Second Mortgages and Home Equity Lines of Credit

Mortgage Master Service Corporation has second mortgages (home equity lines of credit aka HELOC) available for homes located anywhere in Washington state. The second mortgage/HELOC is limited to owner occupied/primary residences and second homes. They are not currently available for investment property.

HELOC’s allow you to have access to your home equity without refinancing your first mortgage. The rates are based on the prime rate and will vary whenever prime rate is adjusted. The “prime rate” follows the Fed Funds, so whenever you hear that the Fed has moved the Fed Funds rate, home equity lines of credit have adjusted higher or lower (or stayed the same when there is no change to rate). In our current economy, I would plan on prime increasing since the Fed has held the Funds rate at extremely low levels for so long. So if the idea of your rate adjusting higher makes you squeamish, this product may not be the right for you.

With our current increased home values, if you’ve been considering remodeling your home, consolidating debt or wish to extract equity for any reason, you may want to consider a home equity line of credit.

Home equity loans may also serve as a strategic tool when you’re buying a home if you’re trying to avoid private mortgage insurance or want to keep your first mortgage loan amount at a conforming loan amount. When a second mortgage follows a first mortgage, it’s often referred to a “piggy-back” second mortgage. In order for Mortgage Master Service Corporation to provide a second mortgage/HELOC on a purchase scenario, we must be originating the first mortgage as well.

The HELOC has an interest only period for the first 10 years and then converts to a 20 year amortization after the first 10 years. This is a payment jump so a good plan is to have enough funds to pay off the HELOC in 10 years (or refinance or sell in 10 years).

If your home is located anywhere in Washington state, where I’m licensed, I’m happy to help you and review your mortgage options.

 

Mortgage rates holding steady at record lows

Freddie Mac’s weekly survey of mortgage rates (PMMS) were released this morning showing rates remaining at near record lows.


Last week, the 30 year fixed averaged 3.90 priced with a half point at “year-to-date lows amidst ongoing economic uncertainty”. The uncertainty in the markets are providing a great opportunity for those who can lock in a low rate with a refinance.

It’s important to note that several factors impact the pricing of mortgage rates, such as loan to value (home equity), credit scores and debt-to-income ratios…and rates change constantly. Today’s rates may (and probably are) different than what was quoted last week.

If you’re home is located anywhere in Washington state, I’m happy to help you! Click here for a no hassle rate quote to get current pricing for your scenario.

The Fed raises the Funds Rate by 0.25%

Today the FOMC increased the Fed Funds rate by a quarter point from 1 to 1.25%.  This increase to the Funds Rate was highly anticipated by the markets. As long as the economy stays on it’s current path, the Fed anticipates it will begin to gradually reduce the Federal Reserve’s securities holdings by decreasing reinvestment of principal payments from agency debt and mortgage backed securites.  The Fed has been manipulating mortgage rates for a very long time. As they begin to pull out of mortgage markets, this will most likely cause mortgage rates to trend higher. [Read more…]

Mortgage Rates continue Lower

Freddie Mac released the weekly PMMS (Prime Mortgage Market Survey) showing that mortgage rates continue to be at the lowest levels of 2017 with the 30 year fixed back under 4.000%.

The PMMS reports on average rates from the previous week based on a survey for conforming loans (loan amounts $422,950 and below). Last week, the 30 year fixed averaged 3.89 with 0.5 points. From the PMMS:

“The 10-year Treasury yield fell 3 basis points this week. The 30-year mortgage rate moved in tandem with Treasury yields, falling 5 basis points to 3.89 percent. Mixed economic data and increasing uncertainty are continuing to push rates to the lowest levels in nearly seven months.”

We are noticing an increase in refinances with the 30 year fixed being back below four percent.

If you’re considering refinancing or buying a home located anywhere in Washington state, I’m happy to help you. Click here for a no-hassle mortgage rate quote.

 

USDA Income Limits updated for 2017

The income limits for USDA no-down payment mortgages has been recently updated…of course this took place soon after I posted income limits! 😉  Just goes to show you that you have to keep in mind that guidelines are constantly changing in the mortgage industry and just because it’s published on a blog (or any website), it may not be the most current or accurate information. What that said…here is the updated post. [Read more…]

Lowest Mortgage Rates of 2017

Freddie Mac just released their weekly survey of mortgage rates showing that rates have hit the lowest point so far this year with the 30 year fixed averging 3.95% with 0.5 points.


So if you’ve been waiting to refinance, my suggestion is to jump on it as rates can change quickly. If your home is located anywhere in the state of Washington, where I’m licensed, I’m happy to help you with your refi or purchase. Click here for a mortgage rate quote.

Mortgage Master is now financing Manufactured Homes

Mortgage Master Service Corporation has started allowing the financing of manufactured homes again using FHA or VA mortgages. Here are some of our basic guidelines: [Read more…]

FHA vs Conventional Low Down Payment Mortgages for Home Buyers

It is a very competitive market for home buyers in the greater Seattle area. I’m finding that many of my clients who are using FHA for financing are not feeling the love from home sellers. It’s not unusual for home sellers, or more likely their Listing Agent, to steer away from FHA offers when a conventional offer is in hand. [Read more…]