Mortgage Rates April 27, 2020

Mortgage Headliners: 

Getting Answers...Should I delay my mortgage payment...
Homeowners with federal loans won’t have to pay lump sum after pausing payments
Coronavirus related forbearance requests still on the rise…
The housing industries response to the corona virus…
Nearly 10% of FHA and VA borrowers are in forbearance. Total forbearance nearing 7%...

We’re watching the market closely…

If you’re in the market to purchase or refinance give us a call today (888) 931-9444 or (702) 696-9900

Coronavirus-FHA 680 FICO

Things are moving so quickly in the market with the coronavirus being at the forefront, everyone is feeling hardship across the board.

FHA Loans provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories.  It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934 and it's the only government agency that operates from its self-generated income.

Self-generated income which means the Mortgage insurance premiums that is collected from borrowers via lenders are used to operate the program.

FICO scores tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk by utilizing a FICO formula.

The most commonalty used :

Equifax Beacon 5.0

Experian/Fair Isaac Risk Model v2

TransUnion FICO Risk Score 04

We’re seeing what’s “good” for rates can be bad for lenders, and what’s “good” for the market can be bad for home buyers. This tug of war has caused servicers to implement drastic measures to keep up; includes raising the minimum FICO.  If you have questions or concerns please contact your lender right away.

Mortgage Rates March 17, 2020

Mortgage Headliners: 

Economist predicting emergency rate cut this week…
Negative Interest Rates Unlikely…
Coronavirus economic package in full...
Trump is considers letting homeowners delay mortgage payments...

We’re watching the market closely…

If you’re in the market to purchase or refinance give us a call today (888) 931-9444 or (702) 696-9900

How Prepared Are You?

Buying a home can be a challenging experience for first-timers. Here are some mortgage tips to help get you started.

Start saving for a down payment early

It's quite common to put 20% down, but many lenders will now permit a much lesser percentage, and first-time buyers programs allow as little as 3% down. Putting down less than 20% could mean higher costs and paying for mortgage insurance, even a small down payment amount can still be hefty.

Explore your down payment and mortgage options

Check out the various loan programs:

Loan Terms:

Making a much higher down payment will mean having a lower monthly mortgage payment.

Research your state and local assistance programs

Many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits and discounted interest rates.

Determine how much home you can afford

You will need to now what's actually within your price range. Find your debt-to-income.

Check your credit

Your credit score (FICO) will be one of the key factors in whether you're approved, and it will help determine your interest rate and loan terms. Speak to an expert about any disputes you may have on your report.

Compare mortgage rates

We recommend comparing at least 3 lenders before making a decision. This could save you more money.

Get a preapproval letter

As you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it's willing to lend you, and under what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step.

In a competitive real estate market with limited inventory, it’s likely you’ll bid on houses that get multiple offers so having a preapproval letter will increase your purchasing power.

FHA Denying Support for DACA Mortgage Borrowers

What is DACA

Deferred Action for Childhood Arrivals (Dreamers)

An American immigration policy that allows some individuals with "unlawful" presence in the United States after being brought to the country as children receive a renewable 2 year period of deferred action from deportation and become eligible for a work permit in the U.S.

What is FHA

The Federal Housing Administration (FHA) is the largest mortgage insurer in the world with an active insurance portfolio of over $1.3 trillion. Each year, FHA helps more than a million homebuyers achieve the dream of sustainable, affordable homeownership of single family homes, while our insurance programs for multifamily properties support the availability of over 300,000 affordable rental units, including those for seniors and people with disabilities. FHA's healthcare insurance programs facilitate access to hospital medical care and assisted living in hundreds of communities across the country.

Who is Fannie Mae

Leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets at all times. Our financing makes sustainable homeownership and workforce rental housing a reality for millions of Americans.

How are these all connected?

According to the FHA they are not going to be backing mortgages for DACA recipients, however Fannie Mae has stated that it supports (and will support) mortgages for DACA recipients.

“We have a longstanding policy on eligibility for non-U.S. citizen borrowers. Fannie Mae purchases and secures mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to U.S. citizens,” the government-sponsored enterprise said in a lender bulletin posted on Friday.

Fannie Mae said that it is not changing its existing policies. Rather, the purpose of issuing the bulletin was to provide “additional guidance to help lenders determine eligibility for non-U.S. citizen borrowers” in response to customer feedback on the issue.




We've Got You Covered

Mortgage & Homebuyer Concerns

House Prices Are The Culprit

Who would have guessed we would be back to the similar movie The Day After Tomorrow? All areas of the housing market are bracing themselves.

More then half of the industry are saying the rising of interest rates have been their biggest hurdle since the World Record Jump of 2007. The industry needs to drive forward with the digitization of the mortgage application process.

And future home buyers? Well, they’re right there with them. First time home buyers don’t have a vast inventory of affordable homes available to them and 20% have credit history challenges.

The Solution

We having a growing presence in the purchase market that will require continued support and customization as we continue to play a meaningful role and drive demand in the housing market.

Without one we don't have the other.


Contact Us Today! 702-696-9900 Learn More About Our Mortgage Options Today.


#mortgage #homebuyers #realtors #thestruggleisreal #valleywestmortgage




The Federal Housing Administration, also known as the FHA, has decided to bless borrowers this year by cutting mortgage insurance premiums. Who is the Federal Housing Administration? The Federal Housing Administration, simply called the FHA, is the government body that sets standards for the processing of mortgage loans. Most notably, the FHA insures loans made by banks that have been FHA approved. The Mutual Mortgage Insurance Fund created and backed by the FHA has grown exponentially in the past four years under the Obama Administration. This means that the FHA now has the flex room it needs to provide an opportunity for savings for deserving and responsible borrowers.

What does cutting Mortgage Insurance Premiums mean for our borrowers?

The cut in MIP (Mortgage Insurance Premiums) will apply to FHA loans with a closing or disbursement date on or after January 27, 2017. The FHA cut in Mortgage Insurance Premiums is going to do wonders for the borrowers who have to deal with this new environment of rising interest rates. The FHA is predicting that homeowners will be able to save an average of $500 per year. The cut in Mortgage Insurance Premiums means that the cost of housing will decrease and the opportunity for mortgage credit availability will meaningfully expand. In a nutshell, more borrowers will have the opportunity to take out FHA loans because the cost of obtaining an FHA loan is being reduced.

What does cutting Mortgage Insurance Premiums mean for Valley West Mortgage?

We love originating loans for our borrowers at Valley West Mortgage. We (as your lender) bear risk every time we lend money to homeowners. To offset that risk, borrowers pay a Mortgage Insurance Premium at closing as well as an annual mortgage insurance premium that is a small percentage of the loan amount. That premium paid by the borrower then goes toward the Mutual Mortgage Insurance Fund, an account that will pay back the lender if the mortgager falls on hard times and defaults on their loan. Mortgage Insurance Premiums being cut by the FHA means that we will be able to originate even more FHA loans for our borrowers because the required premium at closing will be of a smaller amount than it has been in the past.

Let’s Recap

The Federal Housing Administration or FHA, charges a small percentage of your loan amount to insure your loan against a default. This small percentage that is paid once at closing, and once annually is called your Mortgage Insurance Premium or MIP. The MIP is a part of the cost of your loan. When the cost of the mortgage insurance premium is cut, it allows more borrowers to meet the debt to income ratio that is required to take out an FHA loan. Borrowers that may not have been eligible to meet the standards before now have a chance to enter into the homeowners world. Lenders for whom business may have been slow as a result of rising interest rates will now be happily overflowed with business from borrowers who are looking to take advantage of this remarkable opportunity.


When doing your research, always use great sources! Check out the sources for this article below.



FHA Lowers Mortgage Insurance Premiums. Refinance Today!

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In case you have not heard, President Obama has just launched a BRAND NEW MORTGAGE PROGRAM that makes REFINANCING EASY and DROPS FHA MORTGAGE INSURANCE PREMIUMS across the board for everyone that qualifies!

The Federal Housing Administration has lowered Mortgage Insurance Premiums from 1.35 to 0.85%. That means that you could save money every month on your monthly home mortgage loan.

Establish, Raise and Maintain Your Credit Score In 4 Easy Steps.

As the housing market evens out at the tail end of a countrywide recession, many people continue to search for mortgage and loan guidance and availability. It takes a long time to establish decent credit; however, that decent credit score can quickly and easily be ruined by a number of things.

In order to establish credit, one needs to do little more than maintain a bank checking account and establish a line of credit in which all payments are timely and minimal, at least. Years of making on-time payments, for things as simple as doctor’s bills to complicated car payments, build a good credit history and report that any lender would like to see.

But life happens, and if you need to improve your credit score, it can be done so in a fairly quick manner, relatively speaking. There are just a few things you need to do in order to start improving your credit score and improving your chance of obtaining a loan.

What Goes Up...Must Come Down

If you watch the news or are current in the mortgage world (as we all should be), you know that the mortgage rates are dropping significantly. Mortgage rates are important because they regulate the amount of interest that home buyers pay on their mortgages every month. Houses, especially nice ones, aren’t exactly cheap. So borrowers need to obtain a loan from a bank in order to pay for their house. Well upon paying back that loan, borrowers must also pay interest, so if the interest rates are low, then of course the payments (in most circumstances) are low as well. What does that mean for you? It means that NOW is the time to look into buying a new home, or refinancing your current home for a lower interest rate.

According to Freddie Mac, the average mortgage rate as of October 16, 2014 is at 3.97% for a 30 Year Fixed Rate Mortgage. That’s a major change from the 4.28 percentage rate that was reported last year by Freddie Mac. One of the safest bonds to invest in are US Treasury Bonds. Because of this, US Banks model their interest rates on mortgages based on the US Treasury’s rates. As a result, if the Treasury’s rates drop, then the mortgage rates are likely to follow.

Is There an Explanation for Low Mortgage Rates?

Wise investors want to make safe investments that will provide a steady income of money. One investment that is considered “safe” is an investment in Mortgage-Backed Securities (or MBS). Those who invest in mortgage-backed securities are essentially lending their money to a homebuyer or a business. These MBSs are backed by government supported entities like Freddie Mac and Fannie Mae, and since they are supported by the full faith and credit of the government, investors feel comfortable with investing. Investors are investing while the mortgage rates are low. If they go up too high, there is no guarantee that they will continue to put money towards MBSs. Banks need people to continue to invest in MBSs so that they can continue to gather their loans and sell them to the GSEs, or Government-Sponsored Enterprise . If no one is investing then the banks can’t sell their loans, and if smaller banks can’t sell their loans and their borrowers default then the bank loses thousands of dollars. According to Jed Kolko, a Trulia Chief Economist, “[When] investors think US mortgage-backed securities are relatively safe, mortgage rates [will] stay low.”

Granted, what I have provided is only one explanation. Other bloggers, mortgage experts, and financial institutions I’m sure have their opinions on why the rates have fallen. Will the rates stay low? Doubt it. The economy is constantly changing as well as the demand to borrow money. So be sure to take advantage of this rare financial opportunity while it’s beneficial to you. Just a bit of food for your mortgage thoughts.