How Understanding Current Market Updates Will Keep You Mindful With Your Money

Here at Mindful Money, I have been helping hopeful homeowners afford the home of their dreams for many years and I love what I do. More importantly, I feel it is important that you know and understand the most recent updates on the current state of the housing and mortgage markets. I always strive to keep current market updates and give you important information so you never miss out on low costs, saving opportunities, and avoid the pitfalls myself and others have already faced.

One of the biggest updates is the recent huge increase in conforming loan limits. Did you know this increase will enable borrowers to obtain conventional financing at a lower rate? Refinancing rates are down as well. In addition, due to the state of the market, it now requires more preparation time than ever before. General preparation tips like planning months ahead will help you in today’s market.

Let’s look at four of the top market updates, preparation tips, and what they mean for your personal lending needs.

More Money Due To Conforming Loan Cost Increase

Actual 2022 conforming loan limits have not been released by FHFA yet, but effective today, for eligible high cost counties, we will now honor $937,500 for regular one-unit conventional loans. The increase for those conforming loan limits that are not in a high cost county increased from $548,250 to $625,000. This is a $75,000 increase and is the highest increase we have seen in over 50 years. This maximum loan limit is dictated by the Federal Housing Finance Agency (FHFA).

This increase will help me help so many deserving people. How does this help you as a borrower? A borrower opting for conforming loans (CLL) are usually easier to qualify for and typically have lower interest rates. The increase will also help those trying to purchase their one of a kind home sweet home or access the equity they have already paid on their property while rates are still relatively low.

Preparing Months In Advance

With a volatile housing market it is imperative that we plan ahead together and be ready to make smart money choices when changes happen quickly. Preparing in advance by getting your ducks in a row before you purchase or refinance a home, is the most important thing you can do to get a head start on the process in finding your perfect home.

Secure fast data helps me move quickly through the process without missing out on timely opportunities. The more accurate the documentation and information you can provide to me, the quicker I can assist with your journey. First, take a deep relaxing breath with me before I offer some valuable preparation tips.

Here are a few preparation tips to help get your loan process started early:

  • make a plan to pay off debts
  • make a plan to make more money
  • make a plan to save
  • be ready to provide proof of trusted income and employment verification
  • prepare for a competitive market environment
  • have updated copies of your credit report
  • have a full understanding of your credit scores
  • get pre approved early
  • know what location you want to live in
  • know what type of home you want
  • have a budget planned to know how much home you can afford

Refinancing Opportunities In Today’s Market

If you're a homeowner, congratulations on how hard you have worked. I am proud of your mindful money habits to maintain your dream. If you have been paying your mortgage for a while, you may find now is the best time to refinance your mortgage into a 15-year fixed-rate mortgage as I think they are very appealing today. The rates for longer terms have fallen since Friday, however, shorter-term loans like 10 and 15-year mortgage rates have held steady for six straight days.

With current short-term loan rates, refinancing a 30- or 20-year mortgage into a 15-year loan now could provide homeowners with substantial long-term interest savings and help them pay off their mortgages faster.

 Here are the current refinancing rates as of October 25th, 2021.

  • 30-year fixed-rate refinance: 3.125%, down from 3.250%, -0.125
  • 20-year fixed-rate refinance: 2.750%, down from 2.875%, -0.125
  • 15-year fixed-rate refinance: 2.375%, unchanged
  • 10-year fixed-rate refinance: 2.250%, unchanged

Actual rates may vary depending on the day and lender

Use can use my free mortgage and refinance calculators as a guideline

According to Freddie Mac you will need to keep in mind that your exact refinancing costs will not only depend on the rate but other factors like the size of your loan and where you live. I would be more than happy to discuss the additional refinancing costs you may encounter such as:

  • the cost of recording your new mortgage
  • appraisal fees
  • attorney fees
  • lender fees, such as origination or underwriting
  • title service fees
  • credit report fees
  • mortgage points
  • prepaid interest charges

Be Ready. Don’t Get Caught Up In The Nonsense

At Mindful Money you are the number one priority. You have worked hard to get in the position of homeownership, we are here to guide you to your ultimate goal. With over 25 years of experience, we have helped tens of thousands of people from every walk of life. Don't risk your single biggest investment to just anyone.

Don’t wait until the last minute before starting your home purchase or refinance. These market updates and preparation tips will give you a great starting point. The best thing you can do to avoid being caught up in confusion and nonsense is to reach out to me.

I love chatting about all things mortgages including market updates, current trends, and helpful tips to prepare you for the loan process.  When you’re ready to invest, I am here to help you determine the best loan program for your needs. Get ahead of the curve and give me a call at 480-313-7103 or shoot me an email at anytime!

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.