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Mortgage News January 14, 2019

According to a recent survey from the National Association of Realtors; 75% of non-homeowners said owning a home was still an important part of the “American Dream”. 90% of current homeowners said owning a home was still apart of the “American Dream”. This is good to hear as other recent survey’s have suggested that homeownership was not a priority for many non-owners. However if you dig deeper into these survey’s and the Realtor survey you’ll see that the main issue non-homeowners are having is “affordability” and that is a serious issue. Home values have gone up significantly since 2008 however incomes have not. With the rise in interest rates in 2017 and 2018 it made owning a home even more difficult. And that is why you’ve see a significant decline in homes sales; especially among new home builders.

Family Home

Shutdown Increases Risks For Lenders

With each passing day the risk that homeowners affected by the government shutdown will miss their next mortgage payment increases. There are hundreds of thousands of homeowners that are not receiving their paycheck as expected and that could start to become an issue when February comes if the shutdown has not been resolved. According to report by Moody’s; if the shutdown continues there are some risks to balance sheets especially non-bank lenders.

Will The Fed Hike In 2019?

News outlets are starting to pose this question as some economic data is coming in softer than expected. The next meeting is January 29th-30th and I don’t many investors and analyst think the Fed will raise at this meeting. And unless economic data starts to improve it’s unlikely they’ll raise at the following meeting March. As for the rest of 2019; it’s way to early to tell however it is something we’ll keep an eye on.

Buying Down The Interest Rate

Have you heard this before “buying down the interest rate?” are was wondering what it actually means? Previously on Koloans.com we discussed this very topic in detail; what it means to buy down the interest rate. The very basic answer to this question is this; when you refinance your current mortgage or you purchase a home; you’ll have the opportunity to obtain a no point interest rate or an interest rate that’s lower but comes with a cost. That cost you’re paying to obtain a lower mortgage rate is called “buying down the interest rate”. So for example; the Loan Officer may quote you a 4.50% 30 year fixed interest rate with no origination/no points. He/she may then also offer a 4.25% with 1 origination cost/point. 1 origination cost/point is 1% of the loan amount; and to be clear: paying 1 point does not always equate to receiving a .25% discount on your interest rate. Sometimes is less and in a few cases it may be more.

JB Mortgage Capital, Inc.

If you are looking to refinance your current mortgage or purchase a new home please be sure to contact us for a no-cost/no-obligation quote. We offer industry low mortgage rates, the latest technology to ensure a fast closing and every one receives one-on-one personal service from application to closing. This means you’ll work with one person from beginning to end which is much different then other mortgage companies that pass you from department to department during the loan process. You can contact us through our website or call Loan Officer Kevin O’Connor directly: 1-800-550-5538.

Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447