ABBA First Mortgage News

Impacting your credit scores and its affects

March 19th, 2019

Consumers often have concerns about the score impact hard inquiries have on our credit. Here are three quick tips that will help you distill it down for you as you shop for a mortgage..

1. Inquiry score impact typically ranges between 5-12 points, but there is no specific number assigned, it’s based on the overall report profile, so don’t even try to guess. Just consider that the stronger the profile, the less the impact.

2. Hard inquiries only impact your scores for 12 months, that’s it.

3. Inquiries remain on reports for 2 years, then are removed.

What does this mean for the borrower that is looking for a home and has a credit score that is borderline to being between credit rated categories (ie. good and fair; excellent and very good; etc.)? Often having your credit pulled can drop your score from one category to a lower one and this a fear of many borrowers as they shop for a home. It is good to know that as you shop for a home mortgage that it is taken into consideration from the first credit pull for the next 30 days of shopping, that your credit score is not affected if your credit is repulled for the same reason as was the initial pull of a mortgage inquiry. Hopefully that initial inquiry credit pull did not bring your score below the point of a categorical change and you are still in the position of being able to finance with the same credit grade as originally started with.

With mortgage rates low and home prices dropping, is this a good time to buy now?

March 12th, 2019

Well why don’t you tell me. Can a great situation get much better? Possibly. But home price appreciation went down for the 10th consecutive month in December, according to a recent report from Black Knight.

Ben Graboske, Black Knight’s data and analytics president, said home prices at the national level fell 0.3% from November for their fourth consecutive monthly decline. As a result, the average home has dropped over $2,400 in value since last summer.

“And while home prices are still up on an annual basis, the slowdown continues nationwide and, importantly, is not being driven by seasonal effects,” said Graboske. “December marked the 10th straight month of slowing annual home price appreciation, falling from a high of 6.8% annual growth in February to 4.6% at the end of the year.”

This slowdown could result in an increase in home sales, said Graboske.

“There is good news in these numbers for prospective homebuyers, though. Combined with the average 30-year fixed rate declining by more than half a point over the last three months, housing is now the most affordable it’s been since early in the 2018 home-buying season,” said Graboske. “It currently requires 22.2% of median income to purchase the average home with a 20% down payment on a 30-year fixed-rate loan. The recent decline in rates has translated into a more than 6% increase in a homebuyer’s purchase power – while keeping monthly payments the same – or a decrease of $62 a month in principal and interest on the average home bought with 20% down.” Obtaining your mortgage through ABBA First may save you a much greater monthly savings and therefore make it more than worth your while to shop now and save later.

Condos are making a comeback!

March 8th, 2019

The Department of Housing and Urban Development (HUD) has been dragging its feet on finalizing its rules for condominiums that can receive financing from the Federal Housing Administration, and industry groups have had enough. The National Association of Realtors® recently issued a letter to HUD Secretary Ben Carson urging him to issue the long-awaited final rule. “For far too long, worthy borrowers have been unable to purchase the home of their choosing because of FHA’s unfairly restrictive rules on condominiums,” NAR stated. “Ten years is far too long for this problem to have endured, stifling the U.S. housing market and our overall economy.” NAR said there are approximately 145,000 to 155,000 condominium developments in the U.S., and that homeowners in many of these buildings are shut out of FHA financing under the current rule. Only 9,427 of the 52,410 applications submitted for FHA approval were accepted, NAR said.

In 2009, FHA restricted its condo approval process, limiting the number of properties that could receive FHA loans. But in 2016, FHA caved to pressure from trade groups and members of Congress who insisted that too many first-time homebuyers, seniors and urban residents were being negatively impacted by the current rule. It issued a proposal that would lift a number of restrictions, streamline the recertification process and bring back spot approval for condos in non-certified developments. But apparently, that’s where the progress stopped.

Bring on the warmer weather!

February 28th, 2019

Is it March 1st yet? With lower interest rates and more inventory on the markets, many are predicting a rebound for home sales this spring. This was not a leap year, so February was a very short month. It seemed like it just started, but now February is getting ready to end. For many who dealt with snow and cold, they’re pretty happy to be saying goodbye to February. Government workers are especially happy as they spent part of February with the threat of another government shutdown hanging over their heads. They’re happy to say that this did not happen.

The cleanup from the snow and the government shutdown continues, and we will finally see a report on economic growth for the fourth quarter this week. This comes as the first quarter is two-thirds of the way through. The jobs report for February will be delayed until March 8th — not because of the shutdown, but because February is such a short month and the first Friday of March falls on March 1st. Check out ABBA First Mortgage rates this weekend as we start a new month with a bang of lower rates to bring on new business!

One thing is for sure, spring is around the corner. This means not only will the snow be melting, but warmer temperatures will bring people out of their houses. A key barometer of the health of the real estate market is coming. Will those wandering outside be going to open houses and writing sales contracts? Once again we cry, bring on the warmer weather!

Springtime is right around the corner here in the Southeast

February 21st, 2019

April showers have come early this year for much of the southeastern USA. Well it beats the frigid cold that the northeastern states are experiencing with snow and frigid cold weather from the DC area and further north. But mortgage interest rates are just about the same all over and for the week ending February 14, Freddie Mac announced that 30-year fixed rates moved down to 4.37% from 4.41% the week before. Let it be known that ABBA First advertised 4.125% for 30 year mortgage interest rates for the qualified buyed during that same period which was .25% lower than the national average. This is something that anyone living in NC or TN could have taken advantage of then or now as we continue to lead the industry with our low, attractive interest rates. Just a quick phone call to 910-332-0650 or an email to richsr@abbafirst.com and these rates could be available to you which could save you thousands of dollars over the course of years.

The average for 15-year loans also fell to 3.81% and the average for five-year adjustables decreased to 3.88%. A year ago, 30-year fixed rates averaged 4.38%, virtually the same as today. “The combination of cooling inflation and slower global economic growth led rates on home loans to drift down to the lowest levels in a year. While housing activity has clearly softened over the last nine months and the lingering effects of higher rates from last year are still being felt, lower rates and a strong job market should rekindle demand for the spring homebuying season,” said Sam Khater, Chief Economist, Freddie Mac.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Who likes low rates? We do! We do!

February 14th, 2019

Although rates shown here are national averages, please check the rates page for ABBA First and find out how you can save money with a lower rate jst by looking. Or better yet, call us at 910-332-0650 and talk to one of our loan advisors who will treat you with the service that you deserve and the rates that you didn’t expect!

For the week ending February 7, Freddie Mac announced that 30-year fixed rates moved down to 4.41% from 4.46% the week before. The average for 15-year loans also fell to 3.84% and the average for five-year adjustables decreased to 3.91%. A year ago, 30-year fixed rates averaged 4.32%, very close to rates today. “The U.S. economy remains on solid ground, inflation is contained and the threat of higher short-term rates is fading from view, which has allowed rates on home loans to drift down to their lowest level in 10 months. This is great news for consumers who will be looking for homes during the upcoming spring homebuying season. Rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer bargaining power than they did the last few years,” said Sam Khater, Chief Economist, Freddie Mac.

ABBA First Mortgage looks forward to working with you and for you.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Some new guidelines for our Vets starting February 15th with their home refinancing and cash out allowances!

February 8th, 2019

VA has adopted new cash-out rules for refinances. These changes are effective February 15, leaving a very short period for lender comments, as well as meeting new disclosure requirements. Refinances other than IRRRL’s are divided into two types. TYPE I cash-outs are actually rate and term refinances. TYPE II are true cash-out refinances. In either case, the funding fee cannot be financed over 100%, which is the maximum LTV. A 210-day seasoning requirement is in place and there must be a net tangible benefit met. The VA gives eight options to meet this standard. In addition, fees must be recaptured within 36 months for Type 1 cash out refinances. See VA Circular 26-18-30 for more information.

There’s allot of banking jargon in that first paragraph but it essentially says that going forward the VA is tightening their belt with how they will loan their monies and how they expect to have guidlines followed to have it paid back. ABBA First will continue to follow all the rules and regulations as put forth by the VA as we continue to serve our military with honor and respect while we offer them the best service that we can through mortgage and loan originations and low interest rates. Call 910-332-0650 to find out how we can make a difference in your life if you’ve served our country and are looking to finance a home mortgage today!

Rates remain flat for the last week in January

February 6th, 2019

For the week ending January 31, Freddie Mac announced that 30-year fixed rates moved up one tick to 4.46%. But not for ABBA First Mortgage as we have kept our rates at an industry leading low of 4.25% for 30 years. The average for 15-year loans also was up one tick to 3.89% while ABBA First Mortgage remained at 3.625% and the average for five-year adjustables fell to 3.86%. A year ago, 30-year fixed rates averaged 4.22%, less than one-quarter of one percent lower than today. “Purchase applications were down this week after soaring early in the year. However, softening house price appreciation along with increasing inventory of homes on the market – and historically low interest rates – should give a boost to the spring homebuying season,” said Sam Khater, Chief Economist, Freddie Mac.

Somebody should get on the phone and call ABBA First today and start an application to take advantage of the low rates and excellent service that we offer. Isn’t a few hundred dollars or a few thousnd dollars a year better in your pockect rather than in the bank’s vault? I think so too! Call us soon! 910-332-0650.

You have to look at ABBA First rates and compare!

January 29th, 2019

Rates were stable again in the past week, which kept them at 9-month lows. For the week ending January 24, Freddie Mac announced that 30-year fixed rates remained at 4.45%. The average for 15-year loans also stayed the same at 3.88% and the average for five-year adjustables rose to 3.90%. A year ago, 30-year fixed rates averaged 4.15%, less than one-third of one percent lower than today. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans have stabilized during the last month and are essentially at the same level as last spring – yet the most recent home sales are roughly half a million lower over the same period. Given that the economy remains on solid footing and weekly purchase application activity has been strong so far in 2019, we expect the decline in home sales to moderate or even reverse over the next couple of months.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

Rates are still low for you to refinance or buy the home that you’ve been looking for!

January 24th, 2019

For the week ending January 17, Freddie Mac announced that 30-year fixed rates remained at 4.45%. The average for 15-year loans decreased one tick to 3.88% and the average for five-year adjustables rose to 3.87%. A year ago, 30-year fixed rates averaged 4.04%, less than one-half of one percent lower than today. “Weaker manufacturing data and a more dovish tone from the Federal Reserve left rates on home loans unchanged relative to last week. Interest rate-sensitive sectors of the economy – such as consumer loan demand and homebuilder construction sentiment – are on the mend, which indicates that lower interest rates are beginning to have a positive impact on some segments of the economy,” said Sam Khater, Chief Economist, Freddie Mac.

ABBA First Mortgage has lowered their rates to be more than competitive with the best and the biggest companies in the states of NC and TN. Call 910-332-0650 and find out why there is no need to shop any further once you work with our loan officers here at ABBA First Mortgage.

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.