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For the Week Ending November 23, 2018

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

Concerns over turmoil in Britain and their Brexit deal caused investors to seek safe haven in bonds. This helped mortgage rates improve this week.
Stocks continued to suffer losses this week, as the S&P 500 and DJIA both saw 2018 gains erased. There's some speculation the economy could be cooling.
Jobless claims rose to a 4-month high last week. However, the underlying trend remained consistent with a tightening labor market.

 

Home builder sentiment posted the biggest drop in 4-1/2 years in November. Rising rates, tight inventory and increased costs are concerning home builders.
Home building, however, rose in October, with a strong rebound in multi-family housing projects. Single-family home construction fell for a 2nd straight month.
Existing home sales rose slightly in October as well, snapping a 6-month streak of declines. The median house price rose 3.8% from a year ago, to $255,400.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Learn about the tools Erin the Expert uses to enhance her clients' experience during the mortgage and home buying process and what she does at closing to bring a smile to everyone's face.

You can download Erin's mobile app here (or text ETE to 36260).

Take a look at the What to Expect (W2E) here

Check out some of Erin's #HappyHomeowners here

Want to learn more about ETE and the rest of Greenway's Shore Mortgage Team?​ Check us out then reach out

Reach out to Erin by phone, text or email: (908) 489-4657, ​erin.carvelli@greenwaymortgage.com


Check out the other videos in the series:

Want to set some time to speak with Erin directly? Click here. If there's anyone that can get a deal done it's Erin the Expert. #ETE

And if you like podcasts, check out Erin's MortgageCast too. She keeps it short and cuts right to the meat of each topic.

(MortgageCast)

 


For the Week Ending November 16, 2018

 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

Consumer prices posted the largest increase in 9 months in October. The Labor Dept said its index rose 0.3% last month after increasing 0.1% in September.
Retail sales rebounded as purchases of cars and building materials surged. Strong sales ahead of the holiday shopping season could help the economy.
Concerns over turmoil in the Brexit deal overseas are pushing investors to the safe haven of bonds. Improving bond prices could help mortgage rates remain low.

 

Home Depot is concerned that higher tariffs could cause price increases on some products. However, sales remain strong for the home improvement retailer.
Modular and other non-site built single-family homes made up 3.3% of homes in 2017. That number is expected to rise in 2018 and the years ahead.
FSBO transactions fell to a record low of 7% of all home sales in 2018 according to NAR. That's dramatically lower than in 1981, when FSBOs were at 15%.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Here's Laura with today's video for Mortgage Term Monday - Investment Property. It's important to know that investment properties have specific guidelines that make the mortgage process different than a primary residence. Read more about it in our blog post.

Connect with Laura


When applying for a mortgage loan you will be asked how your property will be used. Let’s take a look at the differences between the 3 occupancy types and how it could affect the final cost of a mortgage.
 
Primary Residence:
If you plan to move all your belongings into a new place you’re getting a primary residence. A primary residence qualifies for the lowest minimum down payment and lowest mortgage rate. Why? Because lenders view a primary residence as a low-risk property since homeowners are likely to stay on top of their mortgage payments.
 
1. Must live in the home for the majority of the year
2. Must be a convenient distance from your job
3. Must live in the home within 60 days of closing
4. If you own the home already and are refinancing, you must be able to prove your residence through documentation such as tax returns  and government identification.
 
Second Home:
Are you considering a vacation home near the beach or a place closer to your job’s second location? In this case, a lender would classify this as a second home. It depends on how you occupy the property (not whether this is the second home you have ever purchased).
 
A second home will meet these conditions:
 
1. Must live in the house for some part of the year
2. Must be a reasonable distance from your primary residence
3. Must be under your control. The home cannot be subject to rental, timeshare or property management agreement.
 
It’s important to understand that if you don’t plan to live in your second home full-time, location can affect if it is going to be considered a second home or not. In addition, if the location of your second home is too close to your primary residence, you could be subject to higher mortgage rates of an investment property.
 
Investment Property:
If you intend to use your property for tenant rental, it must be classified as an investment property. An investment property is a property that is not your primary residence and is purchased or used in order to generate income. The good news is that you can use the expected income from the rental property to qualify for the new mortgage. There are many types of investment properties. For example: residential rental property, commercial property and property purchased to “flip”.
 
What does it take for your property to be considered an investment property?
 
1. The home is within 50 miles of your primary residence and not in a location that makes sense as a second home
2. You plan to collect rent from the property (you may have to submit a lease agreement that confirms the property is occupied by a tenant).
 
Keep in mind, investment properties have the highest interest rates and down payment requirements compared to other property types. and also require a higher credit score.
 
BOTTOM LINE:
The property’s occupancy will be determined during the underwriting process.
 
Wondering how your budget might be affected by either occupancy type? Give one of our loan experts a call today to discuss - 732.626.9827
 


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