UNCERTAINTY and turmoil in the financial markets, as investors will no doubt flee the equity markets and go to safe havens (bonds, gold, etc.)

(You may not want to look at your IRA's and 401K's in the next few months to avoid serious heartburn.)

On the positive side, as demand rises for bonds, mortg...

I read this article that was sent to me by Bill Sandvig of Movement Mortgage and thought it would be worthwhile sharing.

"We could all use a little good economic news these days, what with the state of the U.S. stock market and financial crises happening all over the globe. Well, it’s our lucky day — we found some great news!

Financial services giant Morgan Stanley has released its financial outlook for 2016, and it’s looking positively rosy. According to their experts, low unemployment, lower household debt, a strengthening dollar with improved purchasing power, and lower energy costs are all contributing to the economic recovery. In fact, numerous financial experts are weighing in wit...

MORTGAGE NEWS

Still renting?

Need more space?

Fannie Mae (the large mortgage loan holding company) decided to replace the MyCommunity Loan Program (which was targeted at first-time home buyers) with a new HomeReady Program.

PROGRAM HIGHLIGHTS

• Low down payment of 3%
• REDUCED Mortgage Insurance
• No First-Time Home Buyer requirement
• No minimum requirement of borrower’s own funds
• Non-occupant co-borrowers allowed
• Non-traditional credit allowed
• Gifts and grants allowed
• Homeownership education required
• One-unit principal residences only

Call/text 843-900-0155 to schedule a FREE, NO-OBLIGATION Buyer Consultation. Click HERE to request more information on mortgage loans...

Changes Coming in Lending Guidelines

Courtesy of Jim Duffy of Atlantic Bay Mortgage 

"Conventional is getting easier; Government is getting tighter"

Changes are coming up in mortgage lending industry, some of which may affect home buyers.

A. Fannie Mae: Vested Retirement Funds can be used more easily. If they don't need the whole amount for down payment, then we do not need verification that the funds are liquidated from the retirement accounts. Translation: Less paperwork for buyers = happier buyers.

B. USDA Rural Housing: The Guarantee Fee (the fee that is added to the loan amount) is rising from 2% of loan amount to 2.75% of the loan amount. Bummer. That starts Oct 1; so if you are plan...

Upcoming Changes in the Mortgage Industry Will Affect Buyers and Sellers

It seems that after the mortgage "meltdown" changes are the "new normal". There are three big changes coming upon our industry which will take into effect on August 1, 2015.

In this video Alan Donald and Jim Duffy from Atlantic Bay Mortgage discuss some of these changes and how they could affect the consumer...

For more information about mortgages, please fill out this short form

Or call us on 843-900-0155.

Foundation For A Mortgage (Key Items Lenders Look For In A Mortgage Application)

If you are still renting, the above graph shows half of the story of why you may wish to consider buying a home (the other half is the prevailing low interest rates on mortgage loans). Bobby Green, an experienced mortgage lender with Starkey Mortgage, sent us this information that we thought would be useful for anyone getting (or thinking about getting) a mortgage loan. 

1. CREDIT – Does the borrower’s credit meet the minimum guidelines? Is the credit score above the minimum? Are their any liens or judgments? The minimum credit score for Conventional is 620 (without MI) 660 with MI. FHA goes down to 580. ...

We never thought we would see mortgage rates below 4% in our lifetime again...

Huge Rate Drop Today!

If you are THINKING of buying or refinancing, act NOW!

Call us on 843-900-0155.

*** FHA MORTGAGE LOAN LIMITS CHANGE ***

Thinking of buying your first home in the Charleston, SC area?

The new single-family FHA (Federal Housing Administration) loan limit for the Charleston, SC Tri-County area is $308,200, down from $335,000. This amount should still be sufficient to purchase an average home in most areas of the city, as the mean home price in the Charleston SC MLS area is $206,500. 

This change is the result of FHA using 115% of the area median income instead of 125% as in the past. The new limit will apply to all new case files opened in 2014. 

For more information about getting a mortgage loan, please fill out this form, or give us a call on 843-900-0155. 

Searc...

Did you know that you can use a Reverse Mortgage to purchase a new home?  

Jerry Garner, Reverse Mortgage Specialist, and I hosted a webinar on how to Retire in Style using a Reverse Mortgage for purchase.

You can watch it below:

What is a Reverse Mortgage?

A REVERSE MORTGAGE (RM) is a type of home equity loan that allows you to borrow against your home while still keeping title to it. It may be an ideal tool if you are a "house-rich, cash-poor" retired person.

Similarly to a "normal" (or forward) mortgage, your home is used as the collateral for the##contactfirstname$$, lender, except that in an RM the lender pays you (and adds the payment or draw, plus interest) to your balance.

Are you (or someone close to you) planning for retirement?  Watch this video!

FREE Webinar- In Cased You Missed it! Charleston, SC Real Estate and Reverse Mortgage Professionals Discuss How to Retire in Style Using a Reverse Mortgage for Purchase.

Do you want to... 

• Live closer to family?  
• Be close to the beach?  
• Move away from cold and snowy winters?
• Play golf year-round?
• Own a one-story home with all the luxury "bells & whistles"?

Do you think you may not have the income or credit score to be able to do it? Think again!

Watch the above video to learn how a Reverse Mortgage for Purchase can help you "retire in style"!

Alan Donald, CEO of The Alan Donald Real Estate ...

Higher Interest Rates – Who Cares? 

I have always maintained that buying a home is only one of the “life puzzle”. But recent announcements by the US Federal Reserve Bank caused a quick spike in mortgage interest rates of about 1%, so the 30-year fixed mortgage rate jumped from about 3.5% to 4.5% overnight. This event may signal the beginning of a trend to a period of rising interest rates that may lower housing affordability indices in the months and years to come.  

So, who cares?  The following analysis is intuitive, and based on logic and my own experience in the Charleston, SC real estate market, as no formal research has been done.

Local, First-Time Home Buyers:  These potential b...

Wells Fargo brought back the HOME OPPORTUNITIES LOAN – 97% loan to value - FOR PURCHASE ONLY

·         3% DOWN conventional loan up to 417K

·         First time homebuyers only

·         700 credit score minimum

·         Homebuyer education required

·         PMI required but much lower than FHA

·         Only owner occupied/primary residence

·         30 year fixed and 5 year arm

·         Rate today 3.75% with 0% points

·         Through June 30th , 2013 $250 off closing costs

Interested in purchasing a home? Call us on 843-900-0155 or fill out an online form to schedule a FREE BUYER CONSULTATION!

About Reverse Mortgages - Now You Can Use Them to Purchase a Second Home

Similarly to a "normal" (or forward) mortgage, your home is used as the collateral for the lender, except that in an RM the lender pays you, instead of you paying the lender!

There are three types of reverse mortgages:

• FHA-insured - called  Home Equity Conversion Mortgage (HECM). 
• Lender-insured and
• Uninsured

Borrowers can elect to receive a combination of monthly payments, lump sum or a line of...