Determining Affordability: How much house payment is too much? How much is just right? ?Housing Expense is defined as ?PTIT(A)? ((Principle+Interest+Taxes+Insurance ((+Association )meaning HOA fees when applicable)) or 31%. ?31% is the amount of your gross income industry experts believe to be ?affordable?. ?This means if your income is $50,000 per year, (divided by 12) you earn $4,166 per Continue Reading about Did You Know ~ What Is Affordability ~ By Penny Sheppard
Senior Mortgage Consultant Kerrie Lambert with Movement Mortgage in Charlotte, NC recently shared with me a rent versus own comparison chart. The chart above uses the assumption of renting a home for approx. $2,200 a month versus purchasing the home for approx. $300,000. Based on a 30 year fixed rate loan ( and other loan factors indicated Kerrie's chart) , your monthly loan payment would be Continue Reading about Rent vs Own A Home Compare
Do credit inquiries hurt my score? This is a great question and a common one!? Many potential home buyers are afraid to let a lender pull their credit report because they think it will drop their score.? This is actually a very harmful MYTH and let me explain why. Mortgage lenders use a scoring formula developed by Fair Isaac called FICO score.? FICO ignores mortgage inquiries for the most Continue Reading about Do Credit Inquiries Hurt My Credit Score?
Post From Loan Officer Olan Carder This is always the million dollar question. I get asked more than anything else, "Where are rates? Where are rates going? What are rates about to do?" This is a tough question for the average loan officer because although we deal with rates all day everyday, many loan officers don't understand the economic factors that drive rates or frankly don't have Continue Reading about WHERE ARE RATES HEADED? Update Fort Mill Mortgage Rates
Mortgage rates have increased slightly in the last couple months but overall, today's rates are still affordable. Here's a brief? history of 30 year mortgage rates for the last 20 years. In 1990, rates averaged 10.5%. Rates showed a steady decline year to year until 2004. Rates in 2003 where around 5.6% then jumped to6.4% in 2004. Rates declined again to 5.8% 2005. The roller coaster ride Continue Reading about Mortgage Rates Still All Time Low
The newly passed Frank Dodd Bill has a risk retention rule that states anyone originating a home loan must retain 5% in reserves against that loan. Basically Congress is requiring lenders to put a little more skin in the game. This sounds like it makes sense, but let's take a closer look at what this might mean for the market and for homebuyers. First of all, this rule applies to conventional Continue Reading about New 30% Down Payment Rule Might Hurt Housing Market!
Mortgage Update? Tuesday December 14th 2010 Rates are on the move AGAIN! The MBS Market is down over 100 basis points again and rates are headed for or are already at 5%. I will keep you posted through the week. Why are rate going up? The risk of inflation has increased which creates risk on the yield of the mortgage backed securities. This has caused the mortgage bond prices to Continue Reading about Mortgage Rate Update and Its NOT Good News!
The Blood Bath Continues! Ok guys, we have lost another 100 Basis Points today so in the last 48 hours we have lost 234 basis points int he mortgage bond market! I am not sure how to put that into perspective but HUGE is not nearly a big enough to describe it. Continue Reading about Fort Mill Mortgage Rates Going Up?