Doug and Melanie Sedam * Serious home buyers need to start the process in a lender’s office, not at an open house. * Most sellers on the resale market expect buyers to have a pre-approval letter and will be more willing to negotiate if you do. * All developers will want you pre-approved (and most times with their…
Tag: Dollars and Sense
Features, May 2021
Dollars and Sense: Mortgage Financing and Newly Adapted Automated Underwriting Processes
Doug and Melanie Sedam We are in the midst of an extraordinary year that has seen a surprising turn in the mortgage industry. The fact that the COVID-19 pandemic has had unprecedented economic impacts does not need to be overstated. In the case of mortgage financing especially, record low rates have led to extraordinarily high…
Features, January 2021
Dollars and Sense: Trends That Are Predicted to Take Place in 2021 in the Real Estate and Mortgage Markets
Douglas and Melanie Sedam In 2021, mortgage rates will rise from record lows, home-price gains will slow, and Americans will continue their migration to less dense regions and lower-cost housing markets. That is according to housing experts who spoke during last week’s virtual conference of the National Association of Real Estate Editors. Trend 1: Mortgage…
Features, November 2020
Dollars and Sense: What Is the Maximum Loan Amount?
Melanie Sedam A maximum loan amount describes the total amount that an applicant is authorized to borrow. Maximum loan amounts are used for standard loans, credit cards, and line-of-credit accounts. Key Takeaways * A maximum loan amount describes the total sum that one is authorized to borrow on a line of credit, credit card, personal…
Features, October 2020
Dollars and Sense: Refinancing Your Home
If you are interested in borrowing against your home’s available equity, you have choices. One option would be to refinance and get cash out. Another option would be to take out a home equity line of credit (HELOC). Here are some of the key differences between a cash-out refinance and a home equity line of…
Features, September 2020
Dollars and Sense: What Is a Stated Income Loan?
In the past, stated income mortgages* were home loans that did not require income verification or documentation. Lenders just needed a borrower’s stated income—hence the name “stated income” loans. Unfortunately, these risky loan types contributed to the 2008 housing market crash, and banks stopped issuing stated income loans as a result. This prevented banks from selling…
Features, July 2020
Dollars and Sense: How A Cash-Out Refinance for Home Improvement Works
Melanie Sedam Looking to make some major home improvements? Have you considered a cash-out refinance on your existing home? Refinancing is a low-interest way to get tax-free cash for remodeling your kitchen, building a pool in the backyard, or anything you choose to do. Let us look at an example. Say you bought your home…
Features, July 2020
Dollars and Sense: Reverse Mortgages (Part 5)
The Paseo Financial Group Recently, the Consumer Finance Protection Bureau put together a report to examine the reverse mortgage industry. This report concluded that the following groups of seniors were most likely to benefit from obtaining a reverse mortgage: * Those looking to supplement a fixed income in retirement. * Those who need a home…
Features, June 2020
Dollars & Sense: Reverse Mortgages (Part Four)
The Paseo Financial Group There are three major fees that borrowers must pay. Most are similar to those paid on a forward mortgage. These are the upfront fees that you will need to pay: Origination fee paid to the lender. This is government regulated and ranges from a minimum of $2,500 to a maximum of $6,000,…
Features, May 2020
Dollars and Sense: Reverse Mortgages (Part Three)
The Paseo Financial Group The amount of your reverse mortgage is based on how old you are, how much your home is worth, and the interest rate that you are offered on the loan. Your borrowing power increases: * When you are older. An 80-year-old will be able to borrow more than a 62-year-old, if…