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!  

It's Spring and Tax Reserves Time in Illinois. What That Means for Home Buyers

It's Spring and Tax Reserves Time in Illinois

What That Means for Home Buyers

 

It's Spring ...

And that means the trees will soon be blooming, the grasses greening, birds will be returning from warmer climates ... 

... and Real Estate Taxes will soon be due.  

For those owning property in Will County, IL, it should be noted that 1st and 2nd tax installment due dates were recently announced by Will County Treasurer, Tim Brophy.  

Those dates are as follows:

• 1^st Installment due June 1st, 2022.  Interest to begin accruing on June 2nd, 2022, at 1.5% per month (post-mark accepted) 
• 2nd Installment due September 1st, 2022.  Interest to begin accruing on September 2nd, 2022, at 1.5% per month (post-mark accepted)

These due dates are of special importance to anyone closing on a mortgage for property located within Will County, IL in April after the 5^th.   Their first mortgage payment will be due on June 1st.  (Remember, the first installment of property taxes for Will County is due the same day (June 1st).

Those closing on their mortgages in April (after the 5th) will be required to pay an additional sum of money referred to as a Reserve Payment.  This Reserve Payment is typically equal to 3 months of the previous year's tax bill tax calculation.  

Why is this Reserve Payment required?

Since the NEW Will County Tax Bills won't be out until May 1^st, there’s no way for the title company involved in their Closing in April (Title companies assume responsibility for making sure current tax installments have been paid) to know what the amount of the new tax bill will be prior to that date.  

So a Borrower closing on their mortgage (for a property located within Will County) AFTER the 5th of April will pay a Reserve Payment sum at the time of Closing. After the actual Will County tax bill comes out on May 1st, the title company pays the first installment of taxes due.  

The title company then refunds to the borrower any “excess” that may have been collected from them as a buffer at the time of their Closing.  Called a TI (Tax Indemnity), it is required on all loans closing before the new tax bill becomes known (usually May 1st).

If you live or own property in Will County, IL, the details surrounding the when, what, where, and how of Will County taxes and their payment is of particular interest to you.  They directly affect you in the long and short term, your investment, your life ... and if Closing on a mortgage after April 5th ... your Closing Costs as well.  

More info and further details on Will County taxes can easily be found on the Will County Treasurer's website.  I'm always happy to provide info as well, should you have questions and be in need of mortgage assistance.

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!  

Retirement Ahead? Thinking About a Second Home? NOW is the Time to Finance!

Retirement Ahead?  Thinking About a Second Home?

NOW is the Time to Finance!

Are you hoping to retire soon?  Or thinking that buying a second home would be nice?

If your plan is to retire in the next few years or you're contemplating the purchase of a Second Home for your retirement years ... now is the time to talk to a lender and consider financing options.

Why?  

The cost of financing for a Second Home will go up considerably in April of 2022.  The Federal Housing Finance Agency (FHFA) has dictated that the costs will go up at that time.  

The rise in costs will affect Conventional Loans backed by/guaranteed by Fannie Mae and Freddie Mac.  In fact, some Lenders and Banks have already factored in "the impending price/rate hike" into their transactions.

At the same time, however, other options for purchase become a bit less expensive.  Those options include "cash-out" refinances against a primary residence ... especially if the residence is owned free-and-clear (paid off/no mortgage).

Borrowing against a primary residence has typically been the preferred route for borrowers.  

Why?  Lenders do not "penalize" you for borrowing against the home you live in (versus one you don't occupy). 

Why is that the case?  Because banks have found that lending against a primary residence has proven over the years to be less risky for them than lending on an Investment Property or Second Home purchase.

In these situations, many borrowers have chosen to become "cash buyers". They've refinanced their current home, then "cashed out" most or all of what they need for their Retirement/Second Home purchase.  

This chosen route for purchase has provided additional advantages for borrowers making an offer during highly-competitive housing markets.  

Simply put, sellers often choose buyers making cash offers over those making an offer containing contingent financing.  Oftentimes, cash proves to be a more powerful and persuasive offer.

There are several strong reasons to consider taking action now if a retirement or second home purchase is in your plans. You may secure better financing options with lower costs for your retirement destination home and be able to enjoy it now as a vacation home.

Discover the opportunities and options you have.  Contact me.  I'll be happy to hear from you, answer your questions, and help you successfully achieve your goals.

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!