Upcoming Interest Rate Shift! How To Prepare BEFORE April
Вставка
- Опубліковано 1 чер 2024
- Interest rates are about to shift in May (likely slightly before) for people using a conventional loan.
► ► LLPA Chart: singlefamily.fanniemae.com/me...
► ► Get Pre-Approved With My Team → www.winthehouseyoulove.com/le...
► ► Get An Agent Referral → www.winthehouseyoulove.com/agent
TOP RESOURCES
💪 Let Us Beat Your Loan Estimate → www.winthehouseyoulove.com/co...
📉 Today’s Rates → www.winthehouseyoulove.com/rates
🏡 Max Purchase Price Calculator → www.winthehouseyoulove.com/ma...
📅 Complete Buying Timeline → www.winthehouseyoulove.com/ti...
📊 Loan Comparison Calculator → www.winthehouseyoulove.com/ad...
🎓 Lower Student Loan Payments → www.winthehouseyoulove.com/st...
💳 Credit Score Simulator → www.winthehouseyoulove.com/cr...
0:00 Upcoming Interest Rate Shift! How To Prepare
0:07 Changes on May
1:52 Comments about the changes
2:35 LLPA: Old vs. New
3:53 Adjustment in different scenario
6:35 Removed 20% down Trick
6:57 Fees are lower
7:05 DTI Adjustments
7:32 ARMs Adjustments
8:10 LLPA Waiver
8:49 How to qualify?
9:09 Fannie Mae HomeReady Lookup
- DISCLAIMER -
Kyle Andrew Seagraves is Federal Mortgage Loan Originator (NMLS 1701021) licensed in all 50 states with the Dan Frio Team at Allied First Bank (NMLS 203463), an Equal Housing Lender. Separately, Kyle owns Win The House You Love LLC, an education company. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This video is only for educational usage. All calculations should be verified independently. This video is not an offer to lend and should not be used directly to make decisions on home offers, purchasing decisions, or loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, or real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate, legal, and/or financial advice. Allied First Bank is not affiliated with the VA, FHA, or any other government agency. This video has not been approved by any government agency.
Nah man this is whack. What’s the point on working so hard to have a perfect credit score, minimal DTI, saving 20% down if the govt is just going give better assistance to those who statistically, are more risky borrowers with worse scores and less down. Lemme go blow my credit score real quick.
Democrats shifting us to socialism. Y'all asked for it if you voted Democrat. Socialism and communism is evil.
Your still getting a better deal if you have a good credit score and higher down payment compared to someone that has low credit and low down payment . Also if your a first time buyer. You won’t have to deal with this.
What the hmmmm is that 😳 so as people who work hard and try to play smart were just penetrated yet again!?
The whole process is overly complicated and only gets worse the more the government tries to “help”
Just bought a house and I can tell you it's 6% for any new home loan this year. I thought I watched and learned everything I could about buying a home but it wasn't enough you definitely have to go through the whole experience personally. Another thing I learned was Escrow is now non-refundable it's now tied into the down payment but they want tell until its too late.
Just 3 short months later, the new normal is 7%
Absolutely Insane!
I saved up 20k on Cali and to some that might not be a lot but to live here it is.
I decided to give my mom all of it for medical cost. She is fighting for her life. I don’t regret my decision but I’m devastated that I won’t get a home soon because all I have saved now is 3k. By may I can save 14k but I’m concerned with mortgage payments and the recession. Life is expensive !!!! My husband and I are tired of living in our small apartment of 7 years. Our three children are growing but to think all my money is going to s home and my kids won’t have extra for sports etc makes me sad. At this point I may just go and rent s house in a nice area. I don’t know what to do anymore. I’m 30 a teacher and my husband is a manager at Amazon but also is a personal trainer. We are tired of this. We work hard. 😢 I need advice on where we should still try or rent.
I do appreciate this kind of transparency! Lenders showing this info and trying to provide this type of knowledge is uncommon in this new market!
Putting a small downpayment and throwing a large portion at the first payment still defeats the other purpose most home buyers saved for…a reasonable monthly mortgage. No one wants to save only a slightly diff interest rate to raise the monthly payment by several hundred, I don’t at least
You can recast if you want to for the same effect of lowering the monthly payment
Thank goodness I started this journey when I did.
When you first mentioned about it, I compared both the charts.
For my situation (credit score, loan amount, DTI >40), putting 3% down is better and the inclusion of the DTI is gonna make me pay extra 0.25%, compared to the old chart.
But then…l’lI still gotta wait and see what is the difference in mortgage rates when it’s 3% or 5% down, on the day I lock to know the correct Interest Rate.
Waiting eagerly for the ‘mortgage rate difference chart based on credit score and down payment / points’ - video.
(I understand that it fluctuates based on the day but would like to see it just like you educated us on the Loan Estimate.)
Thanks a ton for taking the time to post these valuable videos. 👍👍
Amazing video man. Thank you so much.
I just came to support your awesome channel! 🎉🏅🏆Keep bringing the good stuff!
Thank you so much!!
Thank you, Kyle! When do you plan to post the rate hacking video? Loving this channel so far!
Thanks for watching! Within the month. Working on a calculator to help make it a bit easier to figure out :)
thank you for this info! keep it up!
Thank you so much for watching!! :)
That sucks, I've been saving for a while and working on my credit score to buy an investment property. I'm not surprised though, everything seems wacked out during this time.
It's a strange change!
Great videos! Thank you❤
Thanks for watching!
I'm in the process of saving up that down payment. I'm finding your videos very helpful. Many thanks!
Happy to help!
The waiver is not going to work for Southern California. If you qualify for Home Possible, you don’t make enough to buy here.
You are the GOAT! Thank you for explaining this. I am pissed at this. My wife and I have been working so hard, day by day on our finances so our credit scores would help us get a lower interest rate and now we are getting penalized. Is this the world we live in now? Do we start missing our credit card payments so our score drops and thus we can get a better rate? This is ridiculous. I do not see my hard work being reflected on our first-time home buying process.
Your score still matters when it comes to qualifying for a Conventional loan. The LLPAs only apply to the rate/fees IF you're under area median income limits. Otherwise credit ABSOLUTELY plays a factor in underwriting and PMI.
Welcome to socialism
Guessing this also applies to all refinancing?
Very informative! What microphone do you use?
Thanks! My mic is overkill... Neumann TLM 102
Wouldn't there be a point where keeping the rest of the down payment in reserves be beneficial and keeping the payment with the lower interest rate? As opposed to putting it on the first payment. I am going to start looking shopping later this month.
You absolutely can do that as well
Thank you for the great video!! We are in escrow now, and there is a lender we are hoping to work with, but they are about 1.125% away from the best fixed rate we got when shopping around. And instead, they want us to choose their ARM to match the fixed rate we got (5.3%).
We don’t really want to go with ARM, and we are qualified for LLPA, so we asked the lender about it, but they said that their loan is a portfolio loan…
What can we do in this case? We have 760+ credit, putting 20% down, and not sure how to get the best rate we can. Thank you!
If they're the same rate, fixed is always better. Go with the lender that is offering the better rate.
How did you get 5.3%? Are you paying for points?
Great video. If you don't qualify for the waiver but have a 800+ credit score and low DTI then you will have a lower rate in May?
Can you link to the resource you used LLPA changes?
If you have 800 credit, you'll only have a lower rate in May if you put less than 5% down.
www.mortgagenewsdaily.com/news/01192023-big-llpa-changes
@Kyle. Can we get a link to these charts or link on your video. Definitely info to digest.
Here it is: singlefamily.fanniemae.com/media/9391/display.
These shifts apply on top of a base rate correct? So even if under the new rules a lower shift is achievable, the overall could be higher if the fed increases the base rate correct? Great video thanks for the awesome resource.
Yes, but keep in mind the Fed never controls the base rate. The Fed controls the Fed funds rate which is the rate at which banks lend money to each other overnight.
The base rate is something you'll never see unless you work for a mortgage company. It varies by each lender.
Putting 50% down may help reduce the loan.
Great video man. You do renovation loans in ny?
You can go to www.winthehouseyoulove.com and let's see if we can help you about it. :)
What difference do you see in average between HR/HP rates vs a regular conventional loan with a 740+ credit ?
Around 0.5% in rate
Will this have a impact on first time home buyers?
It impacts all buyers getting Conventional loans. First time buyers can qualify for the waiver where none of this impacts them at all if they're under the income limit.
How does a quick claim deed works? How much does it cost to get one?
A quit claim deed transfers interest from an owner to another person. This is common for homeowners who want to transfer the title from their personal name to an LLC they own. Usually around $100 and it's done by a title company.
Does this apply to jumbo loans?
No, this only applies to "conforming" Conventional loans. (e.g. loans following Fannie Mae/Freddie Mac guidelines).
So, jumbo no. But conforming Conventional does have high-balance loan limits in high-cost areas that are right below where Jumbos kick in.
Does this affect fha loans the same way?
It does not
So even if it is and FHA used on a 2nd home those increased rates will still apply, because it is a 2nd home?
This is only for Conventional. And FHA does not allow you to be a secondary home, only primary residences
This new chart is absolutely hackable.
Kyle, do you know if FHA loan rates are also going to change?
FHA doesn't use an LLPA pricing system like Conventional loans, so it's unlikely
@@WinTheHouseYouLoveahhh…THANK YOU for answering that question. I just went under contract with a 60 day closing because of my bankruptcy
@boingsuper10 great question! Thank you for asking!!!
FHA is lowering their mortgage insurance, effective now!
It is truly hard to comprehend why someone would be penalized for having better credit scores. Does that not just send the wrong message to F up your life and yet again have somebody else pay for it? SMH
Credit still matters when qualifying for a Conventional loan. Underwriting and PMI haven't changed. It's just the rate/fees are better now if you're under income limits
Is this change for everyone state???
National, yes
Hi Kyle, I'm a bit confused about your strategy of putting a smaller deposit down even if you have 20% saved. For me to get the best house I can afford, I've taken into account both the deposit I've saved and the amount I can comfortably afford on my repayments each month. If I reduce my deposit from 20% down to 5%, my monthly repayments to get the same house will be much higher (that's if the lender will even let me borrow the extra 15% of the house's value based on my income). The mortgage repayments are fixed, right? So even if I were to put the remaining 15% of my deposit down with my first mortgage repayment, my subsequent repayments would still be at a level that was unaffordable for me unless I immediately refinanced. Please let me know if I'm missing something. Love your channel - many thanks. You've made the process of first time home buying seem much less overwhelming. Jerry
Yes the monthly payment would be higher. You can recast to lower the payment if you want.
The main thing is that this is all on the back end. Consumers aren't allowed to know about it. They are in the dark from start to end.
Consumers absolutely are allowed to know about it, which is why this video exists. Along with the public chart I linked. Along with every public guideline and press release from Fannie Mae and Freddie Mac.
@@WinTheHouseYouLove I am not saying it's top secret information. I am saying the mortgage officers I spoke with decided not to reveal these details when I asked about them. I was told they don't know. They said their main job was to supply offers so we could buy a house. Beyond that, they are using the rates available to them, etc. They said they cannot say how these numbers, like interest rates, were obtained. Indeed, a pre-approval letter even failed to contain the interest rate, let alone where they got it from!
absolutely absurd. no chance anyone my age (23) is getting a house. it seems like its all stacked against us.
As a LO we know most people have crappy credit
I guess it depends on your definition! Conventional only goes down to 620 which is in the "fair" range of credit.
Have you ever heard of the seller being a realtor and representing both sides of the transaction.
That sounds like a really awful deal for the buyer
@@WinTheHouseYouLove I was mostly just curious if you’ve ever heard of that happening before
I haven’t
People who only have 5% down have less to save, we can't say whether they were "blowing their paycheck" that's so rude 😂 But couldn't the person with a higher credit score just put less down, pay a huge lump sum, and then get their mortgage recast?
Yeah that part of the quote definitely was uncalled for.
Yes that absolutely is a solution as well. Really, you can do whatever you want with the money you don't put down. I just used the example in this video of 20% because people are often wanting to remove PMI. A recast usually will cost a couple hundred dollars
Man glad im closing soon, this all sounds so backwards.
It's a confusing change!!
“A lot people are not happy”
@ me next time 😂 I still think this is annoying and frustrating 😭
Best of luck.. I hope things will get better.
I feel like you almost need a phd to understand this stuff fully, but I know this much- this isn't fair.
That's why you work with a good loan officer to explain it based on your situation! Not every detail is going to apply to you.
Is this new or a remash? Getting dejavu. Why are you doing this? (again) Hmmmmmm?!~
This is new