fhfa delays the .5 point hit and should i buy down my rate
DDA Mortgage • August 31, 2020
a .5 point hit on refinances would have cost an extra .25 percent in rate on refinances
is it worth paying points to buy down the rates when we could possibly go to negative rates
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When choosing a mortgage lender, it's important to carefully compare several key factors to ensure you get the best deal and the right fit for your financial situation. Here’s who you might consider and how to evaluate them: 1. Types of Lenders to Consider Banks: Traditional option; may offer relationship discounts if you have accounts there. Credit Unions: Often have lower rates and fees; membership may be required. Mortgage Brokers: Shop multiple lenders on your behalf but may charge a broker fee. Online Lenders: Often streamlined and convenient; compare their rates carefully. Non-bank lenders: Can be more flexible for unique financial situations. 2. What to Look For Interest Rates: Fixed or variable—get quotes from multiple sources to compare. Fees: Application, origination, underwriting, appraisal, and closing costs. Loan Types Offered: Conventional, FHA, VA, jumbo, etc., based on your eligibility. Customer Service: Look for responsive, transparent, and helpful communication. Reputation: Read reviews and check ratings from the Better Business Bureau or Trustpilot. Preapproval Process: A good lender should make this easy and informative. 3. Best Practice Get at least 3 quotes from different lenders. Ask for a Loan Estimate from each so you can compare total costs side-by-side. Consider long-term value, not just the lowest monthly payment—compare APRs. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
A bridge loan is a short-term loan used to "bridge the gap" between buying a new home and selling your current one. It's typically used by homebuyers who need funds for a down paymenme before their existing home sells. Here's how it works: You own a current home and want to buy a new one. You haven't sold your current home yet, so your cash is tied up in its equity. A bridge loan gives you access to that equity—before the sale closes—so you can make a down payment or cover closing costs on the new home. The bridge loan is secured by your current home, and repayment typically comes from the proceeds once it sells. Key Features: Term: Usually 6–12 months. Interest Rates: Higher than a traditional mortgage. Repayment: Often interest-only during the term, with a balloon payment (full payoff) at the end. Loan Amount: Usually up to 80% of the combined value of both homes (existing + new). Example: Your current home is worth $400,000 with a $250,000 mortgage (so $150,000 equity). You want to buy a $500,000 home. A bridge loan lets you borrow against some of that $150,000 equity to cover the new home's down payment while waiting for the current home to sell. Is this conversation helpful so far? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
After years of identifying the housing market as unhealthy — culminating in a savagely unhealthy housing market in early 2022 — I can confidently assert that the housing market in 2024 and 2025 is on better footing. This transformation sets an extremely positive foundation for what’s to come. Some recent headlines about housing suggest that demand is crashing. However, that’s not the case, as the data below will show. Today on CNBC , I discussed this very point: what is happening now is not only in line with my price forecasts for 2024 and 2025, but it’s why I am so happy to see inventory grow and price growth data cool down. What we saw in late 2020, all of 2021 and early 2022 was not sustainable and we needed higher mortgage rates to cool things down — hence why I was team higher rates early in 2021. The last two years have ushered in a healthier market for the future of existing home sales. Existing home sales Before the existing home sales report was released Thursday, I confidently predicted a month-to-month decline, while estimating the existing home sales print to be just a tad above 4 million. That’s precisely what occurred — no surprises there, as every month in 2025 has consistently exceeded 4 million. However, it’s important to note that our weekly pending home sales data has only recently begun to show growth compared to last year. We have an advantage over the data from the National Association of Realtors since our weekly pending home sales data is updated weekly, making their report somewhat outdated. The notable surprise for me in 2025 is the year-over-year growth we observe in the data, despite elevated mortgage rates. If mortgage rates were ranging between 6%-6.64%, I wouldn’t have been surprised at all because we are working from the lowest bar in sales ever. Purchase application data If someone had said the purchase application data would show positive trends both year to date and year over year by late April, even with mortgage rates not falling significantly below 6.64%, I would have found that hard to believe. Yet, here we are witnessing consistent year-over-year growth . Even with the recent rate spike, which has clearly cooled demand week to week, we are still positive. If mortgage rates can just trend down toward 6% with duration, sales are growing. Housing inventory and price growth While my forecast for national price growth in 2024 at 2.33% was too low and in 2025 at 1.77% may be too low again, it’s encouraging to see a slowdown in price growth, which I believe is a positive sign for the future. The increase in inventory is also promising and supports long-term stability in the housing market. We can anticipate that millions of people will continue to buy homes each year, and projections suggest that we’re on track for another nearly 5 million total home sales in 2025. As wages rise and households are formed, such as through marriage and bringing in dual incomes, this influx of inventory returning to normal levels provides an optimistic outlook. This trend in inventory data is truly heartening. Conclusion With all the data lines I added above, you can see why I have a renewed optimism about the housing market. If price growth significantly outpaced inflation and wages, and inventory wasn’t increasing, I’d be discussing a much different and more concerning state of affairs. Thankfully, that’s not the case. Historically, we’ve observed that when home sales dip due to higher rates, they may remain subdued for a while but ultimately rise again. This is common during recessions, as I discussed in this recent HousingWire Daily podcast . As you can see in the existing home sales data below, we had an epic crash in sales in 2022 but found a base to work from around 4 million. This trend has shaped the landscape of housing economics since post-WWII, reminding us that resilience and recovery are always within reach.
