Thursday, November 8, 2018

2nd of 10 clever ways to save money on your mortgage!

2. Cut Out the PMI

PMI protects the lender in case of loan default
If you borrow more than 80% of the value of your home, you normally have to pay for private mortgage insurance (PMI) to protect the lender. 

If your loan balance is around $140,000, you could be typically paying $720 for 10% down and as much as $1,400 for 5% down PMI just this yearYou can "buy out" the PMI with an up front premium paid to the PMI company and you don't have a monthly PMI payment associated with your mortgage payment. 

There is another new feature that also allows for partial up front payment and a monthly payment amount.  Each has its benefit and requires analysis to see if it makes sense to do it and if you need help with the analysis, call me at 801-540-5108 and together we can find out which is the best way to go.

Avoid PMI with 20% down!
A down payment of 20% is the most obvious way to avoid paying for PMI. If this amount is more than you have in savings or gift from relatives with the homes you're considering, suggests simply shopping for lower-priced homes for which you can make a 20% down payment. For all the Dave Ramsey fans, he suggests 20% down AND 15 year conventional loan financing as the ONLY way to go!  Whether you go with 30 or 15 year financing, avoiding PMI SAVES thousands of dollars annually!

If you've already bought your home, you can speed up those payments to get the balance below 80%, and then request that the PMI payments be dropped. The process of having your private mortgage insurance dropped EARLY is a process and I can go over the best way to approach this with your loan servicer.  Give me a call at 801-540-5108 and I can go over the best way to be successful getting your PMI dropped EARLY!   Lenders do not always agree to drop the insurance requirement, but at that point you could also refinance to get rid of the PMI.

Check for PMI cancellation at 78% loan to value!

The law says a lender has to drop the PMI at the point when you are scheduled to reach a balance of 78% of the home’s value at the time of purchase, as long as you're making the payments on time. If you are at that point, check to make sure the PMI has been dropped. 

Highlighting the balance you need to pay down to on the amortization schedule that you receive at closing from you lender is one of the best ways to REMEMBER when to check to make sure that your PMI is no longer part of your payment. 

Marty Qualls
Professional Loan Services since 1991
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Monday, November 5, 2018

Watch for 10 clever ways to save money on your mortgage!

What's your biggest expense? If you’re like most people, it’s putting a roof over your head. And it's getting more expensive.

In fact, the cost of housing is rising faster than incomes for the middle class, according to a National Housing Conference report. Renters may have the worst of it; the Wall Street Journal reports that rent has been rising for 23 consecutive quarters.

By buying a house, you have more control over rising housing costs. You won’t have to worry about a landlord raising the rent, and a fixed-rate mortgage loan guarantees the same principle-and-interest loan payment for the next 30 years.

Yes, borrowing for a home is expensive. Fortunately, with a few smart strategies, you can reduce your monthly mortgage payments and cut the overall cost of paying for your home.

Watch for the upcoming "10 Clever ways to save money on your mortgage"!

Here's the link to the 1st of 10:

In a pinch? Save money on your mortgage-modify your loan

Marty Qualls
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Thursday, November 1, 2018

Breaking News! Freddie Mac releases 2019 and 2020 mortgage rate predictions

Freddie Mac's October forecast: Mortgage rate at 5.6% in 2020

|About: Freddie Mac (FMCC)|By:, SA News Editor
Freddie Mac (OTCQB:FMCC)
Predicted Mortgage Rates: Freddie Mac foresees 30-year fixed-rate mortgage rates to rise to 5.1% in 2019 and 5.6% in 2020, up from expected average rate of 4.5% this year, according to Freddie's October Forecast.

How high will payments go with the higher rates?
4.50% was the Average rate for 2018
5.1% in 2019 (+$49/month on a $300,000 Loan Amount)
5.6% in 2020 (+$143/mo. on $300K LA)
If take into consideration the increase in value (see below)
the payment increase in 2020 is estimated to be +$153 higher.

Home prices are expected to increase 5.4% in 2018 with the growth rate slowing to 4.6% in 2019 and 2.9% in 2020.
 Home price increases on a home valued at $331,100 (Dec 2017):
Value at the end of 2018=+5.4%= $350,000
Value at the end of 2019= +4.6% = + $16,100= $366,100
Value at the end of 2020= +2.9%= +$10,600= $376,700 home
Total of a $45,600 increase in value in THREE years!

Total home sales--new and existing--are now forecasted to decline modestly this year to 6.07M, and then increase 1.8% to 6.18M in 2019 and rising 1.1% to 6.25M in 2020.

Freddie Mac's Summary statement: 
"While we expect the weakness in housing activity to extend the next few months as the market absorbs the recent uptick in mortgage rates, the combination of strong economic growth and millennials moving toward homeownership should help home sales regain momentum and rise modestly in 2019," says Freddie Chief Economist Sam Khater.

Marty Qualls
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Tuesday, October 30, 2018

Study says: Be an Influencer AND a Real Estate Agent and 80% of Millennials will want you!

A majority of millennials said they would consider hiring an "influencer" as a real estate agent, according to a new study.

A survey of 1000 millennials born between 1982-1999, with income greater than $100,000 per year, found that 84% of these "High Earners, Not Rich Yet" or "HENRY's" confirmed that, "Influencers impacted their decision to make purchases and 80% would consider hiring one as a Real Estate Agent".

To be an influencer, we hear the phrase ‘be a digital mayor’ often in the real estate industry, but that’s not enough anymore,” said Engel & Völkers Americas President and CEO Anthony Hitt. 

While you have to have the neighborhood knowledge, social presence, work for the right company, have the reputation that precedes your interaction with buyer's and seller's, you also have to have a niche or distinguishing factor that blends this knowledge with entertainment or aspirational value that will make you a center of influence — building your following and referral base as a result.

The survey also found that 98% of HENRY's rely on social media or reviews based on websites like Yelp.  With HENRY's poised to become the next generation of wealth, Realtor branding must set out specifics on how they plan to serve this distinctive generation. 

Here are the top three factors for HENRY's choosing a Real Estate Agent:
1)  Referral from Friends and family 59%
2)  Reputation in the local neighborhood 53%
3)  Local neighborhood expertise 50%

Authenticity has never been more important, and real estate agents should position themselves as trusted advisors and sources of insider information before, during and after the transaction.

These consumers are going to seek out agents they feel are knowledgeable and trustworthy — and ones that they can relate to or even aspire to on certain levels.

Source of information from Gabriela Barkho, Inman News

Marty Qualls
PRMI Mortgage-Ogden Office

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Thursday, October 25, 2018

1st of 10 Clever ways to save money on your Mortgage!

Save money on your Mortgage with your Mortgage Loan Servicer

Modify your loan:
If you are late on payments or going through tough times, you might qualify for a loan modification through various programs.  Whether PRMI is your loan servicer, or if you make your payments to someone else, loan modification is an excellent opportunity for you to work out a program to enable you to stay in your home!  

Depending on the program, you could qualify for a reduced interest rate, forgiveness of part of the principal, or an extended loan period and lower monthly payment. Check out various programs on or contact your mortgage servicer.

Marty Qualls
Visit on the phone: 801-540-5108
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Mortgages with Marty Qualls in Utah since 1991!

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Tuesday, February 27, 2018

What can cause mortgage rates to go up?

Federal Reserve Chairman Jerome Powell testified in front of the House Financial Service Committee on the State of the U.S economy.  Wages have increased 2.9% year over year in January (after a dismal 2.5% average in 2017) and as wage growth continues, businesses will need to fund this growth with higher product prices.  This will contribute to inflation.  Inflation hurts bond values and when bond prices go down, rates go up. 

The Mortgage Bankers Association (MBA) continues to predict that there will be four short term borrowing rate increases this year (what the government charges banks for overnight loans).  These rate changes will create ongoing volatility in mortgage rates.  The MBA has also predicted an average rate of 4.80% in the 4th quarter, 2018.

According to S&P Case Shiller, December saw home prices increasing and February consumer confidence hit the highest level since November, 2000.  Wage increases, higher product prices, home value increases and consumer confidence at a multi year high predict increasing mortgage rates. 

Here's where all of this information took me this morning:

This morning, I calculated an increase of $47/mo in house payment at a future 4.8% interest rate versus what we have available today.  My client this morning was wondering if buying now or waiting until the end of the year made the most sense considering they are locked into a rental contract until year end? 
Mortgages with Marty in Utah!
Something else to consider would be home value appreciation and a higher sales price of $15,600 (considering a 6% home value appreciation per year).

With higher rates and higher sales prices at year end, my client is now wondering if it makes sense to break their lease early and purchase now?

If you would like to review your options to purchase or refinance, give me a call at 801-540-5108. 

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Wednesday, January 3, 2018

Today's rates and what it means for January 2018?

Today's Rates

Mortgage rates today have opened unchanged, as investors ignored this morning's financial reporting and continued to wait for Friday's Employment Report.
The Institute For Supply Management released its ISM Manufacturing Index for December. The index tracks where production managers in the US feel their business is heading -- anything over 50 means business is increasing. Experts anticipate that the index will drop slightly from last month's 58.2 to 58.0. We got a rise, however, to 59.7. This could hurt rates if anyone pays attention to it -- the report is known to be volatile.
Manufacturing and production output (as well as the feeling business has about the future of the economy) is a predictor or WHEN inflation will start.  In my experience over the years, I have seen this increase in the ISM a preview of increasing rates (inflation). 

Purchase or Refinance:online application

Marty Qualls

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Rate forecast for January 2018

Click on Buy or Refinance
It's a new year, but a similar story from years past is on repeat. Mortgage rates are low, but not for long.
Just about every analyst out there is calling for higher rates in the new year. The economy is breaking records, and a freshly minted tax code could induce economic expansion, but also inflation.
All these factors are bad for mortgage rates.
The good news, though, is that rates are surprisingly steady in the face of overarching changes like the new tax law. A golden opportunity still exists for those who are looking to buy or refinance a home in 2018.
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Marty Qualls  801-540-5108


Thursday, November 30, 2017

Conforming Mortgage Loan Limits for 2018 increasing!

New Conforming Loan Limits in 2018
The Federal Housing Finance Agency (FHFA) announced new maximum loan limits effective January 1, 2018 for conforming loans acquired by Fannie Mae and Freddie Mac.

In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. Higher loan limits will be in effect in higher-cost areas. New loan limits, however, will not take effect in 71 counties or county equivalents around the country.

What prompted this change? The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.

On November 28, FHFA published its third quarter 2017 House Price Index report, which included estimates for the increase in the average U.S. home value over the previous four quarters. According to the report, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017. Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.

With home prices on the rise, the conforming loan limit increase opens up opportunities and helps keep home loans more affordable for more Americans.

If you'd like to learn more about these new loan limits or other loan products, please get in touch with me today. I'm happy to help!

Mortgages with Marty in Utah!

Friday, February 10, 2017

When are mortgage rates going to go up?

For the fourth straight month, the Rasmussen Reports Consumer Spending Update shows confidence in the economy trending upward - with an amazing 25-point overall increase in economic confidence and a 26-point increase in confidence in the direction of the economy since the 2016 presidential elections.

#1 wealth accumulator in America is to own real property!
What does this mean for interest rates?  Are they REALLY on the way up like everyone is talking about? 

Because the economic cycle predicts what will happen with interest rates relative to growth of wages, consumer confidence, Wholesale price escalation, etc., we have data which supports what will be happening in the future of the mortgage industry in 2017. 

Okay, so what is going to happen? 
As consumer confidence increases, our economy is expanding and workers (consumers) will buy more products, increasing demand which at a certain point, creates inflationary pressure (From our old days in Econ 101-Demand and Supply lecture). 

Mortgage bonds HATE inflation!  So, If bond prices go down, because they don't like inflation, rates go up.  Really, from my vantage point and from what I read from experts that are a whole lot smarter than I am, it's just a matter of time before the rates go up. 

Then you might be wondering by how much will the rates be increasing?  That's for another post. 
But for now? Our rates continue to hover at historic lows.  Great news for purchasing, building and refinancing.  

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I look forward to helping with mortgage questions and needs! 

Marty  801-540-5108

Tuesday, February 7, 2017

Home Values Increasing Along With Ownership

It was an exciting time for home ownership growth in 1992 as Bill Clinton became our 42nd President.  President Clinton PUSHED for homeownership in America!  It made sense for America because there would be less public assistance needed because there would be fewer divorces because that's the good thing about owning a home, it provides stability.  Statistics supported family formation AND home ownership to stop the drain on financial assitance. 
President Clinton knew his numbers. 
He knew his facts.
He knew that welfare and other public assistance costs associated with a single parent home would decrease, IF he could get what he wanted...
His goal was that 67% of American households would be home owners!

President Clinton came close to reaching his wishes of American homeownership as the housing industry BOOMED!  But it wasn't until June, 2004 when then President #43, George W Bush, reaped the rewards of a fully engaged economy working WITH mortgage rates and home ownership to create a country where...
69.2% of American Households owned a piece of the rock!

Agenda's change, the economy lags, goals for homeownership fall away and twelve years go by and on July 28, 2016 American household home ownership FELL to the lowest level since 1965...
62.9%.  :(  Boo! 

19 months later we now see the percentage of American Households owning their own home increasing, ever so slightly, but increasing every quarter!  :) Yay!
As we closed out 2016 and were on the verge of swearing in our 45th President, we now see...
63.24% of American's OWNING!  

These are households who are not renting or living with relatives and are enjoying the current home value appreciation of 3-7% annually (depending on the state you live in and/or the neighborhood you live in-YES, the neighborhood in UTAH makes a 3% difference in annual home value appreciation, just ask your Realtor!).

Marty Qualls
Professional Mortgage Services since 1991
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2nd of 10 clever ways to save money on your mortgage!

2. Cut Out the PMI PMI protects the lender in case of loan default If you borrow more than 80% of the value of your home, you normally...

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