courtesy of CNBC – Diana Olick
Homebuyers are stretching their budgets and mortgage limits to win bidding wars
- More buyers are stretching their budgets, putting less money down or using adjustable rate loans that offer lower rates.
- Buyers today need to be not just pre-approved for a mortgage but have a mortgage commitment.
- Borrowers have more options for low-downpayment loans, options that were not available as recently as just a few years ago.
Buyers today not only need to be preapproved for a mortgage, but they must also have a mortgage commitment. Home prices are hitting new highs and the gains are growing, just as mortgage interest rates are turning higher again. All of that has more buyers stretching their budgets, putting less down or using adjustable rate loans, or ARMs, that offer lower rates.
They are actually feeling emboldened to do so, thanks to the rise in the stock market and the improving economy.
Borrowers also have more options for low down payment loans, options that were not available as recently as just a few years ago. Fannie Mae reintroduced a 3 percent down payment loan that it had discontinued during the recession, and some private lenders are venturing back into subprime, although they’re calling them “nonprime” loans. These are mortgages to borrowers with lower credit scores.
Higher debt-to-income ratios
After holding steady for two years, the share of conventional loans backed by Fannie Mae with down payments of less than 10 percent rose from 12 percent to 14 percent in 2017. The expectation is that it will be even higher this year.
Banks are also willing to take on more risk in the jumbo loan space. They hold these loans on their balance sheets.
Why Work with Mario Quintero?
Are you having difficulty finding a property? Are you stuck in a bidding war? We have helped many repeat clients purchase similar properties and either keep them for themselves or use as an investment. Mario has been in the real estate mortgage business since 2002. Mario’s experience is tested and true. Mario has helped thousands of clients secure and improve competitive real estate mortgage interest rates .
Mario gets your deal done. Let Mario be both your trusted Miami realtor and Miami mortgage broker.
Get in Touch with Mario
I’m Mario Quintero, your mortgage & realtor for life. Let me be your Miami home consultant. Our office specializes in both residential and commercial real estate and financing programs. Let me help you secure a conventional, jumbo, FHA and foreign national mortgage loans. Furthermore, we can help your elderly parents secure a comfortable retirement with a reverse mortgage.
Call me today at 305-598-1600 or contact me here.