Last week the Federal Reserve announced it was raising the Federal Fund rate by a quarter percentage point rate, the first rate increase in three years. You are probably wondering what that actually means for homeowners.
Although not officially connected this normally means mortgage rates go up, and rates have increased recently. The Fed has also indicated that it will increase rates even more in the coming months as inflation is one of their top priorities.
If you are currently on a fixed interest rate mortgage the won’t affect your rate or your mortgage payments. If you have an ARM variable rate mortgage then it will be affected affected and you may want to consider locking into a fixed rate mortgage before rates go higher. If you are under contract on a new loan, you may want to consider locking in your rate to avoid further rate increases. Everyone has a unique situation so schedule an analysis on our website and we can see what if any course of action best fits your needs!

As we enter tax season, let’s review how owning a home can help lower your tax bill.
First, lets clarify that you’ll need to do an itemized return to take advantage of the deductions.
Second the deductions are just that deductions from the income that is subject to tax, not just taking an amount straight off your tax bill.
Onto the benefits! The biggest one, you may already be familiar with – the interest deduction. The money you pay in interest over the year on your loan is fully deductible on the first $750,000 of your loan or up to $1 million if your loan was originated before December 15, 2017. The other biggie is deducting property taxes. You can deduct up to $10,000 in state and local taxes including property taxes. Another deductible is if you paid points to lower your interest rate – this payment is tax deductible. Finally another popular deduction is one many of came to know last couple of years – the home office. However even though many of us have one now – the deduction is meant only for the self employed – if you work full time for a company it may not qualify. Of course talk a certified tax professional regarding your particular situation and if you want to see how much you can qualify for please fill out our quick qual analyzer on our website!

If you bought your home with less than 20% down, you are most likely paying private mortgage insurance (PMI). Most borrowers can’t wait to get to 22% equity when their PMI will be cancelled.
One way to stop paying PMI is through refinancing your home. Now this likely won’t be an inexpensive way to avoid PMI in terms of closing costs involved with refinancing. So you may want to have other reasons to refinance such as a lower monthly payment or getting cash-out as well. If you’re equity has increased a good deal recently so that you have more than 20% equity then you could avoid PMI through this route as well – you’ll still have to pay for an appraisal but that will be a lot less than the closing costs.

What Is A Non-QM Loan?
A Non-Qualified mortgage loan (Non-QM) is a loan that falls outside of the QM (Qualified Mortgage) loan parameters, which provide legal protection to lenders and have stricter guidelines to help prevent against default. Non-QM loans fill a void for people with fluctuating income that may come in lump sums. Most often they used by people who are self-employed (like a small business owner, entrepreneur, contractor, nurses, etc.) and don’t tick the boxes for a traditional mortgage with requirements for their tax statements, pay stubs and W-2s. They are also used by borrowers that may certain credit issues in their past that rule out a QM loan. Non-QM loans do not have the traditional guarantees backed by those of Freddie, Fannie, FHA and VA loans. If you want to learn more about which loans are bested suited to your needs, fill out our 90 second analysis on our website and we can schedule a consult!

Conventional, FHA, VA, YOURgage®,DSCR, Business Loan, Bank statement, No Doc. How do you know which home loan is right for you? We’re here to help you find the best mortgage option. Learn more today!

If you have a solid credit score, low debt-to-income ratio and money to make a higher down payment, a conventional loan may be for you. Learn more today!

In today’s market of rising home prices, many people are considering buying a fixer-upper.
We’ve all seen the home make-over shows with amazing before and afters but should you do it?
Here are a few things to consider:
1. Know Your Limits How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while
2. Work Out Costs In Advance Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.
3. Check Permitting Costs and Procedures Check with local officials to see if the work requires a permit and the permit costs.
4. Be Extra Careful with Structural Issues If the house requires structural repairs then double check the work and pricing. Hire a structural engineer to do an inspection and if structural work needs to be done make sure your bid discounts this work
5. Include Inspection Contingencies Make sure you hire professional inspectors and check for hidden issues like mold, piping issues, pest damage etc. And if things come up ask for discounts. And if too many red flags come up or the seller won’t properly discount the costs for repair then you may want walk away and keep looking!

Many first-time home buyers are looking for ways to get into a house – here are ten programs that can help!
1. FHA Loan – This is most common assistance loan and you may already be familiar with FHA loans, these are widespread and help buyers with lower credit scores and less money saved for a down payment. 2. USDA Loan – are for lower-income borrowers in rural areas (but check with us you may not realize you are in a rural area 🙂 3. VA Loan – this is a great option for those who have service in the military and their families as it allows no down payment! 4. Fannie Mae/Freddie Mac Loan – these are conventional loans that are a good option for those with good credit scores but can put down as little as three percent. 5. Good Neighbor Next Door Loan – this HUD program provide aid for first responders and teachers. 6. FHA Section 203k Loan – if you are getting a fixer-upper this is a great option as home improvement costs can be rolled into the FHA primary mortgage. 7. HomePath ReadyBuyer Program – this is program pays ups to 3% of closing cost assistance for Fannie Mae properties in foreclosure (you must complete an educational course as well) 8. Native American Direct Loan – this program is for Native American veterans on federal trust land. 9. Energy-efficient Loans – there are a few federal programs that allow for savings on homes rated as energy efficient or loans that allow the borrower to add efficiency upgrade costs into the primary mortgage. 10. Local State and City Programs – last but definitely not least there are many local options people often don’t know about that can provide assistance to first time home buyers! Check with us and we can review your situation and help you decide if any of these are a good fit!

As we enter a new year our mortgage outlook sees pressure on rates to increase. The Mortgage Bankers Association expects an increase from records lows but rates should still remain historically lower.
The fed is likely to raise rates as it faces inflationary pressure for the first time in decades. Of course things are extremely fluid and subject to change. For those looking to refinance, we recommend acting now to lock in low rates. Cash-out refinances will still be attractive for some with moderate rises in interest rates as many have seen a large rise in equity. Purchase loans will likely be an increasing portion of mortgages overall.
Check with us to see how all this affects you and we will recommend the best course of action based on your needs!