Deal is expected to close in the second quarter
Deal is expected to close in the second quarter
To mortgage folk across the country, itâs an age-old question: âLock or float?â Itâs a question loan officers and mortgage brokers get asked on a daily basis, often over and over again by panicked borrowers and first-time home buyers. And it might just be the most important answer a homeowner will come up with during [&hellip
The post Locking vs. Floating Your Mortgage Rate first appeared on The Truth About Mortgage.
We’re all looking for an angle, especially if itâll save us some money. Whether itâs a stock market trend, a home price trend, or a mortgage rate trend, someone always claims to have unlocked the code. Unfortunately, itâs usually all nonsense, or predicated on the belief that what happened in the past will occur again [&hellip
The post When Are Mortgage Rates Lowest? first appeared on The Truth About Mortgage.
These days, home equity is booming thanks to rapidly appreciating property values. At last glance, total equity on mortgaged properties exceeded $10 trillion, with more than $6.5 trillion of it tappable, per recent figures from Black Knight. Yes, that’s a “T” not a “B.” But you would of never guessed it less than a decade [&hellip
The post 11 Ways to Build Home Equity first appeared on The Truth About Mortgage.
2021 VA Home Loan Limit for Wallowa County is $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).
This is a quick look at how to apply for a VA home loan in Wallowa County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, weâll go over the general steps to getting a VA home loan and point out some things to pay attention to in Wallowa County. If you have any questions, you can call us at VA HLC and weâll help you get started.
As of March 31st, 2020, the median home value for Wallowa County is $283,615. In addition, the median household income for residents of the county is $44,953.
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
There are four cities within the county including the city of Enterprise which is also the county seat. The three other cities in the county are Joseph, Lostine, and Wallowa.
Named after the word used by natives to describe the area, Wallowa County, Oregon was home to the Nez Perce people who had lived in the area for about 11,500 years. Eventually, the first white settlers in the county arrived in 1871 and in 1877 the native people got removed from the area and were sent to the Nez Perce Reservation in Idaho. However, they did not go quietly and under the leadership of Chief Joseph had several battles until they were ultimately defeated and forced to relocate. Eventually, in 1880 the town of Joseph was named in honor of the chief.
Today, the county is a member of the Northeast Oregon Economic Development District which provides businesses in the region with assistance. Assistance is provided through training, and technical assistance for businesses, non-profits, and local governments.
Educationally speaking, the county is served by four school districts which include a total of six schools that range from kindergarten to high school. In addition, students in the county get to take part in classes with a student to teacher ratio of 11 to 1, allowing for education to be more adaptive and personal.
Finally, in addition to its workforce and education, the county is also home to beautiful natural scenery which has been said to work as a magnet for tourists. Several recreational areas exist within the county like Hells Canyon National Recreation Area and the Eagle Cap Wilderness.
The county is currently home to 655 veterans, and they all have access to:
There are currently no VA-approved condos in Wallowa County, Oregon. However, it is still possible to get a condo through the condo approved and we can help you through the condo approval process, just call us at (877) 432-5626.
Oregon VA Loan Information: https://www.vahomeloancenters.org/oregon-va-home-loan-limits/
VA Loan Information by State: https://www.vahomeloancenters.org/va-loan-limit-maximum-va-loan-amount/
The post Wallowa County, Oregon VA Loan Information appeared first on VA Home Loan Centers.
We saw mortgage rates dip a little lower on Friday after trouble in Turkey led financial market participants to seek out the perceived safety of long-term government bonds.
Mortgage rates are expected to stay close to current levels this week, but we could see some movement after a few key economic reports get released. Read on for more details.
It’s a quiet start to the week as there are no significant economic reports scheduled for release. That’s keeping long-term government bond yields, which dropped due to an increased demand on Friday after trouble for Turkey’s lira, down near three week lows.
The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is currently at 2.88%. That’s basically flat on the day and about six basis points lower from where it was this time last week.
The expectation for this week is the same as it’s been for quite some time, and that’s for current mortgage rates to stay close to present levels. The fact that rates have remained in a tight range all summer (and most of spring) really isn’t the worst thing for borrowers, as many forecasters had expected rates to rise higher than they are now by this time.
The pressure isn’t off quite yet, though, as it is widely anticipated that the Federal Reserve will increase the nation’s benchmark interest rate, the federal funds rate, by at least a quarter-point by the time 2019 rolls around.
According to the CME Group’s Fed Funds futures, there is a 96.0% chance that the federal funds rate will go up a little over a month from now at the FOMC’s September meeting.
That would push the target range up a quarter-point to 2.00%-2.25%. There is still a lot of time between now and December, but at the moment the majority of analysts believe another rate hike will take place then, pushing the fed funds target range up to 2.50%-2.75%.
With mortgage rates expected to rise in the coming months, we believe the prudent decision for most borrowers is to lock in a rate sooner rather than later. The longer you wait, the more likely it is that you’ll get a higher rate and pay more interest on your purchase or refinance.
*Terms and conditions apply.
Like many American homeowners, your first mortgage may have been a loan with the Federal Housing Administration (FHA). Loans backed by the FHA are attractive to first-time homebuyers because FHA loans are easier to obtain financing for and require only minimal down payments and fair-to-good credit scores.
On the other hand, FHA loans require certain provisions which can sometimes be a burden on a homeowner’s budget, often in the form of premiums paid for mortgage insurance. In such cases, you may want to consider refinancing your FHA loan into a conventional mortgage.
However, before we dive into the pros and cons of refinancing from an FHA to conventional loan, it’s important to learn the basics of these mortgage insurance premiums and costs.*
You can refinance an FHA loan to a conventional loan, but you’ll need to meet minimum requirements. We can structure the PMI into your interest rate to lower your monthly payment. If you don’t meet the equity minimum for a conventional loan, you’ll need to account for continued private mortgage insurance (PMI) costs until you’ve reached at least an 80% loan-to-value ratio (or lower).
FHA loans stipulate that borrowers pay two kinds of mortgage insurance: a one-time, upfront mortgage insurance premium (UFMIP) and a monthly mortgage insurance payment (MIP). The monthly MIP payment is generally required for the life of any FHA loan.
Today, the UFMIP costs roughly 1.75% of a loan’s principal balance and is paid at closing. For example, borrowers applying for a $200,000 30-year fixed FHA loan today will have to pay a $3,500 upfront mortgage insurance premium. Additionally, these borrowers must also typically pay an annual premium of $1,700 for every $200,000 borrowed.
The MIP will be calculated at 0.45% to 1.25% of the loan balance throughout the term of an FHA loan. These premiums can add anywhere from $100 to $500 to the monthly payment. While FHA rates may be low, the added costs of mortgage insurance could make refinancing into a conventional loan, even one with a slightly higher interest rate, result in lower monthly payments for the borrower.
Now, let’s examine the advantages and disadvantages of an FHA to conventional refinance.
While mortgage rates continue to fluctuate, home values continue to rise, providing more equity to homeowners. This has given homeowners the leverage to successfully refinance into conventional mortgages.
In fact, one of the biggest advantages of switching to a conventional loan is that it can eliminate the mortgage insurance requirement altogether. While conventional loans have stricter credit requirements, and typically require borrowers to have at least 20% equity in their homes, any mortgage insurance provision is cancelled once a homeowner has reached a 78% loan-to-value ratio in their home. You can also refinance your loan into a conventional loan with cheaper PMI.
Additionally, refinancing to a conventional mortgage allows borrowers to take out a larger home loan.
It’s important to keep in mind that refinancing comes with costs, such as closing fees, and may require you to present many of the same documents during the application process as you did with your original home purchase. (However some refinance options, such as a Streamline Refinance, can remove these document requirements. Learn more below.)
According to SmartAsset, refinancing closing costs can range anywhere from 2-5% of your total loan. For example, if you refinance into a $250,000 loan with 3% closing costs, you’ll need to pay $7,500 on your signing appointment day, roll the costs into the loan, or receive a lender rebate to offset the costs.
In addition, if you don’t currently meet the equity requirements you’ll also need to account for continued private mortgage insurance (PMI) costs — that is until you’ve reached that magic number of 78%, and in some cases, 80%, in loan-to-value ratio.
To apply for a conventional mortgage, you’ll need to present a few documents to prove your borrowing worthiness. These documents include:
You may also need to pay for an appraisal of your home. In some cases you will not have to present income or asset documentation.
If you can’t afford the closing costs associated with refinancing from an FHA into a conventional mortgage, or if you can’t provide the needed documents, an alternative option is to apply for an FHA Streamline Refinance.
The FHA Streamline Refinancing program provides homeowners with a quicker, simpler way to refinance without the hassle of in-depth documentation, credit, or income verification.
Homeowners who are looking for ways to lower their monthly mortgage payments, or who are hoping to convert an adjustable rate mortgage into a fixed loan, often benefit from an FHA Streamline Refinance — even if their mortgage is underwater. In fact, the Streamline program was put in place specifically to reduce loan defaults.
To qualify for a Streamline Refinance, you must meet these requirements:
It’s also important to note that Streamline Refinancing continues the requirement for mortgage insurance, though UFMIPs are typically absorbed in the mortgage and are not paid in cash.
FHA Streamline Refinancing applicants must demonstrate a valid reason for refinancing, which is determined by something called the Net Tangible Benefit. According to the FHA, this can be either:
If you’re still not sure whether you should refinance from an FHA loan into a conventional mortgage, answer the following checklist questions to help you decide if it’s the right move.
If you’re looking to lower your monthly payments, or switch from an ARM to a fixed-rate loan, going into a conventional mortgage might be right for you. You may also be eligible to take advantage of a cash-out refinancing option with a conventional loan.
If current interest rates are higher than your existing rate, or if the difference is negligible, refinancing into a conventional loan may not be worth the cost. You can use a loan calculator to estimate your monthly payments — just don’t forget about those upfront insurance costs.
Most home values have risen over the years giving homeowners more equity and making refinancing into a conventional mortgage an attractive option for homeowners. If you owe more on your mortgage than your home is worth, you can still refinance with an FHA Streamline.
If you have more than 20% equity in your home, converting from an FHA into a conventional home loan makes a lot of sense. If you have less than 20% equity, an FHA Streamline refi may be better suited to your situation.
Refinancing can be pricey — oftentimes thousands of dollars. However, borrowers can typically use a rebate from the lender to offset some of the costs or finance the costs and fees. To understand how financing these fees will impact your monthly payment, be sure to use our handy calculator found here.
Refinancing into a conventional mortgage is a process very similar to purchasing your first home, so it’s important to gather all of the right documents. If you can’t produce all of the necessary documents, an FHA Streamline may provide a simpler path to refinancing.
Even if FHA rates are lower than conventional rates, it may not always be in your best interest to refinance into another FHA loan. A licensed loan officer can help you evaluate the nuances of FHA refinances and help you identify your best financial solution.
To see if a conventional loan refinance makes sense for you, speak with a PennyMac loan officer or apply online today.
*By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
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