Articles Published in: February 2020

February 10, 2020

FHA Purchase and Refinance Loan Interest Rate Trends And Your New Home

FHA home loans have a low minimum required down payment of 3.5%, which makes them perfect for both experienced homeowners and first-time homebuyers alike. With an FHA mortgage it’s possible to purchase or refinance a fixer-upper (with an FHA 203(k) rehab loan), buy or refinance a condo, mobile home, existing construction houses, and you can even apply to have a home built for you on your own lot with an FHA One-Time Close construction loan. As we head into the second month of 2020, we are reminded that 2019 was the best year for mortgage loan interest rates in almost a decade and the trends that kept rates low last year continue to exert some influence as new issues also conspire to push mortgage rates lower. At least in the | more...

February 7, 2020

FHA Refinance Loans And Current Interest Rates

By Joe Wallace

Is your mortgage payment too high? Need to refinance to bring down the monthly cost? Recent headlines about mortgage loan interest rates have contained the word “refinance” a lot lately; world events including the Wuhan virus, impeachment proceedings, and other news have conspired to help push mortgage rates lower. Those things themselves do not directly influence mortgage loan interest rates, but investor behavior DOES. And because of that investor behavior, we have seen FHA loan interest rates move significantly lower. Some writers refer to that move in terms of historical context. “Mortgage Rates At Three Year Lows!” screamed some headlines in early 2020. One consequence of those low rates? A surge in refinance loan applications as consumers rush to take advantage of the lower interest rates to save money on | more...

February 6, 2020

Buy Or Rent? The Cost Gap Gets Narrower

By Bruce Reichstein

Do you want to own a home or rent one from someone else? According to a Realtor.com report from the fourth quarter of 2019, the cost gap between being a renter and a homeowner is lower, and it may be even more affordable to own your own home in smaller rural areas. Why? According to Realtor.com, “After years of escalating home prices making the cost to purchase a home more expensive than renting in many of the nation’s largest counties, rising rents, lower mortgage rates, and moderating home prices made purchasing a home in Q4 2019 more attractive compared to last year.” That report adds that in more than 80% of American’s largest counties it may still be more expensive to own instead of rent. Findings from the Realtor.com report | more...

February 5, 2020

What Affects The Cost Of Your Home Loan

By Joe Wallace

Shopping around, haggling over terms, and negotiating your home loan are not unusual practices, but some are not comfortable with trying them. Want an advantage in the home loan process? Learn how to do some low-key bargaining as it can save you money and time over the long haul with your home loan. Negotiating with the seller, for example, could get you extra money (provided by the seller) toward closing costs; up to six percent of the sale price of the home! But haggling isn’t the only factor that can affect the cost of your home loan. The Wuhan virus, discussed in the news as a coronavirus or a “coronavirus outbreak”, affected mortgage loan interest rates and sent them to the lowest levels we’ve seen in some time. The virus, | more...

One Time Close Mortgage Loans: The Base Home Sales Price

February 4, 2020

Myths About One-Time Close Construction Loans

By Bruce Reichstein

You can build a house from the ground up using a One-Time Close construction loan; many borrowers want to take advantage of these types of loans as the government-backed versions of the One-Time Close construction loan feature very low down payment requirements and the same financial qualification rules as other VA or FHA mortgages. One Time Close Myth: I Can’t Afford To Build A Home Instead Of Buying One It’s easy to assume that building a home will cost you more money than buying an existing construction property. But what kind of home do you need? Are you building a house to start a family in? Or are you building a home that you want to retire in? The overall cost of your project will depend on details like these, | more...

February 3, 2020

HUD Updates Manufactured Housing Policy

By Bruce Reichstein

The Department of Housing and Urban Development announced a final rule on formaldehyde emissions standards for manufactured homes. These updates clarify issues related to compliance with The Toxic Substances Control Act (TSCA). HUD officials on record recently about the American affordable housing situation, label it a crisis and acknowledging that the “affordable housing crisis can’t be solved by one measure alone” though the issue of conforming with other federal guidelines addressing toxic substances is an important one. HUD updates in policy include revisiting the rules “for the installation of carbon monoxide alarms or detectors; and additional provisions for homes designed for structures attached at the site, including garages and carports” and the HUD final rule on formaldehyde emissions for manufactured homes “aligns HUD’s regulations with other federal guidelines”. HUD’s Office | more...