Blog – CTeBockhorst's Blog

How Long Does A Refinance Take?

March 9, 2022 by Coleen TeBockhorst

How Long Does A Refinance Take? If you want to save money on your mortgage, refinancing your house could be a great move. As long as you have plenty of equity and a great credit score, you should be able to qualify for the refinance process. At the same time, you might be wondering, how long will it take you to refinance your house? There are several factors to keep in mind, so be sure to work with a professional who can walk you through the process.

It Usually Takes A Month Or Two

In general, refinancing your home loan will take a month or two. Most refinances will be completed in 30 to 45 days, but every lender is different. It depends on how complicated your mortgage is, the other refinancing applications the lender is processing, and the number of staff they have on hand. If you are in a hurry to refinance your mortgage, you may want to talk with the lender to see how quickly they can process your paperwork.

The Lender Has Several Tasks To Complete

There are several tasks the lender will need to complete before he or she can approve your refinance application. First, the lender needs to make sure you have enough equity in your home to complete a refinance. Then, the lender will also check your credit score to make sure it is high enough to qualify. The loan officer will also make sure your mortgage is not behind. Similar to the original mortgage application, the lender will also have to complete inspections and appraisals before your refinance can be approved. All of these tasks take time, which is why you should anticipate spending a month or two refinancing your home.

Work With A Professional

Every lender is a bit different, so be sure to talk to the lender ahead of time to understand how long the process takes. If you have a deadline you need to meet, starting the process earlier is usually better. That way, you leave yourself time to address any hurdles that may develop along the way. Refinancing your home loan is a great way to draw cash from the equity in your home, lower the interest rate on your mortgage, and save money.

Why Did My Application For A Refinance Get Turned Down?

March 8, 2022 by Coleen TeBockhorst

Why Did My Application For A Refinance Get Turned Down? If you want to save money on your home loan, you might want to refinance. During the refinancing process, you could secure a better interest rate on your home loan. You could also withdraw cash from your home’s equity value to cover other expenses. Similar to a regular mortgage application, some refinance applications are denied. Why is this the case, and what should you do next?

Your Debt To Income Ratio Is Off

One of the most common reasons why an application for a home refinance is turned down is that the applicant has too much debt. The lender will not want to refinance a homeowner who has too much existing debt. If you have credit card debt, car loans, or student loans, you may want to pay down some of this existing debt before you apply for a refinance.

Your Credit Score Is Too Low

Your credit score is still going to play a significant role in your application for a refinance. If your credit score has gone down since you purchased the house, you may have a difficult time refinancing. You should always request a copy of your credit report and correct any issues on that report before you decide to apply for a refinance.

Your Home Value Has Gone Down

The lender may also deny your application for a refinance if your home has gone down in value. Your home is used as collateral for the loan. If the home has gone down in value, the lender might be worried that the value of the home may not pay off the balance of the loan in the event you start missing payments. You may have to wait for the home’s value to go back up before you can refinance.

Work With A Professional Team

If you want to refinance your home, it can be frustrating if your application gets denied. Fortunately, that doesn’t mean you cannot apply again. You should work with a professional team that can take a look at your refinance application, figure out why the application was turned down, and rectify the situation. Sometimes, an application is turned down simply because the lender doesn’t have enough information or the application was not filled out properly.

What’s Ahead For Mortgage Rates This Week – March 7, 2022

March 7, 2022 by Coleen TeBockhorst

What's Ahead For Mortgage Rates This Week - March 7, 2022 Last week’s economic reporting included readings on construction spending, written testimony from Fed chair Jerome Powell and data on public and private sector jobs and national unemployment. Weekly readings on mortgage rates and jobless claims were also released.

Fed Chair Hints at Rate Hikes in Written Testimony

Federal Reserve Chairman Jerome Powell indicated that consistent rate hikes of the Fed’s target interest rate range will likely occur throughout this year, but he said that the Fed would proceed carefully. Analysts interpreted Mr. Powell’s remarks to mean that he would limit each rate hike to 0.25 percent but could be higher depending on the pace of inflation.

Inflation rose by 7.50 percent year-over-year in January; this was the highest inflation rate since 1982. Chairman Powell said the Fed wanted to prevent persistent high inflation while promoting sustainable economic expansion and a strong labor market. The war in Ukraine could lead to faster inflation as Russia is the world’s second-largest producer of oil.

Mortgage Rates, Fall, Jobless Claims Mixed

Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 3.76 percent. Rates for 15-year fixed-rate mortgages were also 13 basis points lower at 3.01 percent and rates for 5/1 adjustable-rate mortgages averaged 2.91 percent and were seven basis points lower on average. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.

Initial jobless claims fell last week with 215,000 new claims filed as compared to 233,000 jobless claims filed in the previous week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.47 million continuing claims filed.

Jobs Data Shows Mixed Results

Public and private sector jobs data and the national unemployment rate reflected a strong labor market. The government’s Non-Farm Payrolls report tracks public and private-sector job growth and reported 678,000 jobs were added in February as compared to expectations of 440,000 jobs added and January’s reading of 481,000 jobs added.

The ADP jobs report includes only private-sector jobs data; 475,000 jobs were added in February as compared to predictions of 400,000 jobs added and January’s reading of 509,000 private-sector jobs added. The national unemployment rate dropped to 3.80 percent; analysts expected an unemployment rate of 3.90 percent and January’s jobless rate of 4.00 percent.

What’s Ahead

This week’s scheduled economic reporting includes readings on job openings and quits, inflation, and the University of Michigan’s preliminary reading on consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.

A Guide To Helping A Dog Adjust To A New Home

March 4, 2022 by Coleen TeBockhorst

A Guide To Helping A Dog Adjust To A New Home Most people treat their dogs as members of the family. Just as moving can be difficult for children, moving can be a challenge for dogs as well. Dogs develop an attachment to their homes, and they can have a hard time adjusting to a new place. Fortunately, there are a few steps that homeowners can take to make the moving process easier for everyone involved, including dogs.

Let The Dog Get Familiar With The Moving Supplies

A lot of dog owners have found that it is easier to take a dog to the vet if he or she can acclimate to the carrier. The same is true with the moving process. Dogs have a difficult time understanding what is happening when the family moves. Consider giving your dog an opportunity to become accustomed to the packing and moving supplies. That way, they will be comfortable in the car on the way to their new home.

Allow Dogs Alone Time In The New Home

Moving is stressful for everyone, including dogs. Dogs will need a bit of time on their own in their new home. Give dogs the freedom to explore. When they find a corner they like, let them stay there and decompress. Eventually, dogs will get more comfortable in the new environment, and they will resume their normal behaviors.

Stick To A Regular Schedule

Even though the home is changing, not everything has to change. For example, try to keep dogs on their regular schedules. If dogs tend to go out and use the bathroom at a certain time, stick to that time. If dogs go for a walk at a certain time of day, stick to that schedule as well. By keeping other environmental factors consistent, dogs will have an easier time adjusting to the home.

Keep A Consistent Environment

Dogs have already experienced a lot of changes by moving to a new home. It is important to keep the new environment as consistent as possible. Even though some changes will be expected as boxes are unpacked, try to keep the home looking as normal as possible. The faster things get into their new places, the easier it will be for dogs to adjust. By following these tips, it is possible for homeowners to make their dogs as comfortable as possible with the moving process.

Can You Refinance into a VA Mortgage from Another Type of Mortgage? Yes, If You Qualify

March 3, 2022 by Coleen TeBockhorst

Can You Refinance into a VA Mortgage from Another Type of Mortgage? Yes - if You Qualify VA mortgages stand out as one of the biggest benefits to men and women serving in the military. Although private lenders make the loan, the Department of Veterans Affairs guarantees all VA mortgages, which is why these loans come with favorable terms and benefits not found with other mortgage types.

The Benefits Of Refinancing To A VA Mortgage

A VA loan may very well be the borrower’s only option for putting no money down, as many lenders will cover 100% of the value of the home, thanks to the backing of Veterans Affairs. There is a ceiling on the amount covered depending on the area of the country, so contacting a qualified VA mortgage professional is the preferred way to discover limits locally.

VA loans also require no mortgage insurance, cover many of the costs associated with closing or refinancing and, in many cases, have lower mortgage rates than comparable loans.

Veterans who had never considered a VA mortgage may wish to take advantage of the flexible terms and the favorable market to refinance their current mortgage into one that offers tremendous benefits.

Qualifying For a VA Mortgage

Veterans Affairs mortgages are limited to service men and women and their spouses, a benefit for serving their country. After a set amount of service time veterans are able to apply for a certificate of eligibility that will allow them to apply for the loan.

Those who are eligible include most military members in active duty, members of the National Guard, veterans both discharged and retired, military academy cadets as well as any spouse of a deceased serviceperson.

Eligible Homeowners Can Refinance Through Cash-Out Refinancing

The Department of Veterans Affairs considers a conventional mortgage to VA mortgage refinancing to be the same as cash-out refinancing and treats it accordingly.

This process is as intensive as an initial mortgage because it will replace the current mortgage altogether, so all applicants are expected to go through the standard credit and underwriting process.

VA loans are incredibly beneficial to current military members as well as retired veterans who may have never considered taking advantage of the program. Although the mortgage can cover 100% of the value of a home, the actual amount varies depending on the area. The only way to know for sure how much will be covered and whether it’s the right time to refinance is to contact a mortgage professional who has experience with VA mortgages.

3 Tips When Shopping for a New Home Loan

March 2, 2022 by Coleen TeBockhorst

3 Tips When Shopping for a New Home Loan Finding a new home loan can seem challenging, but if you take the proper steps before you start applying for loans, you’ll have no difficulty finding a mortgage that works for you and a lender that would love to have you as a borrower. Shopping for a mortgage isn’t like shopping for a couch, and there’s a lot that goes into the process.

So how can you shop for your new home loan in a way that saves you time and gets you the best loan for your needs? Here’s what you need to know.

Research Loan Types

A lot of homebuyers especially first-time buyers make the mistake of not doing their research and not asking enough questions. A fixed-rate mortgage isn’t right for every homebuyer. Neither is an adjustable-rate mortgage. If you plan to stay put in a home to raise a family, you might consider a 30-year loan. Conversely, if you’re moving in 10 years or less, an adjustable-rate mortgage, or ARM, could better suit you.

It’s advised that you research loan types then prepare a list of questions to ask your mortgage agent to ensure you select the loan that’s best for you.

Get Pre-Qualified Before You Start Looking

It can be tempting to start looking for mortgages online and start seeing what kinds of rates and limits you can afford, but if you start your mortgage hunt with Internet window-shopping, you may end up sorely disappointed. A pre-qualification is a vital first step that can help you to find the mortgage that works best for you.

With a pre-qualification, you’ll have a good idea of what you can reasonably afford to spend on a home, so you won’t waste time viewing homes that are outside of your price range.

Hold Off On Major Life Changes Until You Have Your Mortgage

Once you’ve been pre-qualified and pre-approved, the next step is the approval process the part of the process where the lender you’ve chosen evaluates your application and decides whether or not to lend to you. One mistake that a lot of homebuyers make is allowing significant changes in their income to happen during the approval process. If you quit your job to start a business, or if you go down to part-time hours so you can spend more time with the kids, your lender will need to start the approval process over again with your new financial information in mind, so hold off on any big changes until after you’ve been approved.

Finding a new home loan can seem like a challenge, but a qualified mortgage advisor can help. Contact your local mortgage professional to learn more.

What’s Ahead For Mortgage Rates This Week – February 28, 2022

February 28, 2022 by Coleen TeBockhorst

What’s Ahead For Mortgage Rates This Week – February 28, 2022 Last week’s economic reporting included readings on home prices from S&P Case-Shiller and the Federal Housing Finance Agency; data on pending home sales and sales of new homes were also released. The University of Michigan released its final February reading on consumer sentiment and weekly reports on average mortgage rates and jobless claims were also published.

S&P Case-Shiller Home Price Indices: Home Price Growth Expected to Slow in 2022

December readings from S&P Case Shiller suggested a slowing pace of home price growth in 2022 but analysts said that home prices are not expected to decrease. Case-Shiller’s National Home Price Index showed an 18.80 percent increase in home prices year-over-year. S&P Case-Shiller’s 20-City Home Price Index reported that Phoenix, Arizona held on to its first-place standing for home price growth with home prices increasing by 32.50 percent year-over-year. Tampa, Florida home prices rose by 29.40 percent, and the Miami, Florida metro area reported home price growth of 27.30 percent. Analysts expect that home prices will continue to rise, but not at the extreme pace seen in 2021.

The Federal Housing Finance Agency, which oversees properties owned and financed by Fannie Mae and Freddie Mac, reported year-over-year home price growth of 17.60 percent as of December. Analysts said that January’s bad weather, rising mortgage rates, and continued impacts of Covid-19 and its variants decreased sales of new homes by 9.30 percent in January. The National Association of Realtors® reported supplies of available homes were in the normal range with a 6.1-month supply of homes available. A six-month supply of available homes is considered an average inventory.

Mortgage Rates, Jobless Claims

Freddie Mac reported lower average rates for fixed-rate mortgages as the average rate for 30-year fixed-rate mortgages fell by three basis points to 3.89 percent; rates for 15-year fixed-rate mortgages dropped one basis point to an average of 3.14 percent. Rates for 5/1 adjustable-rate mortgages were unchanged at 2.98 percent. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable-rate mortgages averaged 0.30 percent.

Initial jobless claims were lower last week with 232,000 new claims filed as compared to the prior week’s reading of 249,000 initial claims filed. Analysts expected 235,000 new jobless claims to be filed last week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.59 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reading includes data on construction spending, public and private sector jobs, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims will also be released.

How Can You Secure A Better Interest Rate When Refinancing Your Home Loan?

February 25, 2022 by Coleen TeBockhorst

How Can You Secure A Better Interest Rate When Refinancing Your Home Loan? If you want to save money on your home loan, you may want to consider refinancing. During the refinancing process, you will replace your existing home loan with a new one; however, you want to secure the lowest interest rate possible. How can you get a better rate on your mortgage during the refinancing process?

Consider Refinancing Your Home Loan To A Shorter Term

If you can create less risk for the lender, you can get a lower interest rate. One of the ways to do so is to refinance your home loan to a shorter term. If the average interest rate has gone down, you might be able to keep your monthly payments the same while paying off your home loan more quickly. If you can refinance to a shorter loan term, your lender might reward you with a lower interest rate.

Consider Paying Off Your Existing Debt

You can also secure a better interest rate on your home loan by paying off your existing debt. This includes student loans, car loans, and credit card debt. You might want to use the proceeds from a cash-out refinance to pay off your existing debt. The lender might give you a lower interest rate if you have a better debt-to-income ratio.

Always Check Your Credit Report Before Refinancing

Your credit score will also play a significant role in your interest rate. Before you refinance, you should request a free copy of your credit report. There might be inaccuracies in the report that you need to correct before you apply for a refinance. Furthermore, if your credit score has gone up since you purchased the home, you might be able to secure a lower interest rate from the lender.

Secure A Better Mortgage Rate When Refinancing

One of the many benefits of refinancing an existing home loan is that you may be able to secure a lower interest rate. You want to get the lowest interest rate possible, so consider working with a professional who can help you put these tips will work for you. Getting a lower interest rate on your home loan could save you tens of thousands of dollars over the life of the loan.

S&P Case-Shiller Indices: December Home Price Growth Hits Record High

February 24, 2022 by Coleen TeBockhorst

S&P Case-Shiller Indices: December Home Price Growth Hits Record High While U.S. home prices grew at record speed in December, rising mortgage rates threatened rapid price appreciation as buyers were sidelined by affordability concerns. S&P Case-Shiller’s National Home Price Index reported 18.80 percent year-over-year home price growth in December.

The 20-City Home Price Index posted a year-over-year gain of 18.60 percent as compared to November’s year-over-year home price gain of 18.30 percent. Home prices rose by 1.50 percent from November to December 2020. Phoenix, Arizona held on to first place in the 20-City Index with year-over-year home price growth of 32.50 percent; Tampa, Florida held second place with 29.40 percent year-over-year home price growth. The Miami, Florida metro area held third place with year-over-year home price growth of 27.30 percent.

Rising Mortgage Rates Impact Affordability for Prospective Homebuyers

Analysts predicted slowing home price growth as mortgage rates rise and affordability issues impact prospective home buyers. Danielle Hale, a chief economist at Realtor.com, said: “Home prices continued to surpass expectations in December, but a marked change may be ahead for growth as rising mortgage rates eat into buyers’ purchasing power.”

Ms. Hale described a trend that could signal slower home price growth. “While typical asking prices continue to accelerate, the pace of median sales price growth has slowed, signaling a potential gap between what buyers are willing and able to pay and what sellers are hoping to receive.”

The quarterly report issued by the Federal Housing Finance Agency supported trends evident in the S&P Case-Shiller Home Price Indices. Prices for homes owned or financed by Fannie Mae and Freddie Mac rose by 17.50 percent year-over-year in December. The FHFA reported the strongest home price growth in Arizona, Utah, and Idaho during the fourth quarter of 2021.

The strongest state housing markets for FHFA were Arizona, Utah, and Idaho, while the weakest housing markets were in Washington, DC, Louisiana, and North Dakota. Homebuyers continued to seek homes in less congested suburban and rural areas due to rising home prices. This trend originally started as Covid-19 outbreaks and work-from-home opportunities prompted city dwellers to relocate to areas less affected by the virus.

Analysts recognized that rising home prices sidelined moderate-income and first-time homebuyers, but did not expect home prices to fall in the coming months.

Everything Homeowners Need To Know About Down Payments

February 23, 2022 by Coleen TeBockhorst

Everything Homeowners Need To Know About Down Payments Buying a house is an exciting time, but homeowners also need to make the best financial decision to meet their needs. One of the biggest decisions potential homeowners will face is how much money to put down.

A down payment is the amount of money that homeowners pay upfront when they purchase a home. Many homeowners believe they need to put down 20 percent; however, this is not always the case. What do homeowners need to know about putting a down payment on a house?

20 Percent Is Not Always Required

The reason why homeowners often believe they need to put down 20 percent is that lenders will often require a 20 percent down payment to avoid paying PMI. PMI stands for private mortgage insurance. If a homeowner puts down less than 20 percent, the lender takes on significant risk if the homeowner defaults. Therefore, the lender may require the homeowner to purchase PMI to protect the lender against the risk of default.

Homeowners might be able to secure a loan with 10 percent down if they are willing to pay PMI. First-time home buyers might be able to secure a home loan with as little as 3.5 percent down if they go with an FHA loan.

The Relationship Between Down Payments And Interest Rates

Homeowners might want to put down more money to earn a lower interest rate. Securing a lower interest rate could save homeowners tens of thousands of dollars over the life of the loan. If homeowners put down more money, the lender doesn’t take on as big of a risk. Therefore, the lender might be willing to charge a lower interest rate.