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Inflation is currently down. Does this mean it's time to make a move?

The October Consumer Price Index (CPI) showed U.S. prices were unchanged from September to October. Mortgage interest rates immediately fell with the news.

What does lower inflation mean moving forward?

  • Many market analysts are projecting the Federal Reserve Board may be done raising rates. However, that doesn't mean rate cuts will come anytime soon.

  • The annual inflation rate was 3.2% in October, still above the Fed target of 2%.

  • It's likely markets will remain volatile as investors try to anticipate the Fed's next moves.

Seize The Moment of Lower Rates

  • Many of our clients are already taking the opportunity to 𝙡𝙤𝙘𝙠 𝙞𝙣 𝙖 𝙧𝙖𝙩𝙚 on a purchase or refi before any alternative news drives rates back up again.

  • If you've been waiting to purchase, refinance, or access cash from your home's equity, it's a good time to take a closer look and we can help!


Please reach out with your questions. We are happy to help you navigate the current market!

Get Pre-Approved Today - Greenway Mortgage


 

The Federal Housing Finance Agency (FHFA) which oversees Fannie & Freddie and sets loan limits for conventional mortgages is expected to increase the amount of money that can be borrowed through a standard home loan to $750K. In some areas, the limit is expected to be even higher.

The new limits will take effect in 2024.

Here are the specifics about the change

  1. The standard loan limit, also known as the conforming loan limit, will rise by just over 3% to a maximum of $750,000 in most areas.

  2. The percentage increase is equal to the national appreciation average over the last year.

  3. This is the 8th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $330K over eight years.

Great news for buyers and owners alike

  1. Buyers may be able to borrow more money through a conventional, typically lower-rate loan, potentially with lower down payment requirements.

  2. Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.

  3. Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.

  4. The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.

Curious about limits in your county or other areas? Follow the link below to check. We'll update it when limits officially change, so bookmark it for future reference if you'd like.

If you have questions about what this change could mean for you, please reach out. 888-616-9885.  And if you have friends who may benefit from the news, please pass it along. We are happy to help!

Get Pre-Approved Today - Greenway Mortgage

 


 

Exciting developments are underway in the mortgage industry, and we're here to bring you the most significant breakthrough in the mortgage world in the past decade.

In order to expand credit availability and access to affordable rental housing, Fannie Mae is relaxing the down payment requirements for owner-occupants on purchase and basic refinance loans for multifamily homes.  

Here's what you need to know:

  • Past requirements of 15% and 25% are being changed, and you can now purchase a two-, three- or even four-family home as an owner-occupant with as little 5% down.
  • This change takes effect for loans closing after November 18, 2023.

Quick Question & Answer:

  1. Will this work for a property im not going to live in? No, you must plan to live in the home.

  2. Do I have to occupy the property as my primary residence? Yes!

 

 

Applies To: 

 

Ideal For:

  • Investors
  • First-time buyers and those seeking affordability
  • Those looking to become an owner-occupant landlord, building equity and lowering mortgage payments

Owning a home with rental income to help subsidize your monthly costs is a great way to get started as a property owner or to secure residual income for the future. And now it's more affordable.

 

Who is Fannie Mae?

Fannie Mae is a government-sponsored enterprise that purchases mortgage loans (along with Freddie Mac). This move addresses their goal of expanding credit availability and access to affordable rental housing.

Bottom Line:

This change opens doors to homeownership for so many people! Contact the Greenway Team for more information or to see if you qualify. 

Have Questions? Contact Greenway Mortgage


 

Mortgage rates don't always follow Fed actions.

The Federal Reserve Board left policy rates unchanged at their most recent meeting, as expected. Mortgage rates may not remain steady, though.

Mortgage rates have a mind of their own.

Mortgage rates are based on the demand for mortgage backed securities (MBS). Investors are more interested in what the Fed may do next than what they just did.

The Fed gave us some hints: Probably more hikes to come.

In a statement issued after their meeting, the Fed reiterated their goal of keeping inflation at 2% and affirmed that future actions will depend on economic indicators. However, the majority of Board members predicted higher rates by the end of the year.

Since MBS investors are considering possible future Fed action, as well as other market forces, it's possible mortgage rates will change even though Fed rates did not.

Where does this news leave you?

If you are ready to make a move, we have programs that can help mitigate high rates. Options like fixed rate buydowns, hybrid ARMs and HELOCs can help you move forward with your plans.

If you want to wait a little longer for more favorable rates, this is a good time to start preparing so you’ll be ready when the time is right for you. 

Background on the Fed:

  • The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
  • The Fed has a standing goal to maintain inflation within a 2% range. Over the last year, they hoped to slow spending and inflation by making borrowing more expensive.
  • The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.
  • The Fed raised rates for 11 of the last 13 meetings, with pauses in July and September. The mid-range benchmark borrower cost is currently at its highest level since 2001.

Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day!

Customized Home Loan Solutions


 

Was your mortgage application flagged when you tried applying? Not anymore!

If you or someone you know has been denied an FHA home loan, your path forward just got easier.  

What changed?

The Federal Home Loan Administration (FHA) has stopped placing a warning flag on applications from homebuyers with prior FHA loan rejections.

Previously, the FHA system flagged a rejected borrower's record for six months. If the homebuyer tried again with another lender, the flag led to a longer, more stringent review or even to an immediate dismissal.

What now?

If you or someone you know has been denied for an FHA home loan, it's a great time to try again. 

What's different about FHA loans?

FHA mortgage programs often allow lower down payment amounts and accept lower credit scores than other loan types.

What are FHA Loans

FHA loans are insured by the Federal Housing Administration. These loans are designed to help first-time homebuyers and experienced homeowners alike by providing them with a low down payment option. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan.

How Can FHA Loans Benefit You?

FHA insured loans often give potential homeowners the option of making a lower down payment than they would need to make if using a traditional, non-FHA insured mortgage.

Get Pre-Qualified for an FHA Loan

Now is the time to take advantage of the many benefits FHA loans offer potential homeowners. Plus, it’s now easier than ever to qualify! Our home loan professionals will guide you through the FHA loan process with expert knowledge, competitive rates, and first-class service. Click here to get started with your online pre-approval for an FHA Loan.

FHA Loan Benefits Include: 

  • Down payments as low as 3.5%

  • Loan is guaranteed by the government

  • Less than perfect credit can apply

  • Energy-efficient mortgages, reverse mortgages, refinances, and renovation loans also available

How FHA Loans Benefit Everyone:

  • They stimulate economic development in the form of expanding tax bases and creating jobs

  • They also are beneficial for the economy as a whole

  • FHA was created in 1934 as a direct response to difficulties in the housing industry such as unfavorable mortgage loan terms, low rates of homeownership nationwide and widespread unemployment among construction workers

Bottom Line:

Whether you're just getting started or you've been denied a loan in the past, we are happy to help you on your journey to a new home.

Please reach out when you're ready.

Get Pre-Approved Today!

 


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