Inline Lending

09/18/2024

WOW WOW WOW!!!! The FEDS cut the FED rate by .5% WOO HOO - Rates went up? What?
yep - opinion here, but lenders have all anticipated the rate being cut for over a month now and with that pretty much baked in the cut to the interest rates they are offering. When this rate cut happened (today) i don't think there was much expectation that it would have a significant impact on mortgage interest rates as lenders already lowered their interest rates for it.

I think the big surprise was that the cut was .5% - which there was a 60ish % chance it would be, but most were expecting on .25%

Don't worry, when the FED cuts rates there is normally a delay of when the impact to mortgage interest is affected both raising and lowering. We will see the benefit of this cut sometime in the next few months.

Lenders don't like to be last, even though they went up a very little today, they will come down.

my recommendation, don't be greedy wanting the lowest and the most - you are likely to miss out if you do.

interest rates are still low compared to the last 18months or so and many can do well right now.

remember - always compare cost to savings when buying or refinancing.

08/30/2024

INTEREST RATES ARE DROPPING AND THE FED SAID THAT IT IS ABOUT TIME TO CUT THE FED RATE….

GREAT NEWS – VA MORTGAGE INTEREST RATES WILL CONTINUE TO GO DOWN.

NOW!!!!! STOP DOING THIS!!!!!!!

STOP ROLLING IN CLOSING COST ON YOUR LOANS WHEN YOU REFINANCE – You are adding up to $5k or more to your principal balance. – This is crazy!!!!

Loan professionals will always sell you the lowest interest rate as that is the most attractive and looks like the greatest savings per month.

Example:

You can refinance for FREEEEEEEEEEEEEEEEEEEE!!!!!

I don’t want to tell you what to do, but DON’T roll in closing costs.

Not when interest rates are expected to keep dropping.

IT IS NOT WORTH IT!!!!!!

BE SMART LET THE LENDER PAY YOUR CLOSING COSTS….. 5.125% and 5.25% would be a free loan almost anywhere, (depending on taxes and insurance)

Meaning not adding to principal balance.

08/23/2024

FHA purchase pricing as of today!!!!!!

$500,000.00 purchase price
Your downpayment is 3.5% or $17,500.00
$482,500 loan amount
640+ credit score
With 2% seller credit - Your rate would be 5%
With zero seller credit - Your rate would be 5.5%

Seller credits are a good tool to use when buying a home. It is important to compare buying down the interest rate vs using it to pay closing costs.
Everyone is expecting the interest rates to keep dropping as they have started to do in the last few months. If they keep dropping, you won’t get the value out of the points paid to lower the interest rate.
Lender credits and seller credits are better to use towards closing costs than points to buy down the interest rate in my opinion.
FHA



Great thing about FHA? – Streamline refinance after 6 payments made – no income or appraisal needed.
If you are purchasing and have any questions, please reach out.
Limit your closing costs, use your money the smartest way possible.
ALWAYS GET A 2ND OPINION - ALWAYS COMPARE SAVINGS TO COST


John Neafus
Senior Loan Officer
16165 N 83rd Ave ste200
Peoria, AZ 85382
Phone: 602.705.7586
Fax: 480.935.5954
[email protected]
www.InlineLending.com
NMLS 885194

08/22/2024

Here are todays VA interest rates for VA IRRRL

If you are not getting these interest rates or are paying points and not getting a lender credit --- YOU ARE PAYING TOO MUCH!!!!!!

As you can see below.

5% is nearly free rolling in taxes and insurance
5.125% should be free in most cases – depending on property taxes/insurance.
5.25% should be totally free with possible principal reduction

The case that a lot of people want to make is that they are waiting for interest rates to get even better. That in my opinion is a big gamble as we are not expected to be under 5% until around Jan – March 2025 and that will most likely be with cost. So, you could be waiting for quite a while to get there.

If the interest rate and the savings are free meaning adding zero to your principal balance and creates a savings now. Might be a good time to do it. I would suggest look into it.

As you can see below top sheets below is pricing from Aug 21st and the bottom one is Aug 22nd today. Pricing is worse today than yesterday by .10

Welcome to the world of interest rates we live in.

Everyone seems to be waiting for interest rates to get better and the FED to cut the rate. This cut will eventually impact the mortgage interest rate, but it may take some time.

As of today, rates are lower than they have been in over a year and there are many benefits to refinancing now vs later. We might not see the 4% ranges for months.

ALWAYS COMPARE SAVINGS TO COST.





RED BAD – meaning points or discounts for the interest rate plus all the fees of a loan ( Title, underwriting lender fee, origination if there is any) you will also add a new escrow account which does not count as a closing cost. = MORE EXPENSIVE longer to recoup the closing costs by the monthly savings – you could add nearly $10,000.00 to your loan balance with the closing costs, escrows added to your current balance.

GREEN GOOD – meaning the lender is giving you money to cover closing costs, if done correctly you can do a free loan and have immediate savings. (Title, underwriting lender fee, origination if there is any) plus new escrow account – lender credit = immediate savings or limited time to recoup closing costs from savings. As the mortgage markets move to a declining interest rate market, I am a huge fan of having the lender pay for your refinance and limit your costs. You would add 0 or limited balance to your current balance of your loan.

A WARNING!!!! DO NOT GET DRAWN INTO THE PAYMENT OR MONTHLY SAVINGS TRAP!!!!

ALWAYS COMPARE SAVINGS TO COST.

Have any questions please feel free to contact me.

Best Regards,


John Neafus
Senior Loan Officer
16165 N 83rd Ave ste200
Peoria, AZ 85382

08/20/2024

Here are todays VA interest rates for VA IRRRL

If you are not getting these interest rates or are paying points and not getting a lender credit --- YOU ARE PAYING TOO MUCH!!!!!!

RED NUMBERS BAD – meaning points or discounts for the interest rate plus all the fees of a loan ( Title, underwriting lender fee, origination if there is any) you will also add a new escrow account which does not count as a closing cost. = MORE EXPENSIVE longer to recoup the closing costs by the monthly savings – you could add nearly $10,000.00 to your loan balance with the closing costs, escrows added to your current balance.

GREEN NUMBERS GOOD – meaning the lender is giving you money to cover closing costs, if done correctly you can do a free loan and have immediate savings. (Title, underwriting lender fee, origination if there is any) plus new escrow account – lender credit = immediate savings or limited time to recoup closing costs from savings. As the mortgage markets move to a declining interest rate market, I am a huge fan of having the lender pay for your refinance and limit your costs. You would add 0 or limited balance to your current balance of your loan.

A WARNING!!!! DO NOT GET DRAWN INTO THE PAYMENT OR MONTHLY SAVINGS TRAP!!!! ALWAYS COMPARE SAVINGS TO COST.

Credit Score doesn’t matter – don’t fall for it.

08/15/2024

Yesterdays CPI report brought the release of important economic data with the power to cause a sharp increase or decrease in mortgage rates. There are a wide variety of economic reports that guide investors as well as Fed policy (which in turns has an impact on investor decisions). All of the above makes for movement in the bond market which, in turn, drives day to day changes in interest rates.

That being said, interest rates have changed for the better and you can find VA interest rates as low as 4.75%(with points). I don’t know if going that low is what is best for you at this time. Costs associated with this interest rate, although doable, can be quite expensive. With interest rates expected to go down over the next year, it might be best for you on how you limit the interest rate to the cost and maximize the benefit of savings.

Most loan professionals will sell you on what is important to you and not necessarily educate you on the cost to benefit.
If monthly payment is your goal and they can get you to what you want to save they will do that and not tell you necessarily there is a better option for the cost.

My suggestion - always, always get more than one offer. You might be surprised on how much of a better loan you can find.

always available if you have questions.

08/04/2024

WoW WoW WoW!!!!!
I just posted that rates are dropping!!! The FED held still, but reports have come out and pointing in a direction that maybe the FED is late to the game in dropping the FED rate and maybe they will need to catch up. Now the FED rate doesn’t affect mortgage interest rates directly – bigger longer explanation needed to explain, but -
With the FED likely to start cutting rates in September, Lenders will always want to be the first train out of the station.
In the meantime, interest rates actual interest rates have come down nearly .75% this week (depending on the Lender) - This is a HUGE adjustment and I believe there will be more to come over the last quarter.
Right now, if you are looking to buy a house it is a buyer’s market – I don’t know for how long though. The thought with many experts myself include ( I don’t proclaim to be an expert) is that as soon as rates decrease enough and buyer demand kicks in – Home prices are likely going to increase pretty rapidly.
If down payment $$$ is an issue – I have some answers for that (forgivable down payment assistance) Shhh! –
Most can get help with seller credits to cover closing costs too – I have completed many purchases with close to zero additional out of pocket expense.
If you have questions or are looking at options – don’t be shy reach out –

08/02/2024

I said "RATES ARE DROPPING" - How about .75% down in the last 3 days.
if you haven't refinanced and are looking at options now is the time to start looking.
VA IRRRL and FHA streamlines are on easy to do - no income - no appraisal - No points -
if you have questions reach out and see what your options are?

08/01/2024

Rates are dropping!!!!! In today’s mortgage world everyone is just waiting on the good news of lowering interest rates. Well interest rates are steadily coming down and there is a great hope of a FED interest rate cut in the next quarter.
If you have a VA loan and your interest rate is 5.75% or higher, you need to start shopping. You could see some significant savings.
If you have questions or want to see what you can do with your current VA loan please reach out to me.

03/28/2024

Do you have Solar on your home or are you considering getting solar for your home?

Be aware that Solar companies will put a lien on your home and this may prevent you from being able to refinance your home without paying off the solar company loan.

Solar companies used to offer a UCC lien release or a subordination agreement to the homeowner to have the ability to refinance their home.

Some of these companies will not allow a lien release or subordination any longer.

This means 2 things:

1. To refinance you would have to payoff the solar company loan.

2. You could be trapped in a mortgage loan with a higher interest rate because you don't have the ability to refinance to lower the interest rate without paying off the solar company loan.

I want you to be aware of this if you are thinking of adding Solar to your home or if you did already and didn't know about this change within solar company loans. If you have any questions about this please ask me.

Best Regards,

03/06/2024

https://rym.replaceyouruniversity.com/homepayoff?_ef_transaction_id=&oid=2&affid=7640879

If you are interested in paying off your home as fast as possible this video is for you.

In only 8 minutes, Michael Lush, the founder of Replace Your Mortgage will help you unlock an otherwise hidden potential to payoff your home in 5-7 years!

03/04/2024

Hi,

Are you wanting to payoff your house in the fastest way possible without changing your spending habits or lifestyle?

What if there was a way to pay your home off in as little as 3-7 years?

Inline Lending is now offering a first lien Home Equity Line of Credit (heloc).

If you haven't heard and don't know what this is click this link below and watch a short video that explains it to you, no obligation just information.

In only 8 minutes, Michael Lush, the founder of Replace Your Mortgage will help you unlock an otherwise hidden potential to payoff your home in 5-7 years!