Yes, I Know It’s Confusing, But There Are Some Changes in Loan Rates

Social media has been abuzz lately with rumors about a new “tax” that is targeting high-credit score borrowers. Before you decide to stop paying your bills on time, I asked Jaxzann Riggs, owner of The Mortgage Network to explain as best she can what these changes are about.

She reminded me that we wrote about the shifts that had already begun in home loan pricing several months ago, when FHFA, the federal agency that supervises Fannie Mae (FNMA) and Freddie Mac (FHLMC), announced that changes were on the horizon.

FNMA and FHLMC are charged with providing liquidity, stability, and affordability to mortgage markets. Affordability is the key word here, especially for those borrowers within “underserved communities.” To support this priority, FNMA and FHLMC began changing Loan Level Price Adjustments, also referred to as LLPAs. These are adjustments made to the interest rates offered to borrowers based upon such criteria as credit score, loan-to-value (LTV) ratio, occupancy, property type, and debt-to-income (DTI) ratios.

In recent months, FHFA has announced many targeted changes to FNMA and FHLMC pricing. One example would be that first-time homebuyers who are at or below 100% of area median income (AMI) in most of the United States and below 120% of AMI in high-cost areas such as Denver may be offered rates that are lower than in the past. These changes signal a significant shift in lending philosophy with emphasis placed on those who may be “underserved.”

As an example, at the height of the COVID crisis, the cost of mortgages for second homes and investment properties was identical to that for primary residences. Currently the rate differential between an owner occupied home and an investment property or second home is over a full percentage point, making real estate investing much more expensive than during COVID.

The current change to LLPAs will, in some cases, reduce costs for those with lower credit scores and raise costs for those with higher credit scores, but, as shown in the graphic above from The Mortgage News Daily, the rumors are conflating the changes for the actual cost.  Let’s take a minute to look at that graphic.

The chart shows the changes to the previous LLPAs. The green represents the falling costs; the red represents rising costs. As you can see, there is clearly no scenario where someone with lower credit will have a lower interest rate after adjustments are made.

While the change in LLPAs does result in a tweak of an existing fee structure in favor of those with lower credit scores, you can also see that there are instances where costs have lowered (green) for those with a high credit score. A low credit score borrower isn’t paying less than a high credit score buyer, but the gap between what they pay is simply smaller than it was previously.

According to the Federal Housing Finance Agency, while some fees are being eliminated for lower-income buyers and lower credit score buyers, and fees are being increased for some buyers with higher credit scores, the two are not cause-and effect.

“Higher-credit-score borrowers are not being penalized or charged more so that lower-credit-score borrowers can pay less,” they said in a statement. “Some updated fees are higher, and some are lower, in differing amounts. They do not represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers.”

I know that these topics can be confusing, and rumors can be overwhelming to debunk. If you are shopping for a home loan, Jaxzann would be happy to provide an interest rate quote for you. You can reach her anytime on her cell phone at 303-990-2992.  Tell her you saw this column..

A Good Loan Officer Can Help You Navigate Buying Before You Sell

Many people are ready for a move. They have substantial equity in their home that will fund the down payment on their new home, but because the inventory of homes for sale is so low, they don’t want to sell before they identify their new home.

While obtaining a bridge loan or a home equity line of credit to access equity are options, few buyers can qualify for them and doing so impacts their buying power for their new home. FNMA requires that lenders count a borrower’s current mortgage, the new HELOC payment AND the mortgage payment on the new house in the debt-to-income ratio that is used to qualify for the new loan. This means that unless they list and sell their current residence before finding a new one, their only option is to write an offer to purchase that is contingent upon the sale of their current home and unfortunately, contingent offers do not have much traction in our current market.

Enter the “Buy Before You Sell” program. Several lenders offer such a program. Jaxzann Riggs, owner of The Mortgage Network, explained the fundamentals to share with you.

Step one is for the “Buyout” company to determine the current value of your existing home. Step two is for you to contract with the “Buyout” company for the guaranteed sale of your current residence.

The Buyout company will then provide an interest free, no payment loan on your available equity to use as your down payment. Your realtor will then be able to write a noncontingent offer with your full available down payment on the new home, which will be your most competitive option. Because you have a guaranteed purchase for your current residence, lenders aren’t required to include the expense of your “departing” residence in your qualifying ratios.

The stipulations for the “buyout” are that once you close on your new home, you will have 10 days to list your current home and you must be under contract within 90 days. The Colorado Association of Realtors shows that year to date, the average home was on the market 62 days, which should be reassuring to those who are concerned about the 90-day time limit.

The cost for this program is 2.4% of the selling price of your existing home, paid to the buyout company when your home sells.

While this cost is not insignificant, consider what it is worth to you to eliminate the stress of selling first, and then having a time constraint attached to finding a home that you love. Also, there can be added costs of a rental property and moving twice if you do not happen to find your new home quickly.

Another cost that is important to consider is that if you don’t get any offers by the 90-day mark, the buyout company will execute its right to your home at a price that’s set at the beginning of the process. This amount will not be market value, but if they then sell your house for more, you will get the additional equity after their 2.4% fee has been collected. It is important to talk to your Realtor about the realistic value of your home, and strategies to ensure a sale within the 90-day period.

Jaxzann reports that while not suitable for everyone, using a “Buy Before You Sell” option can be a way for buyers to maximize their buying power, to take their time looking for a home that they love, and to write their strongest possible offer.

If you feel stuck in your homeownership journey, call Jaxzann at 303-990-2992 for more info.

With Credit Scores More Important Than Ever, Here’s What You Need to Know

Sweeping changes have been implemented for all FHA, VA and conventional home loans in the past few weeks. In addition to increasing interest rates for borrowers purchasing at the “top of their buying power,” a borrower’s credit score now has an even bigger impact on interest rate than in the past. I asked Jaxzann Riggs, owner of The Mortgage Network to review “credit basics” with me and learned the following:

The five categories of data that impact your score, are: Payment History, Balances, Length of History, Types of Credit, and New Credit.

Your payment history makes up 35% of your credit score. For those who need the bottom line version of this paragraph – pay your bills on time.  Potential lenders want to know if you are paying your current credit accounts when they are due. The timeliness of payments is the biggest factor affecting your credit score, so missing or being late on even one payment will sting. If you have otherwise spotless credit, a payment that is made 30 days after its due date can knock as many as 100 points off your credit score. Clearly, late payments make a huge impact, and even further, they stay on your credit report for 7 years. If there is one thing you remember from this article, it is to make your payments on time! … or at least before they are 30 days past due.

The second largest category is balance owed. Lenders want to make sure that you are not overextended. This category will look at how much debt you have over all, how much is owed on individual accounts, and how many accounts you have with outstanding balances. With revolving credit, like credit cards, keep the amount owed on each card under 30% of the limit. 

The length of history shows whether you’ve had credit for six months or 20 years. Having a long track record without any major slip-ups suggests that your credit behavior will be consistent in the future.  Lenders and credit card issuers like that. Keep old accounts open unless there is a compelling reason to close them, such as an annual fee on a card you no longer use. You might be able to help yourself a little in this category by becoming an authorized user on an old account with an excellent payment record.

Did you know there are different types of credit? Revolving (i.e. credit cards), installment (i.e. student/auto loans), and open credit (i.e. a charge card, actually different than a credit card). Having a mix of credit account types may show lenders that you are less of a credit risk because you’ve demonstrated an ability to successfully manage different types of credit and the payment systems associated with them. Having a mix of credit accounts positively impacts scores.

Lastly, keep in mind that applying for new credit can cause your score to slip. Each application causes a hard inquiry on your credit and will likely take a few points off your score, unless the applications happen to fall withing a certain category of credit and within 7 days of each other. As an example, multiple auto loan inquiries or multiple home loan inquiries all made within seven days of each other won’t hurt your score.

Remember that it’s not a good idea to shop for a new car at the same time that you are shopping for a home loan. Lenders don’t like that.

If you are contemplating a home purchase, keep in mind that there are many steps you can take now to set yourself up for success. If you have any questions about the newly updated guidelines or need lending support in any way, do not hesitate to reach out to Jaxzann Riggs, owner of The Mortgage Network at 303- 990-2992.

It Pays to Be Aware of Recent FHFA Changes to Lending Rates and Rules

We are barely six weeks into 2023 and already, we are  feeling  the effects of  “pent up demand” for housing. Denver’s real estate market is rebounding and the advantages that buyers had in the last few months are declining as the “Spring Selling Season” unfolds. Consumer confidence, unemployment numbers and inflation have been in the news recently, and while those factors certainly impact the cost of residential home loans, there are other upcoming changes in the industry that aren’t as well known. I asked Jaxzann Riggs, owner of The Mortgage Network, to elaborate.

The Federal Housing Finance Agency (FHFA) has announced changes that will affect the cost of home ownership for many borrowers starting in March.

Established in 2008, FHFA was created to restore confidence in the mortgage market and to provide supervision and regulation over Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. FHFA has made it their mission to prevent a repeat of the housing collapse and promote stability so that Americans can buy homes with confidence, especially those within underserved communities.

FHFA has announced targeted changes to Fannie Mae (FNMA) and Freddie Mac (FHLMC) pricing by eliminating added interest rate adjustments called Loan Level Price Adjustments (LLPAs) for certain borrowers and affordable mortgage products. There are requirements to qualify, but one example would be first-time homebuyers who are at or below 100 percent of the area median income (AMI) in most of the United States and below 120 percent of the AMI in high-cost areas such as Denver.

Traditionally, LLPAs have been added to interest rates to account for higher risks such as lower credit scores, low down payments, and property types, such as condominiums. Eliminating these LLPAs can lower the offered interest rate by up to 1.75%, which makes a substantial difference in a monthly mortgage payment. These changes will help to make home ownership easier for underserved and first-time buyers.

To support FHFA’s priorities, lenders will offer new mortgage programs that allow individuals to make down payments of only 3% and, in an effort  to help first-time and lower-income buyers enter the housing market, a portion of the 3% down payment can actually be borrowed.

While Fannie Mae, Freddie Mac, and FHA are reducing the interest rates being offered to first-time and lower-income buyers, they are increasing the interest rates being charged to other home buyers. We have already seen a dramatic increase in the cost of loans for individuals purchasing a second home or investment property, and additional increases are expected in the next couple of months. These changes signal a significant shift in lending philosophy. At the height of the COVID crisis, the cost of mortgages for second homes and investment properties was identical to that for primary residences.

Currently the price differential between an owner-occupied home and an investment property is over a full percentage point, making real estate investing much more expensive than in recent years.

While credit scores have influenced the cost of money for over a decade, Fannie Mae and Freddie Mac will now increase interest rates for those with mid-level FICO scores. In the past, the percentage of income (debt to income ratio or DTI) that a borrower used for housing had no impact on the cost of the loan. Soon a borrower’s DTI ratio will be factored into the cost of loan — the higher the DTI, the higher the rate.

You may have questions about the changes. Do you qualify? What is the best loan option for your personal circumstances? Reach out to Jaxzann Riggs of The Mortgage Network, 303-990-2992, for answers.

For the Right Homeowner, an “All-in-One” Loan Can Pay Down Your Mortgage Faster

I was reminded recently about a very non-traditional mortgage loan option that might interest you. The “All in One” has been available for many years but has been widely overlooked in recent years in favor of low fixed-rate loans. I asked Jaxzann Riggs, owner of The Mortgage Network, to explain how the loan works.

The “All in One” (AIO) loan is aptly named because it ties your mortgage loan and checking account together. They become one account. Dollars left in your checking account overnight reduce your mortgage balance for that day (and subsequently the interest due on the loan).

Typically, the money that you have in your checking account does not earn interest. When your money is sitting in your checking account, it’s “working” for your bank, not you. Banks lend out the dollars that you leave in your checking account overnight to other banks, earning interest on those loans. 

The AIO checking account (which is also your mortgage account) can be used just like your current checking account. You deposit your earnings into the AIO account and pay your monthly bills (including the monthly mortgage payment) out of the account.

Since the amount of interest that you pay on your mortgage loan is based upon your loan balance, any extra money that you store in your account lowers both your loan balance and subsequently your interest owed for that month.

Interest on your mortgage is accrued daily, so you will benefit even if money is moving in and out of your account frequently. For example, if you are paid on the first of each month but your bills aren’t due until later in the month, your paycheck would be lowering your loan balance and interest payment just by sitting in your checking account for a few weeks.

Typically, an AIO borrower will store some portion of their emergency funds or savings into their AIO account. All funds in the account can be used whenever needed, but you will be reducing your mortgage balance by that amount if it’s in your AIO account.

Some will ask, why not just make extra payments to a traditional 30-year fixed mortgage? While making extra payments on your mortgage will also have the same effect of paying down your principal balance quicker, you won’t be able to access the dollars that you have prepaid if you need it in the future. To accomplish that, a borrower with a traditional loan must either refinance his or her current loan or obtain a HELOC to access equity. Also, while you will end up paying off your loan earlier, your monthly payments will always stay the same if you are in a fixed rate product.

Because the All-In-One loan is an adjustable-rate mortgage it is possible that you will be paying a higher rate for the AIO than a fixed rate option. The goal of the AIO is to utilize your excess cash to reduce your loan balance faster than a traditional loan. That is where the value lies.

The AIO can be used to refinance your current loan or to buy your next home, but it is not going to be the best option for everyone. The ideal AIO candidate has a history of having money left over each month after paying all bills. The requirements include a high credit score, and a lower debt-to-income (DTI) ratio than most mortgages allow.

If you are interested, Jaxzann, who is a licensed mortgage broker and certified to offer the AIO, will carefully analyze your current income and spending habits and create a personalized scenario for you. You can reach her at (303) 990-2992.

Good Mortgage Lending News for First-Time Homebuyers

There is great news this month for first-time homebuyers. The Federal Housing Finance Agency (FHFA) has made changes that will benefit up to 20% of people looking to buy.

The most significant could result in as much as a 0.5% reduction of the interest rate. When you apply for a mortgage, your rate is based upon various risk factors. If you have a low credit score, a small down payment, or are buying an investment property, your loan is at a higher risk of default than someone who has excellent credit, large down payment, or is going to live in the home. These risk factors are added into your interest rate as “Loan Level Price Adjustments,” or LLPAs.

First time home buyer programs such as “HomeReady” and “Home Possible” have always had reduced LLPAs, but this month FHFA announced that they are removing all such pricing adjustments from their most popular first-time homebuyer programs.

FHFA has also increased the income limits associated with the programs and is allowing lenders to offer up to $2,500 in grant funds to qualifying borrowers. If you have questions about a first-time homebuyer mortgage, reach out to Jaxzann Riggs of The Mortgage Network at (303) 990-2992 for answers.

A Reader Asks: Could a Reverse Mortgage Be Funded by Heirs at Less Cost?

Recently, I heard from a reader about reverse mortgages. The reader astutely observed that the costs associated with a reverse mortgage (or HECM) could be eliminated by putting a family-funded mortgage into place. This would require an attorney to draft the legal documents that would spell out and secure each family member’s future interest in the property, but those fees would likely be lower than the costs associated with a HECM.

I asked Jaxzann Riggs, owner of The Mortgage Network to weigh in on the topic. “Absolutely,” she told me, “a family-funded reverse is preferable to a traditional reverse if the homeowner has a family that is able and willing to be the lender.”

Reverse mortgage closing costs are very straightforward. A borrower should expect to pay, on average, a 1% origination fee and a 2% initial mortgage insurance premium, plus closing costs and third-party fees such as appraisal, title, settlement and recording fees.

Jaxzann told me there is a difference, however, between closing costs and the actual expense of a reverse mortgage. The expense is far more difficult to calculate because it would require concrete information about the future value of the home, the duration of the occupancy (how long will the owner live in the home), and how much the homeowner will draw now and in the future from the home’s equity. A homeowner who decides to sell the home within a few years after creating a reverse mortgage would find it to be VERY expensive.

If a borrower rolls $10,000 of closing costs into the loan balance and then sells the home after one year, the cost of selling (without calculating and adding the interest and mortgage insurance accruals) would be the full $10,000. If, on the other hand, the homeowner lives in the home for 20 years, the initial cost spread out over the life of the loan would be approximately $500 per year. The future appreciation or depreciation of the home is critically important when attempting to calculate HECM expenses because, unlike a family-funded reverse, FHA HECMs are non-recourse loans meaning that if the home is worth less than the dollars owed at the time of sale, the borrower or heirs are not responsible for the deficiency. If the home does not appreciate much (or depreciates), a HECM can be very inexpensive.

The Slumping Stock Market Is Making a ‘Reverse Mortgage’ More Appealing to Baby Boomers

Many people who are considered “baby boomers” (born between 1946 and 1964) are now either in retirement or fast approaching it. In fact, About 10,000 baby boomers turn 65 every day. 

Park Hill residents Sandra and Daryl are excited and eager to join their retired peers, however with recent declines in the value of their retirement portfolio, they are concerned that those accounts may not cover their expenses (including their current mortgage payment) for the rest of their lives. While they still have some money owing on their current home they have built a large amount of equity over the past 20 years that can be used to ease the way into retirement. Jaxzann Riggs, owner of The Mortgage Network, explains how that might work. 

Home Equity Conversion Mortgages, more commonly known as “reverse mortgages” or “HECM’s” have become increasingly popular over recent years, and for good reason — a reverse mortgage allows homeowners to access the equity in their home. Borrowers with adequate equity can refinance their existing loan into a reverse mortgage OR they can use a reverse mortgage to purchase a new home.

Borrowers keep ownership of their home as they continue to age, and “non-borrowing” spouses (younger than 62 years of age), may continue to live in the home until his or her death. Borrowers also have flexibility about how they choose to access their equity, allowing people to choose what is best for their circumstance.

Ending current mortgage payments, receiving monthly payments, receiving a lump sum of cash, or creating a growing line of credit are four different options that a borrower may choose to utilize, or they can opt for a combination of all four. This money can be used however a borrower chooses and, because it is considered “borrowed” money and not income, it is not taxable and does not reduce Social Security or Medicare benefits in any way.

Here are some of the common myths and misconceptions about reverse mortgages:

Myth #1: The lender will take ownership of the home.

FALSE: Borrowers will retain ownership of the property. The lender does not take control of the title. The lender’s interest is limited to the outstanding loan balance.

Myth #2: I will be forced to forfeit ownership of my house, the bank will take the title to my home..

FALSE: The heirs will never owe more than the value of the property; however, they will have the option to repay the loan and keep the house for themselves.

Myth #3: To qualify for a reverse mortgage, a home must first be paid off — “free and clear”

FALSE: Even if you still have a loan on your home, you may be eligible for a reverse mortgage.

While relatively easy to obtain, HECMs are not for everyone. You must be at least 62 years of age, have substantial equity in your property, and occupy the home as your primary residence. To be eligible, a reverse mortgage normally requires a minimum of 50% equity in the property. Given the very real possibility of a correction to real estate values, now may be the perfect time to consider your reverse options. Eligible property types include single family homes, two- to four-unit properties (borrower must occupy one unit), townhomes and modular homes, and FHA approved condos.

Some things to remember:

1)    You are still responsible for paying property taxes, homeowners’ insurance, and monthly HOA fees for the home, even though you won’t have a monthly mortgage payment.

2)   If you aren’t living in the home for the majority of the year, or are planning on moving soon, then a reverse mortgage may not be the best fit for you. 

Interestingly, ‘Seller Concessions’ Can Benefit Both Buyers & Sellers

If you’ve been following my “Real Estate Today” column, you know that homes are taking longer to sell, and in some areas sales prices have decreased slightly.

Jaxzann Riggs, owner of The Mortgage Network, has been serving Colorado borrowers for 37+ years and she has witnessed more market fluctuations than I have in my 20 years. I asked her what “old and new” marketing and financing strategies she suggests for both buyers and sellers in this dynamic market.

   Her response: “First, buyers need to understand their highest priorities. Is investing the smallest amount of cash their priority, or are they more interested in minimizing the monthly housing expense in the early years of the loan? If they expect to own the property for many years, having the lowest possible 30-year fixed rate may be the highest priority. Buyers who are fortunate enough to be paying cash for a home are normally looking for the lowest possible purchase price, in which case seller concessions won’t matter to them.”

Let’s analyze each goal and how a seller concession built into a purchase contract can help you.

Goal #1:  Lowest Cash to Close

If your income is good and you are not concerned about your monthly housing expense, but you don’t have much cash to work with, a popular seller concession is one that covers your closing costs. That way, you only need cash for the down payment.

Goal #2:  Lowest Payment in the Early Years of Your Mortgage

If your income is likely to increase in the near future, and you want to minimize your monthly housing expenses until your pay increases or you receive an expected bonus, a temporary interest rate buydown funded by a seller concession might make sense. The simplest explanation of this strategy is that the buydown subsidizes a reduced monthly mortgage for the first one or two years of the mortgage.

Goal #3:  Lowest Interest Rate for the Term of the Mortgage

If this is a property that you expect to own for many years, it makes sense to ask for a seller concession that is utilized to buy the interest rate down on your mortgage for its full term.

So, the next question is, what is a reasonable dollar amount for a borrower to request from the seller as a concession? Each borrower and seller circumstance will vary, so there is no set rule, although Fannie Mae and Freddie Mac underwriting guidelines limit the seller to a contribution of 6% of the sales price (or 3% if the borrower is making a minimum down payment).

Seller concessions may only be utilized to offset closing costs, reduce the interest rate on a temporary or permanent basis, or to prepay mortgage insurance on behalf of the borrower. Seller concessions may NOT be used to reduce the down payment made by the borrower.

It might surprise a prospective buyer to understand the different impacts that a seller concession versus a price reduction can have on the monthly cost of their mortgage. And it might surprise sellers to learn that offering a concession in the form of an interest rate buydown can increase the pool of prospective buyers.

I am happy to explore buyer and seller wants, needs, and goals. Structuring a seller concession so that both buyer and seller benefit is possible once all parties agree upon the anticipated appraised value of a property. Of course, this is best done with the assistance of an experienced Realtor like me who knows how to evaluate the market trends in a particular community.

    If you are buying or selling and have questions about the different possible concessions, call Jaxzann at 303-990-2992.

How Concerned Should Homebuyers Be About Fed Interest Hikes?

It is no surprise that headlines like “Fed Hikes Rates” may discourage prospective home buyers, but they should not be discouraged. Jaxzann Riggs, owner of The Mortgage Network, explains why.

The “Federal Reserve” is the central bank of the United States. Founded by an act of Congress in 1913 with the primary purpose of enhancing the stability of the American banking system, the “Fed” is charged with helping to set “monetary policy” for the United States. It sets the “federal funds rate” which is the interest rate that banks charge each other to borrow or lend excess reserves overnight.

“Monetary policy” refers to the actions undertaken by the Federal Reserve to influence the availability and cost of money and credit offered to consumers and businesses to help promote national economic goals. 

You may have also heard the term “quantitative easing.” Quantitative easing (QE for short) is a policy or strategy which has recently been used by the Federal Reserve. During the COVID pandemic, the Federal Reserve not only cut the “Fed funds” rate to zero but it also purchased mortgage-backed and other financial securities to increase the supply of money for homeowners. This encouraged more lending to consumers and businesses. While the result of the policy remains to be seen, most economists suggest that it caused mortgage rates to be held artificially low. The combination of low rates and low housing inventory (construction of new homes fell dramatically following the 2007-2008 fiscal crisis) created the “inflation” of home values with which we are all familiar.

Some assume that the Federal Reserve sets mortgage rates… they do not, but they do influence mortgage rates. The Fed controls short-term interest rates (mortgage rates are long-term rates) by increasing them or decreasing them based upon the state of the economy. When the economy is struggling, the Fed lowers the rates, allowing banks to borrow money at a lower rate to lend to consumers. When the Fed decides the economy may be overheating (read inflation) they tighten the money supply by raising the Fed funds rate. While this does not directly increase mortgage rates, lenders must eventually do the same to keep up with their costs to borrow money from the Federal Reserve.

On July 27th, the Federal Reserve announced a three-quarter percent interest rate hike, and during that week the average 30-year fixed mortgage rate fell one quarter of a percentage point. When there is talk of the Fed raising their rate, mortgage rates can spike, but they typically correct by the time that the increase is actually announced.

Recent positive unemployment figures may cause the Fed to raise rates once again, but the Fed’s chairman, Jerome Powell, has also indicated that there may be a pause on future increases in order to assess their impact on the economy.

We all know that higher rates reduce purchasing power for buyers, but there have been some positives to higher rates. Fewer buyers in the market mean that inventories are rising, and sellers are willing to help buyers with “interest rate buydowns.” Buying at the right price is important, but asking the seller to help with the cost of an “interest rate buydown” instead of offering a lower purchase price will have much more impact on a buyer’s monthly mortgage payment. (Click here to read my July blog post on the topic of interest rate buydowns.) Buyers are qualified for monthly mortgage payments versus loan amounts, so reducing the rate on your new home loan increases your buying power.

If you have lending questions about your personal circumstance, Jaxzann Riggs is standing by. You can reach her on her cell phone at (303) 990-2992.