Author: Emily Andrews

First Home Mortgage Wins 2023 ICE Innovation Award!

Posted on by Emily Andrews

First Home Mortgage is proud to announce our latest achievement as recipient of the 2023 ICE Innovation Award in the category of Best Application-to-Closed Loan Conversion Process! 

The ICE Innovation Award “recognizes industry leaders who are pushing the envelope by creating extraordinary solutions with ICE Mortgage Technology to achieve their business goals.” Recipients of the award have utilized ICE Mortgage Technology solutions in revolutionary ways to improve the digital mortgage experience and enhance overall consumer engagement.  

Here’s what ICE Mortgage Technology had to say about why we earned this distinction: 

“First Home Mortgage discovered that the key to increasing conversion rates was to remove all roadblocks at the initial application stage and solve problems before they arise. By customizing applications based on service area, and even for individual loan officers, they were able to confidently direct borrowers to the Encompass Consumer Connect® portal knowing that they’ll get all the correct information they need right from the start. Being able to take complete applications and have the applicant upload their documentation right at the beginning is crucial for loan officers to quickly identify potential issues and deal with them early in the process. First Home Mortgage now delivers a smoother borrower experience and has achieved an outstanding application-to-closed-loan conversion rate.” 

The entire First Home Mortgage team is honored to have won this award from ICE Mortgage Technology, a leader in the mortgage technology space with a reputation for developing tools that modernize the real estate experience. “We’re thrilled to recognize forward thinking companies that embrace technology that deliver the American dream of homeownership to their customers and create competitive advantages for themselves,” said Jonas Moe, SVP, Marketing and Market Strategy, ICE Mortgage Technology. 

The award illustrates how industry leaders are acknowledging and appreciating our efforts to deliver exceptional experiences to our borrowers through the use of superior technological solutions, like the Encompass® loan origination software developed by ICE Mortgage Technology. 

“Just recently, one of my Encompass support specialists was on a three-way call with a borrower and loan officer,” said Eric McCall, VP of Operations at First Home Mortgage. “The borrower was having some trouble navigating the system and she was blown away by the loan officer’s ability to walk her through the system. With his knowledge of the product, the loan officer was able to quickly resolve the issue and avoid frustrating the borrower.”  

We couldn’t be more excited to begin 2023 with such distinguished recognition for our longstanding commitment to supporting our customers in making their dreams happen! Contact us today to see how the experts at First Home Mortgage can put our technical innovations to work by getting you pre-qualified and into your dream home! 

The Federal Reserve Increases Federal Funds Rate – Here’s Why It Matters!

Posted on by Emily Andrews

The Federal Reserve’s latest meeting just wrapped up, so what are the key takeaways for you?

This afternoon, the Federal Reserve increased the Federal Funds Rate by .25%. It’s critical to understand that when you might see headlines about the Fed increasing their target rates, it usually doesn’t directly impact the mortgage rate you’re able to obtain. In fact, rates for 30-year conventional mortgages have declined by more than 1% over the last few months according to major market surveys.

The Federal Reserve’s Open Market Committee implements policies that help to speed up or cool down the overall U.S. economy. Because inflation has been reported at levels above the Fed’s stated target, the Fed has been trying to slow down the economy and get inflation back under control. Their primary mechanism to do this is to raise the Fed Funds Rate – the rate that banks charge each other to lend money back and forth. When this rate increases the economy tends to slow down, which helps get inflation back in line.

Believe it or not, today’s announcement of a .25% increase in the Fed Funds Rate is actually the smallest increase the Fed has made in almost a year (since March 2022)! This means that the Fed is starting to see the light at the end of the tunnel in our current economy, and we’re likely approaching the end of the rate-hiking cycle. Lower inflation means we all have more purchasing power, and our paychecks can stretch further month-to-month!

While today’s news is positive, it can still be tricky to navigate our current market. Contact the experts at First Home Mortgage today to stay informed on your homebuying decisions!

Introducing First Home Heroes!

Posted on by Emily Andrews

We’re proud to announce the launch of our new First Home Heroes program! We want to recognize the heroes in our communities — including first responders, teachers, and medical professionals — and thank them for everything they have sacrificed to protect us, educate us, and keep us safe and healthy.

This new initiative reduces some of the out-of-pocket closing costs associated with the loan application process to help make homeownership a reality for these everyday heroes!

This reduction is made possible by eliminating certain fees during the lending process. Eligible borrowers will have their application, underwriting, and processing fees credited back to them at time of closing, up to a maximum of $1,585.

This new program builds on our efforts to help make homeownership a reality for all — especially those who most deserve it!

If you are a police officer, firefighter, educator, or medical professional (including nurses, doctors, and other healthcare workers), you may be eligible! If you’re purchasing a new home, First Home Heroes is here for you.

Contact one of our qualified loan officers today to see if you’re eligible

The Federal Reserve Just Increased Target Rates – What It Means for You!

Posted on by Emily Andrews

The Federal Reserve has just shared their perspective on the economy – so how does it impact your homebuying process?

Today the Fed increased their target rates by .50%. Importantly, this doesn’t mean that prevailing mortgage rates increased overnight! In fact, average mortgage rates have actually declined since the Fed’s last rate announcement in early November.

The Fed periodically raises and lowers the Fed Funds rate in order to either speed or slow the pace of the overall economy. With inflation continuing to remain above the Fed’s stated goal, they are trying to slow down the economy and bring inflation under control. The Fed’s dual goals are to increase employment rates across the economy, and to maintain low inflation. Today’s action is an effort to get inflation back in line.

The good news is that the pace of inflation has been slowing in recent months. The Fed recognizes this; accordingly today they were able to raise rates by the lowest amount since June, a sign that they are beginning to see results in their fight against inflation. That’s good news for all of us: lower inflation means our dollars go farther every month!

Tracking what the Federal Reserve’s actions might mean for your homebuying decision can be challenging. If you’re thinking about purchasing a home, contact the professionals at First Home Mortgage today to help stay informed!

New Conforming Loan Limits Are Here!

Posted on by Emily Andrews

The results are in, and they could have an impact on your home buying journey. Effective today, homebuyers may now borrow up to $726,200 in most counties and up to $1,089,300 in higher-cost areas!

The limit on conforming loans backed by Fannie Mae and Freddie Mac is assessed annually. In September, First Home Mortgage responded to a challenging market by updating the conforming loan limit to $715,000 in most counties and allowing qualified homebuyers the opportunity to borrow above the limit while still enjoying the efficiencies of a conforming loan. Today’s announcement pushes that limit even higher to $726,200 for most borrowers.

This news follows the 2021 increase to $548,250 and the 2022 update up to $647,000. Taken together, this represents a 32% increase in just two years. Click here to see how your county compares to the surrounding region — and, as always, don’t hesitate to reach out to one of our qualified loan officers with any questions!

Author: James Baublitz, VP of Capital Markets

Home Inspection: Factors to Keep in Mind when Buying a Home

Posted on by Emily Andrews

Home Inspections help buyers to identify any major issues with a home before closing. An inspector will evaluate the property and write up a list of major and minor repairs that need to be made. Without any penalties as a buyer, you are able to walk away from the purchase offer if there are major defects found with the home. This is ideal for any buyer that doesn’t want the burden of high-cost fixes after closing. Here are some things to keep in mind when purchasing a home.   

  • Home inspection contingencies. A home inspection contingency gives buyers the opportunity to hire a professional home inspector of their choice to point out any issues with the home, both major and minor. With this contingency in place, buyers can walk away from the purchase offer if they choose to.  
  • Financing. Keep in mind many lenders will not finance a loan without a home inspection.   
  • Home inspections can find life-threatening problems like mold or faulty wiring, which could cause a fire.   
  • Inspectors will examine the exterior and interior parts of the home, including but not limited to electrical, plumbing, roof, HVAC, and foundation.   
  • You can negotiate! Home inspection results are a great way to negotiate if you want the home but don’t want to be stuck with all the fixes. Negotiating through the seller fixing some items or shaving off money from the offer could help with the list of issues that arise.   
  • Buyers will typically have a window of time after the home inspection is completed to terminate the purchase and sales agreement or negotiate if they choose.   

Are you interested in purchasing a home and have questions? Reach out to a qualified loan officer today to learn more!   

Introducing First Home Advantage

Posted on by Emily Andrews

We’re excited to announce the launch of our new First Home Advantage program! We couldn’t be more excited about this chance to provide exceptional service to first-time homebuyers — this new program is an opportunity to level the playing field for those who may have been overlooked in the past due to issues with their credit score. 

Under the First Home Advantage program, eligible first-time homeowners will see substantial reductions in offered rates. Borrower eligibility is based upon both their annual income and geography, with different income limits in specific counties. In certain high-cost regions, annual incomes as high as $168,600 are eligible for this program. 

This new program builds upon First Home Mortgage’s commitment to delivering exceptional service to all potential borrowers, especially those engaging in the process for the first time. Despite a substantial increase in prevailing mortgage rates in 2022, over 40% of loans originated by First Home Mortgage have been to first-time homeowners. With the launch of the First Home Advantage program, you’re one step closer to your first home! 

Even as home prices continue to increase, First Home Mortgage is still able to offer competitive rates to borrowers like you, thanks to the new First Home Advantage program. While the current market presents a challenge, our loan officers can safely guide buyers through the process with confidence and ease. If you’re in the market to buy a home, get in touch with the experts at First Home Mortgage — let’s see if you’re eligible so we can help get you home! 

What Today’s Announcement from the Federal Reserve Means for You

Posted on by Emily Andrews

The Federal Reserve remains dedicated to reducing inflation. With inflation remaining higher than we’d all prefer, the Fed just increased rates by another .75% — but what does that mean for you?

The Federal Reserve’s goal is to maximize employment and promote price stability in the economy. When unemployment rates are low and inflation is high, the Fed is focused on the price stability side of their mandate. When the economy heats up and inflation rises, the Fed tries to slow things down by increasing the cost of borrowing money. That is why they are continuing to raise short-term rates: they are attempting to slow the price increases we are seeing in food, energy, and other daily expenses.

Mortgage rates are not directly controlled by the Federal Reserve. Said simply, mortgage rates did not increase .75% with today’s announcement. However, investors often look to the Fed Funds rate as a bellwether for the overall rate environment. When rates are increasing, investors look for higher rates in mortgages, too.

Investors don’t just look at what the Federal Reserve does today; they also look at how their actions projects to the future. With a forward-looking view, investors can make educated guesses about future rates that influence the rates they are willing to provide today. Accordingly, investors often focus even more on what Federal Reserve Chair Jerome Powell says in his press conference — not just in what is written in the official statement.

Markets are dynamic, and events like today’s FOMC statement can impact the rates offered to borrowers like you. If you’re in the market to buy a home, stay in touch with the experts at First Home Mortgage who can help keep you informed as we navigate this challenging market together!

 

Author: James Baublitz | VP, Capital Markets

BREAKING NEWS: First Home Mortgage Offering New Conforming Loan Limits!

Posted on by Emily Andrews

It’s no secret that home prices are increasing nationwide. There is good news, however, the amount you can borrow is increasing, too!

Every year Fannie Mae and Freddie Mac evaluate the conforming loan limit, which can differ from county to county. In 2021, for example, the maximum conforming loan amount in most counties increased from $548,250 to $647,200 – an increase of roughly 18%. This annual evaluation, which often results in an increase, typically takes place in late November.

With home prices continuing to increase First Home Mortgage is getting ahead of the curve and is delivering a significant increase to the conforming loan limit now. Effective today, First Home Mortgage is now allowing for Fannie Mae and Freddie Mac loans up to $715,000, an increase of more than 10%.

 

Contact us or one of our qualified Loan Officers to learn more!

Author: James Baublitz, VP Capital Markets

What to Know About Refinancing an ARM Loan to Fixed-Rate

Posted on by Emily Andrews

If you have an adjustable-rate mortgage—commonly referred to as an ARM—you may be wondering when and if you should refinance to a fixed rate home loan. There are numerous factors you should consider when you think about refinancing, and even more to think about when it comes to making the switch from an ARM to a fixed rate mortgage.

What’s the Difference Between ARMs and Fixed Rate Mortgages?

Both of these loan options are quite self-explanatory when you consider their names. An adjustable-rate mortgage is just that, a mortgage with a rate that adjusts over time based on market conditions, while fixed rate mortgages have a stable, secured rate for the life of the loan.

Timing is Everything

When deciding whether to refinance any loan, you want to consider timing. The timing is largely dependent on your unique financial situation but also the state of market at large. A major factor to consider is your credit score; is it high enough to secure a desirable interest rate? If your credit score is lacking, you are likely better off waiting until it improves before refinancing. Luckily, your credit score is not set in stone and there are things you can do to improve it. Another aspect to think about is whether you will be able to afford the closing costs associated with a refinance. Will the benefits of a lower monthly payment will outweigh the price of having to pay closing costs? Depending on the decrease in your monthly payment, a refinance might not be the best option. You will of course also need to look at the market and what rates are. If you are going to end up with a higher rate, especially if it would be considerably so, you’ll likely want to hold off on pursuing a refinance. But if rates have been climbing, it may be better to refinance to the current rate in a fixed rate loan rather than risk having your rate continue to adjust higher and higher. Your best bet for determining whether now is a good time to refinance is to talk to a mortgage professional.

Think About Your Goals

At the end of the day, whether a refinance is in your best interest comes down to your specific situation and your goals. How long do you plan to stay in this home? If you are thinking about moving soon or before your rate changes, it is probably not worth refinancing.   Will you secure a substantially lower rate that will result in a lower payment?  That could still save you money during the time you are in this home despite paying closing costs. If you plan to stay in your home long-term, refinancing to a fixed rate loan can be a smart decision.  If current rates are low and you can secure that lower rate for the remaining life of your loan, that will eliminate the risk of fluctuating rates associated with an ARM.

If you are thinking about refinancing your mortgage, contact one of our knowledgeable Loan Officers today to discuss your options.

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