Following the 10-year treasury yield, it has gone from 4.9 down to 3.64, the market is ahead of the Fed in anticipating a rate cut this month, so the drop in rates has already been baked in. When the Fed drops it will be a .25 or a .5 and the market will react to that drop in a positive or possibly a negative way.
Is it time to refinance your home? That is a great question, are you going to consolidate debt, cash out, or do a rate-term refinance. It is really a phone call to see where you are at and what makes sense for your financial planning. No one is going to sell you anything, really just look at the numbers and see if it makes sense.
We are heading down and nice to see some relief for a home purchase as well, a drop in rates of 1% makes a difference and we have dropped that already and I believe the probability of more to come.
Keep watching the 10 yr and see if we go lower

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An FHA (Federal Housing Administration) mortgage is a popular home loan option, especially for first-time homebuyers or those with limited down payment funds or less-than-perfect credit. Below are the pros and cons of an FHA mortgage:

Pros of an FHA Mortgage:
Lower Down Payment:

FHA loans typically require as little as a 3.5% down payment, making homeownership more accessible for buyers who may not have substantial savings.
Flexible Credit Requirements:

Borrowers with credit scores as low as 500–580 (depending on the lender and loan terms) can still qualify for an FHA loan. This is more lenient compared to conventional loans, which often require higher credit scores.
Higher Debt-to-Income (DTI) Ratios:

FHA loans allow for higher DTI ratios (up to 43%-50%) compared to conventional loans, which makes it easier for borrowers with higher levels of debt to qualify.
Available to First-Time and Repeat Buyers:

FHA loans are available to both first-time homebuyers and those who have owned homes before, as long as they meet the qualifications.
Assumable Loan:

FHA loans are assumable, meaning that if you sell your home, the buyer can take over your mortgage, which can be a selling point if interest rates rise in the future.
Refinancing Options:

FHA offers Streamline Refinancing, which allows current FHA borrowers to refinance to a lower rate with reduced paperwork and without requiring a new appraisal.
Cons of an FHA Mortgage:
Mortgage Insurance Premiums (MIP):

FHA loans require both an upfront mortgage insurance premium (1.75% of the loan amount) and ongoing annual mortgage insurance premiums (0.45%-1.05% of the loan balance). This can add significantly to the cost of the loan over time.
The MIP is required for the life of the loan if your down payment is less than 10%.
Loan Limits:

FHA loans have maximum loan limits that vary by region and property type. In high-cost areas, this limit might not be enough to buy a more expensive home.
Stricter Property Standards:

The home must meet FHA's minimum property standards, which may require repairs or upgrades before the loan can be approved. This can be an issue with older homes or fixer-uppers.
Potentially Higher Interest Rates:

While FHA loans are designed to help buyers with lower credit scores, borrowers with good credit may find lower interest rates and better terms with a conventional loan.
Not Ideal for Large Loan Amounts:

If you need a loan amount that exceeds the FHA loan limits in your area, you might be forced to look for alternative loan options like a conventional or jumbo loan.
Longer Closing Times:

FHA loans can sometimes take longer to close compared to conventional loans due to stricter underwriting and property inspection requirements.
An FHA mortgage can be a great option for those with limited savings or credit challenges, but it's important to weigh the long-term costs, particularly the mortgage insurance premiums, before deciding.

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First-time Homebuyers are able to purchase a home with a 2/1 Buydown at the wholesale lender's expense. If you purchase a home and the interest rate is say 6.375%, the 2/1 buydown allows you to pay 4.375% for the first year, then 5.375% the second year, and then 6.375% for the remainder of the loan
Normally the seller would pay the interest difference for year 1 and year 2, now the Wholesale lender will pay that expense so it is not a negotiating feature for you on the purchase of the home. It is paid for by your lender and does not have to go to the seller.
Elevated rates these past 2 years help to get the lower rate for a couple of years and with the probability of refinancing in that period of time
Always bringing you products that can benefit you on your home purchase adventure

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