This week’s highlights:
- Brian and David break down the new 2021 loan limits.
- Brian walks through through Refi strategies on Jumbo Loans.
- Brian update listeners on a Minnesota clients Jumbo loan and Appraisal Woes.
Loan limits increasing in 2021Big news in the mortgage world this week as Fannie Mae and Freddie Mac have just announced a new loan limit of $548,250 for homes purchased in high-cost areas! The 7% increase is almost $38,000 higher that the 2020 limit and it comes in response to the steady rise in home prices. This is great news for first time home buyers who, starting January 1st, will conceivably be able to put 3% down on $560,000 home and receive a government backed, 30-year loan.
If you’re currently in the $500,000 mortgage range, it’s possible to refinance at the record-low mortgage rates.The new loan limits will go into effect on January 1st, 2021—contact Accunet Mortgage early to find out how you can take advantage of the loan limit increase
Jumbo loan refi strategies
When you’re making payments on a jumbo loan, even a small rate reduction can have a big impact on your monthly payments.
Given a choice between refinancing or paying a loan off early, many high-income individuals instinctively choose the latter option—either due to the fear of debt or just a want to feel in control of their money.
Brian thinks about it a little differently, especially given the “low cost of money” in the current lending climate.
What would Brian Wickert do?
Two years ago, Brian switched his personal mortgage strategy from using adjustable rate mortgage to using the jumbo 30-year fixed loan option. While he’s giving up some savings in the interest rate and the payment, he’s completely eliminated interest rate risk, while locking in historic low rates.
This approach pays dividends has the added benefit of increasing liquidity, a critical concern for retirement planning!
What should you do?
Talk to your financial advisor & Accunet loan consultant! Don’t pay a nickel more than you have to pay, save.
Jumbo Loans and Appraisal Woes in MN
Last weeks show ended on a cliffhanger, with a Minnesota jumbo loan hanging in the balance due to complications with the appraisal, the jumbo investors and the purchaser.
For everyone following along at home, here’s the updated score:
- Close date, December 4th
ThreeFour appraisers have turned down the assignment
- Appraisal Received on Nov. 20th
- Financing Contingency: November 23rd
- Contingent on the appraisal being approved by the investor
Initiate Plan B
It’s Tuesday afternoon, the day before the financing contingency is set to expire, and there is no word from investor. With deal on the line, Brian initiates plan B to save the deal and the day.
Summarizing the Plan B details, Brian added “We’re an independent mortgage banker, so we usually have more than one outlet for any given loan product. We did have a second jumbo, 30-year fixed investor, and at that moment, the pricing had caught up with our first investor. Wow, I can offer the same rate.”
Still haven’t heard back from investor number 1.
The second jumbo investor came through with an approved loan on Friday morning, clean as a whistle.
When you go directly to the bank, you have one choice—their money or no money. With an independent mortgage banker like Accunet, we try to have more than one option for every type of loan that we offer.