FHA ADU helps borrowers qualify!

Now use 75% of rents on FHA ADU to help income!

FHA ADU (Accessory Dwelling Unit) helps borrowers qualify now by letting them use 75% of rents on the unit. This is not possible with Fannie Mae or Freddie Mac conventional loans nor can you do this with VA. The FHA ADU updated guidelines will help considerably when a client is just over the debt to income ratios allowed to approve a loan. By adding in 75% of the ADU’s income, this will bring the clients debt ratios into guidelines and the loan will be approved! One of the turnoffs to FHA loans is, despite the usually lower interest rate, the payment still is higher than conventional Fannie Mae and Freddie Mac scenarios because the borrower must have Mortgage Insurance. The use of the FHA ADU rent, now will pretty much offset that expense, leaving the client with the lower interest rate advantage at closing. Find out how this might work best for you by calling Michael E. Mitchell at Mitchell Mortgage, 530-406-2200, 707-259-1117 or 707-337-5970 cell.

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Real Estate Rates are Stagnant

Real estate rates are stagnant for 30 year fixed mortgages and have remained stagnant for a couple of months now.  There doesn’t appear any shocking news that will make them change either.  The war in Ukraine, North Korean rocket tests, Iranian Navy boats harassing other countries ships in the Persian Gulf nor any other subject seems to affect how Real Estate market changers (think large mortgage backed securities purchasers) go about their business!  Real Estate mortgage rates for a conforming loan with 20% down on a purchase are drifting from very high sixes to very low sevens for zero points.  That’s not bad for the history of interest rates, but it is far from the mind blowing lows that were available, and still linger in the backs of all our minds (even though it has been well over a year since those rates were available).  So it is decision time if you are in the market for a new home now…keep waiting for the Real Estate rates to drop, or get in now and protect yourself from the chance rates could go even higher!  My advice is to make an offer now.  The more competition sits on the waiting fence means the fewer people you have to worry about when bidding on a new home.  So make the stagnant real estate rates work in your favor and call Mitchell Mortgage today to get pre-qualified for your first or next home!

530-406-2200 work or 707-337-5970 cell!pexels-alena-darmel-7641899

Mortgage Interest Rates Today

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Mortgage interest rates as January 11, 2023!

Mortgage interest rates today reflect the steadiness of the market throughout the holidays. Mortgage interest rates have stayed in a narrow range for the last three to four weeks, with today’s looking at about 6.125%, 30 year fixed and no points for 20% down payment on a conforming loan amount (up to $726,200) and 5.99% for the same scenario but 30% down payment. 30 year fixed mortgage rates seem to be the way to go right now, as shorter term fixed rates with 30 year amortizations, ( 5 year, 7 year and 10 year that roll over to adjustable rates) are slightly higher and have more points attached.  This isn’t always the case, but as long as mortgage interest rates remain this way, it is an added bonus to get 30 years of the same interest rate and take out the risk of shorter term mortgage instruments.  My advice, if you are capable, is to home shop now, before you run into a purchase market that will place you up against multiple other buyers who bid up the home price. If rates go down after you purchase, you can refinance. If rates go up, you can be satisfied that you were smart enough to hit the interest rates at their low point. Either way is a win! To obtain current mortgage  interest rates and get pre-qualified to buy that special home, call Michael Mitchell 530-406-2200 or 707-337-5970 cell.

Reverse Mortgage

Blog reverse picIs a reverse mortgage right for you? Are you 62 or older with low income and high equity in your home? If so, a reverse mortgage just might be the right tool for your household budget. A reverse mortgage will allow you to stay in your home as long as you live (providing you keep your property taxes and property insurance current). You also won’t have to make that pesky mortgage payment every month! With home prices still high, this would be the best time to get your home appraised, as, the higher the appraisal, the more equity you can use for cash, if that is necessary. The first move should be to give Michael Mitchell a call at 530-406-2200 or 707-337-5970 and talk about your current and long term financial needs. If a reverse mortgage is the answer, then now is the time to get started!

Concessions from seller can help!

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With fewer buyers vying for the same home, you are likely to be the only one making an offer on the home your prefer.  So with this lack of competition, comes, in most cases, the ability to negotiate concessions from the seller, or even your real estate agent!  For instance, if you were to purchase a home in Woodland for $650,000.00 and put 20% down, your loan amount would be $520,000.00.  Today’s 30 year fixed rate at no points would be in the mid sixes, but lets use 6.5% for the sample.  If the seller agrees to concessions of $11,835.00 that would buy down your rate to 4.50% for the first year and 5.50% for the second year, then fix at 6.5% for the remaining 28 years.  If rates go down in that first two year period, or shortly after the two year period is over, then you can always refinance to the lower rate!  If rates go higher, you at least know you will never be higher than 6.50%!  The first two year period will see you making $11,835.00 less in payments – that is quite the savings!  If you have questions for yourself or a friend regarding the use of concessions in a real estate purchase transaction, give Michael Mitchell a call at 503-406-2200, 707-259-1117, or 707-337-5970 Cell!

Tip on Buying Your Dream Home

pexels-scott-webb-1029599If you have found that dream home, make an offer now!  When rates have risen, like they have recently, it takes a lot of your competition for that perfect home out of the picture.  So in a lot of cases, you will be the only one negotiating with the seller!  That is a lot better than having five other potential buyers bidding for your dream house!  If rates go down, after you have claimed your new home, then you can refinance.  If rates go up, you can be satisfied that you received the lowest rate when you purchased your home.  So go for it!  Claim that dream home today!  Your realtor will still want to see that you are pre-qualified to buy that home, so call Michael Mitchell at 530-406-2200, 707-259-1117 or 707-337-5970 cell, mornings evenings, after hours and weekends!

Conforming loan limit now $715,000!

A couple (not all) lenders have estimated what the new conforming loan limits for 2023 will be, and are jumping the gun on offering them to the public!  Mitchell Mortgage can get you the new conforming limit right now!  It is $715,000.00!  Call now to see if this helps your current needs for financing,  Michael Mitchell 530-406-2200 or 707-259-1117 or 707-337-5970 cell.

Long term rates unaffected by recent Fed action

The Fed raised short term interest rates last week. FYI – to date, it has only helped long-term interest rates come down…albeit slightly. What it really affects are people who carry balances on their credit cards, Home Equity Lines of Credit and Adjustable Rate home loans. If you are on the fence for a fixed rate mortgage, purchase or refinance…this is a good time to take advantage. Call Michael Mitchell for more information! 530-406-2200, 707-259-1117 or mobile at 707-337-5970!

Tip of the day!

Great news! Now every county in California can get financing up to $679,650.00 up to 80% loan to value. Call Michael Mitchell for more information!

Welcome

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