Tag Archive for: refi

FHA Cash-Out Refinance: The Best Way to Pull Cash Out

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Are you in need of extra cash for home improvements, debt consolidation, or other financial goals? Look no further than an FHA cash-out refinance. This mortgage option offered by the Federal Housing Administration (FHA) has gained immense popularity due to its numerous benefits, including higher loan-to-value (LTV) ratios, lower mortgage insurance (MI) costs, and competitive […]Read More

5 Things to Know When Refinancing

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What Is a Refinance? A refinance is a lending process that replaces a homeowner’s existing mortgage loan with a new mortgage loan in order to realize some tangible benefit for the borrower. There are two major types of refinances. The two types of refinances are a rate and term refinance and a cash-out refinance. Both […]Read More

Free Refis Aren’t Free

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An agent recently told us he only refers his clients to “one loan officer” because that loan officer “offers a ‘free’ refi to all of his clients in 6 months, if rates fall.” We tried to explain to the agent that there is no such thing as a free refi, and that every lender in […]Read More

Rates Keep Falling & Will Fall More; Timing The Market

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Rates fell again primarily in response to negative economic data, including revised data that showed the economy shrunk more than we thought in Q1 along with more recession indicators and predictions. The 10 Year Treasury, which correlates closely to mortgage rates, hovered near 3.5% only a few weeks ago – but it is now under […]Read More

Attention Nervous Homebuyers: Rates Likely to Fall! Dr. Lacy Hunt Explains

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Even though rates are still lower than where they were in 2018 (and for much of the last 10 years), homebuyers are still often very upset that rates have climbed so much in recent months. We frequently remind readers that homebuyers stress too much about rates in any case because so few of them keep their loans as long as they think they will (usually less than 7 years).Read More

Eliminating PMI – With Appreciation, Paying Down Loan, or Refinancing!

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A client who bought in 2019 emailed me this week, asking how to get out of PMI. Because appreciation has been so massive over the last few years, there is no reason anyone should have kept their PMI in place for more than two years.Read More

When Is The Right Time To Refinance Your Home

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You’ve probably seen quite a few ads or news indicating it is an excellent time to refinance because of the current low rates. Refinancing can be a smart financial move when it reduces monthly payments, lessens the duration of the loan, or grows your home equity faster. However, there is still an important question to […]Read More

DANGER! Home Equity Lines & Inflation

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A borrower reached out to me for a Home Equity Line of Credit (HELOC) recently, and I referred her to a local bank that we work with that offers the best service and rates. She came back to me the next day and said: “my friends say I should consider a cash-out refi instead…” And […]Read More

What Is A Cash-Out Refinance In Texas?

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Homeowners in Texas continue to see an increase in home value and are now finding themselves with more equity in their homes. Many Texas homeowners are eligible to utilize a cash-out refinance to convert some of their equity into cash, but what exactly is s cash-out refinance? What is a Cash-Out Refinance? A cash-out refinance […]Read More

6 Reasons Why Refis Are SO MUCH EASIER Than Purchases

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We often see borrowers who are reluctant to refinance into a lower rate – even when the new loan will be “no cost” and save them hundreds of dollars every month. Unfortunately, this reluctance is sometimes fostered by the stress those borrowers endured during their purchase. As a result we like to emphatically remind everyone […]Read More

BEST NEWS EVER! Fannie And Freddie Eliminate “Adverse Market Fee;” Reduce Rates By 1/4%!

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I can think of many examples of things that would constitute “the best news ever.” Hearing “snow day/school canceled” announced on the radio when I was a kid on Western Minnesota’s prairie is definitely up there. And, so is the time my friend’s older brother scored us not one but TWO kegs of beer for […]Read More

Student Loan Cash-Out Refinances

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Millennials are one of the largest demographics and have taken the housing market by storm. Millennials accounted for 38 percent of home purchases in 2020 and more than half of all new mortgages. Yet, while millennials make up a sizeable portion of the housing market, over 45% of millennials have student loan debt. For homeowners […]Read More

Fed Speaks – Rates Up; Paying Off Student Loans With Mortgage; Interest-Only Loans

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Fed Chair Powell spoke yesterday and sent the bond market into a tizzy, as investors sold off their bonds and pushed rates sharply higher. What crazy thing did Powell have the audacity to say? He acknowledged that the economy is strengthening and that there is an uptick in inflation. In addition, a statement by the […]Read More

Rates Up Again! Why Nervous Appraisers Sometimes Appraise Lower Than We Expect

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RATES 3/8% HIGHER NOW Interest rates continue to climb in response to positive economic reports (strong retail and home sales numbers), inflation concerns relating to both price signals and massive increases in the money supply, and President Biden’s $1.9 trillion COVID Relief package. Rates are now a solid 3/8% higher than where they were in […]Read More

Mortgage Rates Way UP; Refi Now… Or Forever Hold Your Peace

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Remember last year when I said rates could either go up, go down or stay the same? Well, I was right. 😊 OK – I was actually right about the rates going up part. And I was just repeating what Barry Habib was saying. Habib thought rates would go up early this year and then […]Read More

Are Home Equity Loans Tax Deductible?

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Homeowners cannot claim tax deductions on home equity loans in some cases. However, they can still benefit from cash-out refinancing programs to use the equity they’ve accrued in their homes. The Tax Cuts and Jobs Act, signed by President Trump in December 2017, introduced this change. Interest paid on home equity loans is no longer […]Read More

Why Rocket/Quicken Did Not Disclose Percentage of Purchases vs Refis

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I read yesterday that Rocket (parent company of Quicken) did not disclose its percentage of purchases (relative to refis) in its earnings release for Q3. I found that fascinating b/c it was probably intentional and it speaks to what I have been alluding to all year – with so many mortgage companies going public or […]Read More

Negative Rates Are Coming; What It Means For Real Estate And Mortgages

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Negative interest rates are heading our way – with certainty – according to Luke Gromen, a macroeconomist who was featured on The Investor’s Podcast recently. Mr. Gromen believes that the Fed and the U.S. government have no choice but to continue to push rates down in whatever way possible in order to finance our massive […]Read More

Fannie Mae Re-Slams Mortgage Industry With 1/2 Point Refi Fee

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In August, I blogged about Fannie Mae Slamming Refi Borrowers With A New 1/2 Point Fee. And then later in August, I blogged about Fannie Mae Yanking Its 1/2 Point Fee In Response to Industry Pressure. But, Fannie only postponed its refi fee until December 1st. So all refinance loans sold to Fannie Mae and/or […]Read More

Fannie Mae’s New 50 Basis Point Fee Slams Refinance Borrowers

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As I mentioned yesterday, Fannie Mae and Freddie Mac imposed a new fee of 1/2 point, or 50 basis points, on all refinance loans – catching the entire mortgage world completely off guard. What the new fee means in reality is that all refinance borrowers will now face 1/8 to 1/4 percent higher rates when […]Read More

Explaining The Basics of Refinancing A Mortgage

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There are many possible benefits to refinancing your home mortgage. You may have heard from friends or neighbors who have already refinanced about some of the various advantages connected to refinancing your mortgage. For instance, refinancing can lead to a lower mortgage payment, a quicker timeline for paying off your mortgage, a lower interest rate, […]Read More

7 Ways To Increase Your Home Value

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Everyone wants to increase the value of their home, but many are stumped by where to start. So, we’ve included practical tips and tricks to inspire you to create a plan today. Congratulations! You’ve just purchased a home and made one of the most significant purchases of your life. Within the walls and roof surrounding […]Read More

Refinancing After Forbearance; Credit Inquiries

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Over 4 million borrowers went into mortgage payment “forbearance” during the COVID-19 crisis, and many are now starting to end their forbearance periods – and wondering if they can refinance. Here are some of the guidelines. AUTHORIZED FORBEARANCE – PAST BALANCES PAID If borrowers with a formally authorized (by their servicer) forbearance formally end their […]Read More

Why “Now” Is Always The Best Time To Refi; Jumbo Returns :)

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GREAT NEWS – JUMBO HAS RETURNED! As expected and hoped for, one of our best jumbo investors returned to the market today with far lower rates. We are now very close to where we were prior to the COVID-19 crisis. WHY “NOW” IS A GOOD TIME TO REFI – IT IS NOT JUST B/C WE […]Read More

Refinancing FAQs; Essential Info for EVERY Borrower

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With rates this low, $4 to $5 trillion of mortgages are now eligible for refinancing. This is more than twice the mortgage industry’s annual capacity and rates look to stay low for some time. Because refis are now such a hot topic and will continue to be for months (if not years), we recently added […]Read More

When Does It Make Sense to Refinance? Rules of Thumb

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When I was researching today’s blog, I came across a December of 2010 blog of mine that said: “The refi boom is officially over.” I found that amusing b/c rates were about 1/2 percent higher than they are today, b/c rates fell almost a full percentage point in 2011, and b/c we have had so […]Read More

Technology, Hand-Holding, & Big Bank Horror Story

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Team Member’s Mom Goes to the Competition One of our team member’s Moms went to the “competition” for a refi, and we were mortified… OK – actually, we weren’t. She has a very unique situation in regard to zoning that a big bank signed off on before, so she went back to them to refinance. […]Read More

1/2% Since Election; Important Tips For Refi Guys Doing Purchases!!!

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The huge rate increases do not threaten JVM’s business b/c we have always been about 85% purchases; we truly are purchase experts. With rates up so much though, the “refi guys” are going to be clamoring into the market offering stellar service and everything else to Realtors in an effort to garner business. So, here […]Read More

Timing The Bottom for Rates? Get While Gettin’ is Good; Refi Again

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Borrowers often ask us if we think rates will fall further before they lock, or they want to “time to the market” and lock in their rate at the “bottom.” As a result, they are sometimes reluctant to lock or get us their paperwork. This in turn delays purchase transactions, and sometimes causes borrowers to […]Read More