A way to improve credit scores!

Call Marty Qualls at
801-540-5108
"More Mortgages With Marty"

 
Potentially higher credit scores in exchange for access to people’s bank accounts: Access to consumers’ bank accounts as part of an effort to help people boost their credit scores. Announced Tuesday that it is launching a new program called “Boost.” Through the program, consumers grant access to their bank accounts to allow to use utility and telecommunications payments in the calculation of their credit score.

Call me and with MonitorBase (I'll explain about how MonitorBase works overtime to let me know when you are ready to go), we can get your credit scores where they need to be to purchase a home!
                                     Marty Qualls 
                                                        PRMI
                                                        801-540-5108

Breaking News! Release of 2019 and 2020 mortgage rate predictions

October 2018 forecast: Mortgage rate at 5.6% in 2020

Oct. 29, 2018 5:34 PM ET|About: |By: Liz Kiesche, SA News Editor

 

Predicted Mortgage Rates: 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 the 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.





 

 

                                                     
                                                     
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 Chief Economist Sam Khater.

                       

Marty Qualls
Cell 801-540-5108
email: mqualls@primeres.com

My reviews

Convenient Online Loan Application

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.  

Thanks for liking my Facebook Business page! 

It can be found by clicking here:

"Mortgages With Marty" Facebook Page

Thanks for telling your friends and family about me! 

I look forward to helping with mortgage questions and needs! 

Marty  801-540-5108

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
Click here to "like" or follow "Mortgages with Marty!" on Facebook!
801-540-5108

When is the "perfect" time to lock your mortage rate?

Know How To Recognize A Good Mortgage Rate

Mortgage lenders are often asked if there is a best time of day, day of the week, or period of the year when a prospective borrower should lock in a mortgage interest rate. 

The truth is, no one can tell with any degree of accuracy what rates will do.
In fact, the best time to lock a mortgage is when the unexpected happens.

Case in point: Brexit
Recently, Britain voted to exit the European Union. “Brexit,” as it is known, caused an international "flight to quality," meaning investors worldwide sought perceived safe assets like U.S. mortgage bonds. Mortgage rates fell dramatically.
These unforeseen shifts are the best time to lock a mortgage. But what if you’re not fortunate enough to be rate shopping during a period of mortgage rate upheaval?
Then, you go into the process knowing how to recognize a good rate, and being ready to lock it in.

Locking The Perfect Rate Is Like Hitting A Moving Target

Purchasing a home could be the most impactful financial decision you will make in your life. You want to capitalize on the lowest possible rate.
In an ideal world, you would know when to pull the trigger on a rate lock with perfect timing -- assured in the knowledge that rates have hit their relative lowest point. But with interest rates subject to change daily and even hourly, choosing the right time to pull the trigger on a rate lock can be difficult.
This is a matter best discussed with experienced mortgage expert who can review your unique situation and suggest relevant options.

It's fast and furious when deciding to Lock or Float

Mortgage Rates at 3.5 Percent, until Noon yesterday

 

Mortgage rates were widely available at 3.5 percent for some of the day yesterday.  At any other time from the middle of 2013 through the end of 2015, that's not something that very many people thought they'd be able to say (or read, or think!).   


As is often the case with financial markets, the biggest, quickest moves demand an occasional pause. The bounce prompted most lenders to revise rate sheets higher in the afternoon.

Still, it's a good wake-up call as to the potentially temporary nature of the long-term lows we have been enjoying.  Markets run hard.  Sometimes they can surprise you as to how hard and how fast they change.  And then at some point, the running is over, or worse: we run in the other direction.  

There's no telling whether that's the case with yesterdays intraday bounce, but it's always a risk that can factor into one's decision-making process when it comes to locking or floating.
 
                    Call me for help with your purchase or refinance mortgage questions. 
  

Grant money is available!

Purchasing a home in Clearfield city limits and also in all of Davis County just got a whole lot easier!  Grant money for 2015 (loan closing must happen before December 31, 2015) is currently available and on January 1, 2016, MORE grant money will be announced and available. 

Grant Money available!

Income limits are generous and the Grant money is forgiven (doesn't need to be paid back) after 7 years!  FREE money to be used for down payment or closing costs in conjunction with any fixed rate mortgage loan program!

I have the Grant application forms, reserve your Grant money today by calling me today!

Why home ownership makes sense financially

A recent Harvard Study (The rent crisis is about to get a lot worse) conducted to explore the cost and benefit of renting vs buying found that the number of  households which could be spending at least half of their income on rent could increase 25% (increasing to 15 million households) over the next decade.

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. Last year he released a paper on homeownership - The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available. 


“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

Rents are going through the roof!

Rent costs are rising quickly!

Single family rentals account for 13% of the overall housing stock (up from 9% in 2005) and rents are heating up!  Rents are higher than they should be given the underlying real estate values. 

As a result of the higher cost of rent relative to overall household income, first time home buyer's who have now entered the market (first time home buyer home purchases are the highest this year since 2009) are discovering the value of purchasing rather than renting. 

With appreciation in home values ticking along at 4% per year nationally (and regionally 6-8% and higher in some hot selling neighborhoods), coupled with historically low interest rates, and home financing is once again available to home buyer's with good credit, reasonable debt obligations and little or no down payment. 

Purchase a home today because all the stars are lining up!

With after tax rates for home financing in the 3% range, home buyer's today are using their home purchase as a financial leveraging tool and will payoff debt that has a higher interest rate, like credit cards, student loans, department store cards and car loans, and paying off their mortgage LAST.


If a home purchase can again be viewed as an investment (steady appreciation) and as a financial leverage tool (payoff higher interest rate debt first and your mortgage last), the only thing we need to add to the equation is a beautiful house to buy for fun and financial success to begin!

Call Marty Qualls at 801-540-5108 for help with any of your mortgage questions.   

What's FHA financing all about?

FHA loans in 1991:
When I became a mortgage loan originator in 1991, I couldn't believe that there was a loan product which allowed all of the down payment to be gifted!  "Are you sure this is true?", I asked my mortgage lender buddy who had come over to the mortgage department at the bank we were with just 6 months before.  "It's true!  Can you believe how great of a program it is?"  That was my first impression of how great the FHA loan was because it lowered the barriers to home ownership for first time buyers.

FHA loans today: 
The FHA loan is a great fit for first time home buyer's and others with specific lending needs.  Since 1991 I have learned much about lending and about FHA.  I now know that FHA is a loan insurer not a lender, and that the loan is available to both first time home buyer's needing 100% financing (Utah Housing Loans/State Bond Programs), and it's a great alternative for buyer's who have less than perfect credit (my company, Primary Residential Mortgage, has a 580 credit score FHA loan program!).  FHA offers streamline loans to allow homeowners to lower their interest rate with NO COST (ZERO will be added to their existing loan balance, no appraisal required).

With FHA rates at their lowest in 17 months ( June, 2013), this is a great time for buyer's and current FHA loan holders to utilize purchase and refinance options!  Call me today for a more thorough analysis and discussion about what program's fit your needs the best.

Lots of buyer activity for Q4, 2014

The fall months are no longer a real estate dead zone, and there is still plenty of action happening after Labor Day through Christmas.  An article in the October 18, 2014 Ogden Standard Examiner said that Davis County home sales were up 7% and Weber County were up 4% when compared to the same August time in 2013. Pending sales (homes under contract which will close in October) were up 22%, showing significant momentum for home sales as we enter into the beginning of Q4.  

By Brendon DeSimone on 26 Sep 2014

Fall officially began Sept. 23, but that doesn’t mean you should scrap plans for selling your home this year. In fact, October, November and December can actually be good months to sell. Now is the time to plan for it if you’ve even considered putting your home on the market.

Buying a home BEFORE winter

 It’s that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don’t have to look much farther to find four great reasons to consider buying a home now, instead of waiting.

Why buying a home before winter makes sense

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently (best mortgage rate of the year, today 10/7/14), most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year. An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way You are Paying a Mortgage

As a recent paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

Bottom Line

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.  

Mortgage questions?  Call 801-540-5108

Realtor referral available upon request

To get the ball rolling in your discussion about selling your home, I can help with mortgage questions you might have.  As a first step, it's always good to get an analysis of your current situation and to then get a credit approval into your hands.  Call me at 801-540-5108 with your mortgage questions.  

If you need a qualified Real Estate Professional to help with your home search, I can refer you to one of my trusted Realtor Business Partners for a worry free and pleasant home buying experience.  

When I sell my home, what will my net proceeds be?

When you buy your home it seems that everything can go your way.  You ask for a lower sales price, it usually happens and you get it or at least you meet somewhere between the "asking price" and what you would dream of getting the home for (the "bargain price").  

By accepting the discounted price, is that all the seller is having to pay to market and close on the sale of their home?  Of course not and agreeing on the price is only the first step.  From the meeting of the minds on sales price, the seller needs to figure in additional costs associated with marketing and selling (and closing) their home.  

In general, a seller will be looking at between 4% and 7% of the sales price in selling costs, and this doesn't take into consideration helping the buyer with their closing costs and prepaid expenses, if the buyer asks for this help and is obtaining mortgage financing to fund their purchase.  

A Realtor helping a seller market and sell their home will itemize expenses to be paid at closing and will provide a "seller net sheet" to help see what net profit the seller will be receiving from the sale of their home. 

As the seller, included in the net sheet expenses are the following (some or all may apply):

Hurry, inflation will usher in higher mortgage rates!

Economic data ramps up this week and ends with the "Big Enchilada" on Friday, August 1st, with the July Jobs Report.

In the first half of this year, there has been an average of 230,000 new jobs created per month, above the 203,000 recorded per month in the first half of 2013.

Can these numbers be sustained and perhaps even move higher in the second half of the year?

If the numbers remain constant or increase, we could see inflationary worries, the arch enemy of bond prices.  As bond prices suffer (go down) because of inflation, or inflationary worries, rates will go in the opposite direction (go up).  

Today's additional headline was, "Worker's raises are back in vogue", raises additional worries that products will cost more at the wholesale level.  The monthly wholesale inflation report can be a market mover, but so far has been tamed by the unsettled world military climate overseas.  

As the summer draws to a close, it may be the perfect time to consider purchasing a first home, selling and upgrading or downsizing or looking at the 2nd home or investment home market.  

Winning a Competitive Bidding War

Emotions can play a big role in the hot (temperature and real estate selling and buying activity) summer months.  Summer 2014 has created a balance of sellers and buyers and with it comes competition among buyer's.  There are ways to prevent paying too much for the house that you are interested in, even though you might feel that you need to increase your bid amount so you can be successful in "sealing the deal".

When in a competitive bid war there are some basic steps to take in order to not pay too much for the house you are bidding on:

1. Ask yourself, "is this really the house I want?"  Sometimes you will be able to step back and ask this objective question and it will cool off your emotions and you can make a level headed decision about "how high should I go with my offer?"

Inflation worries mean higher mortgage interest rates?

Inflation is the arch enemy of mortgage bonds and erodes bond prices.  The lower the bond price goes, the higher the mortgage interest goes.  The Federal reserve has done an excellent job of balancing growth of the U.S economy and their bond purchasing program has kept demand for Mortgage bonds high and mortgage rates low.  

With the latest poll from the Rasmussen Reports confirming what is happening with prices that we are paying for groceries, consumers are not confident that the Government (the Federal Reserve) won't have success in controlling inflation once the economy gets into full swing again.  If this becomes true , rather than a survey of what American's think MIGHT happen, we will see mortgage rates go up in the future.  

The Federal Reserve will be exiting the bond purchase program in October, 2014-this is their most recent estimate) and with inflation worries, this may be the best and last time to see these mortgage rates at the lows they are currently at (today's rates are the lowest they have been in 15 months). 

The report said that the number of Americans who are paying more for groceries also has risen to its highest level in over two years. There's an increasing lack of confidence, too, that the Federal Reserve Board can keep inflation under control.

A new Rasmussen Reports national telephone survey (95% confidence) finds that 88% of American Adults say they are paying more for groceries this year than the year before. 

This finding is up six points from last month and the highest since May 2012. Only seven percent (7%) say they are not paying more than they were a year ago, the lowest finding since January 2012. Five percent (5%) are not sure. 

5 Resolutions for First Time Home Buyer's

I love helping first time home buyer's!  The excitement they are experiencing brings back fond memories of my wife's and my first home purchase.  I cherish the opportunity to answer their questions and give them guidance so that their experience can be as pleasant as mine was.

Over the years, I have found that there are 5 resolutions or goals that first time home buyer's can focus on which will help them successfully negotiate their purchase and close on the loan that they want and deserve.

Every borrower has their own set of circumstances which makes their situation unique and I love working out a plan to help them get to the point of loan qualification and they can then move on to their home search.

Because so many first time home buyer's fall into similar circumstances, I have come up with
"The 5 Resolutions for First Time Home Buyer's".

The mortgage world is now rewarding borrower's with better interest rates and more favorable loan programs if they have higher credit scores, so my first advice is to Boost Credit Scores!  I developed a credit monitoring system which has been used by hundreds of my clients to help them fix their credit and to monitor their credit scores.  Here is the link to my Blog Article and at the bottom of the article is the link that takes you out to the credit monitoring companies offering a monthly service:  Credit Monitoring Program

Down payment can open loan program opportunities that will save huge amounts of interest savings over time.  And without a down payment, fortunately, we have great programs available for ZERO down mortgages-Utah Housing Finance Agency, but for the best loan programs, lower cost to originate, and lower interest cost over time,  Save Up to Put Down!

Find The Best Real Estate Agent is the secret sauce to a smooth enjoyable home buying experience! Because my Realtor Business Partners each approach the home buying process the same way as I do and will provide low pressure, educated guidance and assistance through the home buying process (and are experts with first time home buyer's and their questions and needs), I can provide you with a name and phone number of a trusted professional of mine who will amaze you with their abilities.

Beginning a home search usually begins with online searches and a visit to the mortgage calculator also provided online.  Unfortunately, the online mortgage calculators forget (or have no way of providing) information about monthly mortgage insurance (FHA) or private mortgage insurance (Conventional financing) and many assumed mortgage payments are just plain not correct.  The safest way to make sure that you are getting the correct information is to Get Pre-Approved!    My Credit Approval letters are backed up by an Automated Underwriting Decision (Fannie Mae or Freddie Mac) AND I underwrite income and assets.  What this means is that when a client of mine gets an accepted offer, their loan WILL close!  They also KNOW what their future payment is going to be rather than trusting the online calculator.  Pre-Qualify Today!

After meeting with clients, helping them with questions, taking their application (over the phone or in person), getting a credit approval, providing the credit approval letter to their Realtor, they then get to
Find Your Dream Home!  This is the most fun part of the process (still stressful, but fun) and with all 5 Resolutions for First Time Home Buyer's completed, this is a natural final process to a successful journey to home ownership.

How does your credit score measure up?

Home buying made easy with Marty Qualls

I had a great meeting with my Estate Planning Attorney, Jacob Smith, this morning and we talked about the different age groups of clients who we work with.  Just like Jacob, I many times work with the Gen Y or Millennial generation, those in the 19-29 age group.

I commented to Jacob that the Millennials like the fact that they can find you online (web page or blog) and that the information you provide there is easy to find, use and navigate.  I also know that they are the "Do It Youself" generation.  DIY describes how they operate within their everyday lives; they like to research things (Google, Wiki research), weigh out their decisions, not rush into things without considering options and alternatives. 

Even though Millennial's are the home buyer's who most want to easily and smoothly get a credit approval letter into place so that they can go make an offer, get it accepted and close on a loan, I found some interesting information from my research which can sometimes hinder the process of easily getting a credit approval letter: Gen Y has the lowest Average Credit Scores of any of the age groups!

10 steps to buying a home

Homeownership!

I have a "14 steps to Home ownership" outline which I give to my clients as we meet to complete the signing of their initial application paperwork.  There are 14 steps AFTER your offer to purchase a home gets accepted.

However, I realized that there are "10 steps to buying a home" that would help if you are just BEGINNING the process of purchasing a home.  This list contains important steps in the process  whether you are purchasing your first home, downsizing, or needing a larger home.

If you have further questions or if you would like to get your credit approval letter into place so that you can be a serious negotiator of sales price and asking the seller to pay for your closing costs, call me today and we can get started!

1. Determine your readiness-Are you in a rental or lease agreement, or are you on a month to month agreement?  Do you have money saved for a down payment (there are 100%, ZERO down programs available, call me for details).  Do you know what you qualify for based on your income and debts (this is something I can help with over the phone, call me). 
2. Become an optimal mortgage candidate-If your credit is "young" or you are rebuilding your credit, I have a "Credit Monitoring Program" I can refer you to that is an excellent tool for you to use!  
3. Get a pre-approval letter- My clients receive a FULL Credit Approval letter which is backed by a 3 bureau credit report AND an Automated Underwriting System decision.  This type of Credit Approval is what you need in the Mortgage world that we are currently in.  There can't be any guesswork in the mortgage process, you NEED a credit approval letter to have your loan successfully close! 

7 reasons NOT to payoff your mortgage before you retire

During an application meeting with my clients, whether they are close to retirement or not, I get to a spot where I talk about the conventional wisdom (we hear our parents and grandparents voices in our heads) of paying our mortgage off early. 

In a low interest rate environment I don't advise my clients to prepay their mortgage if:

1. They have credit card, car payment or other debt which has a higher interest rate than their mortgage, or if
2. They have not maxed out their employer matching on their 401k or are not fully contributing to an IRA or Roth IRA.

The article goes on to talk about other reasons that you shouldn't payoff your mortgage:
Forbes Article: 7 reasons not to payoff your mortgage before you retire