Over the weekend, the administration bounced the idea of having a 50-year mortgage. This was followed up by the FHFA director, Bill Pulte, stating that they are working on a plan. The reactions to this announcement are across the board with some embracing it as the miracle that will help create more affordability to others viewing it as a subprime product. Mortgage originators have been quick to post rates comparing 50-year amortized mortgages to what may be available with a 30-year. Even if this product becomes available, in my opinion, it’s highly unlikely a 50-year amortized mortgage will have the same rate as a 30-year fixed. Just look at how mortgage rates are priced when you compare a 30-year to a 15-year amortized mortgage. Click here for current mortgage rates for your personal scenario. [Read more…]
The 50 Year Mortgage Idea
Options for Buying a Starter Home
Buying your first home is such an exciting and important time of your life. It’s a big step in creating financial freedom for your future. First homes are often referred to as a “starter home” as people tend to live in the home for a shorter period of time and use the equity they gain from appreciation and paying down the mortgage towards buying their next home. [Read more…]
2025 Conforming Loan Limits for Washington State
FHFA has announced the conforming loan limits for 2025.
- 1 Unit: $806,500
- 2 Unit: $1,032,650
- 3 Unit: $1,248,150
- 4 Unit: $1,551,250
High Balance Conforming Limits for King, Pierce and Snohomish Counties
- 1 Unit: $1,037,300
- 2 Unit: $1,327,950
- 3 Unit: $1,605,200
- 4 Unit: $1,994,850
Appraisal Waivers Expanded for Conforming Purchases
The FHFA announced expanded guidelines for appraisal waiver increasing the maximum loan to value (LTV) from 80% to 90% on purchase transactions. An appraisal waiver is not guaranteed on all conforming mortgages. Loans are submitted to the automated underwriting systems for Fannie Mae or Freddie Mac, which determine whether or not a transaction will receive an appraisal waiver.
Possible eligible transactions include: [Read more…]
Fannie Mae’s March Forecast Stomps out 5% Mortgage Rates
Fannie Mae released their monthly forecast for mortgage rates. The previous month, they received a lot of attention because of how rosy it was with rates forecasted to hit 5.9% by the end of this year with nearing the mid-5% range in 2025. The March forecast, which was released yesterday, is not as optimistic. [Read more…]
2024 Conforming Loan Limits for Homes in Washington State
Conforming loan limits will be going up in 2024 across the country. Conforming high balance loan amounts for Washington state will remain unchanged from 2023.
Here are the 2024 conforming loan limits:
- 1 Unit: $766,550
- 2 Unit: $981,500
- 3 Unit: $1,186,350
- 4 Unit: $1,474,400
The following counties have “high balance” loan limits
King County, Pierce County and Snohomish County: [Read more…]
BREAKING NEWS: FHFA Rescinds the DTI Price Hit (LLPA)
The Federal Housing Finance Agency (FHFA) announced earlier today that it is rescinding the debt-to-income (DTI) loan level price hit adjustment (LLPA) that was announced in January of this year. Previously, people with a debt-to-income ratio higher than 40% with a loan-to-value greater than 60% would have an additional price hit to their interest rate. This price hit makes it even more challenging for someone who is pushing the DTI limit to remain under the 40% number to avoid having either a higher rate or paying more for the same rate because of the LLPA. The additional price hit for DTI ranged from 0.25%-0.375% depending on the loan to value/how much equity is in the transaction. On a $400,000 loan, this would be an additional cost of $1,000 to $1,500 if paid as “points” instead of having it priced into the interest rate. [Read more…]
Price Adjustments coming soon to Conforming Mortgages
Last week, the FHFA (Federal Housing Finance Agency) announced changes to how conforming mortgages are priced with loan-level price adjustments (LLPAs). Some borrowers will find improved pricing where others will have to pay more in fees. The fees are typically incorporated into the interest rate for the mortgage.
From Fannie Mae’s Lender Letter dated January 19, 2023:
“We are implementing additional changes to our LLPA framework that represent the next step in our effort to increase support for borrowers historically underserved by the housing finance market…”.
Recent Comments