All the financial advice you’ll ever need fits on a single index card

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

FHA raises reverse mortgage loan limits for the third year in a row

FHA raises reverse mortgage loan limits: The Federal Housing Administration has increased the maximum claim amount for reverse mortgages for the third consecutive year, announcing Friday that it will raise HECM claim amounts to $726,525 in 2019.

What does this mean for the HECM?  MORE HECM loans will be made in 2019 because of the increase!  Proprietary Reverse Mortgages, which target borrowers with higher value homes will now be able to consider the HECM loan!

I did a quick analysis of what this does for a 73 year old and they could receive $20,000 MORE equity from their HECM loans when compared to last years claim limit of $675,650.

If you are 62 years or older and want to explore "Equity Options", give me a call!
Marty
801-540-5108

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 and as much as $1,400 for PMI just this year.  You 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!

A down payment 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, Realtor.com suggests simply shopping for lower-priced homes for which you can make a down payment. For all the Dave Ramsey fans, he suggests down payment great enough to avoid PMI 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
801-540-5108
Professional Loan Services since 1991
My surveys
Payment Calculator and Convenient Online application

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
801-540-5108
My reviews
Convenient Online Application 

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

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
801-540-5108
email: mqualls@primeres.com

For my reviews

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 MakingHomeAffordable.gov or contact your mortgage servicer.



Marty Qualls
Visit on the phone: 801-540-5108
Questions?  send me an email: mqualls@primeres.com
Click here for my client reviews: Marty's Report Card

Mortgages with Marty Qualls in Utah since 1991!

Click here for Mortgage tips and guidance!

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. 

My reviews
Convenient Online Application

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
801-540-5108
mqualls@primeres.com


Click here for online application
 

click to applySecure Online Application with Marty Qualls

Rate forecast for January 2018

 

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.

 

Marty Qualls  801-540-5108 mqualls@primeres.com

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.

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 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!


801-540-5108

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.

Condo Certs are difficult to obtain!

Is it any wonder nobody wants to originate a mortgage for a condo these days? Not only are there exceptionally stringent guidelines to adhere to as far as whether the project is eligible for financing, but it costs the donation of your left kidney to obtain the documents required to determine this. For a good while the trend has been for Property Management companies to steer us to an automated website in order to obtain the elusive condo questionnaire, Master Insurance Policy, Budget, CCRs, Litigation Information, and Bylaws. In order for one to gain access to these all important items, it is required to pay upwards of $250! After waiting a few days, time that can barely be spared, the documents are available to download, at which point you discover the Master Insurance Declaration Page is expired, or the project is non-warrantable, which sees your $250 go up in flames as your money was spent on a project that is not worthy of a regular loan.

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!

Rate Lock recommendation continues after Fed announcement

Lock!

Rates moved up quickly today causing lenders to increase rates by .125%-.25% (FHA and Conventional loans respectively).  Much of the information released today was misleading because what happens on Thursday and Friday isn't reflected in their reports.



For options and rates call me.  The move up could be something temporary and as the markets settle, December's most likely target identified by the Fed yesterday could be the new line in the sand and best rates in 28 weeks could still be available for awhile longer.  :)

Here's the link to the excellent article to explain more about why it's important to have a close relationship with your loan originator who can call you BEFORE rates go up and you can lock your rate BEFORE the markets change: Reports are too slow, too late

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.”