Rate Locks in a Quickly-Changing Housing Market

Rate Locks in a Quickly-Changing Housing Market

Ever hear the old saying, "Timing is everything"? 

Well, it's true, especially for borrowers financing a home in a highly-competitive housing market with rising housing prices and changing interest rates.  

Does that sound familiar?  

It should, as that description pretty much fits the majority of housing markets found across the U.S. (as of this writing).  There’s definitely been a move in the upward direction.  

Home prices have been on the rise in most areas.  Interest rates have done likewise.  Given those two facts, rate locks have become a focal point for many of my clients.  

Why?  Ticks up and down in each translate to higher or lower costs in financing and monthly payments.  So the attention and interest in interest rates are deserved. 

Every detail and aspect of rate locks are always thoroughly discussed with all my borrowers.  However, I want to share and point out the following information and bullet points regarding locks, as I believe they demand special attention and are noteworthy.

Regarding rate locks:

• PRIOR TO SHOPPING FOR A HOME:  Discuss interest rates with your lender.  Ask if you can secure and lock a rate while “shopping for a home”
• Pre-Approval Letters DO NOT GUARANTEE a borrower that interest rates will remain the same throughout the viewing and negotiating of a contract 
• Extended rate locks exist, BUT they're not offered by all lenders  
• Extended locks exist for 75 and 90-day in LIMITED scenarios.  Again, let me reiterate:  Only SOME lenders offer options to lock WHILE a home search is being conducted
• If New Construction:  Buyers can “possibly” secure a rate lock for the entire build-out, but to help offset the risk of possible rate increases, SOME COSTS are typically charged  
• Home Buyers and those Refinancing:  Weigh all the options available to you
• Don't compare your financing scenario with another's. Every borrower and their scenario (finances, contract, needs, term, credit history, credit scores, etc.) is different  
• Timing IS everything when borrowing ... and time IS of the essence.  That's especially true now in this challenging and swiftly moving housing market.
• Remember to act and respond to requests made by your lender (and agent) in a timely fashion, as it can matter greatly and cost you $$$ if you don't. 
• Lenders are not "cookie-cutter".  Great differences exist between loan officers. 

Those differences are revealed in the loan programs and loan options they have available, the interest rates they offer, the experience they have accumulated, and the knowledge they hold.  

Each (or the lack of them) is reflected in the fluidity of your mortgage process, the goals you achieve, and the mortgage success you find.  So commit yourself to conducting the lender search you and your family's future deserves.  

Find the best available loan officer for your needs and then do not move further forward until you thoroughly understand all your options and the details, requirements, and benefits of each.

Want to know more?  Contact me …

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  

Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656


Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
www.genemundt.com
gmundt@goapmc.com





 


              
   



      Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: 
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, 
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.

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How to Remove Private Mortgage Insurance Without Refinancing

How to Remove Private Mortgage Insurance 

Without Refinancing

Are you a homeowner with a mortgage that currently has  PMI ... Private Mortgage Insurance?  

If so, you may qualify to have your PMI monthly payment terminated without refinancing your current loan.  

To qualify you must meet the following criteria when requested by you the borrower (versus automatic termination by the Loan Servicing Company):

• Your mortgage is 5 years old ... and you've achieved 80% Loan-to-Value (LTV)
• Your mortgage is at minimum two (2) years old and you've reached a 75% Loan-to-Value of current appraised value
• You are in a Borrower-paid monthly PMI option 

For borrower-requested termination of PMI:  This form of termination is different than automatic cancellation done by the servicer of your mortgage loan.  The date that you are eligible for termination of PMI should have been provided to you at the time of your loan closing.

For automatic PMI termination:  Your mortgage loan servicer will drop your PMI automatically when the Loan Balance reaches 78% of the ORIGINAL Value of the home at time of purchase (or refinance), assuming the loan payments have been made on time and the loan is at least 2 years old. 

You can request termination of PMI earlier also, if you meet this criteria: 

• If you have made additional payments to your mortgage that have reduced the principal balance of your mortgage to 80% of the original value of your home
• If you have reached the threshold for PMI termination prior to the date provided you at your closing  

A request to terminate must be made in writing.  And again, certain criteria must be met in order to successfully complete the termination of your PMI.  

However, it should be noted that other criteria may also be in place, depending on the type of loan you have.  For this reason, it's best to reach out to your lender in advance to receive the specifics surrounding your personal financing/termination scenario.

No matter the method, it's good news for mortgage holders that methods for termination of Private Mortgage Insurance (PMI) outside of refinancing exist and can be available to them.  

To find out the availability and full-menu of options available to you, reach out to your lender today.

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  

Looking for mortgage financing answers, options, solutions, and experienced assistance?

Contact me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp

NMLS #175656


Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
www.genemundt.com
gmundt@goapmc.com





 


              
   



      Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: 
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, 
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.


Referrals are Appreciated & Welcomed!