Interest Rates in DFW at Record Lows

As a loan officer, I hate it when I hear commercials on the radio every day blabbing about how low interest rates are, knowing that these companies are really just using the old "bait and switch" technique through their advertising.  The truth is, you're not going to get a ridiculously low rate unless you have very perfect credit or if you pay for it (doing a "buy down"). The rest of the United States gets a more average rate, which just happens to be VERY low right now. WHY RIGHT NOW? These low rates can be attributed to stock prices falling, which in turn made more people start purchasing treasury bonds (which is what investors do when they need a safer place to put their money).  The result are rates that are dipping extremely low for almost anyone with a solid job and a credit score over 640. HOW LOW? For example, Freddie Mac reported in their latest report that the average interest rate for 30-year fixed mortgages was 4.84 percent, which is easily the lowest its been all year.  As for 15-year fixed mortgages, the average is 4.24 percent, ...

What Lenders Look for When You Want A Loan

In order to avoid the perception of bias (based on discrimination) most banks and lenders these days use  creditworthiness to determine if you qualify for a home loan.  Of course, that doesn't mean having a good credit score automatically gets you a loan.  It is, in fact, a big piece of the puzzle, but to get a totally clear approval you will need several other things in order as well.  Here they are: TOTAL DEBT CANNOT BE TOO EXCESSIVE When a loan officer runs your information to get you pre-approved, one of the first things they get from your credit report are your total debts and anything else you are obligated to pay each month.  They then factor this with your proposed monthly PITI payment (Principle, Interest, Taxes, Insurance) to get what is known as the "Debt-To-Income" ratio.  This ratio represents how much you will be paying each month compared to how much money you actually bring in.  Your total payments (including credit cards, student loans, car payments etc.) should not exceed more than thirty-six percent of your income. APPRAISAL When you get a loan, the note itself is secured by the actual property you buy.  This means that if you don't ...

How to Get the Lowest Possible Interest Rate in DFW

One of the most important aspects of obtaining a home loan or mortgage is getting the lowest possible interest rate.  Society has driven it into our heads that this in itself is paramount to anything else, including the actual house you are buying.  In fact, whenever I’m doing a loan for someone, literally the first thing they always ask me is “what are rates looking like today?”  People want to know how much they’re going to pay, and how this will affect their livelihood. So if you’re in the market for a new home and you are concerned about this, there are a few things you should know before you get too preoccupied with your interest rate. IMPORTANT INFO ABOUT RATES First of all, mortgage rates change, and they change VERY OFTEN.  How often?  Well, last month lenders were re-pricing (changing rates) at an average of every 4 hours.  That’s right.  EVERY 4 HOURS.  Remember too that this is just an average, and many times rates have been known to change every 30 minutes or so.  So when your loan officer seems reluctant to speak with you about interest rates, it isn’t because he is ...

USDA Rural Development Loan Funds Exhausted

As of May 3, the Single Family Housing Guaranteed Loan Program (SFHGLP) appropriated funds for fiscal year 2010 have officially been exhausted. Based on a directive issued by the USDA, many mortgage lenders have since released memos informing all originators to increase the USDA funding fee on all SFHGLP loans that had not been issued Conditional Commitments. What does this mean?  Well, with the increase to the USDA funding fee, Rural Development would agree to issue “subject to” Conditional Commitments until Congress votes to appropriate more funds to the program, effectively putting the program in limbo. So is this the end of the insanely popular Rural Development Loan?  Only time will tell, but we will keep you posted as we find out any news.  For the time being, if you have any questions for the USDA, you can call 202-720-1452. As always, if you have any loan questions for us, please don't hesitate to CONTACT US and we will get back to you ASAP!

203K Streamline – The Loan of the Future (and Fort Worth)?

Searching diligently for a home? Have you passed over your dream property due to cosmetic problems because it won't pass with the FHA for financing?  Well, look no further.  FHA has came up with something to help you out.  I introduce the 203K Streamline Loan, which was created in part due to the fact that many lenders won't do rehab loans anymore, and is much much simpler than the notorious 203K Loan (evidently the Streamline part is what makes the difference, haha). This loan, in essence, allows a potential homeowner to finance up to $35,000 of needed home repairs into the purchase or refinance of a property.  This is excellent compared to a traditional rehabilitation loan, because it doesn't include the same review requirements, and consequently involves much less paperwork.  Here are some of the other benefits of the 203K-Streamline: Needed repairs are figured into the original loan balance, resulting in one loan. The mortgage balance can exceed the purchase price of the house. Borrowers are not required to hire engineers, consultants or architects. The home inspector or appraiser can put together a list of recommended repairs/improvements. The program is designed to assist homeowners in easily rehabilitating a home where building ...

Reverse Mortgage Situations and Applications

Reverse Mortgages, which are becoming more and more prevalent in today's society, definitely have their fair share of both advocates and critics.  Because of this, many people are often misinformed about how exactly a reverse mortgage could be of benefit to them.   As is usually the case in life, it is better to be educated about something before you decide for or against it. This week, we once again meet with our resident Reverse Mortgage expert Bruce Parris, who shows us a few situations where these types of mortgages may be of benefit to senior citizens. Bruce Parris Mortgage Advisor 817-527-3165 office 1-866-205-2305 toll free 214-783-2235 cell Hello folks, today let’s talk about a couple of situations I have found some of my clients in where a Reverse Mortgage helped them out substantially. A spouse passes away.   The home has a $250,000 value and an $80,000 mortgage with a $625 monthly payment.  You want to stay in the home but your monthly income comes up short.  You could sell the house but you ...