James Whitener

Arizona Loan Officer

FED Update & Remembering Directions Before Navigation

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FED Update

Yesterday the FED released their minutes from their March Meeting and in a rather rational move they left things somewhere in the middle.  It seems as though some lawmakers think that under certain circumstances that rates could be increased.  However, others think that it could shift in either direction.

I realize this news doesn’t really give any insight into expectations for rates.  It does tell me though that we can expect rates to rise and fall in small increments and we shouldn’t see any major movement in rates for the remainder of 2019 unless there is a major increase in the economic outlook.

Today’s rates are up slightly by 19 basis points (for those not familiar with this terminology it means that rates are up 0.0019%).  To put that into cost terms for you that means if you were to get a $200K loan, the cost of your rate would be up about $380 at closing (or reduce your credit by $380 at closing).  It could also mean a slight in crease in your rate by about 1/8 of a percent (going from 4.5% to 4.625%).

Remembering Directions Before Navigation

On to a little more fun topic that I’m sure some of you can relate to.  I was driving yesterday to an appointment with a realtor that I have yet to do business with.  I was slightly familiar with the area but not enough so that I didn’t need directions.  If you’re wondering, the meeting went great!  I’m excited to say I may have found a new partner that has as much passion for the industry as I do and I can’t wait to work with her to get the absolute best for our shared  clients.

How Things Have Changed…

While driving it got me thinking about the days without GPS.  No navigation in the car (which mine doesn’t have as it’s a 2004 Tahoe and they didn’t offer that feature then), no smart phone or smart watch to guide you.  It got me thinking about the days of having to ask for directions, right them down… look at maps and draw out your path.  I reminisced about the days of getting lost and frustrated because there wasn’t a quick and easy solution to re-route yourself to get back on track.

Being in the real estate industry I am constantly driving to new places and going to meetings in unfamiliar areas.  Without google maps and navigation life would definitely be more complicated. I would most likely have added stress and frustration.  Now, I don’t think all technology has made life easier.  I can’t imagine I’m the only one to get frustrated at self-checkout in the grocery store.  When my computer isn’t working properly it feels like the end of days.  However, in this one instance it was humorous to think about the days when directions weren’t fun, especially for those of you not good at taking or giving directions.

Things Could Have Been Different?

I can’t help but wonder if we had this technology years and years ago when I was young.  It would have prevented my father and I getting lost in Los Angeles when I was 5 or 6.  This was the trip that turned a former smoker back into a smoker. Maybe with this new technology he’d still be a non-smoker?  Who knows but I am thanks for the ability to have a device that tells me where I’m going without having to ask someone for directions.

Have a wonderful weekend! I hope to be your mortgage guy when you are in need of some directions when it comes to a loan for your new home or refinancing your current.

Do you LOVE your Mortgage?

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Admittedly, this is a dumb question.  Of course you don’t.  However, this being Valentine’s day with all the love in the air it seems appropriate to speak of love.  In my business though it’s more like are you content with your mortgage or are you unhappy?  Moreover, are you in love with your house, content with your house or unhappy?

The Deeper Question

A lot of this situation really comes down to your finances and your wants.  Are your finances in a place where your mortgage makes sense?  Is the home your living in exactly what you want (or pretty close) or are you still using your current home as a stepping stone to get to that dream house?

Your Plan

What is your plan if you can answer no to any of these questions?  Have you sat down with a trusted financial adviser?  Have you spoken to a mortgage professional to weigh out all of the options you have to reduce current payments, maximize equity or just flat out look for a new home?  Do you have a trusted realtor that can help you with market trends and set expectations?

Where to Start

Where do you start in all of this to get to that place of contentment in your living situation? Is it your job, is it your pay, is it your budget or lack there of, is it your house… so many questions!

Simple Advice

The easiest solution to all of the questions is start somewhere.  Talk to a financial adviser, a mortgage professional, a realtor, your partner… start somewhere and build a plan.  It doesn’t matter if you are a home body, jet-setter, a workaholic… you’re still going to have to have a place this is yours.  A home that is functional but comfortable.  A house that fits your needs and feels safe.  A place that you’re excited to show off and gleam every time you walk through the front door (or garage entrance door like most these days).

Life and Love

Life is fleeting and you deserve so many wonderful things, don’t wait to find love and don’t wait to live the life you want.  A lot of that starts at home and most homes start with a mortgage.  Let’s get you to answer yes to that dumb question, love your mortgage as it leads to loving your dream home.

3 Programs That Allow You To Buy A Home With No Money Down In 2018

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3 Programs That Allow You To Buy A Home With No Money Down In 2018Home buyers are typically advised to put at least 20% down for a mortgage. Coming up with that amount can seem almost impossible if you have little to no money left over after paying bills each month.

Fortunately, if you want to buy a house but are worried about coming up with the 20 percent down needed for a downpayment, you still have plenty of options. There are still plenty of programs that allow you to buy a home with a low down payment or even no money down in 2018. 

Here are some of the best programs that designed for homebuyers who don’t have a massive chunk of cash to put down at closing. Maybe one of these options will be the perfect solution to make your dreams come true. 

#1 VA Home Loans 

If you are a veteran, in the National Guard and Reserves or an active-duty service member, then you may qualify for a VA home loan. The VA offers 100 percent financing. So, you don’t need any money down. The VA does not require mortgage insurance. There is a funding fee, which must be paid by the borrower. However, the lender can roll the fee into the loan amount. The funding fee is typically 2.15 percent of the loan amount. 

#2 USDA Loans

The U.S.Department of Agriculture (USDA) offers a zero-down mortgage for low to moderate-income families. This program was created to help rural development. The loans are only available in towns that have populations of 10,000 or less. However, this is quite a large area. In fact, the USDA program covers more than 97 percent of the United States. Many eligible smaller towns are located right outside major cities.

The USDA program was designed for first-time home buyers although there are some exceptions to this rule. USDA loans do not require mortgage insurance. There is an upfront guarantee fee of one percent. The lender can roll this fee into the loan amount. 

#3 FHA Home Loans

The Federal Housing Administration (FHA) provides one of the most popular low down payment mortgage options in the country.  Normally this loan product requires a minimum 3.5% down payment.  However, 100 percent of the down payment money can be a financial gift from a relative or a non-profit organization.  This allows a borrower to get into their home with no money down.

Contact your trusted mortgage professional to find out about these programs or others that might be right for you.