Even though the interest rates are attractive, the appreciating property values continue pushing higher the income needed to qualify for the purchase using a standard 80% loan to value 30 year fixed loan. Make note, the median priced home in the San Fernando Valley is now over $900,000 ! If ... » Learn More about How Much Income Does It Take To Buy A Median Priced Home In The San Fernando Valley?
Mortgage Rates
The Fed Loses Control of Rates – After 2 Months Will Mortgage Rates Stabilize?
I've been warning that rates were going up for a couple of months. It doesn't matter that the Federal Reserve conveyed that they are going to keep the Fed Funds Rate at 0% through 2023. Let's review some of the reasons why the financial markets are forcing rates higher... The economy is looking ... » Learn More about The Fed Loses Control of Rates – After 2 Months Will Mortgage Rates Stabilize?
Mortgage Rates Move Higher, Will They Come Back Down?
Even though the Federal Reserve will main keep the Fed Funds Rate at 0% for the next couple of years, and has been buying $120 Billion a month in securities ($40B in mortgage backed securities) trying to force the interest rates down to offset the economic issues created by the pandemic, rates have ... » Learn More about Mortgage Rates Move Higher, Will They Come Back Down?
Big Changes and Flexibility On Mortgage Qualifying Coming
The Consumer Financial Protection Bureau (CFPB) just issued final rules related to the Ability to Repay portion of Qualified Mortgage (QM). This will allow for some compensating factors for qualifying for a Freddie or Fannie loan, instead of the 43% Debt to Income (DTI) ratio. This change from ... » Learn More about Big Changes and Flexibility On Mortgage Qualifying Coming
New Fannie Mae and Freddie Mac Loan Limits for 2021
The substantial appreciation of residential real estate values in 2020 has helped the Federal Housing Finance Agency (FHFA) push the maximum loan amounts allowed for conforming loans to new highs. On a national level, the base loan amount increased from $510,400 (2020) to $548,250 (2021). The limits ... » Learn More about New Fannie Mae and Freddie Mac Loan Limits for 2021