What is the market doing?

Last week, the Federal Reserve increased the discount rate by a quarter percent and panic ensued that this would hurt the housing industry. The next day, mortgage rates improved! How can that be? The Federal Reserve has been slowly raising short term rates for a year.  Although mortgage rates have increased during that time, it has been an orderly increase and not hurt the housing market. The Fed is expected to increase rates two more times this year, but those increases have already been absorbed and mortgage rates are not expected to rise further. The good news is that mortgage rates are around 4.5% for a 30 year fixed rate loan. Other investments like CDs and Savings accounts will start paying higher interest rates that will help millions on fixed…
Read More

VA- Cash Out Refi

Are you a veteran currently using a VA Loan? Do you know a veteran using a VA loan? Did you know that you can take 100% cash out of the value of your home? This is a great way to tap into your equity for a home improvement, student loans, or to just have extra money in your account.  Home prices are up over 10% in the last year and a half. So, if you put 0% down, the equity could be there! It’s easy to start and we can have the funds wired to you in 30 days. Please spread the word and give us a call!
Read More

What should you look for while comparing lending estimates?

A few factors can go into separating one estimate from the rest.  First off, make sure the estimates are the same loan program. Both conventional? Make sure they reflect the same down payment, interest rate, seller help, if any, to compare apples to apples. One program with 5% down Lender Paid Mortgage Insurance will look very different when compared to FHA (3.5% down).  Often, banks will show thousands of dollars in seller help to make the closing costs appear more favorable. Here at McCormick Mortgage, we are happy to take a look at your estimates, answer questions, and send you a competitive estimate.  All at no cost and no obligation.
Read More

Spring Yard Care

With spring just around the corner, it's time to start thinking about yard projects. Did you know that a well kept and thought out landscaping plan can increase your property value? That translates to more equity! Whether you're planning on selling soon or not, it's always smart to invest in your home. Here are a few simple, inexpensive ideas I came across that can get your yard and home looking great this spring. Edge and Mow Edging and mowing your yard makes it look restrained and tame. To edge, you can either use a shovel to create a defined barrier between the yard and flower beds or use a physical barrier such as brick or wood. Block Noise and Neighbors Trees, bushes or shrubs can create privacy and block noise…
Read More

Breaking out of the Basement

Whether you want to move out of the basement or were told to, buying your first home is better than renting. Because of the foreclosure/ short sale crisis many more people are renters which has greatly increased rent costs. Though high rents are a reason to buy a home, the tax break the government gives you is huge. A $1,800 mortgage payment is equal to a $1,375 rental. Also, you now own your home and it should go up in value every year. There are many 0 Down programs available and sellers are paying a lot of the closing costs. Not sure about your credit? Call us to check! You only need a 620 score to qualify in most cases. Spring is here, time to move.
Read More

Tax Benefit of Owning a Home

The most common concern I hear from potential First Time Homebuyers is the amount needed for a down payment.  The notion of needing a 20% down payment is no longer true.  There are many loan programs available that allow you to put down as little as 0%, 3.5%, or 5% with affordable monthly payments. Also, a portion of your monthly payment is tax deductible. Let’s use an example sales price of a $385,000 home with a 10% down payment.  This gives you a monthly payment, including Taxes and Insurance, of $1,900.   Taxes and Interest are deductible from your income, which comes to $5,200 refunded each year. Or, $430 a month.  Applying this refund, your $1,900 a month mortgage payment is equivalent to a $1,470 a month rental.  Not to mention…
Read More

Optimize Your Asking Price

Set the asking price just below a round number – that’s the best technique for pricing a home for sale, according to new research published in the Journal of Housing Research. Researchers found that buyers are more drawn to a house priced “just below” at, say, $199,000 than to a house priced at a rounded number like $200,000. "Our study suggests that by using the just below pricing strategy sellers can price their home slightly higher without driving away potential buyers," says Eli Beracha, one of the study’s authors. "As a result, they end up selling their house for more." Indeed, researchers found that such a “just below” pricing strategy yields a selling price that is about 2.5 to 3 percent higher – or $5,000 to $6,000 more – on…
Read More

How do I get started?

Whether or not you have a house picked out, we can still go over the necessary information and get you pre-approved. You don’t even need to be working with a realtor!  You may have a home in mind, a sales price, monthly payment, or just curious about what you can afford. We can help you with all the above! You’ll just need to gather some documentation. Think “the rule of two:”      -2 most recent W2’s      -2 most recent pay stubs      -2 most recent tax returns (commission or salary)      -2 most recent bank statements Also, if you would like to find out your credit score, we can pull a full credit report at no charge.   After going over this information and answering…
Read More

Rural Housing Boost

The USDA said that it is cutting its fees beginning on Oct. 1, 2016, the first day of fiscal year 2017. According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.50% of the unpaid principal loan balance to 0.35%. So, what’s the reason for the cut? Better borrower performance, according to a USDA official. The USDA is able to cut its upfront and annual fees because borrower delinquency and foreclosure rates have reached “historic lows” since the beginning of the housing crisis. Additionally, the official said that successful partnerships between the USDA and the lenders who participate in its loan programs have resulted in “very strong”…
Read More

Credit Score: Don’t pay to fix it!

Credit Scores are always a point of concern when it comes time to get pre-approved. If there is one thing to absolutely never do:  pay a company to “fix your credit score.”  It is not possible to change or erase true information from your credit report no matter what they tell you.  In fact, these companies can actually hurt your credit score through consolidating your debts and paying a lower payment than is due.  We can run your credit and get you advice from the experts at the Credit Bureau to increase your score.  So, no Consumer Counseling Companies or Credit Repair Companies! And remember, for most loan programs, you only need a 620 score.
Read More