New Products and 2017 Predictions
The mortgage industry is going through a lot of changes right now. It’s always a good idea to review your situation at least once a year. We can set a free consultation to ensure you are on track. Give us a call at 888-721-0003 or request a consultation on the right hand side of this page.
New Products at Griffin Funding:
Griffin Funding is now offering Reverse Mortgages in addition to VA Loans.
With all the baby boomers retiring we think this will be a beneficial product for our clients. Baby boomers were on track and set to retire before the Great Recession hit. Post great recession a lot of baby boomers don’t have enough funds so they are looking to eliminate their mortgage payments. If you are over 62 and looking to eliminate your mortgage payment – give us a call!
A new study conducted by the Joint Center for Housing Studies at Harvard University reveals that many Americans will face greater troubles before being able to retire due to decades of damage to personal wealth from the Great Recession. As a result, the lack of affordable and safe housing for America’s aging population is headed to a crisis point. “Right now, more than 19 million older adults live in unaffordable or inadequate housing, and that problem will only grow worse in the next two decades as our population ages,” says Lisa Marsh Ryerson, president of AARP Foundation. The study finds 45% of older owners with home loans face growing cost burdens. This is partially due to the fact that income levels decline with age. But although the cost of living also decreases, the Harvard study quotes research showing that the rate of income declines outpaces spending declines, leaving a vulnerability gap.
40yr Fixed Mortgages
Griffin Funding is now offering a 40yr fixed mortgage. The good news is by adding 10yrs to your loan your payment drastically decreases your payment. The bad news is it will take longer to payoff your home. What is right for you? This program is interest only for the first 10yrs and then turns into a 30yr fixed mortgage on the 10th year. The rate never changes over the 40yr term it is fixed the whole time and is not adjustable!
Investment Property Loans
Looking to buy an Airbnb property to rent out or another investment property? Check out this article with our CEO in Huffington Post talking about Griffin’s new investment property loan products and our sister company Revestor. Contact us if you find any properties that you are looking to invest in and we can help you finance them. Simple tip: if the rent covers the payment, it most likely can be done!
Griffin Funding is now offering 2nd mortgages. This product is great for clients that are in need of extra cash but don’t want to touch the rate on their current first mortgage and don’t want to use high interest credit cards.
Home loans through the Department of Veterans Affairs more than tripled in the wake of the 2007-2009 financial crisis, providing a critical line of lending credit to tens of thousands of veterans trying to buy a house, according to a report recently released. Researchers say those numbers show the quiet importance of the VA program, a benefit used by millions of veterans but often getting less attention than initiatives like health care coverage and education stipends. “This is a stable, accessible form of credit that has helped a lot of families,” said Keith Wiley, a research associate at the Housing Assistance Council and co-author of the report. “And over the years it has been expanding.” The report, funded in part by the Home Depot Foundation, found nearly 9 percent of all home loans in America in 2014 were backed by VA, up from 2 percent a decade earlier. Before the recession, those loans totaled around 140,000 a year. Today, those numbers are closer to 510,000, making them the third-largest home loan type in the country — behind conventional loans and loans backed by the Federal Housing Administration. VA officials said nearly 40 percent of the loans approved in recent years were issued free of service charges, since the applicants qualified for disabled veteran status. HAC officials said they hope the new report will be used as part of broader planning efforts on veteran homelessness and financial health, and to drive national policies on those issues.
Source: The Military Times
Various real estate entities have weighed in with their prognostications for the 2017 housing market. Most observers expect home sales and prices to moderate in the coming year. They say suburbs will make a comeback while the days of historic low rates are over. Of course, a lot depends on the actions of the new administration. Although President-elect Donald Trump said little about housing during the campaign, some of the issues he highlighted will have an effect on the residential real estate market, such as infrastructure spending, regulatory and tax reform, and immigration policies.
- Realtor.com predicts “a year of slowing, yet moderate growth,” with its fourth quarter Housing Opportunities and Market Experience Surveyfinding that 70 percent of people believe that now is a good time to buy a home. Millennials and boomers will dominate the market and Realtor.com expects these two massive demographic groups to power demand for the next decade. Home prices will grow at 3.9 percent annually, compared to an estimated 4.9 percent in 2016. Inventory is down an average 11 percent in the top 100 metro markets, and it is not expected to improve next year. Homes will be selling 14 percent faster. The survey also found that 70 percent of people say now is a good time to buy a home.
- Redfin predicts “strong buyer interest, better access to credit and a modest and much needed increase in inventory that will allow home sales to grow but not as much as in 2016.” Redfin expects median home sale prices to rise 5.3 percent annually in 2017 compared to 5.5 percent this year and existing home sales to increase 2.8 percent annually in 2017 compared to 3.4 percent last year. 2017 will be the fastest real estate market on record as homes stayed on the market an average of 52 days this year, according to Redfin. It expects them to sell even faster in 2017. Redfin expects rates on home loans to rise but no higher than 4.3 percent on the 30-year fixed rate next year.
- The Mortgage Bankers Association predicts that rates on home loans will rise slightly but remain low, purchase applications will increase and refinance applications will decrease. “Strong household formation coupled with further job growth, rising wages and continuing home price appreciation will drive strong growth in purchases in the coming years,” said Mike Fratantoni, MBA’s chief economist. MBA expects rates on the 30-year fixed rate loans to remain below 5 percent through the end of 2018. “Historically low and, in some cases, negative rates around the world continue to put downward pressure on long-term U.S. [bond] rates, keeping them lower than the domestic growth environment would otherwise warrant,” Fratantoni said.
Source: The Washington Post
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