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2019 Summer Market Update With Jim McMahan: Is it a good time to refinance?

In this video, Jim McMahan, President of Benchmark Mortgage, talks about the market, interest rates, and debt strategy to help you decide whether refinancing might be a good option for your financial goals.

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Mortgage Applications Rise 4.1% According to Most Recent Data

The Mortgage Bankers Association reported a 4.1% increase in mortgage applications from the prior week.

Steve Remington, Benchmark’s Chief Operations Officer, noted that the increase in applications could be a consumer response to the recent trend in the market, indicating a shift from the prolonged period of low interest rates.

“Mortgage Bankers Association Data indicates a slight uptick in refinances for people who might be trying to take advantage of these lower interest rates. We don’t foresee doom and gloom with rates skyrocketing, but we do see an upward pressure of interest rates in the short term,” says Mr. Remington.

He also suggests that people in the process of building a home, or looking to build a home, may wish to consider looking at options to lock in their interest rates early. “If you are building a house and it takes 6-12 months to build, you might consider seeking a long-term lock option that Benchmark may be able to offer.”

You can read the full report from the Mortgage Bankers Association here.

HUD Announces New FHA Loan Limits

Yesterday, December 7, 2017, the Federal Housing Administration announced that for 2018, 3,011 out of 3,141 counties in the U.S. (~96% of all counties in the nation) will see an increase in FHA loan limits.

Ceilings and Floors

In high-cost areas, the FHA’s loan limit ceiling will increase this year to $679,650, up from $636,150, providing a $43,500 increase. In addition, the floor will rise from $275,665 to $294,515, an $18,850 increase.

Reverse Mortgages

The National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages, or reverse mortgages, will also rise with the loan limit ceiling from $636,150 to $679,650, for an $18,850 increase.

Next Year

FHA case numbers assigned on Jan. 1, 2018 or later will be subject to the new loan limits.

HUD’s Press  Release: https://www.hud.gov/press/press_releases_media_advisories/2017/HUDNo_17-110