Lower Rates on the Horizon

June 10, 2019

Working

FED Stance on Interest Rates Shifting

What will recent and future FED moves do to our Mortgage Interest rates????  That all depends on who you believe and how much you trust their predictions.  In 2018 the FED stayed aggressive as they ended Quantitative Easing (QE) and stopped reinvesting in the Bond market which raised interest rates.  We saw mortgage rates climb to over 5.5%!!

Then President Trump got involved with Tweets and comments for the FED to fix things or he would start to fire and remove folks. The thing is, that I’m sure the President learned, he does not have that power. Yet, the words must have triggered something as the FED has started to reexamine their position. They have scaled back forecasted rate raises as well as looking to start QE reinvesting. Right now rates are sitting around 4% on a 30yr fixed (lower/higher based on your loan type and FICO score disclaimer)

What Next?

There are lots of opinions out there… “Are we in a recession”, “heading into one” or “won’t be in one at all?”  My belief is we are currently in a recession.  Then looking back at markets from past recessions, Bonds typically benefit from a downturn and mortgage rates drop.  “Wait, did Geoffrey Davis, the Frisco Mortgage Guy just say that mortgage rates will fall????”  Yes, I believe as we move from the summer to the fall we see even lower mortgage rates and some predict rates lower than we have ever seen.  Let that sink in for a second….lower than we have ever seen.

 

Get Ready to Refinance?

Stay connected with me and learn about major moves in rates! I can lend in over 42 States so it could be the perfect time to refinance, buy that next home or purchase that vacation property you’ve been dreaming of….

https://www.friscomortgageguy.com/refinance

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

 

Guardian Mortgage, a division of Sunflower Bank, N.A


Guardian’s Guide to 3 reasons to refinance this summer

May 17, 2019

Guardian

I hope you find this article helpful. Contact me if you have any questions during the homebuying process or about your mortgage financing needs.

 

3 Reasons to Refinance this Summer

Did you know that refinancing is a powerful tool?  Aside from interest rates, other reasons to refi include improving your term or getting cash out of your home’s equity.  I am here and would love to walk you through any questions regarding refinancing and whether it could benefit your unique situation and goals.  Take a look at a few reasons to refinance this summer.

 

1.Rates are still good

It’s not too late to get a great rate.  Interest rates are still very low, which should serve as an incentive for homeowners looking to refinance and lower their payments.

You may also be pleasantly surprised at what improved credit can do to your interest rate.  Generally speaking, the higher your FICO® credit score, the lower the rate.  So, if you’ve been working on increasing your credit score, talk to a loan professional and see if you qualify for a better rate as a result.

 

2.Summertime is a great time

Summer days mean more daylight hours for projects and more time to enjoy the results.  There are so many possibilities for getting the most out of your cash-out refinance:  start that construction project you’ve always dreamed of; get a pool and watch your home become the center of family fun; hire a landscape designer to make your outdoor environment magical.  Plus, when you spend funds on projects that add value to the home, you build equity.

Summer is also a great time to turn your visions into reality:  take the family on a dream vacation, buy an RV and explore the country, or check off destinations on your bucket list.  Living your best life is a wonderful gift and research suggests that experiences actually make people happier than material possessions.

 

3.Make college manageable

Sending a child to college is exciting and scary.  Huge tuition payments and the prospect of endless student loans can create stress and uncertainty.  However, if you leverage enough equity in your home, refinancing may be able to help pay for college and alleviate worry for the future.

With a cash-out refinance, the mortgage amount is increased, and you pull out the difference in cash.  Situations vary, but depending on several factors your new monthly payment may not be much different from your current one.  In the long run, it might be more manageable than student loans and could also offer tax benefits.

These are just a few reasons to explore refinancing now.  There are many financial aspects to consider when working with equity and mortgages — I am able to walk you through some options so that you can decide what’s right for you.  Hope you’ll contact and learn more about the financial strategies that can benefit your summer… and your future.

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

NMLS 206192

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Guardian Mortgage, a division of Sunflower Bank, N.A


Guardian’s Guide to Understanding Debt-to-Income Ratio

May 3, 2019

I hope you find this article helpful. Contact me if you have any questions during the homebuying process or about your mortgage financing needs.

Guardian

Understanding  the Debt-to-Income Ratio

https://www.guardianmortgageonline.com/DTI

Making smart financial decisions can be easier than you think. By understanding a few key concepts about debt, you can successfully manage your income, your budget, and your expectations.

What is DTI?

The debt-to-income (DTI) ratio is a percentage calculated by dividing monthly debt by monthly income.
To see what your DTI ratio is, add up your monthly total rent or housing payment plus other installment loan payments (such as student loans or auto loans), minimum payments to credit cards, and any child support or alimony. Then divide that by your monthly gross income. The DTI represents the percentage of your monthly income that is obligated toward total debt.

As an example, say that each month you owe $1000 in housing payments, $200 in credit card payments and $300 in student loans. Your monthly income before taxes is $5000. Dividing the debt payments ($1500) by the gross income ($5000) gives you a debt-to-income ratio of 30%. Visit our website to calculate an estimated monthly mortgage payment for an idea of how much mortgage you can afford.

Why does DTI matter?

Lenders use the DTI ratio as a way to predict whether a borrower has the ability to repay them. Different lenders have different DTI guidelines but a traditional rule of thumb was that you could qualify for a mortgage loan with a DTI ratio less than or equal to 36%.

Due to changes in underwriting, it’s possible for today’s borrowers to qualify for loans when their ratios are even greater than that old percentage. But don’t forget that there are other variables involved: your credit score and amount of money in the bank significantly affect the maximum DTI allowed.

Look at the bigger picture.

Just because you’re approved for a certain amount doesn’t mean you should spend it. When all is said and done, the best kind of home is the one you can afford.

Even a person with superior credit should not spend more than 43% of their gross income for total debt payments. DTI does not take into account the income needed for utilities, food, clothing, income taxes, Social Security taxes, savings, retirement investments, home repairs, medical bills, savings, etc. Your lender decides what you can borrow, but you decide what you can live with.

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

Guardian Mortgage, a division of Sunflower Bank, N.A


What did the FED just DO!!??!!

March 20, 2019

So, I really should have posted this last night – then I would have looked amazing.  The FED just said no more Rate Hikes this year based on what the economy is doing.  That is great news for Mortgage Rates and look for them to drop a bit more in the coming weeks. How low will they go?????

Guess what else I believe the FED will be doing – going back to reinvesting into the Bond market again – a term coined Quantitative Easing and something they all but stopped last year.  When this begins, it will further drop Mortgage Rates.  We might change the term from Quantitative Easing to Quantitative Infinity!!  Buckle up folks, could be an amazing summer!!!!

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

Guardian Mortgage, a division of Sunflower Bank, N.A


March 15, 2019

I hope you find this article helpful. Contact me if you have any questions during the homebuying process or about your mortgage financing needs.

Guardian

Benefits of VA Loans

https://www.guardianmortgageonline.com/benefitsofvaloans

 

If you are an active duty, retired, or eligible surviving spouse of a military service member, your work for our country has earned you a huge benefit when it comes to home financing. If you remember nothing else from this article, please know that you should contact a Guardian Mortgage Loan Originator to see if you meet the guidelines for this special financing not available to the general public. It’s our honor to serve you with a program that provides such huge benefits, so let us walk you through it today.

Here are some highlights of what you can expect with Guardian Mortgage’s VA Loan Program.

No Down Payment Required
By far, the biggest advantage to a VA loan is that there is no required minimum down payment. The government realizes that military service members face personal and financial challenges that ordinary civilians don’t undertake. Therefore, the guidelines allow for 0% down on the purchase of a home. This does not mean that the loan is free, but not having a down payment is certainly a tremendous plus that other borrowers rarely enjoy.

No Mortgage Insurance Required
Another benefit to the VA Loan is that it doesn’t require you to take out mortgage insurance. Conventional loans require that individuals pay a monthly mortgage insurance if their down payment is less than 20%. But with a VA loan, the Department of Veterans Affairs guarantees a portion of the loan in case of default. This provides a huge advantage to recipients because it means their monthly payments don’t have to include mortgage insurance.

Competitive Interest Rates
It’s important to understand that although the Department of Veterans Affairs oversees the guidelines for VA loans, they do not set the interest rates themselves, nor do they service the loans in any way. By working with Guardian Mortgage, you stand firm on our long history of excellence in residential mortgages and our commitment to competitive rates and outstanding service. We’ve been serving generations of homebuyers since 1965. Let us guide you every step of the way.

Guardian Mortgage Rewards our Heroes
You may be eligible for the Guardian Mortgage Community HEROES program, which provides a lender credit toward your closing costs for qualified recipients. It’s a program you won’t find elsewhere. We’re proud to honor the sacrifices you make to create a better world for Americans.

Please contact us today to see how your military service can result in a loan with amazing benefits. These are the highlights, but there are many other benefits like flexible underwriting. You have served us, now let Guardian Mortgage serve you. You have earned it!

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

Guardian Mortgage, a division of Sunflower Bank, N.A


Guardian’s Guide to Mortgage Lingo!

March 8, 2019

I hope you find this article helpful. Contact me if you have any questions during the homebuying process or about your mortgage financing needs.

Understanding Mortgage Lingo

https://www.guardianmortgageonline.com/mortgagelingo

Guardian

If you are new to mortgages and residential lending, it can sometimes be overwhelming to understand all of the related terminology. Helping clients become informed consumers is important to us at Guardian Mortgage, so we’re happy to provide you with definitions of common terms used in dealing with mortgage loans. Keep in mind that this is a simplified financial glossary and, as always, if you have questions or want to talk to a real person, we’re available to help.

Adjustable Rate Mortgage

An adjustable rate mortgage (ARM) differs from a standard fixed-rate mortgage because its interest rate can change several times during the loan term. The initial interest rate on an ARM is usually lower than with a fixed-rate loan. It stays the same for a set period of time, then can adjust lower or higher depending on market conditions.

Amortization

Amortization means to pay off a debt through periodic payments. The length of those payments is called the term. Mortgage payments are structured to apply most of the payment to interest at the start of the loan term. Therefore, payments will pay off a larger portion of the interest at first and then gradually increase the amount paid toward principal.

Appraisal

The appraisal is a standard report within the mortgage industry that details the characteristics and estimated value of a property at a specific point in time as determined by a licensed real estate appraiser. Appraisals are only valid for a set period of time and describe the home’s condition, age, square footage, neighborhood, and sales prices of comparable nearby homes, among other things.

Closing Costs

Buyers and sellers have fees connected with the purchase and sale of a property. If a loan is being used to purchase the home, buyers typically pay a larger portion of the costs related to the financing functions performed by the mortgage company, whereas sellers’ costs are usually associated with transactional fees such as real estate agent fees, tax transfer fees, etc.

Down Payment

The down payment is a percentage of the purchase price paid at closing which reduces the total amount borrowed. Larger down payments reduce risk for mortgage lenders, which can result in lower interest rates and other transactional fees.

Earnest Money

When entering into a purchase contract, earnest money—sometimes called “good faith deposit”—serves as confirmation that the buyer is vested in the transaction and motivated to fulfill the conditions set forth in the contract, such as securing financing and having inspections performed. Earnest money becomes non-refundable at a certain point of the process. The real-estate agent can clarify which conditions must be met for earnest money to be returned should the contract be breached by either party.

Equity

Home equity is the appraised value of the home minus the home’s liabilities. For example, if the home is valued at $300,000 and the owners have a mortgage of $200,000, the home’s equity is $100,000.

Escrow Account

An escrow account holds funds related to property taxes, insurance, homeowners’ association dues, and other assessments. A lender may require borrowers to pay a certain amount as part of their monthly mortgage payment to ensure that the escrow account is sufficiently funded. The lender then disburses these assessments to the appropriate agency when they are due.

Mortgage Interest

Mortgage interest payments are funds paid from the borrower to the lender. Basically, it’s the cost of borrowing money. It is calculated as a percentage called interest rate (see below).

Mortgage Interest Rate (Note Rate)

The interest rate is what lenders charge to loan money. It’s usually calculated as a percentage and can vary based on the borrower’s risk or other industry factors. Higher risk profiles can result in a higher rate. Adjustable rate mortgages have a fixed interest rate for a certain period of time and then may adjust up or down, based on market conditions. Fixed-rate mortgages will have the same rate for each installment of the loan.

Origination Fee

The fees charged by some lenders to cover the preparation of new loan applications and other documents related to mortgage processing.

Principal

The principal is the amount which a borrower owes on a loan and must pay back to the lender.

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

 

Guardian Mortgage, a division of Sunflower Bank, N.A


Open Season: House Hunting with Kids

February 1, 2019

Guardian

I hope you find this article helpful. Contact me if you have any questions during the home buying process or about your mortgage financing needs.

Open Season: House Hunting with Kids

http://www.freddiemac.com/blog/homeownership/20190129_house_hunting_with_kids.page?

House hunting with children can add another layer of complexity to your search. It is a balancing act; moving can be difficult for both young children and finicky teenagers. When you are house hunting for your family, consider how the home will suit your kids now and in the future.

Before you begin touring homes, here are a few tips for parents to consider:

  1. How to involve your kids

If you plan on bringing your kids with you to look at houses, give them a job, however simple, as it will give them a sense of ownership. Allowing your children to feel involved in the process in a great way to get them excited about moving.

  1. Take a walk around the block

Show your children the new community. Ensure your house hunt involves discussions about local parks, schools, and extracurricular activity centers. Exploring will give you a chance to assess the walkability of the community. Sidewalks and cul-de-sacs add an extra layer of safety by providing a buffer between kids at play and cars. Note parking both in your neighborhood and local town centers. Accessible parking is a lifesaver while navigating errands, multiple kids and car seats.

  1. Check out the outdoor spaces

It’s a studied fact that playing outside is good for kids. If you do not want to supervise every time your children play outside, check how much of the yard you can see from inside your home. Having a safe outdoor space for your kids to play in can give you peace of mind. Purchasing a home also gives you freedom to transform that space. Do your kids want a swing set, a treehouse, or a soccer net? If there is not much space, consider how far local playgrounds and fields are.

  1. Consider the floorplan

An open floor plan allows for more supervision but also makes it more difficult to childproof your home. Also, note the placement of bedrooms. Having a toddler down the hall is ideal for late-night wake up calls, but, on the other hand, having a flight of stairs between you and your teens may offer a welcome privacy barrier. Finally, consider if your children will be able to share a bathroom or if they need their own.

Geoffrey Davis, aka, The Frisco Mortgage Guy!

A Trusted Mortgage Loan Originator

NMLS 206192

 

Guardian Mortgage

2701 N. Dallas Parkway, Plano, TX 75093

Mobile: 214-529-9622

GeoffreyDavis@GMC-inc.com

www.GeoffreyWithGuardian.com

Guardian Mortgage, a division of Sunflower Bank, N.A