First Time Homebuyers Flood Market

First Time Homebuyers Flood Market

First time homebuyer demand surged to its highest level in 17 years during the third quarter of 2017, according to the First-Time Homebuyer Market Report from Genworth Mortgage Insurance.  The report, which is drawn from a data set of 21 million first-time homebuyers over a 24-year span, showed first-time homebuyers purchased 601,000 single-family homes in the third quarter. This is up 6% from 567,000 homes during the third quarter of 2016, and the highest quarterly purchase volume since the third quarter of 2000. Check out the article CLICK HERE.  The Easterbrook Team focuses on the best home loan value for every individual borrower.  Call us at (916) 850-6050. 

Difference Between Homeowner's Insurance & Mortgage Insurance

Homeowners insurance covers your property itself. Each insurance plan is different, but it typically protects damage to the structure of your home and your personal belongings, and liability in the case of a lawsuit.  Private Mortgage Insurance (PMI) protects your lender if you stop making payments on your loan. It typically comes in the form of a monthly payment that is added to your existing mortgage payment, and is usually required for those who make a down payment of less than 20%. Want to know more? CLICK HERE for article.

Call The Easterbrook Team Today!

916.850.6050

"We Make the Loan Process Easy!"

EasterbrookTeam@spmc.com

Impounds or No Impounds?

For the past several years there has been a strong push in the mortgage servicing industry to move borrowers to mortgage escrow accounts (or impounds).  A recent analysis by CoreLogic (Click Here for Study) shows that currently almost 80 percent of all borrowers are paying their taxes and insurance through escrow accounts. California is up 12% from last year. 

For the consumer, it brings peace of mind that their PITI payment will cover their total real estate obligation and that they will be automatically communicated with in the future as tax or insurance rates change over time.  Especially during the on-coming holidays, not having to deal with a large tax bill is welcome.  We on the Easterbrook Team we recommend that if our borrowers are in doubt, they should definitely take advantage of this free service.

The Easterbrook Team is your source for mortgage lending.
"We Make the Loan Process Easy!"
Call us today! 916.850.6050
EasterbrookTeam@spmc.com

Do You Have Lender Paid Mortgage Insurance?

Mortgage Insurance vs. LPMI

 

Do You Have Lender Paid Mortgage Insurance?

 

When purchasing a home with a loan, in addition to this being a great idea, you are required to have homeowner’s insurance (sometimes called fire insurance or hazard insurance).  Contact your Insurance Agent to provide you with that type of coverage. When your loan to value is over 80% on your loan, mortgage insurance is typically required. 

 

Mortgage insurance is entirely different from other types of insurance in that it covers the lender against a loss.  There are several factors that determine the cost of mortgage insurance – FICO score, loan to value, and loan type.  The standard option for most buyers is monthly mortgage insurance.  There is, however, another excellent money saving option – Lender Paid Mortgage Insurance (or LPMI).

 

LPMI is paid by the lender by slightly increasing the rate.  Typically, the higher the buyer’s FICO score, the lower the cost of the LPMI.  Unlike most lenders that offer LPMI, Sierra Pacific Mortgage offers savings for borrowers beyond 740 FICOs.  If you are a higher FICO buyer requiring or currently having to pay mortgage insurance, then call us for a comparison—you’ll probably be able to save some money.

 

On a $400K purchase at 95% loan to value, the typical buyer with a 740 FICO will save over $135 per month over traditional monthly mortgage insurance.  In addition, LPMI may allow them to buy more house! 

 

Another benefit of LPMI is for borrowers that want to refinance out of their monthly mortgage insurance, but don’t have the 20% yet in equity to remove it.  LPMI bridges the gap to entirely remove the mortgage insurance up to 95% loan to value. 

 

As home loan interest is typically tax deductible and mortgage insurance is currently not, LPMI may provide additional tax savings too. Confirm with your tax professional.

 

For LPMI or other mortgage questions, call the Easterbrook Team at Sierra Pacific Mortgage.  John Easterbrook (NMLS#226555) and Patty Aguon (NMLS#994635) can both be reached at (916) 850-6050.  We can also be emailed at easterbrookteam@spmc.com.