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Real Estate - Mortgage

Are we about to see an online mortgage revolution?

Finding and applying for a mortgage has always been a fairly long-winded and often tedious process, but it seems the mortgage industry is finally catching up with the digital revolution. Most major lenders can now at least begin the mortgage application process online; although having to drop offline to complete the application over the phone and via the post is still commonplace. Fortunately, with the rise in the number of mortgage brokers conducting their business online, Habito, Trussle and Dwell for example, finding a mortgage is getting easier. This year, mortgage broker Nuvo is going a step further with the launch of its Facebook Messenger service utilising smart technology and artificial intelligence. Accessed via Facebook Messenger, the Nuvo chatbot, when provided with some basic customer information, can suggest the best mortgage options in under one minute. The Nuvo platform has been designed to fill the gap between price comparison websites and fee charging traditional brokers, and fulfil the growing demand for online services. Nuvo developer Richard Hayes says the company’s artificial intelligence powered chatbot sets it apart in the sector: “It allows customers to provide details via chat which not only is more natural than form filling, but it also means the process is two-way so the customer can ask a question at any point if there is something they don’t understand. Speaking at an event last year, Bank of England governor Mark Carney said: “To its advocates, this wave of innovation promises a FinTech (financial technology) revolution that will democratise financial services. Consumers will get more choice, better-targeted services and keener pricing. As customers become more willing to delegate decision-making to machines, their funds and loans are being better matched with the best rates from around the system.”

Down payment amounts are up—here’s what you need to know

New data show that most buyers actually put down only about one-third that amount. $20,000 is a 7.6 percent down payment. Complete guide to down payment assistance in the USA “First, the most qualified buyers with the largest down payments end up buying most of the homes for sale. Or, they’re forced to get creative to cobble together a bigger down payment,” says Blomquist.” Put in pigskin terms, “buying a house is a full-contact sport in today’s market,” he adds. “The report shows that 23.4 percent of all purchase loan originations on homes bought in the third quarter involved co-borrowers,” says Blomquist. These cities include San Jose (51.1 percent co-borrowers); Miami (42.7 percent); and Seattle (36.7 percent co-borrowers). “This indicates more buyers are getting creative to get to 20 percent down and avoid PMI,” he says. What you can do now Don’t have 20 percent saved? Check out low down payment mortgage options, like the FHA’s 3.5 percent home loan. It's a fact that those who put more money down get the best mortgage rates.

Lending gets easier for Millennial home buyers

According to the latest Millennial Tracker from Ellie Mae, the average FICO score for a Millennial buyer has dropped two full points over the last year. Increasing accessibility According to the tracker, the average Millennial FICO score on all mortgage loans decreased from 725 in November 2016 to 723 in November of this year. Millennials aren't just buying homes; They're refinancing, too Still, Millennials have higher average FICO scores than most buyers. “With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,” Tyrell said. More than two-thirds of Millennial buyers used conventional products, while 30 percent used FHA loans. Just 2 percent took out VA loans. Men made up the largest majority of Millennial home buyers, accounting for 68 percent of all closed loans. The Millennial home buyer gender gap: male vs. female mortgage characteristics Female buyers, who accounted for just 32 percent of Millennial buyers, were much more likely to buy a home while single. In fact, 59 percent of female Millennial buyers in November were single, 40 percent were married, and 1 percent were separated. Get today’s mortgage rates Want to take advantage of today’s loosening credit standards?


How To Get An Airbnb Mortgage For Your Rental Property

Here’s our review of the program and where you get approved. Ten years later, government-backed mortgage group Fannie Mae added a mortgage approval clause allowing Airbnb hosts to use their Airbnb rental income as part of a lender’s approval. Airbnb hosts get access to more loan programs, at lower mortgage rates, and with lower fees as compared to homeowners who use other short-term rental platforms such as HomeAway or VRBO. When To Use The Airbnb Mortgage The Airbnb mortgage is a refinance loan. Homeowners can use the Airbnb mortgage to do any of the following: Lower the mortgage rate on an Airbnb property Change the years remaining on an Airbnb property’s mortgage Switch among an ARM and fixed-rate mortgage on an Airbnb property Remove home equity from an Airbnb property as cash for any purpose Use an Airbnb property’s home equity to pay down debts When you’re doing a rate-and-term refinance — that is, lowering your mortgage rate or changing the length of your loan — it’s generally good to proceed if you can reduce your monthly payments without incurring much in the way of closing costs. Many lenders offer zero-closing cost mortgages, and zero-closing cost loans are particularly well-suited to rate-and-term refinances. For homeowners doing a cash-out refinance, the math works a little differently. Where Can I Get An Airbnb Mortgage? Out of the 26,000+ mortgage companies nationwide, only three can fulfill Airbnb home loan orders: Better Mortgage Quicken Loans Citizens Bank Each of the approved Airbnb lenders offers an online application process, and we reviewed all three. We bought the Airbnb when he was born and we already have $37,000 saved for his college.