Tag Archive for: freddie mac

Refinancing Is Now Way More Expensive – Or More Difficult

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This short IG video, titled “Refinancing Is Going To Be More Expensive Than Ever” was making the rounds on social media recently. We were getting questions, so I decided to blog about it. It is a good video, but the gentleman is only about half right. He is referencing the change in fees that Fannie […]Read More

Fannie Mae Is Making STRONG Borrowers SUBSIDIZE WEAK Borrowers

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In what was one of many failed social experiments of the 1970s, my high school in AZ did not enforce attendance. And – needless to say – with ample sunshine and many recreational activities (the school was a veritable country club) on campus and nearby, most of my friends and I rarely attended class. So, […]Read More

Who Buys Loans From Mortgage Banks; How It Works & Why It Matters

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Most mortgages in America are funded by “mortgage banks” – which are entities that solely originate, underwrite, and fund mortgages; they do not hold deposits or do any of the things that commercial banks traditionally do. Rocket Mortgage, loanDepot, Guaranteed Rate, Guild Mortgage, American Pacific Mortgage, Fairway Independent Mortgage, and CrossCountry Mortgage are all examples […]Read More

Loan Buybacks Are Surging and DANGEROUS!

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Russian Mobster Sending Me Lots of Business Around 2004, an agent referred a Russian gentleman to me for a purchase. He was very wealthy, very well-dressed, very polished, very serious – and very intense. His first purchase went well, as he had a “trading company” that we used for his employment verification and he had […]Read More

2023 Conforming Loan Limits Surge To Over $1 MILLION! Some Interesting Perspective

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1994’s Limit Was $203,150 When I got into the mortgage business in 1994, the conforming loan limit was $203,150. Adjusting for inflation, that is about $408,000 today (almost exactly 2x the 1994 amount) The median house price in 1994 was about $130,000, while it is about $455,000 today (about 3.5x the 1994 number). Today’s maximum […]Read More

Fannie Mae Made Rates WAY LOWER for First-Time Homebuyers!

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In mid-November, both Fannie Mae and Freddie Mac made homebuying ridiculously less expensive for many, if not most first-time homebuyers! And – I was remiss for not blogging about it sooner. 13 Factors That Impact Your Interest Rate! I often blog about the 13 Factors that impact someone’s mortgage rate – reminding readers that there […]Read More

Conforming Loan Limits In California 2022

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  The U.S. Median Home Price has increased over 15% year over year – so it is no surprise that the Federal Housing Financing Agency (FHFA) has increased the Conforming Loan Limits significantly for 2021. Conforming Loan Limits refer to the maximum loan amounts that Fannie Mae and Freddie Mac will allow for financing for […]Read More

Rent Vs. Buy Comparison – Follow Up To Responses; ADU Follow Up Too

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Yesterday, I blogged about Rent Vs. Buy Comparisons In The Age of Inflation, and I got a surprising amount of feedback, including the following: “I put 5% down, and my housing payment is $500 lower than my Mom’s rent.” “You are not accounting for maintenance costs!” “Do you guys do ITIN Loans?” “Unsubscribe” 😊 5% […]Read More

2022 Conforming Loan Limits Increase

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U.S. median home prices continue to increase – so it is no surprise that the Federal Housing Financing Agency (FHFA) has increased the Conforming Loan Limits significantly. Conforming loan limits refer to the maximum loan amounts that Fannie Mae and Freddie Mac will allow for financing for one, two, three and four-unit properties. The two […]Read More

Why I Love And Hate Freddie Mac’s Mortgage Interest Rate Surveys

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Here is the link to Freddie Mac’s Mortgage Interest Survey Data. I recommend sharing this link often b/c it is one of the best sources available to see where interest rates really are. You might, however, also remind clients that Freddie Mac shows “average rates” only and that there are as many as 12 Factors […]Read More

Fannie & Freddie Breaking Off From Government Control?

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INTEREST RATES COULD SHOOT UP AT ANYTIME We often remind both borrowers and agents that interest rates are generally expected to remain low for some time, but that does not mean they cannot shoot up unexpectedly. Our point is that both buyers and current mortgage holders should take advantage of today’s low rates now before […]Read More

Asset Loans; Qualifying With Assets Instead of Income

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I touched on Asset Loans in December but I wanted to elaborate on them b/c they are such a great alternative for borrowers with substantial assets but limited documentable income. There are three basic types of Non-QM Asset Loans that we offer. Asset Depletion Loan: We simply divide total liquid assets by 120 months and […]Read More

Fannie, Freddie, Agencies, GSE’s; What Are They? Differences?

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Fannie Mae and Freddie Mac are Government Sponsored Enterprises (GSEs) or “Agencies” that buy loans from mortgage banks and either hold them in their portfolios, or package them into “Mortgage Backed Securities.” They were created by Congress as ostensibly private companies to provide liquidity to the mortgage market. They are now effectively controlled by the […]Read More

Down Payment Options for Investment Properties

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We often get questions about investment purchases, so we wanted to revisit a few unique things that everyone should know about purchasing investment properties. 1.) Lenders require a 20% down payment for loan amounts up to $625,500. Many people come to us under the impression that the minimum down payment is 25%, but Freddie Mac […]Read More

Fannie and Freddie Are Not the Same; “GSEs.”

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Fannie Mae and Freddie Mac are Government Sponsored Enterprises (“GSEs”). Their role is to securitize mortgages or to help bundle them up to sell on the secondary market. This role effectively keeps interest rates lower. “Conforming” or “Conventional” loans up to $625,500 are underwritten to Fannie’s and Freddie’s guidelines. Fannie Mae and Freddie Mac offer […]Read More