Maybe yes, maybe no!

Most economic pundits are saying there is a housing shortage…but is there really? Yes and no! Florida and Texas have been building homes rapidly since the beginning of Covid. That was to accommodate all the transfers from mostly blue states, like California and New York. They might have overbuilt, as home prices are starting to see some relief in those states. But the Northeast and the Midwest are still underbuilt for the amount of people that need housing in those areas, so expect home prices to stay steady to rising in those parts of the country. Here in California, we have lost a lot of our population and state tax money with it, but they don’t call it the Golden State for nothin”! We have too many natural resources and great weather to ever have too much exodus. As interest rates come down, more builders will build and homes will become more affordable. I would look for interest rates to start moving down this year as the pendulum towards high rates has just about maxed out. So when you are ready to make that purchase or refinance in California, first make a call to me, Michael Mitchell at 530-406-2200, 707-259-1117 or my cell at 707-337-5972! Don’t forget that we handle Reverse Mortgages (for those over the age of 62) as well as conforming and non-conforming transactions.  We will get you pre-approved to make that purchase, or a refinance if you need cash out or are just trying to get rid of mortgage insurance! Talk to you soon!

Fixed or Adjustable, Long Term or Short Term

Mortgage Decisions Made Simple

What mortgage is best for you?  How do you get that Goldilocks feeling that you did it “Just right”?  It is not as difficult as you might expect and is usually figured out with just a few questions.  For instance, you call me and ask, “Mike, what type of mortgage will work best for me?”  I will answer your question with questions of my own.  The following are three examples of what mortgage is best for you.  1) I ask is it a purchase or a refinance?  You tell me it is a purchase.  I ask if you will make this property your primary residence?  You answer that it will be.  I ask if you plan on owning the home for long term?  You reply that you will keep the home for more than five years.  Then I suggest a fixed rate conforming loan (this, of course, would also mean you had good credit, income and sufficient funds for down payment and closing costs).  2)  If your answers were:  Yes it is a purchase, no you will not keep the property long term, nor will you live in it, your credits not bad, but not great, but you do have plenty of money for the down payment and closing costs….then I would suggest a fix and flip mortgage with the lowest points available.  3)  If your answers were:  You are over 62, you need cash out to consolidate a few bills and you need cash available, just in case, for emergencies.  Then my answer would be an adjustable rate “Reverse Mortgage”.  That way, you would have no mortgage payment (it would be taken out of the equity of your home).  You would still be responsible for the payment of property taxes and home owners insurance, but even if you use all the equity in your home, you would still be able to live in it until your death!  There certainly would be more questions by me, to you, to find what mortgage is best for you, (and there are many more mortgage types to discuss) but rest assured, we would get the right one!  If you have questions on which mortgage is best for you and your current situation, then call me, Michael Mitchell at 530-406-2200, 707-259-1117 or my cell at 707-337-5970 today!  Evenings after work hours and weekends are fine, just use the cell phone please.  Let’s talk soon!

Fed to lower rates?

We once again are hoping!

Federal Reserve Chairman, Jerome Powell, announced today that if inflation will drop sharply, then he and the rest of the Federal Reserve will have no problem in lowering short term interest rates.  This in turn will put pressure on long term (mortgage rates) to drop as well.  We have heard wishy-washy verse from the chairman for several years now, so, that is why the “hope” part of our headline is prominent!  At least for the last month, the 10 year treasury bond has been in a 3/10’s of a point range…meaning rates have been stagnant.  The rates are certainly not as high as they have been during the Biden administration, but they certainly are no where near as low as they were during the Trump administration.  Now with the election going into high gear, my guess is somehow, magically, there will be a reason for interest rates to come down.  To be honest, I thought it would have happened way before now, but we will take what we can get, when we get it!  If you would like to follow the 10 year bond as it moves up or down, you can go to “marketwatch.com” and you will be able to see what movement has been made.  If you want to skip that but still want to know what rates are doing, then call me, Michael Mitchell, at 530-406-2200 or even better, my cell at 707-337-5970.  After hours and weekends are fine, so don’t be shy!  If we all cross our fingers, then maybe our hope will become a reality!

Homebuyer and homeowner spring tips are best gathered by using the “search” option on your phone or home computer.

For homebuyers, you might be reminded that surface beauty does not necessarily mean a well constructed home! Make sure, if you represent yourself, that you order a home inspection and a pest report (they are not the same thing). Homebuyers that take this step will assure themselves, as much as possible, that beyond the beauty of the home you love, you are buying a sound structure…or not! Anyway, best to know upfront and not afterwards!

Homeowners spring tips are bringing current any deferred maintenance, freshening up around the house (such as washing windows) and adding new touches of decor both inside and out. It gets pretty easy to just let things go as they are, but homeowners will feel better when they take a look at their accomplishments. Plus, this is the best weather of the year to complete these projects!

Whether you are homebuying now or a homeowner in need of refinancing, the best tip is to call Mitchell Mortgage!  Mitchell Mortgage covers Conventional financing, FHA, VA, hard money, bridge loans, and if you are 62 or older, you can consider a “Reverse Mortgage”, providing you have enough equity! Call Michael E. Mitchell, Owner/Broker and we can talk today! 530-406-2200, 707-259-1117 and 707-337-5970 mobile

The Federal Reserve (the Fed), led by Jerome Powell will decide tomorrow (4/10/24) whether they will lower interest rates further to help boost the economy. Trouble for the Fed though, is the economy, at least with the numbers they are reporting, seems to be doing quite well for itself! You may not feel that way, and most of the people I have conversations with, don’t feel that way. But, how ya’ gonna fight City Hall“?  Powell, and the rest of the Fed members, have to weigh how much they may spur inflation if they do lower rates.

I am not sure that is the point…the following is how I feel about the situation. While there is a chance that lower rates could spark more inflation and make everything cost more, there is a feeling among many that the current inflation is affecting households in a negative fashion. Meaning, people are noticing it costs way more right now for groceries, gas, clothing…the items we all need on a daily basis…not to mention housing! These people would welcome some relief with lower interest rates. One of the reasons people are paying so much for housing is lack of inventory. Everyone who has a 2,3 4 or even 5% home mortgage, doesn’t want to sell their home and then find another with a higher interest rate! If the Fed begins to cut rates, this could open up the housing market. We will see what tomorrow brings and make our plans for the future based on the outcome.

If you would like to discuss this further or how tomorrow’s fed decision might affect you, call Michael Mitchell at Mitchell Mortgage 530-406-2200, 707-259-1117 or Mobile at 707-337-5970!

Conforming loan limits rise!

New conforming loan amounts rise and are live today!

Conforming loan amounts rise for 2024 and they went up more than expected! Now, if necessary, a purchaser or refinancer, can borrow up to $766,550 on a single family residence and still remain below Jumbo loan status! 2-units have been raised to $981,500, 3-units $1,186,350 and 4-units are now $1,474,400. In high cost areas, the (Hi balance, or Super conforming) limits can go up to $1,149,825! Make sure you call Mitchell Mortgage to find out if your county is in the upper range or just the standard conforming limit. Although these loans can not be submitted to Fannie Mae and Freddie Mac at this time, lenders are getting a jump on the news and taking loans now that they will keep and then deliver after the first of the year. That means there is no waiting to take advantage of the new conforming loan amounts rise! Call Michael Mitchell at 530-406-2200, 707-259-1117 or 707-337-5970 Cell. We will answer all your questions and get started on that new loan today!

Help is on the way for 2-4 Unit buyers!

2-4 Units LTV reach 95 percent!  Owner occupied 2-4 Unit residences have been stuck at lower LTV’s (loan to value) for as long as I can remember. That is changing as of November 18th of 2023. At that time, Fannie Mae will accept loans for primary residence 2-4 unit properties at an LTV of 95%! Strictly investment properties will not be eligible for this change.  This is a great opportunity to own a home and and collect rents on the other units.  Recently, most lenders, in guessing what the new conforming loan limits will be, raised the maximum up to $960,300 for 2 units, $1,160,750  for 3 units and $1,442,600 for 4 units!  As soon as November 18th rolls around, you can use those for the new 95% LTV when you purchase a 2-4 unit property and you live in at least one of the units.  This may be the best way to afford your new home in the sense that the other units can pay some of, if not all of your mortgage!  Help is on the way for 2-4 Unit buyers!  Give Michael E. Mitchell a call at 530-406-2200, 707-259-1117 or cell at 707-337-5970 and find out how this new information can help you!

Lenders are not waiting until the new conforming loan limits are official, as one has bumped up the conforming limit on single family residences to $750,000! That means you could borrow $23,800 more right now than you could at any other time this year and still have a conforming loan. That will come in handy to anyone buying right now as conforming rates, compared to hi balance conforming rates are usually about a half of a point lower. That’s a lot of savings over the life of your new loan! When one lender takes the jump, usually, others follow quickly, so you will probably be able to expect this windfall from multiple lenders within a couple of weeks. Fannie Mae and Freddie Mac typically announce the updated conforming loan limits on 11/28 and then take about two weeks to update their system to accept loans using the new maximum. The fact that buyers and refinancers can take advantage now, almost two months before the official change, is going to make some people very happy! Two unit, three unit and four unit properties have also been raised! To get more information on these numbers and to find out how you can take advantage of this change right now, call Michael E. Mitchell at Mitchell Mortgage. 530-406-2200 and 707-337-5970 mobile!

The Fed (Federal Reserve) has kept rates the same in their latest meeting. No up, no down…so what does this mean for you and me? Well, since they at least hinted that they might raise rates again at their next meeting, then the obvious action to take is do your purchasing or refinancing now, not later! Remember, because of where interest rates are currently, you have less competition for that home you are dreaming about. Less competition means you might get seller concessions for closing costs, or maybe a lower purchase price…or maybe…BOTH! This of course only applies to the folks that have to do something now. Over the long run, I think we will see lower rates. The ones who buy now, can take advantage of a refinance if this scenario proves out. At any rate, “rates” are what they are for now! If you want to discuss how all this might affect your current situation, then call Michael E. Mitchell at Mitchell Mortgage today and use my cell phone of 707-337-5970. Good luck!