What to Do When You Are in Forbearance and Changes to the Application Process

03/11/21 • 67 min

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week we broadcast from our new Mortgage Mom Radio studio and discuss the new application form used by all mortgage lenders, forbearance and what to do before pursuing a refinance, and tips you can use to help make the mortgage process smoother and easier for everyone. And, as always, we answer your questions submitted in the comment feeds on YouTube, Facebook, and Twitch! Tickets for the Walking Phoenix’s virtual concert benefiting the Pacific Mesothelioma Center can be found here: https://walkingphoenixes.veeps.com/stream/schedule Find Drew’s music at https://irishcowgirlmusic.com/ Rates Hit Historically Low Levels Interest rates hit historically low levels last year due to the pandemic outbreak and the worst quarterly decline in economic growth ever. Those rates have helped millions of homeowners to refinance and save significant money on interest expense. On the purchase side, along with several other tailwinds, low rates have fueled a bonanza in housing. Fortunately, we are closer to getting past the pandemic as vaccines are now seeing widespread distribution. This, along with enormous stimulus measures, pent-up consumer demand, and easy monetary policy, tells us the good times of ultra-low rates may have come to an end. To back up this claim, a Freddie Mac spokesperson said, "New COVID-19 cases are receding, which is encouraging and that has led to a rise in Treasury rates." Translation: Higher rates may be ahead, but not so fast. The Federal Reserve has played a pivotal role in keeping rates relatively low by purchasing $120 billion worth of Treasurys and mortgage-backed-securities per month. But despite those efforts, rates have crept steadily higher in the past month with the 10-year yield moving from .50% last August to the current level of 1.15% due in part to an improving economy, along with the aforementioned vaccination distribution and COVID-19 losing its grip. Should rates move too high too quickly, the Fed will likely do more to try and pin down long-term rates, like purchasing even more bonds. But be aware, rates are subject to inflation expectations along with the direction of stocks and bonds and the economic landscape, to name a few. Bottom line: If the economy continues to improve, rates have no other direction but to move higher. Last year this time in a strong economy, the 30-year fixed-rate mortgage was 3.47% and if rates were to return to those levels, they would still be near all-time record lows. Mortgage Rages are Projected to Stay Low in 2021 While 2020 was definitely a roller coaster of a year, one thing is certain: The real estate market not only met expectations, it actually surpassed them and broke records. As we continue into 2021, people are once again wondering what the housing market will bring. Here are the housing and mortgage projections you want to keep in mind for the coming year. In 2020, 30-year fixed mortgage rates hit record lows, which was one of the main reasons for the thriving real estate market. These rates made homeownership affordable for many people, and eager buyers were ready to take advantage of the savings. Most experts predict mortgage rates will remain low in 2021. As a result, they also predict an increase in home sales. If you're thinking about selling your home, this is good news. Higher demand usually increases home prices, so you'll likely be able to get more for your home. If you plan to buy, you have good news to look forward to as well: Some experts think we'll see an increase in inventory as both new homes from builders and properties from hesitant homeowners who waited out the pandemic hit the market. If you're thinking about buying a new home this year, now is the time to act. Contact your loan officer to learn about the current mortgage rates and plan your next move in this burgeoning market.

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Jumbo Loans: Loan Program Information and Benefits

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week we continue the Homebuyers Workshop 2021 series by covering the details of the jumbo loan program. And as always, we answer your questions submitted in the comment feeds on YouTube, Facebook, and Twitch! We are LIVE on YouTube every Wednesday at 5 PM. Watch us record our show! Ask us your questions right in the feed, we'll read those and answer them for you. Make sure to subscribe to our channel and turn on your notifications to know when we get started. Mortgage Mom Radio equips you with all of the mortgage education that you could ask for right at your fingertips! Listen to our Podcast with hours of shows and topics, download our PHONE APP loaded with every mortgage tool that you could need, and last but not least, watch our weekly Homebuyer Workshop Series on YouTube! Mortgage Mom Radio How do you schedule a phone appointment with mom? Call our office, 844-935-3634. Get your free consultation today! Do you want our phone app to have the tools you need at your fingertips? Click the link: PHONE APP Debbie Marcoux is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, NMLS ID 237926, also licensed in AZ-0941504, FL-LO76508, GA-69178, IL-031.0058339, NV-57237, OR, TN-184373, TX, WA-MLO-237926 | Heidi Slagle-Points CA NMLS ID 1666881

Next Episode

USDA Loans: Loan Program Information and Benefits

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week we continue the Homebuyer Workshop series by covering the details of the USDA loan program. We also discuss fluctuating interest rates, appraisal waivers, and the availability of homes right now. A Look Into the Markets This past week we watched long-term interest rates improve nicely from the highest levels in over a year. The recent chatter about higher inflation has cooled down and allowed other themes to come in and influence stocks and interest rates, and it was mostly negative and bond-friendly. Let us break down what happened. "Cause I'm the taxman, yeah, I'm the taxman" - "Taxman," by The Beatles Bonds and rates love bad news and slower economic conditions, so when the talk of "largest tax increase in decades" went across the wires this week, stocks and rates moved lower with the 10-year Note yield dropping to 1.59% from 1.75% just days earlier. It's far from clear what and who will be taxed, but what is clear is that corporate tax rates are going up, and that has a negative effect on stocks - hence the pullback. Taxes, whether you love them or hate them, hamper economic growth and weigh on consumer demand, which lowers inflation pressures: another positive for rates. "Vaccination is a national priority" - French President Emmanuel Macron Another big negative and uncertain event has been the sharp rise in COVID cases throughout Europe. The main cause of the spike appears to be a slow vaccination rollout. Fresh lockdowns throughout the region could cause economic harm and elevate uncertainty, which again may cause stocks and rates to move lower. The Buck Is Strong Despite enormous spending by the U.S. government and much more on the way, the U.S. dollar has strengthened against other global currencies, touching the highest level since November 2020. Why does this matter? Many commodities, like oil, are priced in U.S. dollars, so as the dollar gets stronger, it has put downward pressure on the price of a barrel of oil. This has an effect of lowering inflation pressures, because so many products are made of oil. A strong dollar also makes our imports cheaper, which also lowers inflation pressures which bonds and rates love. Bottom line: Rates have improved week-over-week and the trend may very well continue. However, like we experienced several weeks ago, any further rate improvement may be modest and short-lived. As economies reopen, we should expect rates to continue to increase further over time. So, if you or someone you know would like to talk about this incredible opportunity, please contact me. Looking Ahead There are many high-impact economic reports next week, including the ADP report and Friday's Jobs Report. One of the Fed's mandates is to promote maximum employment. As we get closer to that goal, that is when the Fed will lower its bond purchases and hike rates. We are nowhere near full employment at the moment. We are LIVE on YouTube every Wednesday at 5 PM. Watch us record our show! Ask us your questions right in the feed, we'll read those and answer them for you. Make sure to subscribe to our channel and turn on your notifications to know when we get started. Mortgage Mom Radio equips you with all of the mortgage education that you could ask for right at your fingertips! Listen to our Podcast with hours of shows and topics, download our PHONE APP loaded with every mortgage tool that you could need, and last but not least, watch our weekly Homebuyer Workshop Series on YouTube! Mortgage Mom Radio How do you schedule a phone appointment with mom? Call our office, 844-935-3634. Get your free consultation today! Do you want our phone app to have the tools you need at your fingertips? Click the link: PHONE APP Debbie Marcoux is licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, NMLS ID 237926,