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Homebuyers are Back, Stronger than Expected

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Homebuyers are Back, Stronger than Expected

Mortgage applications rose for a third straight week as pent up demand and low interest rates strengthen the housing market.

Homebuyers are heading back into the market as our economy begins to reopen. And the numbers are stronger than anticipated according to a weekly Mortgage Bankers Association (MBA) report. Mortgage applications to purchase a home rose for the third straight week, up 7% from the previous week. Purchase volume was still down 19% annually, but this number is shrinking by the week. Just three weeks ago purchase volume was down 35% annually. Pent up demand for housing and low interest rates are driving this increase, particularly in states like Utah, California, Arizona, and Texas. Refinance applications decreased 2% for the week, but were still 210% higher than a year ago.

The average contract interest rate for a 30-year fixed-rate mortgage decreased to a record low this week of 3.40% from 3.43%

Buyers seem to be responding better to agents and listings that are able to offer virtual showings and live tours using technology like Matterport, drone, and video conferencing. The Captivate Sales Coaching program has been teaching real estate agents how to use this technology for over two years, and recently released a free class for agents called Virtual Home Shows. You can attend a live training session or view a recorded class from their Facebook page at www.facebook.com/captivatesalescoaching.

Virtual Home Shows

Real estate agent training

 

Buying Your First Home

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5 things you need to know to buy your first home

FICO credit score break down Tips for improving your credit score?

#1 Check your Credit Score

A 620 or higher credit score is recommended. There are also options for lower credit scores. A credit score for a home purchase is called a FICO score, which may be different from other credit scores. Click below for a free, no obligation FICO score in minutes. Your Intercap loan officer can also help you with suggestions on how to raise your score.


CHECK MY CREDIT

#2 Save enough money to cover closing costs and down payment (it’s less than you think)

Many first-time homebuyers qualify for little or no money down programs like state housing, FHA, and USDA loans. This government assistance not only lowers the down payment requirement, it also keeps the interest rate down so the monthly payment is manageable. There may also be first-time buyer incentives and grant programs available to help with down payment and closing costs. Down payment and closing costs vary by program and other considerations, so meeting with an Intercap Loan Officer to discuss your options is the best way to find out what’s available.

Zero Down Home Loans

CHECK IF I QUALIFY FOR NO MONEY DOWN

Helping first-time home buyers

CHECK IF MY INCOME QUALIFIES ME FOR A HOME LOAN

#3 Earn enough income to cover the monthly mortgage payment

You need to show a steady income, usually from employment. This can be hourly, salary, or self-employed. Many first-time homebuyers don’t realize how close they are to qualifying for a mortgage. Understanding your best options based on your goals and situation is what we do. We never pressure anyone to buy before they are ready, and we are happy to work with you even if it takes months or years to buy. This is an important decision.

#4 Decide if it’s worth buying versus renting

Buying a home can be a big commitment, but it can also offer big rewards. When you consider how much you already pay to live somewhere, you could turn this rent into an investment. Let us calculate a rent vs buy projection so you can see the power of investing in your own property. If others can do it, so can you.


CHECK IF IT’S WORTH IT

Buying a home versus renting Buying a home versus renting
Buying a home versus renting Rent vs Buy Cash Flow Gain Appreciation and Amortization Gains Total Net Gain Rent vs Buy Scenario

Do‘s and Dont’s when buying a home

START MY PATHWAY TO QUALIFICATION PLAN

#5 Do’s and Don’ts as you get ready to buy

Do these

  • Deposit your paychecks or other earnings into a bank account
  • Pay your bills on time
  • Submit your tax returns
  • Speak to an Intercap loan officer and put together your Pathway to Qualification plan, including a credit check

Don’t do these

  • Quit your job
  • Apply for bankruptcy
  • Make big purchases that could negatively affect your credit or debt-to-income ratio

Average Days to Close

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Intercap Lending Closes Loans in Record Time

Half the industry average according to EllieMae

According to EllieMae, the mortgage industry’s average days-to-close on a new home purchase is 42 days. For a refinance it’s 45 days. Intercap Lending consistently cuts these averages in half to 19 and 22 days respectively.

When timing is just as important as great rates and service, Intercap Lending is a name you can trust since 1978. 

Get your purchase or refinance application in today and you will be at the closing table in record time.

Graphs display average number of days from the date the loan was made HMDA ready to the loan’s closing date from October 2019 to March 2020. Read the EllieMae March 2020 Origination Insight Report.

Mortgage Interest Rate Shopping

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Great Mortgage Interest Rates and 5-Star Service

How to get the best mortgage interest rate

The actual interest rate a mortgage applicant qualifies for depends on several factors: The current market rate, down payment, the applicant’s credit score, the type of loan, the home purpose, and any loan level pricing adjustments by the issuer and lender. A borrower can also buy down the rate, and the market rate can change at any time. That’s why providing an interest rate without a full application is just an estimate, and sometimes not a very good one. The first step in understanding your qualifying interest rate is applying for a loan and speaking to a loan officer about your options. Once you apply, you can compare differences in terms, fees, and interest rates with other lenders using the Loan Estimate they are required to provide. Below is a simple guide to getting the best interest rate.

How to compare mortgages and lenders

Once you complete a loan application, your lender is obligated to provide you with a Loan Estimate, which itemizes the rate and fees associated with the mortgage. This estimate enables you to compare it with other offers. However, it’s crucial to remember that the proposed rate is subject to change unless it is locked, and fees can vary depending on the loan program. Therefore, comparing “apples to apples” requires a bit more effort than simply requesting a rate quote. Here are the four puzzle pieces that collectively determine the cost of a home mortgage.

Puzzle Piece #1 – Loan Type

When it comes to selecting a mortgage loan, you’ll discover numerous options depending on factors such as the desired loan amount, the purpose of the home (owner-occupied, second home, or investment property), and the down payment amount. Moreover, there are specialized loan programs tailored for rural areas, first-time homebuyers, veterans, and properties in need of renovation. Among the most commonly encountered loan programs are FHA, Conventional, Jumbo, USDA, and VA loans. The loan program itself, as well as the loan issuer, can influence the interest rates, terms, and associated fees.

To navigate this multitude of choices effectively, an Intercap lender can assist you in determining the loan type that aligns best with your specific circumstances and the available options. By considering the various pieces that form this mortgage puzzle, along with the appropriate loan type, you can make informed decisions regarding the most suitable loan program for your needs.

Mortgage interest rate based on loan type

Puzzle Piece #2 – Down Payment

Determining the amount you can or should put down is an important decision that can impact your interest rate. According to Fannie Mae, the average down payment for a new home purchase is approximately 8%. Generally, the more you put down, typically up to 25%, the more favorable the interest rate becomes. This is because the home acts as collateral, and a larger down payment reduces the investor’s risk. However, it’s important to consider your budget and financial situation when deciding on a down payment amount, especially when dealing with properties worth several hundred thousand dollars or more. Opting for a down payment of 25% may not be feasible or in your best interest, even if it results in a lower interest rate. Many buyers find it more sensible to pay more towards monthly payments instead of making an excessively large down payment at one time. Ultimately, striking a balance between your budget, available cash, and financial goals is key.

Mortgage interest rate based on down payment

Puzzle Piece #3 – Monthly Loan Payment

Determining how much you can comfortably afford each month is a crucial decision that significantly impacts your mortgage. It involves budgeting and considering your cash flow, while also factoring in your long-term investment strategy. Some buyers may choose to buy down points, which involves making a one-time payment to reduce the interest rate. Others may explore special loan programs designed to keep monthly payments manageable, even if a portion of the funds is allocated towards fees instead of paying down more principal.

It’s important to recognize that home ownership is an appealing long-term investment due to the potential equity it offers. This equity is a combination of appreciation in the property’s value and the reduction of the loan’s principal. Despite the presence of additional fees, the potential for long-term financial gain makes homeownership an attractive option.

By carefully considering your budget, cash flow, and long-term investment goals, you can make informed decisions regarding how much you can afford each month and choose mortgage options that align with your financial strategy.

Mortgage interest rate based on monthly loan payment

Puzzle Piece #4 – Closing Costs

The majority of mortgage fees are generally consistent among lenders and their affiliates, such as those associated with title and appraisal services. However, it’s worth noting that there can still be some variations in these fees. To effectively compare fees from one lender to another, reviewing your Loan Estimate is essential. This document provides a detailed breakdown of the fees involved. Additionally, it’s important to consider that closing costs can differ based on the specific loan type. Therefore, when comparing costs, it is crucial to ensure you are comparing similar loan types to make an accurate apples-to-apples assessment. Loan fees can encompass factors like mortgage insurance and options such as purchasing a lower interest rate. By carefully examining these fees and comparing them across lenders, you can make an informed decision that aligns with your financial goals.

Mortgage interest rate based on monthly loan payment

Puzzle Master

A skilled mortgage loan officer acts as the puzzle master, adept at fitting together the various pieces to structure the ideal loan for their clients. Since 2008, regulations have been in place to prevent mortgage companies from compensating loan officers differently based on the selected loan type or the fees charged by the lender or investor. These regulations serve to protect homebuyers from unfair pricing practices. In today’s residential mortgage landscape, a competent loan officer is committed to securing the best loan, rate, and terms that align with their clients’ best interests. There is no incentive to overcharge clients, and engaging in such behavior carries significant consequences.

What truly matters is the loan officer’s familiarity with available loan programs and options, the time they invest in understanding their clients’ needs and preferences, and the lender’s ability to efficiently deliver and execute the loan. At Intercap Lending, our loan officers have the freedom to work with any mortgage lender or broker, yet they choose to work at Intercap Lending due to the advantages we offer in navigating the intricacies of the entire mortgage puzzle.

Intercap provides access to numerous loan programs, maintains essential relationships with key investors, and possesses direct lender relationships with Fannie Mae, Freddie Mac, and Ginnie Mae. As a result, Intercap has the capacity to underwrite most loans internally, ensuring more efficient execution. With our expertise and resources, we strive to deliver the best possible outcomes for our clients throughout the mortgage process.

Intercap Lending has been a private mortgage lender since 1972 and as you may have noted from our reviews, our loan officers maintain a 4.9 star rating from Zillow, Google My Business, Facebook, and other third-party review sites. Read through our reviews and you will notice that client satisfaction is based on rate and all these puzzle pieces.

And when timing counts with mortgage lending, which it always does, our turn times are something to brag about (half the time of the industry average). Read our reviews HERE and we’ll let our clients do the talking.

5-star home loan service

Covid-19 Updates

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Intercap Lending is committed to the safety and well-being of our employees, clients, partners, and the communities we serve.

If you are a servicing customer and you have concerns about making your payment, please click here for more information about forbearance options.

Most Intercap employees are now working remotely through our secure systems. There are no delays in our loan origination services. However, delays may occur with certain services related to your loan, e.g. appraisals, title, escrow, and notary services. Intercap will keep parties informed of any possible delays.

Intercap has invested in technologies that allow us to continue at full-capacity and support a remote work and client experience as follows:

1. Online Applications – Home purchase and refinance applications can be submitted entirely online and through our Homebuyer mobile app.

2. Smart phone document uploads – Clients can use their smart phone to take pictures of their loan documents and securely upload them to their loan file using the Intercap Homebuyer App. Other secure document delivery options are available by contacting your Intercap loan officer.

3. E-signing – Clients can securely e-sign their loan documents from home. In most cases, final documents will need to be signed in the presence of a licensed notary.

4. Loan officers use video, text, email, and phone to stay in close touch with their clients, partners and support staff. They also have instant and secure, web-based access to loans and rates from home.

5. Agent partners have access to shared remote technologies such as the Homebuyer App, CRM, and Loan Status Updates.

6. Processors, underwriters, closers, funders, and other support staff are able to work from home with secure, web-based access to loan files. As a direct Fannie Mae, Freddie Mac and Ginnie Mae lender, most of our loans are underwritten in-house for faster closings.

7. Special considerations for employees and their families will be provided through internal communications. Loan servicing clients may also receive direct communications related to the impact of this unique situation.

We look forward to meeting you in person, but we are perfectly able to provide full-service loan support from our home to yours. Please be safe and well, and know that we are here for you.

Sincerely,

Intercap Lending

 

Remote Services: Resources and Information

Mortgage Rates are Still the Deal of the Century

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It seems like mortgage rates are on a crazy roller coaster soaring up one day and down again the next. Here’s a few things to consider to get a great rate in today’s market.

1. Get your purchase or refi application in TODAY and ready to lock. Imagine riding a roller coaster without a restraint. That would be a scary ride! A rate lock lets you hold on to a low rate even if rates go up. When you have your application in and approved for a loan, your Intercap loan officer can lock you into a good rate when the time seems right, and you can continue to ride this crazy roller coaster without fear. The key is to get ready to lock with an approved application. Intercap Lending loan officers are experts at navigating rates and locking you in at the perfect time.

2. Even with the rates jumping up and down, we are still at a century low. Take a look at this chart provided by Freddie Mac showing the average rates since the 1970s. According to Freddie Mac, “Over the last 45 years, [mortgage interest rates] have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it’s not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close— all to your advantage.”

3. Low rates are not totally out of your control. Preparing to buy or refinance ahead of time can help you get a better interest rate. Credit scores, down payment (on a new purchase), debt to income ratios, and other factors can determine your actual interest rate. Added costs and rate increases are called Loan Level Pricing Adjustments. If you want to get the best rate at any time, learn what you can do to be ready. Intercap Lending loan officers can help you make smart financial decisions as you prepare to buy or refi. Don’t wait until you are ready to pull the trigger on a new purchase or refi and take your chances. Contact an Intercap loan officer today to get ready to make a smart move at the right time.

Find out how much you could gain from a refinance.

“When I decided to refinance I checked with some of the major banks but they offered overwhelming rates and steep out-of-pocket closing costs. Then I found Intercap who offered me in a fantastic rate. David was extremely helpful during the process, made everything clear from the beginning and all the promises he made about timing and ease were honored. We closed in 3 weeks and I had no out-of pocket costs. Most importantly, I have reduced my loan by 10 years while keeping monthly payments very similar to what I was paying in a 30-year term. I will also save $130k during the loan term! I had hesitated refinancing because the process when I bought my house two years prior had been so long, time-consuming and stressful that I didn’t want to go through that again. But this time I had to do so little that I hardly noticed the process. Now that it is over I strongly recommend both Intercap and its loan processor David for anyone’s refinancing needs.”

– Reviewed by Ruben


REQUEST A REFINANCE QUOTE OR SELECT A LOAN SPECIALIST

Are you locked into a low rate?

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Mortgage interest rates are still hovering around the lowest rates in history. This is causing a refinance party you may want to join before rates trend up. Unfortunately, rates aren’t sitting very still right now. They are jumping up and down almost daily with economic and coronavirus concerns. Those of you who are a little trigger shy, here’s the secret to getting an amazing refinance rate.

  1. Get your refi application in as soon as possible, including all the required documentation. This doesn’t lock you into a rate but gets you ready to lock when rates go down.
  2. When your application is in, your Intercap loan officer will put you in his or her “ready to lock” group. Intercap loan officers watch rates very closely. They even receive instant notifications when rates are likely to rise or drop sharply. They can notify you of a drop and lock you in quickly. Trying to get the lowest rate is like shooting a moving target. Your Intercap loan officer is your personal sharp shooter when it comes to targeting great rates.
  3. Know what makes sense and get your rate locked. Waiting for the lowest possible rate can cause paralysis. No one has a crystal ball and rates this low have only been seen a couple times in history.

Find out how much you could gain from a refinance.

“When I decided to refinance I checked with some of the major banks but they offered underwhelming rates and steep out-of-pocket closing costs. Then I found Intercap who offered me in a fantastic rate. David was extremely helpful during the process, made everything clear from the beginning and all the promises he made about timing and ease were honored. We closed in 3 weeks and I had no out-of pocket costs. Most importantly, I have reduced my loan by 10 years while keeping monthly payments very similar to what I was paying in a 30-year term. I will also save $130k during the loan term! I had hesitated refinancing because the process when I bought my house two years prior had been so long, time-consuming and stressful that I didn’t want to go through that again. But this time I had to do so little that I hardly noticed the process. Now that it is over I strongly recommend both Intercap and its loan processor David for anyone’s refinancing needs.”

– Reviewed by Ruben


REQUEST A REFINANCE QUOTE OR SELECT A LOAN SPECIALIST

Want to make sure you are getting the best rate and terms? Go ahead, shop around. We encourage it!

We are confidant that we can compete with anyone on the best all-around rates, terms, and service. That’s why nearly all our reviews are 5-star!


GET APPROVED TODAY! OR SELECT A LOAN SPECIALIST

Fed Rates vs Mortgage Rates

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According the the Federal Reserve, “The relationship between the Fed’s monetary policy and long-term rates is weak and variable.”

On Sunday, March 15th The Federal Reserve announced a cut in benchmark interest rates by a full percent to zero. That’s right, zero percent. They also announced the central bank would buy no less than $700 billion in government and mortgage-related bonds in the coming months, all in an effort to “support the flow of credit to households and businesses [during this time of] anticipated hardship caused by the disruption to the economy.” The primary disruption being the coronavirus outbreak.

The last time the Federal Reserve took such a bold step was back in 2008 during the housing crises.

Many are wondering if Sunday’s announcement will effect long-term rates like the 30-year mortgage. There are a lot of pieces to this puzzle, but it’s important to know that Fed Rates are quite different from long-term mortgage rates. The Federal Reserve has some influence over short-term interest rates for loans with a maturity of less than a year, like money market rates and Treasury bills. Yet according to the Fed, “The relationship between the Fed’s monetary policy and long-term rates is weak and variable.”

In other words, Sunday’s announcement will likely not have an immediate or direct impact on long-term mortgage rates.

However, it is possible that these more recent measures, most importantly the purchase of government and mortgage-related bonds, could create a chain of events that indirectly impact mortgage rates. Only time will tell. We’re keeping a close eye on these events and how they effect mortgage rates so you can rely on us to provide the best mortgage lending rates and options.

Intercap Lending is committed to keeping you informed of mortgage lending programs, rates, and opportunities for residential purchases and refinance. As a direct Fannie Mae, Freddie Mac, and Ginnie Mae lender, we have the unique ability to underwrite most of our loans in house, saving our customers time and money. Please contact your Intercap loan officer for current rates and mortgage lending options.

Since mortgage rates could very well drop sometime soon, the best step to take now is to get your refi or purchase application in so your loan officer can lock you in when the rate drops.