Cash Out Refinances Are More ExpensiveIn 2022 Fannie/Freddie increased LLPAs (loan level price adjustments) for cash out refinances, making it more costly to pull cash out.Freddie Mac announced for 2023 a seasoning period of 12 months before cash can be pulled out of a property (note date to note date) to pay off a mortgage. When one agency makes an announcement the other follows, so consider this a Fannie/Freddie thing. Twelve months seasoning affects a cash out Fannie/Freddie loan, one can do a limited cash out (rate/term) after six months. While these changes make cash out more costly, FHFA (regulator of Fannie/Freddie) announced improvements for costs affecting first time buyers utilizing Home Ready or Home Possible type loans.  This change is most helpful for those in the lower inc... 01/11/2023

Temporary Rate BuydownWhat is a temporary rate buydown and how does it work?  Sometimes we are in an unusual market and some tools are better than others for home buyers and sellers alike.  A temporary rate buydown is such a tool I encourage buyers to consider in today's market. Briefly a 2-1 buydown reduces the interest rate by 2 points the first year and 1 point the second year. The third year the rate goes to the note rate. A homebuyer can save a substantial amount of money on a mortgage the first year and in a market where it seems mortgage rates may go down in the future the homebuyer could have an opportunity to refinance the original mortgage to a permanent lower rate. How can one pay for a temporary rate buydown?Given the current environment a home seller can pay for the buydown... 11/16/2022

Feds Funds Rate, Mortgage Rates and Inflation - Buckle UP!Waking up to pricing for long term mortgage rates this morning is like waking up with the worst hangover.  Yesterday we saw the Feds again raise their Fund Rate by .75%. They toyed with a full point increase, but settled on 3/4 point. The experts I subscribe to imagined an 80% chance long term mortgage pricing would be better today. It was quite the opposite. I feel like I've said it a million times. When the Feds raise their Funds Rate it does not mean long term mortgage rates go up the same. Sometimes we see long term rates improve on the announcement. So far today the reaction is not better pricing, it is worse pricing. The reaction is due to fear in the markets. Fear that the Feds don't have a grasp on inflation. Powell menti... 09/22/2022

Interest Rate Buydowns  Interest rate buydowns for home loans are coming back into focus.  What are the benefits of an interest rate buydown and who is the best candidate?In general the best candidate for an interest rate buydown would be someone who is expecting to have a greater income in a couple of years. A buydown allows the home buyer to ease into a higher rate (payment) in year #2 and #3. Another candidate would be someone who perhaps sees the home as a short term investment if he/she moves or transfers often.  In light of rising home prices and interest rates, a buydown can help those with budget concerns initially.  Think about someone who is paying off student loans or an auto payment which would be paid off in 2 years. Each home loan situation is different so there are differ... 08/23/2022

Federal Reserve Interest Rate and Long Term Mortgage Rates Yesterday the Federal Reserve increased their interest rate by .75% (3/4). Often this is confused with long term interest rates (fixed rate mortgages) going up by a similar amount.The Federal Reserve increases or decreases their key funds rate when they are trying to cool off or pump up the economy. There can be a few reasons for them to act, this  year the reason is inflation. They believe by increasing their funds rate to 4% by year end should reduce spending; reduced spending results in reduced demand, reduced demand results in lower prices. That's the game plan. Unfortunately using this tool, the Feds could easily push us into a recession. Lower demand could result in fewer jobs and less income.  When the key funds rate goes... 07/28/2022

We've moved, and finally found the house we've always wanted.  Searching took 6 months, thousands of dollars in travel expenses, and more patience than can be imagined.  Even my dear husband was weary of me by the time I found this one.  We almost bought three others, but between inspections and second thoughts, it just didn't work out. Being a Feng Shui master tends to make one picky.Then I walked into this house and it seemed to say, "It's about time you got here."  I knew it was the right house for us from the moment I walked in.  Not that it's perfect, nope...far from it.  But as they say, "It has good bones.".  The bones are a bit slanted in places, but... Mostly it's just quirky.  The floor has a bit of a slant in the hallway and bath, but since it's over 60 years old, that's unde... 01/20/2022

Kentucky REALTORS come here to be the Best of the Best -Best of the Best in Kentucky 01/04/2022

Pre approved for a loan?  You want to be sure to heed these three warnings. When you pay off some debt the line of credit is often closed which  may result in a drop in scores. Applying for new credit can drop your score, especially if you open the new line of credit. New credit can also reduce your buying power.  If you are not sure the best path from applying for a mortgage loan to the closing table, consult with your loan officer early and often! After you have applied for a loan, received a pre approval and found a home to purchase, the lender will submit the file to underwriting. Underwriters often have requests as a follow up to the approval, timely responses to these requests keeps you on target to meet your closing date!  Getting pre approved for a mortgage is a perfect first st... 07/14/2021

SAME DAY HOME LOAN APPROVALS Same day home loan approvals do happen. I have them happen quite often, and yesterday it was less than thirty minutes after I submitted a file.   The key to a quick turn around in underwriting a home loan is the quality of the submission. The quality of the submission is dependent upon a seasoned loan originator who knows what documents are needed, assemble them in a clear order, document the file with an explanation of the contents.  Of utmost importance in the quality of the submission is the person seeking the home loan providing the loan originator with ALL the documents and EXACTLY the documents requested.  When I talk about one day loan approvals from underwriting that is very possible in today's environment depending upon the lender a borrower chooses... 04/15/2021

                                        IS NOW A GOOD TIME TO REFINANCE? Is now a good time to refinance is an age old question we don't hear as much these days because rates have been at lows not imagined until now. However, it is a question a home owner should always ask themselves. Generally if one could save 1% on a thirty year note a refinance was something to seriously consider. This rule is somewhat different now with property values escalating as they have over the last few years the interest rate is only part of the equation. Of course saving as much on interest rate is important, other savings can be realized by eliminating or greatly reducing private mortgage insurance because the property values have gone up so much. Another reason to refinance is to change loan programs int... 03/16/2021

Home Loan Shopping, Read the Fine Print Prior to Covid 19 I did in person home buying classes throughout the year. We cover a lot of info which I do by phone now, but one important point I always make is to always read the fine print when home loan shopping. Lenders are going to advertise their best interest rate, best terms, but not everyone qualifies for those terms. If you've listened to an advertisement for automobiles you likely have heard someone speed reading at the end. That is the fine print.  Here is an excerpt from a recent newspaper advertisement for an awesome home loan interest rate. (30 year conventional loan based on a loan amount of $150,000, 75% LTV. (specific pricing was quoted). Additional restrictions may apply. LTV and credit score may require additional fees. Rate... 11/04/2020

I've found that in many feng shui consultations one of my recommendations is the same.  The addition of a chiming clock to the home will cure a lot of problems.  Even people who think they couldn't manage the constant bonging...find that if they properly adjust the volume and increase a little every week, they'll soon not even notice.   Why a chiming clock?  Well, the sound of metal (particularly Westminster Chimes) is a physical remedy for several problem star combinations.  Chimes and singing bowls (the sound of metal) have been used for hundreds of years to "clear the air".  Even church bells have been used not only to call people to prayer but to send messages to heaven.  Church bells are used to warn, celebrate, and to grieve, as well as to simply tell the town what time it is.So, ... 09/27/2020

 Kentucky Horse Farm Lexington KY - Fayette County - Horse Farms For SaleIf you have never seen one, you need to check out a Kentucky Horse Farm in Lexington KY. There are beautiful horse farms for sale in Lexington and Fayette County.Many new clients are finding us on my website, http://www.lizette.us, and making arrangements to relocate to Kentucky. Once in Lexington, they fall in love with the ambiance of the stone walls, black plank fences, lush bluegrass fields, and horses...everywhere! It's quite breathtaking to be here in person!Lexington Kentucky is "The Horse Capital of the World." My world has always been centered around horses, so I can understand why many buyers have a complete love for this relaxed way of life and search for horse farms for sale.  Visitors are always amazed... 09/16/2020

tMaking the Best of the Current Pandemic!! Ive been in Real Estate since 1992 and I have owned my own building since 1995!! So I decided to sell my building move my office Home. Best decision that I have made in awhile, Loving it !!!Most Buyers and Sellers in our Area never come to the Office, Listings are done on line with Dot Loop and so are Purchase Contracts.  My Agents Love it Too. No office hours they spend their extra time with family !! We meet once a week for Lunch or  Breakfast.  It's been a busy Summer and none of us miss our Phycial Office !!   08/25/2020

Thanks for your candor! I have spoken with several folks over the last few months about home financing. Quite a few of them contacted me because they have seen advertisements that interest rates are at all time lows. Some of them tell me the rates they are seeing and ask if it is really true, most are expecting there is a catch. The lowest rates advertised could come with a catch if one interprets it as there is no cost to get the rates advertised Rates really are at an all time low. It is amazing actually.  But that does not mean refinancing a home loan is the best idea for everyone.  What is supremely helpful is to talk to a loan originator who explains all the pros and cons of shorter terms, lower rates, loan amounts, loan to value, etc so an educated decision can be made. Several ti... 08/05/2020

Why Borrowers Get Spam After Their Credit Is Pulled A borrower needs a mortgage to purchase a home. They contact the mortgage broker or bank they want to work with, apply for a mortgage loan, have their credit pulled, and boom! they start getting spam calls out of the blue asking if they are buying a home. Why? Why are they getting calls from people they have never heard of? How did these folks get their information? What I described above is a "trigger lead". When someone applies for a mortgage loan and their credit gets pulled their information is often sold to a competing lender who buys trigger leads. Some lenders pay the credit bureaus (Trans Union, Equifax, and Experian) to provide them with leads. They have sales people sitting there waiting to snag a lead and see if they can gra... 07/10/2020

How The Pandemic Changed My Mortgage Business Each day we learn something new about the Covid-19 virus. This week we are learning whereas the first case was thought to be in 2020 the virus was actually with us months earlier in 2019. I, like many, know people, several family members to be exact who were really, really sick in the fall/winter of 2019, and not diagnosed as flu. Now it seems apparent that some of these people likely had Covid-19 then.I am a mortgage broker working in Kentucky and Ohio who, up until the virus hit, held monthly home buyer classes, went to all my closings and met people who wanted a face to face meeting.  Fortunately, even though I did these things, in my business we've had the capability for a long time to work remotely and do a lot of work across the Intern... 06/26/2020

The Benefit of Seller Paid Closing Costs Did you know seller's often pay part or all of a buyer's closing costs and prepaid items?  In our Northern Kentucky and Ohio market they do. Now more than ever this can be a benefit to the buyer because we for the time being are in a very different world of pricing on mortgage loans. In a normal market you have a range of choices when it comes to interest rates, the amount you want to spend and the amount you have available. It typically is not difficult to use something called premium pricing where a lender pays part of the closing costs for a buyer. Simply put a lender can bump the rate up a bit creating a surplus over and above the cost of the par rate and use that surplus to offset some closing costs for the buyer.  This pricing does not part... 04/30/2020

Mortgage Lending Guidelines & Corona Virus The arrival of the Corona virus has changed our lives significantly and it should come as no surprise that it has changed the mortgage lending world. Not only has it changed the interest rate market for refinance and purchase loans but it has changed at least on a temporary basis how mortgage loans are evaluated on their way to approval through closing. We are seeing mortgage lenders tighten up some standards when it comes to debt ratio, credit, reserves, etc.  Whereas these are discussed as temporary in nature if you are someone who has a loan in process or have been qualified for a purchase be sure you are on top of things with your loan originator. It is a stressful time and you want to make sure if the right home shows up in this tight mark... 03/31/2020

UNEMPLOYED? PUTTING YOUR HOME BUYING ON HOLD Our country is experiencing something it has never gone through before. Over the last few years we've experienced a shortage of homes for home buyers. Now with the the corona virus how many folks will put their homes on the market? Will it create an even greater shortage of inventory?  There are a lot of  unanswered questions regarding the market. One thing for certain is that one cannot buy a home while unemployed. Even if one is getting unemployment insurance payments regularly we cannot use those to qualify for a home purchase. To buy a home the buyer needs to be back to work. As part of the income verification process the buyer will need to provide an explanation about the reduction in year to date income as a normal part of the process. ... 03/23/2020