Chip Fernandez on LinkedIn: Here's a list of companies that MAY allow mortgage "porting". Bank of… | 16 comments (2024)

Does the Consumer Financial Protection Bureau want to put the kibbosh on mortgage discount points? What are mortgage discount points and how are they used? We'll explain.Mortgage discount points are prepaid interest you buy upfront to lower your interest rate. Each point costs 1% of the loan amount and typically reduces the rate by 0.125% to 0.25%. In other words, to reduce your interest rate from 6.5% to 6.0% for a $300,000 loan, you'll pay ~$6,000 at closing. Is it worth it? After all, your annual savings are only about $1,500 in this example.It's complicated. They can be good if you plan to stay in your home for a long time but you may be overpaying if you might be able to refinance to a 1% lower rate only a year later. You also need to factor in the additional closing costs associated with refinance and there isn't even a guarantee that you will be in a position to qualify for a new loan in the future. In some cases, borrowers need the discount points in order to qualify for their first mortgage. On the flip side, who is paying the discount points and did they do so with a grounded strategy? It's this last question that the CFPB is likely focused on as discriminatory practices could be involved.https://lnkd.in/eJ3yT7wt

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This is a complicated topic. I paid points to lock in 2-2.25% rates on my properties at the height of the refinance frenzy. I knew with certainty that I would not be refinancing again and wouldn't sell the home any time soon (I'll rent before I will sell).For first time homebuyers, it would be very easy for someone to convince the borrower that they could save themselves tens of thousands of dollars through the life of the loan if they just buydown their rate. The problem is, the "tens of thousands of dollars" could be much lower depending on what happens with rates, work/life events, etc.There are also a lot of reasons why buy-downs will happen: 1.) its the only rate offered by investors; 2.) the borrower needs to buy-down to get their DTI into qualifying territory. I'm sure there are more.Importantly, I don't see why lenders would have an incentive to push people buy down their rates. They are paid the same amount for the loan in the secondary market and, it would delay their chances of working with that consumer on a refinance when rates do fall. I am not the secondary markets expert (that my partner Jeff Juliane and many other people in my LinkedIn network are) so I am open to input from the experts...

How mortgage shoppers can weave their way through the credit-score mazehttps://lnkd.in/dZDegdNU Rob McListerNavigating credit scores for a mortgage can be confusing. This article breaks down how lenders assess your creditworthiness.At Credit Achievers Today, we demystify the mortgage approval process. Our credit coaches:- Do a full review of your credit report- Create plans to boost your credit score- Advise which mortgage lenders and loans may suit you- Negotiate with lenders on your behalfWe optimize your credit profile and financing options, so you can get approved for the best mortgage or loan for your needs.Want expert guidance on preparing your credit for a mortgage? Book a consultation today:https://lnkd.in/gAkVnRW5#mortgage #realestate #creditscore #loans

It was a pleasure to visit with Connie Kim with HousingWire last week. Obviously, the high rate environment isn't ideal for affordability. This is causing hesitation for buyers to get fully pre-approved waiting on rates to drop.For the buyers that do get pre-approved, they'll be in pole position to submit offers quickly when rates do improve. Even with high rates, there are many ways to create affordability in the marketplace. My advice? Call your loan officer before the spring market heats up! Get insights and plan properly to see if this is your year to become a homeowner.

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Many Canadians homeowners will face the challenge of renewing their mortgage this year. The challenging part is because, odds are, it will be at a much higher rate than their previous term. This means mortgage payments are going up (and in some cases, considerably 🥲) This week we discuss options at mortgage renewal and dispell many of the myths that exist when switching your mortgage lender.More below 👇 https://lnkd.in/gsnD7a_r#getdeeded #mortgage #mortgagerenewal #canadianrealestate

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Navigating the Mortgage Maze: 10 Crucial Do's and Don'ts After ApplyingIn this guide, we delve into 10 crucial do's and don'ts to navigate the post-application phase with finesse, ensuring that you not only enhance your chances of mortgage approval but also pave the way for a seamless transition into homeownership.⬇️Click Below For My 10 Crucial Do's and Don'ts After Applying For a Mortgage Blog ⬇️ ...#gallomortgageteam #realestate #mortgage #firsttimehomebuyer

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This raises an interesting question about whether a mortgage lender can choose NOT to renew a client's mortgage. Although I don't see a lender doing this, unless there is delinquency or some other violation of the mortgage terms originally agreed to, I CAN see a lender offering mortgage clients they don't wish to keep on their books a "less attractive renewal rate" perhaps to incentivize them to look elsewhere.

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Mortgage Rate Outlook:The 30,000-foot view from Michael Ferraro, President, Mortgage Markets CUSO, LLCLast Week: Mortgage News Daily reports that the prospects for mortgage rates have not been great in April.While we did see some relief last Friday, Thursday's reaction to the quarterly PCE data brought the average 30-year fixed rate to new, five-month highs. This Week:Mortgage interest rates were mostly up compared to a week ago, according to data compiled by Bankrate:·30-year fixed-rate mortgage goes up, +0.05%·15-year fixed mortgage rate increases, +0.07%·5/1 ARM rate moves lower, -0.17%·Current jumbo mortgage rate increases, +0.04%The average 30-year fixed-refinance rate is 7.34 percent, up 3 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower at 6.96 percent.What’s Impacting Rates Now?Big week for reports: Treasury will issue a quarterly update on borrowing needs on Monday and today. Also, today’s announcement will bring updated thoughts from Powell on whether the Fed would be able to cut rates at all in 2024.Finally, the big monthly jobs report will be released on Friday morning followed by ISM's service sector PMI.You’re in the Loop!A selection of insights on what’s happening in the mortgage industry: Mortgage bankers post a record annual loss on originationsIndependent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.Why LOs could be insulated from noncompete ban's impactLoan officers are among the industry's most sought-after employees, but current business practices raise questions about whether the federal ban on noncompete clauses will have a direct impact on them.Is title insurance ripe for disruption?The Biden Administration's title waiver pilot has started a broader discussion on whether the product is worth the money paid or even needed at all and can be replaced by an alternative.

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There are several strategic avenues that homeowners can explore to work towards paying off their mortgage early.Ready for your new payment plan, approved by mortgage and finance experts? Here are some of their best tips for paying off your mortgage faster: https://bit.ly/44rKYZE