FHFA Increases Conforming Loan Limits (Great for OR & WA)!
This past week we received excellent news from the Federal Housing Finance Agency (FHFA) that they would be increasing the confirming loan limits in 2018 for loans sold to Fannie Mae and Freddie Mac. This was a long awaited increase needed that moved the limit from $424,100 for one-unit properties to $453,100 (a $29,000 increase). You can read the press release HERE.
This means that with the quickly rising home prices in the Pacific NW, many homebuyers will have a little relief on terms, rates, and guidelines when avoiding Jumbo financing. This also means less restrictive down payment requirements and more flexibility on price to help spark demand in the slighly higher-ranged home prices.
For certain areas in Washington State as confirmed on our link above, the confirming hi-balance still exists which has also been increased to $667,000 which will help Seattle and the surrounding areas (over a $60k jump from before).
While many lenders are waiting until January 1, 2018 to offer, Vantage is closing these loans effective immediately. Contact us with any questions.
Oregon & Washington Real Estate Update
The median home value in Oregon is $312,500. Oregon home values have gone up 7.0% over the past year and Zillow predicts they will rise 3.1% within the next year. The median list price per square foot in Oregon is $201. The median price of homes currently listed in Oregon is $354,900 while the median price of homes that sold is $306,630. The median rent price in Oregon is $1,749.
Foreclosures will be a factor impacting home values in the next several years. In Oregon 3.6 homes are foreclosed (per 10,000). This is greater than the national value of 1.6
Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. The percent of delinquent mortgages in Oregon is 0.0%, which is lower than the national value of 0.0%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Oregon homeowners underwater on their mortgage is 0.1%.
The median home value in Washington is $344,300. Washington home values have gone up 10.0% over the past year and Zillow predicts they will rise 4.0% within the next year. The median list price per square foot in Washington is $205. The median price of homes currently listed in Washington is $350,000 while the median price of homes that sold is $331,064. The median rent price in Washington is $1,950.
Foreclosures will be a factor impacting home values in the next several years. In Washington 2.1 homes are foreclosed (per 10,000). This is greater than the national value of 1.6
Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. The percent of delinquent mortgages in Washington is 0.0%, which is lower than the national value of 0.0%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Washington homeowners underwater on their mortgage is 0.1%.
WARNING: Don’t Call Your Loan Servicer If Considering Refinancing!
This is just a friendly reminder that you will NOT want to consider your existing loan servicer for any refinance or home purchase in the future. Primarily on refinances, some consumers believe that they are getting a ‘deal’ since they already have a loan with the lender. That is actually not the case at all as the lender (servicer) doesn’t actually own your loan at all as it’s owned or backed by an agency (Fannie Mae, Freddie Mac, Ginnie Mae, etc.).
What this means is that there are no discounts going to your “current” lender or loan servicer and just the opposite. If you were to call your lender this would be the same as going to their retail department with limited options and no competition, meaning higher rates and costs. Even if they offer a ‘no cost’ loan, this type of structure is available on all channels, but you must compare the rate.
Please remember to contact us as a true Mortgage Broker to shop your options and ensure you have the best terms and experience possible. One of our earlier preferred wholesale investors, New York Community Bank (NYCB), recently recently sold to Freedom Mortgage. For those of you that received any solicitations in the mail from Freedom please let us know as our wholesale lending partners are not supposed to solicit our clients for this very reason.
We work with over 30 wholesale lending partners so let us know how we can help and please make note to ignore any loan servicing solicitations. We want to hear about any violations of our partners if they happen so please share as we don’t want any client steered.
Winter is Coming… in the Pacific NW
It looks like we’ll have a pretty clear week this week in the Northwest. Now is a great time to enjoy the winter events and shows in Portland and Seattle.
Travel Portland has a great list of winter events HERE.
We continue to see a high number of people relocating to Oregon and Washington. As a result, we can expect traffic congestion as a continued concern. During the winter months, use caution when traveling in heavier traffic and avoid travel if possible should we see a winter like last year.
If you’re a Sno Bird, enjoy the mountains!
VMG Mortgage Rate Tracker
Mortgage rates are still low historically and a great time to buy or refinance. Predicting the future of rates, other than Fed actions and market reactions, is difficult today. With the stock market at a historically high level and economic and international issues uncertain… volatility may be in our near future. We expect rates to slowly rise, but these unknown events during a unique time in our history, we certainly watch closely.
You can check or share our pricing engine to run custom scenario:
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