Everything keeps on changing in the mortgage-verse (that’s a thing right?- like mortgage + universe = mortgageverse?). One major change that will effect our market is the recent/pending REDUCTION of the maximum allowed FHA mortgage loan amount. These loan amounts are subject to change every year, but we’ve been lulled into the idea the $417k was the maximum amount for the longest time. I think we got upped to this amount sometime in 2007?? I’m embarrassed to say that I can’t remember when we’ve been below that dollar amount, and it’s not even important right now. What actually IS important to me and you is that the new max loan amount for the Portland metro area (Multnomah, Clackamas, Washington, and Clark County WA) is now $362,250.00 for a single family one unit property.
I always think of these things in terms of how it will impact our market, and the thing to consider is that buyers used to be able to buy properties for $432,000.00 and still get FHA financing with that minimum 3.5% down payment. (432k – 3.5% down = $417k)
The new upper limit for FHA buyers who want to benefit from that minimum down payment is now Continue Reading – Maximum FHA loan amounts for Portland Oregon (and the rest of Oregon)
Quick memo here about how the 2013 “partial Government shutdown” will affect those trying to get a mortgage right now. The short answer is – government shutdown = mortgage shutdown. I have a few clients who have their loan files getting their final docs to the title company for signing and funding. THOSE loans will fund as planned. HOWEVER- my clients who are in the earlier stages of the mortgage approval process are not going to be so lucky. The thing that is going to HALT EVERY LOAN in early process is the need for a tax document called the 4506-T. Fannie mae, Freddie mac, Ginnie mae, FHA, VA, USDA, they all require this document. Not to mention those last 3 loans require a different type of Government mortgage insurance.
4506-T (which are income tax transcripts)- will NOT be available during the shut down apparently.
Please see below how the government shutdown is affecting certain loan types and documentation availability:
All loans:· Tax transcripts and VOE’s will still be required on all loans. 4506T’s can be ordered, but there is no one at the IRS to Continue Reading – How does the Government shutdown affect mortgages?
Anyone reading this is likely aware about the FED’s Taper talk, and why it matters to mortgage rates. I was cautiously optimistic that we would get a break out of our recent bond trading range after the release of today’s Meeting minutes. However, I had locked most of my clients prior to today knowing that whatever move happened would be quite large, and it was simply too risky.
SO- Bernanke and his co-conspirators at the US Federal Reserve they meet once a month and manage the amount of cash that enters the economy. I heard Steve Forbes use the analogy of cash as the fuel that is required for the engine of our economy to have a chance at moving forward- to further extend that metaphor: too much fuel can flood the engine, and not enough fuel can cause an engine stall. Continue Reading – Mortgage Rates for Portland OR: Sept 18th 2013 FED DAY!
Again the FED is ruling our world.
The issue at hand is “tapering” – so the FED has been buying 85 billion dollars of bonds and mortgage backed securities per month since last fall (aka QE infinity). The idea being that when the economy shows sustainable improvements, that the FED could reduce (taper) and eventually discontinue their bond buying plan. Continue Reading – Mortgage Rates for Portland OR: August 16th 2013
I often get clients who are excited about “skipping a payment” as a result of the refinance process. And I in no way want to pour any water on to the flames of excitement about the financial improvements one achieves through a refi, BUT- nobody actually skips a payment when they refinance.
Your daddy always told you there were no free rides in this life, and while I’m not going to say that he was “right”- I will say that daddy was right when it comes to the residential mortgage business. Indeed no one rides for free. Indeed no lender is “paying for your appraisal” or giving you a “no-fee” mortgage- YOU the borrower pay for everything every Continue Reading – Skipping a payment when you refinance