Category Archives: Mortgage Tips

A GIFT to Homebuyers! Guild’s Payment Advantage program lowers the buyer’s rate by 1% for their first year on us!

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Payment Advantage is a Conventional loan for homebuyers wanting to save on their payments now as rates continue to rise. For eligible homebuyers, Payment Advantage will lower your payment for the first year by paying 1% of your interest rate for year one of your mortgage.
 
BONUS – Loans locked on or before 3.31.2023 can be paired with Guild’s Payment Protection Program to be able to refinance once rates drop in the future with no lender fees.

The emotional security of owning your own home immense! With home values coming down, and sellers more apt to provide incentives, now you can add peace of mind with Guild’s new programs. Let’s Talk! Text, call, or email me for more details @ 916-257-1470 @ dtharp@guildmortgage.net

Download Flyer Here!

The above information is for educational purposes only. All information, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

*For Payment Protection Programs full terms and conditions, visit www.guildmortgage.com/homebuyer-protection

NEW!!! Help your Sellers sell their home FASTER by locking in the rate for your potential buyer.

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Rates are rising—let’s get your listing sold now! Our LockNow and Sell program takes the uncertainty out of homebuying.

Guild Mortgage’s LockNow and Sell program guarantees the interest rate for your listing even if rates continue to rise.

By the seller locking in a rate,* buyers can feel sure about their purchase—there’s no need to wait for rates to drop as their rate will not increase at the time of purchase. And if rates go down, the homebuyer can utilize a float-down option.
 
Here are the details:

check iconSecure today’s rate on your seller’s property for 60 days*
check iconConventional, FHA, VA, or USDA financing is available, so the homebuyer can choose the financing that’s right for them**
check iconThe seller must commit to providing a 2% seller incentive to buydown the homebuyer’s interest rate

*$1,500 non-refundable upfront lock-in fee applies to secure the interest rate for the future of the homebuyer for 60 days. **Additional loan level price adjustments may apply based on credit score, occupancy, loan term, loan-to-value, or guideline requirements. A seller incentive of 2% of the final sales price is required to pay for the buydown costs or closing costs, whichever the homebuyer selects. For use by Real Estate Professionals only. Not intended for public use or distribution.

You get exclusive access to this program now. Text, call, or email me for more details @ 916-257-1470 @ dtharp@guildmortgage.net

LockNow and Sell Faster
Sell your listing FASTER and stand out from the crowd by offering a locked rate with your listing!
Download Flyer Here!

The above information is for educational purposes only. All information, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions. Consult the LockNow and Sell Program Guidelines for eligibility information and LockNow and Sell Agreement for full program terms. Subject to change without notice. A seller incentive of 2% of the final sales price is required to pay for the buydown costs or closing costs, whichever the homebuyer selects. For J.D. Power 2021 award information, visit jdpower.com/awards.

NEW! Anyone need an ALL CASH OFFER program?

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I am excited to announce that Guild is releasing an all cash program to help our buyers win the deal.

This program allows my credit-approved borrowers to submit an all-cash offer, using proof of funds from Guild, to enter into contract with no financing or appraisal contingencies. Yes, you heard this right. If Guild Mortgage cannot close the buyer’s loan in time to meet the contract requirements, they will guarantee to pay cash for the home and then close the buyer’s loan. AND we can also couple this with our fantastic Lock and Shop program. So lock your rate today, find your dream home, offer in cash, and we finalize the loan.

This is a game changer for us, and you get exclusive access to this program now because I am on the pilot program. Text or call me for more details (916-257-1470 dtharp@guildmortgage.net)

Download Flyer Here!

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction. For Lock and Shop full terms and conditions, visit www.guildmortgage.com/cap-hbe-terms. Consult the CashPass Program Guidelines for eligibility information and CashPass Program Agreement for full program terms. Subject to change without notice. A non-refundable participation fee, along with a minimum 2% earnest money deposit is required for participation in this program. Other costs may apply.

Home values are up. Can you still afford to buy?

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Home prices in California are going up and will probably continue to do so. Does that mean they are less affordable?

The news can be misleading and confusing as it recently touted the significant move higher in the median home price, currently up 15% nationally versus last year. And 14.3% in Sacramento County, says the Sacramento Association of Realtors. 15% sounds awfully high. But the median home price does not measure appreciation. Instead, it marks the middle price point of recent home sales. 

With a substantial lack of inventory for lower-priced homes, more transactions occur for higher-priced homes, which pushes the median home price higher.

The actual Sacramento home price appreciation rate was about 1.25% for the last quarter, or 5% annualized. And it is forecasted to increase by a similar margin next year. So have you been priced out of the market?

The short answer is no, or at least not yet. California’s affordability factor has improved year over year because mortgage rates are down by almost a full percent, and incomes have gone up (Avg. weekly net pay is up 5.7% year over year nationally). Also, remember, only a portion of your income goes towards paying your mortgage. A 5% rise in income can offset a much more significant percentage rise in housing expense.

Let’s assume your monthly earnings did not improve from last year. Consider a buyer’s max purchase price of a new home, based on his/her income and debt was $450,000 last year. Maybe this buyer decided to wait because they were nervous about the market. Now, that home is worth about $472,500.

As a mortgage professional, if I were to use the same income and debt structure I used last year, this buyer would now afford a home for $490,000. This tells us that homes are actually more affordable, even though they have appreciated.

Granted, I am using very simple math here, and this does not get into down payment or cash required to purchase this home but is purely to show you the media doesn’t’ always get it right. Take the time to work through these numbers with a mortgage professional you trust, and don’t give up your dream of homeownership!

New Tax on Mortgage Refinances

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I’ve got some good news, and I’ve got some bad news. Here’s the bad news first.

Last week, the Federal Housing Finance Agency (FHFA) announced a surprise fee on all new refinance transactions sold to Fannie Mae and Freddie Mac, making up approximately two-thirds of all loans. The cost was assessed regardless of the bank or mortgage company you choose to work with and will increase the interest rate that you had been expecting and had been available.  

This sudden move came as a surprise both in the imposition of the fee and in making the fee effective almost immediately. Historically, they allowed 60-90 days before the new pricing went into effect, to enable lenders reasonable time to close their rate lock pipelines.

Why are they introducing a new fee?

Two reasons. First, both Fannie and Freddie are concerned about the uncertainty surrounding future mortgage defaults and the increased costs they incur. Secondly, they are worried about how quickly their current mortgages are prepaying due to the unprecedented wave of refinances. When a loan refinances, the prior loan comes out of the security, which creates losses to the investor who owns that mortgage, so by raising the cost to refinance will slow down how past loans are paying off.

Although Fannie nor Freddie outwardly stated this, many in the industry think that a third reason drove this announcement. The “refinance tax” will allow both enterprises to build up a capital base for their future release from conservatorship and back to becoming private entities – This is pure capitalism ladies and gentleman. 

 What is the impact to borrowers?

  1. Across the country, lenders are adding these new refinance fees into rate sheets effective immediately for all conventional conforming refinances.
  2. These fees are on top of all other fees already charged by Fannie and Freddie.

What happens next?

The mortgage industry is united in its disappointment with the announcements, specifically with the break from all past precedent of providing a reasonable advance notice of the effective date. The probability of FHFA, Fannie Mae or Freddie Mac revising their announcements with a different effective date is probably low.  

Now for some good news… 

Interest Rates are still at extraordinarily low levels, and refinancing may be a smart financial move, which can save you money every month or reduce the number of years remaining on your mortgage. You may also be able to consolidate your debts to save even more money.