By now, you’ve likely heard that the Feds will be raising interest rates several times in 2022 to address rising inflation. We’re already seeing mortgage rates begin to increase from their all-time lows interest rates. However, we want homeowners and home buyers to realize this isn’t a black or white situation. Mortgage interest rates are
It’s just become more expensive to get a mortgage on a second or vacation home. First, let’s define what a second home or a vacation property is versus an investment property. An investment property is purchased to rent out to others and not used as a permanent residence. A second home or vacation property is
Are you aware of the difference between an Interest rate and an APR and why it’s important to know what the APR is when you’re buying a home? The difference between APR and interest rate is this: the APR (annual percentage rate) is not just the interest rate but rather is a marker that illustrates the total
At Indigo Mortgage, we get Colorado borrowers who call and say they have received emails or ads with mortgage interest rates to purchase or refi their home as low as 1.75%. They ask if we can offer them that kind of low interest rate. Our response is that we can offer any interest rate they
As 2021 wraps up, you’ve probably heard the news that the Federal Reserve has had meetings and announced their plan to address rising inflation across the United States. There are a few actions that the Federal Reserve can take to try to lessen inflation, namely raising the federal funds rate and quantitative easing. Today, the
Today, when homebuyers are preparing to apply for a mortgage, they see ads about how rocket-fast it is to apply for a home loan or a refi. The ads make it look like getting a mortgage is as quick as pushing a few buttons on a computer or smartphone, or having a quick chat on
If you have a real estate contract or a lease to own contract, how do you refinance that property? Let’s distinguish the differences of a real estate contract or REC and a lease to own contract. On a REC, the borrower’s name goes on the title to the property along with the seller; that title
If you’re planning to purchase a home or apply for a new mortgage or refi soon, there are some things you really should not do. At Indigo Mortgage, we call them “The 10 Commandments of Lending”. Presented with some levity, these are things that may cause problems during a mortgage application: • Thou shalt not
In the last several weeks, we’ve received a number of phone calls from home buyers who’d heard Indigo Mortgage on the radio and wanted a second mortgage proposal. They’d all applied online with that national lender who’s name rhymes with “pocket”, thinking they’d get a good deal. Each of these borrowers said they questioned if
Many times, we get potential borrowers who say they are shopping their mortgage around. That’s great, that’s what we’ve advised since we opened in 2003. Most often when they tell me they’re getting several offers on their home loan, one of them involves a national online lender. You know the companies—their names make you think
Good news for Colorado homebuyers! The private corporations chartered by Congress to provide stability and affordability to the mortgage market, Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) have raised the maximum loan limit from $548,000 to $625,000. This means a borrower can now take a mortgage up
We know that borrowers are bombarded daily with ads for mortgage loans from that national lender whose name rhymes with “Pocket” and big internet lenders saying they can manage their home’s purchase and mortgage. But can big internet lenders really service local borrowers like a local lender can? We say this because a local lender
In early October 2021, we are beginning to see mortgage interest rates rise from the historical lows of the last year. However, many online lenders are still offering those low rates from a few weeks ago, BUT these lenders are not being forthcoming in what it’s costing to now get that low interest rate. They
When we meet with potential home buyers, we always review not only what will be needed at closing for their down payment, but also what their share of the closing costs will be. These home buyers have often already met with another lender but that lender didn’t say anything about closing costs that the buyer
Churning a mortgage – that’s how the mortgage industry refers to a scam performed by some lenders across the country. Here’s how it works: because interest rates for home loans are at rock bottom low rates, these lenders offer borrowers a rate lower than a borrower’s current rate. However this rate is not the lowest
In mid-August 2021, we’ve seen two changes in mortgage loans. Recently Fannie Mae and Freddie Mac did away with their added fee for refinances. The fee was issued on all loans over the last few months in 2021 but they just dropped it. What this means for borrowers is that rates are even better for
Every day, we talk with borrowers who are shopping their mortgage around and who say, “I don’t want my credit report pulled again, it will drop my credit score.” That’s actually not the case. The rules for credit reporting agencies state that if the same type of entity (such as multiple mortgage companies) are pulling
As we are seeing home mortgages and refinances at all-time highs, don’t be too quick to accept an offer from a national mortgage lender, without reading the small print. Most recently national lenders are attempting new tactics to entice homeowners with low rates and nearly impossible requirements to qualify. Not long ago a borrower came
Let’s look at recent changes impacting Veterans Administration loans. First, the VA ended the requirement for down payments for VA Jumbo loans, those above $548,250. Previously, the veteran was required to put down a certain percentage amount based on their guarantee available from the VA, if they were taking out a Jumbo loan. This is
Mortgage rates are still at historic lows, but all lenders are not equal in how they offer those low rates. It’s important to not only get the best or lowest interest rate available but more importantly to know what it costs to get that low rate. If you’re refinancing a mortgage or getting a new