February 2022 Residential Lending News and Successes

Good morning to Springtime, with a call for rain!

Home sales are healthy – Home refi’s responding to rates – Don’t Wait

The Good News: Confidence in Real Estate is steadfast. Don’t miss out.

The real estate market remains a frenzy. Call today. Let’s prepare for the fun.

Recent News

 – Jobs Report: Big numbers and past revisions give indication people are going back to work. Yet, help wanted signs continue to abound. 

– Federal Reserve: Interesting words continues with our Fed. As other countries begin to slow down their abundance of support for equity markets, the Fed makes clear their intent to raise rates, at the upcoming meetings.  Keep your eye on needs for liquidity, if we want growth.

Information and Helpful Insights 

Market News, Successes, And How We Can Help 

Points of interest:

  • Electric Vehicles: The future we are looking for? Estimates suggest in less than a decade, EV sales could reach 52 %, in the US. But what of trade-offs? Currently a new EV uses 456 lbs. of critical material – copper, nickel zinc, and lithium. The average gas-powered car uses 75 lbs. Living a dream, yet seems time for a wake up call.
  • National Debt: Interesting numbers: Yes, US national debt just surpassed $30 trillion, yet the public debt – on which we pay interest – is $24 trillion. The other $6 trillion is Social Security and other intra-governmental debt owed ourselves. But more critical: Public debt-to-GDP. With the big dose of inflation, this number is now down to 115% of GDP – pre-Covid numbers. How will this number be impacted by higher rates ?
  • Interest Rates: After meeting pent-up demand for homes last year – torrid sales – the coming year should be interesting, as to residential pricing and interest rates. From a number of our resources, here is a running consensus: 1) Fed rate plans will play a significant role, with 2) the question as to whether they will allow their balance sheet to run off.  The 2022 Fed Board is more concerned about responding to inflation, than previous and most likely, less accommodative. Look for “rates and inflation” to move more in lock step in 2022. Keep in mind: November elections and higher rates will negatively impacts US debt. Thus you need rising GNP to increase tax revenue.  
    • Conventional loans: Tracking low to mid 3’s. Cash-out refinance and investor loans run a bit higher. 
    • VA rates and FHA ratesIf a Vet? Call today.  Fixed still in the upper 2’s. Plus Veterans refi special: 1) Refi from conventional loan into a VA loan, and 2) Rate-reduction refi’s have NO income, NO asset documentation.  NEW rule for Veterans, even a 1 % service related disability = NO VA funding fee !
  • Jumbo: Yes to: Self-employed, Yes to: 80/10/10. Or, bigger down payment and no income / no employment documentation. Call. Let’s make it happen, today.
  • Underwriting: Purchases – first priority of the underwriterTurn around time can be a quick couple of days. Amen. How about Refinance? Patience wins. Best to start today.

Key to SuccessStart the paperwork today. Let talk.

Success Stories

Key to Success: We continue to hammer out successes – “hammer” the operative term. Yes, lenders want to sell loans and love promoting the lowest rate. But then the reality best summarized as: Nuisance, nonsense, and small details. Thus the importance of having a mortgage specialist you can trust in covering details and “Verifications” – upfront. It is key.

Success Story: Verification upon verification, seems a constant string. The lending market seems paranoid as to details. They want zero risk and zero defaults. This puts pressure on the shoulders of underwriters, and we know how to help them cross the T’s and dot the I’s. 

It is in this area of details, we are most diligent. It seems a bit crazy, but it all gets done.

Good News: Many of our clients are able to obtain appraisal waivers. It is true benefit for our clients.  Even Better: We know how to get make it happen ! 

Retirement? Few of us have a silver bullet solution? Yet if we have built up significant equity in our homes, new doors of opportunity open. It can become a welcome gift – each month – for the many years of being disciplined and diligent. Question: How best to use this is gift? Good News: We have the tools to address this opportunity and answer your questions, as we explore your options – working to together. 

I look forward to your call. Call today. 

We have a team of experienced agents, covering a full range of specialties. Give a ring. 

Highlights of How We Serve You

1) Long-Term: Traditional financing.  The Good News: No age restriction.

2) Short-term: HELOC. A great tool with our markets rates so very low. Home Equity Lines of Credit can be a perfect for short-term ‘chunk cash’, plus the benefit of flexible repayment. 

2) Keeping One’s Home: Key is an interactive discussion. Here we can talk the benefits of keeping or selling. Of asking, if the current home design is best for any physical limitations? If there a willingness to relocate geographically? What about Estate planning concerns, debts outstanding, or simply meeting monthly expenses? What about Proposition 19? My job is to address your concerns with straight forward solutions. Let’s talk. A call worthy of your time.

3) Reverse Mortgage: it can be a great way to reduce stress – especially the monthly burden of the home mortgage payment. It stops, while adding monthly income, each month. Call. Let us show you how it can work for you. 

The Good News: Rates Remain Awesome

– New Homes or Refinance – 

Self-employed: Times are tricky, but we are prepared to take up your challenge. Let’s talk and review your unique situation. We can lay out workable options and best possibilities. I do love and stand with Small Business. I respect those daring to be self-employed – the backbone of America. They speak to the living spirit of our free enterprise system. Let’s stand together. Call today. We are motivated.

Buying your next home: Two very helpful “tools”. 1) A client uses their old home, as collateral for their new home!! 2) A tool whereby one’s current payment on the “old” home, does not count against your client, while settling into their new home. Excellent. You need options, tools, and alternative ideas? We have them. Call today.

Renting, but wanting to Buy?

The pricing pressures are not just with home buyers.  Invitation Homes, the nations largest landlord, shows rental demand is up 14 %, with annual rent renewals up 5 %. In a recovering economy with appreciating values, renting is not a safe haven to offset rising property values. Let’s talk. The best long-term answer maybe to buy now, while mortgage rates remain excellent. Call today. Take full advantage of this great buying opportunity. 

Good News: We offer market-based tools comparing rents to the benefits of home ownership. We look beyond boiler plate, short-cuts numbers. We understand ‘affordability’ to be unique to each and every individual and family. Our focus is understanding you, asking pertinent questions, and helping guide your financial future. We appreciate the importance of “live-ability” as a high priority, when consider ‘how big a home can I afford.’ Finding answers and discovering options are the true rewards.

A Big, First Step Made Better

CALL ME – Your success is MY first priority.

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