Does it ever make sense to pay discount points? Depending on the situation, it can sometimes make sense to pay discount points in order to "buy the rate down" even lower than rates currently are. Discount Points - How They Work Discount points are paid in order to "buy down" an interest rate from the par value. In the simplest description possible - the way discount points work is that you … [Read more...]
Buying A House in Arizona? Talk To A Mortgage Guy First.
Many of the people that I work with are referred to me by one of the great local Realtors that we have here in the Valley. Some of them have already spoken to at least one mortgage professional prior to house shopping, but many of them haven't. My initial conversation with the client goes something like this: Client: "I found this great house and I want to see if I can qualify for it." Me: … [Read more...]
FHA Loan Options For First Time Home Buyers In Arizona
Are you thinking about or in the process of buying your first home? Congratulations! In terms of "is now a good time to buy or not" I think you will probably look back in 5 years and be glad you moved when you did. One of the most common questions we get from first time home buyers is "what does it take to qualify for a loan?" so I thought I would outline the qualification criteria for … [Read more...]
Will Interest Rates Go To 4.5%?
As seen on ABC 15 News... What do the Oklahoma Sooners and a 4.5% interest rate have in common? They may both be part of a land grab. Ok, not really, but the national (and local) media sure did jump on the story that broke in the WSJ about the possible plan for the government to do everything in its power to lower the target interest rate for people buying a new home to 4.5%. … [Read more...]
Down Payment Assistance Going Away? Not Without A Fight… And Maybe A Few Videos.
I received an email today with this video about what is going on with the down payment assistance programs... Remember, we are officially "neutral" on this topic. Maybe *slightly* in favor of the down payment assistance programs, but they are not without their problems. Either way -- it is interesting to see a campaign go viral like this. … [Read more...]
Are you a Veteran or Active Military? A VA Mortgage Might Be Right For You.
VA loans were designed to help veterans of the armed services, either currently serving in active duty or in the reserves, as well as their spouses. In order to qualify for a VA loan, a veteran must meet the eligibility guidelines set by the Department of Veterans Affairs. VA Loans enable veterans that qualify to put no money down on a mortgage loan up to $417,000. VA Loans are guaranteed by … [Read more...]
Lender Conditions 2008 vs Lender Conditions 2006 — Income Related Conditions
Over the last 5 or 6 years, approximately 70-80% of all of the files (a few thousand if my math is right) we have worked on were FHA files so we have developed a pretty serious competency around the ins and outs of FHA. We were doing FHA before FHA was cool! When I was compiling the list of income-related conditions for this post, I noticed that the conditions that we see over and over again … [Read more...]
Lender Conditions 2008 vs Lender Conditions 2006
This week, I have spoke with more than one person who is involved with the Arizona Real Estate market who has made the comment “my best lenders are saying they have never seen conditions like the ones they are getting recently from lenders!” The first time I heard it, I kind of shrugged my shoulders and went about my business. The second time I heard it (from a different person), I made a … [Read more...]
First Time Homebuyer? Arizona Housing Finance Authority to Offer $25 million in Assistance
The Arizona Housing Finance Authority has recently announced two initiatives that will help first-time home buyers in rural Arizona counties through the agency’s Homes for Arizonans initiative -- The Mortgage Revenue Bond program and the Mortgage Credit Certificates program. The combined value of the initiatives is approximately $25 million and is a combination of the agency’s Mortgage Revenue … [Read more...]