Mortgage news

Conforming Limits Increase.

The Feds have announced a new rate increase for conforming loans and it’s the biggest increase I can ever remember.

Conforming loan max:  $484,350 (from $453,100)
High Balance loan max:  $726,525 (from $679,150)

What this means is that the lowest rates available on 30 year fixed rate loans are now extended to loans all the way up to $484,350.  Also, the second best rates available on high balance loans are extended as well.  High Balance loan limits are based on zip code.

You can start submitting applications for purchase or refinance now.   If your loan is bigger than the posted limits.  Don’t worry. We have aggressive rates for loans up to $3,000,000.

To discuss your confidential loan scenario please CLICK HERE to schedule an appointment or email Mitch@TargetRate.com.

The amount of home equity borrowers now have at their disposal reached an all-time high in the third quarter of 2017. Approximately 80 percent of homeowners now have tappable equity, cash which could fuel the economy. Under the new tax law, the interest paid on home equity lines of credit is no longer deductible.

The 42 million homeowners with mortgages have a collective $5.5 trillion in “tappable” equity, according to Black Knight Data & Analytics, which studies the mortgage industry. This is $3 trillion more than they had when the housing market last bottomed in 2012, after the financial crisis. Black Knight defines tappable equity as the amount available for homeowners to borrow before reaching 80 percent of debt to value against their home.

Following the housing crash, millions of borrowers fell underwater on their mortgages, owing more than their homes were worth. Fast-rising home prices over the last two years have brought borrowers above water and beyond. Approximately 80 percent of homeowners now have equity they can use, cash which could fuel the economy. Just 2.7 percent of borrowers, or about 1.36 million, still owe more on their mortgages than their homes are worth.
So….what do you do with all this equity?  How about purchase a 2nd home or rental property?

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Stated Income is back.   Target Rate now has available new options for “stated” income type loans. Contact me for more details.