David Deem 714-997-3486 Dave@DeemTeam.com A reverse mortgage can let you access a portion of your home equity while continuing to own and live in your house. The loan will have to be repaid when you die, sell the house or move out. You may be able to take out a reverse mortgage if you haven’t paid off your existing home loan. Types of Reverse Mortgages Home Equity Conversion Mortgages are federally insured and backed by the Department of Housing and Urban Development. Money from an HECM can be used for any purpose. Some state and local government agencies and nonprofit organizations offer single-purpose reverse mortgages. A lender may specify that funds accessed via a reverse mortgage may only be used to finance home maintenance or repairs or to cover property taxes, for example.  Proprietary reverse mortgages are private loans that are insured by the lenders that offer them. A proprietary reverse mortgage may be a good option for you if you have a high-valued house and a substanti...

  David Deem 714-997-3486 Dave@DeemTeam.com Mortgage applications increased 3.9 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 20, 2020.   The Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week and was 79 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 19 percent higher than the same week one year ago.   "30-year fixed mortgage rates dropped seven basis points to 2.92 percent, another record low in MBA's survey. Weekly mortgage rate volatility has emerged...

David Deem 714-997-3486 Dave@DeemTeam.com The Federal Housing Finance Agency (FHFA) recently announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021. In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020. The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375—or 150 percent of $548,250.    "C.A.R. commends the FHFA for recognizing California's record-setting home price increases during this past year and raising maximum conforming loan limits, which will give tens of thousands of California homebuyers a chance at homeownership," said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. "Increasing the existing Fannie Mae and Freddie Mac conforming loan limits will greatly benefit higher-priced areas of the state and provide stability a...

David Deem 714-997-3486 Dave@DeemTeam.com Strong consumer demand for both purchase and refinance mortgages drove mortgage lenders' profit-margin outlook for the next three months to a new high. According to Fannie Mae's Q1 2020 Mortgage Lender Sentiment Survey®, based on data collected in the first half of February, 51 percent of lenders believe profit margins will increase this quarter compared to the prior quarter, while 44 percent believe profits will remain the same; just 4 percent believe profits will decrease. Operational efficiency was cited by lenders as the second most common reason for the optimistic outlook. According to Fannie Mae Senior Vice President and Chief Economist Doug Duncan, lenders point to favorable interest rates as the reason for the increase in demand, adding that the first quarter survey data, which were collected during the first two weeks of February, do not reflect the potential impact of the recent decline in the 10-year Treasury rate...

David Deem 714-997-3486 Dave@DeemTeam.com Affordability is a big issue for renters looking toward homeownership. Beyond the purchase price, putting together a 20 percent down payment is a big roadblock for many people. It doesn’t have to be, however. While 80 percent of millennial renters say they can’t afford to buy a house, according to an Apartment List survey, there are various options that they may not be aware of. You’ve probably heard of Federal Housing Administration (FHA) and United States Department of Veterans Affairs (VA) loans, and of Fannie Mae, a government agency that backs mortgages, but there are other programs to help buyer into their first home. FHA / VA / Fannie FHA loans are insured to give lenders a layer of protection if you default on the mortgage. They typically have competitive interest rates, smaller down payments and lower closing costs than conventional loans. A low credit score can still warrant only a 3.5 percent down payment. The VA ...

David Deem 714-997-3486 Dave@DeemTeam.com A purchase money loan can refer to a mortgage provided by a bank, credit union, or mortgage company or issued or guaranteed by a government agency. Usually, however, the term refers to a loan provided by the seller. Seller Financing For homebuyers who don’t meet a mortgage lender’s requirements, obtaining financing through the seller may be an option. If the house is paid off, the seller and buyer can negotiate the terms of a purchase money loan, including the length, monthly payment, interest rate, and down payment. A security instrument is usually recorded in public records in case a dispute arises. A seller negotiating a purchase money loan may be more flexible than a financial institution would be. A seller may agree to an interest-only or less-than-interest loan with a balloon payment and may allow the buyer to make the down payment in installments. Since a buyer usually only seeks a purchase money loan as a last resort, t...

David Deem 714-997-3486 Dave@DeemTeam.com If you’re planning to buy a house, you can choose a conventional mortgage or one insured by the Federal Housing Administration. It’s important to understand the requirements for each to make the right decision. Primary Differences Between Conventional and FHA Loans FHA loans are serviced by private mortgage lenders and insured by the FHA. Conventional loans are not insured by the federal government. FHA and conventional lenders limit loan amounts based on location. An FHA mortgage can only be used to buy a primary residence. A conventional loan can be used to buy a house for any purpose. To quality for an FHA mortgage, the property would need to be appraised to determine its value and to make sure it was safe and conformed with local building codes. If you had a credit score of 580 or higher and you took out an FHA loan, you would have to put down at least 3.5 percent of the purchase price. If your credit score was between 500 a...

David Deem 714-997-3486 Dave@DeemTeam.com By Suzanne De Vita Amid graying economic factors and global tension, the Federal Reserve left rates the same on Wednesday, aligning with the broad consensus, but, importantly, leaving open the possibility of a rate reduction. "The [Federal Open Market] Committee continues to view sustained expansion of economic activity, strong labor market conditions and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased," according to the Federal Reserve's statement. In considering cutting interest rates, the Fed is hoping to keep momentum strong. In March, the agency indicated an intent to postpone raising rates this year, chiefly due to inflation lingering short of its target. In May, employment gains and pay stagnated—but, with historically low unemployment, as well as other encouraging indicators like spending, there are fair odds ...