Home Buying Information

Mortgage Application Drop December 2018

Applications Decline Nearly 10%:

Mortgage Home InformationAccording to the Mortgage Bankers Association mortgage applications dropped 9.8% (seasonally adjusted) in the their most recent survey; a significant decline even for the holidays. Despite mortgage rates moving down to nearly 1 year lows; homeowners and homebuyers seemed to shy away from starting a new loan application. Un adjusted it dropped 46% compared with two weeks ago.

Refinance Applications:

Applications from current homeowners looking to refinance their current mortgage decreased 12% from the prior period 9 (two weeks ago). The holidays is usually one of the slowest times of the year when it comes to people applying for a mortgage. This is not a big surprise and normally as the weeks go on in the new year applications start to increase.

Purchase Applications:

Applications for those looking to purchase a new home decreased 8%, seasonally adjusted. The unadjusted decline was 46%. Generally speaking purchase applications are higher during the holidays (compared to refinance applications).

Statement From Joel Kan:Housing Mortgage Rates

Per Joel Kan, Associate V.P. for the Mortgage Bankers Association: “Even with lower borrowing costs, both purchase and refinance applications decreased over the two-week holiday period, as both conventional and government applications dropped. Part of the decline in mortgage applications was possibly because of the government shutdown, as concerns over delays in FHA application processing times likely contributed to the weakness in activity.”

Total Share:

The refinance share of the total applications receives was 42.7% (down from 43.6%), purchase applications came in at 57.3% of all applications. Fixed rate mortgages dominated the share as they typically do as adjustable rate mortgage applications only totaled 7.6% of all applications. FHA applications came in at 10% and VA applications came in at 11%.

Mortgage interest rateAverage Rate Conforming:

The average rate for all of the 30 year fixed conforming loan applications  was 4.84% with an average of 0.47 loan origination and discount points. That is significantly higher than what JB Mortgage Capital, Inc. is offering. See our fixed rate mortgage options on our mortgage rates page for the most current mortgage rates and news.

The average rate for all of the 15 year fixed conforming loan applications as 4.125% with 0.50 costs (loan origination and discount points. Like the 30 year fixed rate option; JB Mortgage Capital, Inc. is well below the “average” as we are seeing 15 year fixed rates below 4.00%.

Will Things Pick Up:

Hard to say however it should. Mortgage rates are moving down and typically mortgage volume increases during the first 4 -6 weeks on a new year. The size of the pickup may be dependent on how low mortgage rates stay. If we see 30 year fixed mortgage rates move below 4% (paying 1 point) then you may see a sizable pick up in mortgage applications.

JB Mortgage Capital, Inc.:Mortgage Pre-qualify

If you are thinking of purchasing a new home or refinancing a current mortgage please be sure to contact us for a no cost/no obligation quote. We offer mortgage rates well below the industry average, the latest technology so your mortgage closes fast and we offer personal one-on-one personal service. This means from application to closing your’ll work directly with Loan Officer Kevin O’Connor. He has over 14 years of experience and is very knowledgeable about how to get the lowest rate at the best terms. You can contact him directly (no extension needed) at 1-800-550-5538 or use the “Contact Us” form on your website.

Government Shutdown And Your Mortgage Application

Should You Be Concerned?:

A concern is growing among homeowners, homebuyers and realtors – will this current government shutdown prevent borrowers from closing their mortgage on time? The quick answer is not yet. If you are closing in the next week or two you should be fine because your mortgage company has probably already received the 4506-T report back from the IRS. However, if this goes on for weeks or even months there may be an impact to not only closing on time but also mortgage rates. However, for now homeowners and homebuyers should be able to close their loans as planned. The first thing you should do is check with your Loan Officer as to what their procedure is if the shutdown continues.

IRS

How Mortgage Transactions Are Tied To The Government:

When you apply for a mortgage there is a form that is included with the initial disclosures package you sign called the 4506-T. It’s included with the Loan Estimate, Equal Credit Opportunity Act form, Appraisal Disclosure form and others. The 4506-T is not a mortgage company document; it actually comes from the IRS. It’s used to verify income; more specifically verify you filled a return (or returns) with the IRS and the income you claimed. Lenders typically use this verification to confirm the income documentation you’ve sent to them.

Years Ago:

Just after the market crashed in 2008; lenders were not willing to close mortgage loans if the results from the 4506-T were in. This presented a lot of problems for people buying homes with specific close dates. However, lenders were under a lot of pressure post 2008 and were unwilling to take a chance until they received confirmation of your income from the IRS.

Mortgage Loan Application

Impact On Mortgage Rates:

For now there has been no impact on mortgage rates. In fact mortgage rates have improved since the shutdown started. However that may change as time goes on so we will have to keep a close eye on the market. A negative impact on rates long term might happen if the government has to increase borrowing costs due to the shutdown. Higher levels of borrowing can put pressure on bond yields and that may end up affecting consumer mortgage rates. Be sure to visit our Mortgage Rates page where we update daily the current market and outlook for mortgage rates.

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US National Debt As Of January 2nd, 2019

Processing A 4506-T:

The IRS is in charge of processing the 4506-T form and typically it takes 48-72 hours to receive the verification. At times it can take 7-10 days; all depends on how many requests they have to process and how busies they are.

What If The Request Was Not Processed Before The Shutdown?:

Are you concerned about closing because you just found out your mortgage company has not ordered the 4506-T yet? Don’t panic just yet. If you have a high credit score, low debt to income ratio and plenty of equity your mortgage company may not require they receive the results prior to you closing. And for those that have less than perfect credit; you can also remain calm. While each file and loan is unique it has been my experience that underwriting will try figure something out. If it’s a purchase there clearly is a greater sense of urgency than if it’s a refinance.

Solutions:

What underwriting will do is completely up to them since they make the final decision however if you’re purchasing a home they may waive the requirement so you can close on time. It really helps if you have a strong file but if not you still may find underwriting is willing to work with you so that you may close on time.

As for homeowners trying to refinance; you also might receive a waiver as well but a more likely solution is underwriting will extend your lock out to see if they can get it in before closing. For a refinance having a strong credit profile and low debt really helps getting the waiver to close without the 4506-T results.

JB Mortgage Capital, Inc.:

Not sure if your loan is a conforming loan? Check out our conforming loans page and see what the limits are in your county. CLICK HERE.

Mortgage Rates For January 1, 2019

Happy New Year!

From our family to years we wish you the very best for 2019. Markets are closed today and will re-open on Wednesday. There are no important economic reports on Wednesday however on Thursday we have the ADP National Employment Report for December, ISM New York Index for December, ISM Manufacturing PMI, ISM Manufacturing Prices Paid for December (an 2019 mortgage ratesimportant piece when it comes to inflation) and Vehicle Sales. To end the week we have the BLS Employment report, unemployment rate and Average Earnings for the month of December.

Questions Remain:

The big question is what will mortgage rates will do in 2019? Heading into the year we are already at somewhat low levels; will the 30 year fixed rate move below 4.00%? Will the 15 year fixed mortgage rate get down to 3.00%? Great questions however it’s too early to tell if we’ll see improved levels. I’ve been a loan officer in the mortgage industry for over 14 years; and one thing I’ve learned is that mortgage rates may go straight up but they rarely if ever go straight down. Keeping that in mind I think we need to be cautiously optimistic and recognize that from a historical stand point current rates are very attractive. Did we have a period in which rates were lower? Yes however that was a very short period of time and it’s unlikely to return to those extreme lows. As we always do; we’ll keep a close eye on the markets and let our readers know of any significant movements. Happy New Year!

New website:

It’s here! Our brand new layout has arrived! Let us know what you think. Keep in mind it’s still “under construction” while we put the finishing touches on. Thank you to everyone who made this happen so quickly.Low 30 year fixed mortgage rate

Currently we are seeing:

30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% and 15 year fixed rates below 3.625%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs.

Connect with us on Social Media:

FYI – These pages are still being put together

FaceBook  –  Instagram  –  Pintrest   –  Reddit

Check Out Our Refinance Page:

Is now the right time for you to consider a refinance of your current mortgage? Does your current mortgage have a high interest rate or are you looking to refinance because you wish to take cash out? Doing a refinance with a reputable mortgage company ensures you’ll get a great Happy New Year 2019mortgage rate and a smooth closing. At JB Mortgage Capital, Inc. we provide the unique combination of a low interest rate along with top notch customer service.  With extensive knowledge and nearly over 14 years of experience; we will work hard to find the best refinance terms for you and provide our industry best 1-on-1 personal service from application to closing. Our top ranking with the Better Business Bureau ensures that you are working with a well-respected and trusted company. We are also a five star rated mortgage company with Mortgage101 and Kevin O’Connor has a five star rating on Zillow. We work with some of the top lenders in the country to make sure we provide the best terms possible and the best overall experience.

Existing Home Sales For November 2018

Existing Home Sales:

According to the National Association of Realtors Existing Home Sales increased in November despite elevated mortgage rates and signs housing might be slowing down towards the end of 2018. This is the second month in a row Existing Home Sales have increased and 3 of the 4 major regions of the U.S. saw Low Mortgage Rates At JBMCgains. Going forward it will be interesting to see if the growth in sales will continue with the recent move down in mortgage rates.

Mortgage Rate Affect:

There is a lot of discussion about if mortgage rates affect home sales and with this most recent report one could argue that higher rates did not have an affect on home sales. The National Association of Realtors is an organization that represents the interest of realtors nationwide. Existing home sales saw a 1.9% increase and based on the increase we’re on track for 5.32 million existing home sales this year which is a 7.00% decline from a year ago (5.72 million annual rate). Inventory for housing surprisingly decreased from 1.85 million houses for sale to 1.74 million houses for sale. Current inventory is at a 3.9 month supply. This is surprising because there have been many reports of slowing sales and rising inventories in some of the biggest markets nationwide.

Mortgage Application:

In other news Mortgage Applications for both Purchase and Refinance transactions declined from the previous week. While mortgage rates have beenFirst Time Home Buyer Home moving down it is December and the holiday season. Most years this is a slow time for the mortgage industry so seeing a decline in application is not that surprising. If mortgage rates move drastically lower post Fed meeting we might see an uptick in applications next week. And perhaps the most important news of the day will be the Fed decision and their future outlook for the economy and future rate hikes. In fact it’s widely expected that they will raise today and the real question is what they will say in their press release. Despite the resent market selloff the overall economy is still doing well. Is it slowing down a bit? Of course it is however that does not mean it’s going to take a nose dive into recession come the first quarter of 2019. My guess is that they’ll raise and take a somewhat dovish approach to future hikes.

Fannie Mae Loan Guidelines Update December 2018

Important Fannie Mae Update:

On December 8th, 2018 the mortgage giant Fannie Mae will be updating its Automated Underwriting System which will adopt some new guidelines for conforming mortgages. Significant changes will come to loan programs that deal with borrower’s that have “debt-to-income” ratios that are looking Fannie Mae mortgage solutionsto take cash out from their property. All conforming loans go through either the Fannie Mae Desktop Underwriter or Freddie Mac’s Loan Prospector before an underwriter approves a loan application. Generally speaking (stress generally); if a lender obtains an approval from either the Fannie Mae or the Freddie Mac Automated Underwriting System your loan will be approved (provided there is not a single change the data inputted upon the approval).

Debt To Income Ratio:

The main changes coming on December 8th will be for borrower’s who have high Debt To Income (DTI) ratios and what they’ll have to show to be able to get their loan approved under Fannie Mae’ Automated Underwriting System (AUS). Currently borrower’s with a DTI above 45% have the same requirements for loan approval as those who have a DTI below 45%. After December 8th, 2018 a borrower with a DTI above 45% will now have to show 6 months of liquid reserves to be able to obtain a Fannie Mae AUS approval.  The goodMortgage Pre-qualify news is that you can still get a great mortgage rate even if your DTI is above that 45% level. The bad news is that you’ll have to prove you have enough reserves (cash in the bank, stocks, 401k etc) to cover 6 months of mortgage payments (they also factor property and homeowners insurance into that calculation even if you’re not impounding the mortgage payment. For borrower’s with a DTI above 50% it’s unlikely they’ll be able to get a conforming mortgage and will have to look at some alternative solutions.

Conforming Loan Limits:

Another significant change came to the mortgage industry last week and that was the increase in the conforming loan amounts for loans in California and across the country. Starting Jan 1, 2019 the conforming loan amount will be increasing to $484,350.00 for 1-unit properties, $620,000.00 for 2-unit properties, $749,650.00 for 3-unit properties and $931,600.00 for 4-unit properties.

A+ RatingJB Mortgage Capital, Inc.:

If you have any additional questions about current Fannie Mae guidelines or questions about the up coming changes please be sure to let us know. You can contact us directly at 1-800-550-5538, email or catch up with us on twitter: @Rates01. Not only do we offer low mortgage rates but we also offer one-on-one personal service to each and every client. That means from application to closing you’ll work directly with Kevin O’Connor – you won’t be passed off to 3 or 4 other departments like most mortgage companies.

November 2018 Mortgage Company

November 2018:

In November 2018 you have hundreds if not thousands of choices when it comes to choosing a mortgage company in the state of California.  Low mortgage rates, reputable company, great customer service, and cutting edge technology so it’s a quick close are all things that should factor into your decision making. What makes Mortgage Pre-qualifyKevin O’Connor at JB Mortgage Capital, Inc. different and unique? Simply put – we offer low mortgage rates AND top notch service. In addition to that we are one of the few mortgage companies that has an “A+” rating with the Better Business Bureau, “AAA” rating with the Business Consumers Alliance, a “Five Star” rating with Mortgage101 and a “Five Star” rating with Zillow.

Connect with Loan Officer Kevin O’Connor on Twitter: @Rates01

We’re Different From Big Box Lenders:

We’re different than those big box internet lenders and we’re different from those small banks that just offer great service. Some might say we’re a combination of the two since we offer great mortgage rates and great customer service! We don’t have a call center for one thing; second we don’t have processors and secretaries nor do we have different departments that handle the different stages of your loan. That means when you work with Kevin O’Connor at JB Mortgage Capital Inc., you work with one person from application to closing.  And since we don’t have secretaries and processors you’ll always have direct access to Kevin via phone, email or fax.

The Latest Technology:Personal Service

We utilize the latest technology to ensure your loan closes smoothly and quickly. We cover all of California (Northern, Central or Southern) and allow our clients to complete a loan application online, over the phone or a hardcopy.  As for collecting docs; no problem – clients can either upload them to our secure server, email, fax or Fed Ex their supporting documentation. Disclosures can be signed electronically and you’ll always be kept up-to-date with the status of your refinance or purchase mortgage transaction. Ready to close? Great; an independent notary will meet you at a time and location that most convenient for you.

JB Mortgage Capital, Inc.:

At JB Mortgage Capital, Inc. we offer industry low mortgage rates, the latest technology and personal one-on-one service to our clients. Loan Officer Kevin O’Connor has over 14 years of experience and A+ Ratinghas helped hundreds of families achieve the dream of homeownership. You can contact him directly at 1-800-550-5538 or complete the “Contact Us” form on our website.

Here is a previous article about refinancing your mortgage: The reasons to do a refinance are usually different from one homeowner to the next. Some homeowners look to refinance to obtain a lower mortgage rate. Others look to refinance their current mortgage to get cash out so they can improve their home. Others look to refinance so they can shorten the length of their mortgage from a 30 year fixed rate mortgage to a 15 year fixed rate mortgage. At JB Mortgage Capital, Inc. we offer low rate mortgages to homeowners in the state of California. We’re a top rated mortgage company with the Better Business Bureau (A+ rating and we are accredited). 

DocuSign

Signing Your Disclosures Electronically:

Great news; we’ve partnered with DocuSign for our “digital signature” service. Now our clients will have the convenience of electronically signing their initial disclosures rather than printing; signing and sending to us. DocuSign is the industry leader for digital signatures and is just another example of how JB Mortgage Home GreenCapital, Inc. uses technology to increase efficiency with the loan process. We are already able to close client loans faster than most lenders and this will not only make the process faster but much easier for those that wish to sign documents with a digital signature. This service is offered in addition to document upload service to ensure our company is on the cutting edge when it comes to providing the best possible customer service experience.

Contact Kevin O’Connor at 1-800-550-5538 for a no cost – no obligation quote!

Debt To Income Ratio Limits Raised to 50%

Higher Deb To Income Ration Now Eligible:

On July 29th, 2017 the door to a new mortgage will be opened for thousands of potential homeowners and current homeowners that have a Debt-To-Income (DTI) ratio above 45%. The mortgage giant Fannie Mae will be making an adjustment to its Automated Underwriting System (AUS) so that those with a 45%-50% DTI will JB Mortgage Capital, Inc.be approved for a new mortgage. By some estimates this will open the door to nearly 100,000 new loans for lenders to process which is good news since the industry has had a slow start to 2017.

More Good News:

Additional good news is that it applies to loan applications with Loan To Value ratios above 80% which will really help those trying to purchase a home that only have a small down payment (such as 5% – 10%).  Mortgage rates are not directly addressed in this DTI change and it appears someone with a 45% DTI potentially have the same rate as someone with a 50% DTI.

The good news is not absent of concerns as a higher DTI means the loan applicant is devoting a high percentage of their income towards their home.  According to Fannie Mae they believe the risk of default does not increase that much between a DTI of 45% and one with a DTI of 50%.  Obviously the increase will be closely monitored and if proves to be too risky then it wouldn’t be surprising to see Fannie Mae revers course in 2018-2019. However if the default risk remains low it might open the door for Fannie Mae to try additional actions and expand opportunities for lenders even further.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.

Fed Meeting and Mortgage Rates July 2017

Home with PoolTomorrow Is Decision Day:

Tomorrow afternoon the Federal Open Market Committee (commonly refereed to as the “Fed”) issues their decision about raising short term interest rates and their economic outlook.  Before we go into the market expectations and what may happen with mortgage rates after the FOMC issues their statement; lets cover a very basic point that most people don’t know – what is the FOMC? Per the Federal Reserve website: “The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. The FOMC is composed of 12 members–the seven members of the Board of Governors and five of the 12 Reserve Bank presidents.”

Short Term Interest Rates:

As you know the FOMC has been raising short term interest rates over the last few years as the economy recovers from the mortgage crisis of 2007-2008.   Some people believe when the FOMC raises short term interest rates they are raising mortgage rates however that is not true.  The FOMC does not control mortgage rates; mortgage rates are determined on the Mortgage Backed Securities market (a bond market for mortgages) and individual lenders ability to loan money at a specific rate.  Interest Rate hikes from the FOMC directly affects things like home equity lines of credit, and credit cards.

Bond Investors:Low Mortgage Rates at JBMC

So are bond investors and mortgage lenders worried about the FOMC raising short term interest rates tomorrow? No; no one thinks they will.  Bond investors and mortgage lenders are going to be watching what the FOMC says about the economy and possible future hikes in short term interest rates.  The key word will be “inflation”….if they are concerned about inflation moving up too fast that will be bad for bonds and mortgage rates.  If they have concerns over inflation falling then that would be good for bonds and mortgage rates.  General expectations are that the FOMC will not raise rates; and issue a middle of the road guidance for future hikes and economic outlook.

As always we’ll keep an eye on the events and the market reaction.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.

 

Mortgage Pre-Approval

Buying A Home:

If you are looking to buy your first home, looking to upgrade from your current home or buying a new rental property it’s always a great idea to get a pre-approval done by a knowledgeable loan officer with years of experience. In fact most sellers require that a prospective buyer have a pre-approval completed prior to making an offer. Below is Home For Saleinformation that will help you navigate the process to ensure you have the knowledge needed to make it a more smooth and efficient process.

The Pre-Approval Process:

So what does is mean to get a pre-approval done and what is the process? Both excellent questions with fairly simple answers. Getting a pre-approval done means a loan officer has reviewed your credit report, income and assets to see if you qualify for a loan. At that time the loan officer will provide a detailed quote however it’s important to know that it could change since the terms are not locked in. Especially if you go weeks or months after the initial pre-approval before finding a home. The reason is mortgage rates and terms change daily until you find a home and lock in your rate/terms.

The Necessary Documentation:Home Buyers

What is the process like? First step is to gather your income and asset documentation. If you are a W-2 employee that means getting your two most recent W-2’s and your two most recent pay stubs (if you are paid weekly then it’s your four most recent pay stubs). If you are self employed it means gathering your two most recent years of tax returns (personal and business). In addition to your asset documentation you also need your asset documentation (the account in which your down payment will come from). If you’re down payment is being gifted to you; you still may need to show some liquid assets so you should still gather those statements (covering the two most recent months).

Starting The Process:

Second step is to call a loan officer and let them know you’d like to pre-approved. You’ll complete an application (over the phone it generally takes 10 minutes) and send over your documentation. From there it’s up to he loan officer to review everything and determine if you Mortgage Pre-qualifyqualify for a loan and how much house you can afford.

“How Long Does It Take?”:

Generally it takes a loan officer 24-48 hours to review everything and determine if he/she can issue a pre-approval letter. Once that is completed you’re ready to go find a property!  One thing that is very important during the process is that it’s essential you ask questions to make sure you understand everything; especially if you are first time home buyer.

JB Mortgage Capital, Inc.

If you would like to get pre-approved with us you can contact us by way of the sidebar “contact us here” request or call us directly at 1-800-550-5538.  We offer industry low mortgage rates, top notch customer service and we’ll beA+ Rating happy to answer any questions you have. Loan Officer Kevin O’Connor has 14 years of experience, a five star rating on Zillow and we have an A+ Rating with the Better Business Bureau.