A loan officer explains how to improve your credit and refinance your mortgage, plus how to make sure refinancing benefits you.

Updated 5 Hours AgoMegan DeMatteoGetty Images

Mortgage rates have recently hit record lows, and many Americans are jumping at the opportunity to buy new homes as well as refinance. 

According to the Mortgage Banking Association (MBA), mortgage applications have been surging since March 2020 when the Fed slashed interest rates in response to the coronavirus pandemic. By year-end, mortgage applications are expected to double in volume compared to economists’ original 2020 predictions.

Mortgage refinancing applications are also on the rise: Currently, Americans are applying for refinancing loans at a 38% higher rate than they were this time last year.

Refinancing your house means essentially taking out a brand new loan, often for the remainder that you owe on the property (but not always). Depending on how much equity you have in the house (i.e. what you’ve paid on it already) and what your credit score is when applying, refinancing might offer you one or more benefits, including:

• a lower interest rate (APR)
• a lower monthly payment
• a shorter payoff term
• the ability to cash out your equity for other uses

When you’re faced with economic uncertainty, refinancing your mortgage can help give you some breathing room. But at the same time, if you’re struggling financially, refinancing can be a little more complicated. If you have a bad credit score, you’ll need to take a few steps to ensure you can even qualify. And when you do qualify, you want to make sure your refinanced mortgage is better than your original mortgage, not worse. 

Below, CNBC Select spoke with senior community development loan officer at Quontic Bank Darrin Q. English about what to keep in mind while refinancing your home with less-than-perfect credit. He shares 3 tips to keep in mind.

Continue reading “Real Estate Tip #12 – 3 Tips for Refinancing your mortgage, even with a bad credit score”

Prospective home buyers should aim to have this credit score to qualify for the best interest rates on mortgages. However, the minimum credit score requirements vary.

Updated Fri, Aug 7 2020Alexandria White

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Credit scores typically range from 300 to 850, and borrowers within a certain range can qualify for mortgage loans. While you don’t need a perfect 850 credit score to get the best mortgage rates, there are general credit score requirements you will need to meet in order to take out a mortgage.

Prospective home buyers should aim to have credit scores of 760 or greater to qualify for the best interest rates on mortgages.

However, the minimum credit score requirements vary based on the type of loan you take out and who insures the loan. Of our list below, conventional and jumbo loans aren’t insured by the government and often have higher credit score requirements compared to government-backed loans, like VA loans.

Having a higher credit score makes a big difference in the amount of money you pay over the course of a loan. Borrowers with scores in the higher range can save thousands of dollars in interest payments over the life of a mortgage.

Continue reading “Real Estate #11 – What credit score is required to buy a house?”

A quitclaim deed is a document that is used to transfer ownership of real property from one party to another. Quitclaim deeds are also sometimes called quit claim deeds or quick claim deeds because they are a fast way to accomplish real estate transfers.

Transferring Title with a Deed

There are several ways to transfer real estate title. A warranty real estate deed transfer is the most common type of deed used when properly is sold to a third party in a typical real estate transaction.

A warranty deed promises that the person transferring the property has good title to it and the right to sell it. It includes protections for the buyer, such as compensation if there is anyone else who holds superior title to the property. This type of deed promises that there are no liens on the property such as a mortgage, tax lien, or creditor’s liens.

Continue reading “Real Estate Tip # 10 – When to Use a Quitclaim Deed?”

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.

The good news is, our younger generations are strong believers in homeownership.

Continue reading “Realty Estate Tip #8: Buying a Home Early Can Significantly Increase Future Wealth”

Property investment loans are considered riskier for the lender

According to The Mortgage Reports, borrowers are more likely to let property investment loans default before their primary home loans do. For this reason, property investment mortgage rates will almost always be more expensive. In addition, interest rates for these loans are .50-75% higher than they are for primary home loans.

Continue reading “Real Estate Tip #7 – A Quick Guide to Home Loans on Investment Properties”

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.

Continue reading “Real Estate Tip #6 – Forget the Price of the Home. The Cost is what matters.”

In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”

Continue reading “Real Estate Tip #5: 5 Tips for Starting Your Home Search”

While a recent announcement from CNBC shares that the average national FICO® score has reached an all-time high of 706, the good news for potential buyers is that you don’t need a score that high to qualify for a mortgage. Let’s unpack the credit score myth so you can to become a homeowner sooner than you may think.

With today’s low interest rates, many believe now is a great time to buy – and rightfully so! Fannie Mae recently noted that 58% of Americans surveyed say it is a good time to buy. Similarly, the Q3 2019 HOME Survey by the National Association of Realtors said 63% of people believe now is a good time to buy a home. Unfortunately, fear and misinformation often hold qualified and motivated buyers back from taking the leap into homeownership.

According to the same CNBC article,

“For the first time, the average national credit score has reached 706, according to FICO®, the developer of one of the most commonly used scores by lenders.”

This is great news, as it means Americans are improving their credit scores and building toward a stronger financial future, especially after the market tumbled during the previous decade. With today’s strong economy and increasing wages, many Americans have had the opportunity to improve their credit over the past few years, driving this national average up.

Continue reading “REAL ESTATES TIP #4: What FICO® Score Do You Need to Qualify for a Mortgage?”