Smart Ways to use Your Cash out Refinance

Posted on May 29, 2018 by Scott Li

A cash-out refinance means you replace your home loan with a new one of larger amounts. You are then able to receive a cash payment for the difference in loans, which can be used for anything you wish.

The way this works is that by paying off your loan in previous years, you have created something called ‘home equity.’ This term refers to the amount of your homes value versus the amount left on your loan. For example, if you purchased a home valued at $200,000, and you currently owe your lending institution $125,000, then you have an estimated $75,000 in home equity. read more

Is Real Estate Inventory an Issue in Philadelphia?

Posted on May 26, 2018 by Scott Li

The demand for homes has soared in recent years, while the supply of those homes has hit a record low. This real estate inventory issue causes several distinct issues. Among those, the biggest issue is that too many homes are being sent into bidding wars. This sends home prices skyrocketing, and many young families simply can’t afford to purchase a home at these new rates.

It’s a tough market to begin with. To even think about seeing or bidding on a home, a buyer must obtain mortgage preapproval, and have a mortgage commitment already in place. People are often stretching themselves – and their budgets – thin, just to give their families a place to live. read more

Is Fannie Mae Considering Getting Rid of Appraisers?

Posted on May 24, 2018 by Scott Li

Fannie Mae is a government-sponsored program that assists users who may not otherwise qualify for home mortgages to secure a family home for themselves. Lately there has been a buzz about the enterprise potentially getting rid of appraisers as part of their applications. Many wonder if this is true. The answer is not as straightforward as many would like, being both a yes and a no.

The government-sponsored program has been testing whether appraisers are able to effectively decide a home’s worth without an in-person visit. The idea is this will cut both time and costs from the mortgage process – this would benefit both the program itself, and mortgage applicants. read more

Mortgage Refinancing Bouncing Back – Is It A Good Idea?

Posted on April 29, 2018 by Scott Li

During periods when mortgage interest rates are high or steadily rising, many homeowners decide against refinancing. If they do opt for it, it is done differently than those which occur during times when interest rates are low.

During the low periods, people refinance to decrease their monthly payment to save a little money presently, and sometimes considerable amounts over the long term. When they are high, the primary reason for refinancing is to acquire a larger loan which will offer extra cash. This cash can be used for other purchases and is often a resort for those in monetary crisis with other bills. read more

Is Blockchain Technology Getting into The Mortgage Game?

Posted on April 27, 2018 by Scott Li

Blockchain technology has infiltrated several large industries. The most surprising of these has been the financial services niche. Also surprising is that mortgages – a major player in that very same niche – has largely avoided any change or disruption in the way they function. It looks, however, as though this is about to change.

Currently new platforms and a variety of products are being introduced that threaten the way things have been done in the real estate business. If these incremental changes continue, there is a high chance the mortgage loan process will look very different in a few years. read more

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