The Redmond Group

Legend Home Lending

First Time Home-buyers: How to Properly Research Your Mortgage Options

by

First Time Home-buyers: How to Properly Research Your Mortgage OptionsFor most consumers, buying a house is the largest purchase you’ll make in your life. That’s why it’s important to ensure that you have the best mortgage terms available. With so much at stake, it’s important to have full confidence in both your lender and your mortgage.

So how can you ensure that the mortgage you choose is the right one for you? Here’s how you can evaluate your mortgage options and find the best option for your individual circumstances.

Make Sure You Actually Do Shop Around

According to the Consumer Financial Protection Bureau, half of borrowers consider just one lender before applying for a mortgage, while 70% of borrowers only apply to one lender. While a broker or your bank can be a good source of information about mortgages and may offer great rates, that’s not always the case. The best way to get a great deal on a mortgage is to shop around and see what’s available.

Look For Information From Reputable, Independent Sources

When you’re looking at mortgage terms and evaluating lenders, it’s important that you remain skeptical. Lenders always have an agenda – to earn money on your debt. While lenders can indeed offer you expert information on the mortgage industry, they’re not exactly objective – so make sure that when you consider their offers, you refer to independent experts when deciding if you’re getting a good deal.

Compare Loan Terms, Not Bonus Incentives

Quite often, banks will offer their clients extra mortgage incentives available only to clients. These incentives can include things like free savings bonds or a free credit card limit increase. But just because you’re getting a freebie, that doesn’t necessarily make the mortgage a good deal.

It’s important to consider both the value of the incentive and the cost difference between mortgages. If your bank’s mortgage would cost you an extra $5,000 over the life of the loan compared to a third party mortgage, then your bank would need to give you $5,000 worth of free services in order to make your bank’s loan worth your money. Don’t be fooled by flashy freebies – look at the actual terms.

Finding the right mortgage can be a struggle, especially if you’re trying to do it on your own. That’s why it helps to consult an independent mortgage professional who can advise you on industry standards and help you to get the best terms. For more information or to schedule a consultation, contact your local mortgage advisor today.

An Overview Of A Drive By Appraisal

by

An Overview Of A Drive By AppraisalIf you are applying for a home loan of any kind, there is a high likelihood that your lender will require a home appraisal. An appraisal is done to figure out how much your home is actually worth because the lender does not want to lend you more money than you could theoretically sell the home for in the future. There are some situations where the lender might be fine with a drive/by appraisal. What does this mean?

Comparing A Traditional Appraisal To A Drive By Appraisal

A traditional appraisal is a very thorough process where the appraiser comes to the home and inspects almost every portion of the home. This includes the interior and exterior. Then, the appraiser uses the information to calculate an estimate of the value of the home.

In a drive-by appraisal, the appraiser will only look at the exterior of the home. Then, the appraiser will compare this to the exterior of similar homes in your area, such as in your neighborhood, to get a better idea of how the value of your home compares to similar homes near you. Then, the appraiser uses this to figure out the value of your home. 

When Is A Drive By Appraisal Permitted?

Ultimately, a drive-by appraisal is permitted at the discretion of the lender. Typically, if you are applying for a new home loan, the lender will want a full appraisal; however, due to the pandemic, some lenders have become more lax and have been allowing drive-by appraisals for safety purposes. In addition, if you are applying for a refinance, the lender might not require a full appraisal. This is likely dependent on the time between your original home loan and the current refinance. It might also be dependent on your financial situation. 

Do I Want A Drive-By Appraisal?

There are a few advantages to you if the lender allows a drive-by appraisal. The process is usually faster, so it could help you expedite the closing process. In addition, if someone occupies the home currently, a stranger doesn’t have to enter the home to inspect every nook and cranny. If your lender requires a home appraisal, be sure to clarify what type of appraisal has to be done to get you to the closing table. 

What’s Ahead For Mortgage Rates This Week – July 5, 2022

by

What's Ahead For Mortgage Rates This Week - July 5, 2022Last week’s scheduled economic news included reports on home prices, pending home sales, and inflation. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller: National Home Price Growth Ticks Down in April

Home price growth slowed in April according to the S&P Case-Shiller National Home Price Index as growth slowed by 0.20 percent to a 20.40 percent gain year-over-year. Slower growth in home prices suggested that affordability concerns have caught up with the rapid home price growth seen during the pandemic.

The S&P Case-Shiller 20-City Home Price Index reported that Tampa, Florida home prices gained 35.8 percent year over year in April followed by a 33.3 percent price gain in Miami, Florida. Home prices in Phoenix, Arizona grew by 31.3 percent year-over-year.

Pending home sales rose by 0.70 percent in May as compared to April’s reading of -0.40 percent.  Analysts expected pending home sales to fall by 0.40 percent in May.

Fixed Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower fixed mortgage rates last week as the average rate for 30-year fixed-rate mortgages fell by 11 basis points to 5.70 percent. Rates for 15-year fixed rate mortgages averaged 4.83 percent and were nine basis points lower than in the prior week. The average rate for 5/1 adjustable rate mortgages rose by nine basis points to 4.50 percent. Discount points averaged 0.90 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. 

New jobless claims fell to 231,000 claims filed last week as compared to 233,000 initial claims filed in the prior week. Continuing jobless claims were unchanged with 1.33 million ongoing claims filed last week.

In other news, the federal government reported that the Consumer Price Index rose by 8.60 percent year-over-year in May. This was the highest reading since 1981. Rising inflation was largely caused by rising food and fuel prices. The month-to-month reading for the Consumer Price index rose to 0.60 percent in May as compared to April’s month-to-month reading of 0.20 percent growth. Analysts said that the economy is slowing due to rising consumer prices and interest rates; the  Federal Reserve recently rose its key interest rate range to 0.75 to 1.00 percent to ease rapidly rising inflation.

What’s Ahead

This week’s scheduled economic reports include labor sector data on job growth, the national unemployment rate, and job openings. Weekly readings on mortgage rates and jobless claims will also be released.

Case-Shiller: Home Price Growth Slows in April

by

Case-Shiller: Home Price Growth Slows in April

U.S. home price growth continued but slowed in April according to the S&P Case-Shiller Home Price Indices. The national home price index posted year-over-year home price growth of 20.4 percent in April as compared to the corresponding home price growth rate of 20.6 percent in March. Analysts said that diminishing affordability was slowing rapid gains in home prices seen during the pandemic.

20-City Home Price Index: Florida and Arizona Report Top Home Price Growth Rates

The top three cities for year-over-year home price growth in April’s 20-City Home Price Index were Tampa, Florida with a reading of 35.8 percent; Miami, Florida reported 33.3 percent growth and Phoenix, Arizona reported a year-over-year home price growth rate of 31.3 percent.

Nine of the 20 cities included in the index reported higher price gains in April as compared to March. All 20 cities reported higher home prices in April than in March. While analysts noted the slower pace of home price growth, they cautioned against expecting falling home prices any time soon. Craig J. Lazzara, managing director of S&P Dow Jones Indices said that April’s increase in home prices ranked in the top 20 percent of historical experience for every city, and in the top 10 percent for 19 of the cities included in the 20-City Home Price Index.

FHFA House Price Index: Home Prices Rise in April

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, reported a year-over-year home price growth rate of 18.8 percent for single-family homes owned or financed by Fannie Mae or Freddie Mac. Home prices of homes owned or financed by Fannie Mae and Freddie Mac rose at a month-to-month pace of 1.6 percent in April.

The FHFA Home Price Index reports on home prices across the nine Census divisions; month-to-month home price growth ranged from 0.3 percent in the East South-Central division to 14.1 percent in the Mid-Atlantic division to 23.5 percent in the South Atlantic division. The FHFA Home Price Index is based on single-family home sales data from more than 400 cities in all 50 states. 

Equal Housing
Legend Lending Corporation • NMLS # 229421 | NMLS Consumer Access | Privacy Notice | Texas Recovery Fund Notice

Legend Lending Corporation, NMLS 229421 is an equal opportunity lender.

Archives


Joel & Jodi Redmond
17047 El Camino Real
Suite 150
Houston, TX 77058