St Louis Mortgage Co - St Louis Real Estate News

Refinance Activity Surges Despite Rising Mortgage Rates – Purchase Applications Fall

By Dennis Norman, on April 11th, 2024

Last week, the interest rates for 30-year fixed-rate mortgages climbed past the 7 percent mark. Despite this increase, as the chart below illustrates, there was a significant 10 percent increase in refinancing applications. This is in sharp contrast to a 5 percent decline in purchase applications. The growth in the refinancing segment is notable, representing 33.3 percent of the total application volume, up from 30.3 percent the previous week. This surge in refinancing interest is particularly intriguing, given the highest reported 30-year mortgage rates in over a month, at 7.01 percent.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, Continue Reading →

Mortgage Interest Rates….How low can they go??

By Dennis Norman, on March 4th, 2020

For quite a while now we have enjoyed the positive effects on the real estate market from low mortgage rates but it looks like it’s going to get even better! Yesterday’s announcement by the Fed of the emergency step of lowering the benchmark U.S. interest rate by one-half of one percent, in an effort to offset the negative effect tot eh financial markets from the coronavirus will likely lead to even lower mortgage interest rates.

What’s the connection between the federal funds rate and mortgage interest rates? This is something often asked not only by homebuyers but is even within Continue Reading →

No Cap On No Money Down VA Loan After January 1st

By Dennis Norman, on December 28th, 2019

Buying a home for veterans will get a little easier come January 1, 2020, especially those veterans moving up to a more expensive home, as a result of the Blue Water Navy Veterans Act of 2019 signed into law by President Trump in June 2019. The primary focus of the Act was to provide disability benefits to veterans who served in Vietnam, it also made significant changes to the VA Home Loan benefit available to all veterans. The VA home loan changes go into effect on January 1, 2020. Below are highlights of the changes to the VA home loan Continue Reading →

President Trump Signs Bill To Eliminate Cap On VA Loans

By Dennis Norman, on June 27th, 2019

This past Tuesday night, President Trump signed into law H.R. 299, the “Blue Water Navy Vietnam Veterans Act” was signed into law by President Trump on Tuesday night. H.R. 299, which, among other things good for veterans, eliminates the cap on VA Loans. Currently, the VA can only “guarantee” (they insure 25% of the loan amount for lenders, which is why lenders are willing to make 100% loans to veterans) loans up to the limit established by the Federal Home Loan Mortgage Corporation Act (FHLMCA). Currently, the loan limit is $484,350 however, after the new law goes into effect on Continue Reading →

St Louis Home Mortgage Originations Drop Five Percent In Third Quarter

By Dennis Norman, on December 12th, 2018

There were 9,983 home purchase mortgage loans originated in the St Louis metro area during the 3rd quarter of this year, a decline of 5% from the prior quarter and a decline of 3% from a year ago, according to a report just released by ATTOM Data Services. This is the lowest number of home purchase loan originations for the 3rd quarter since 2015 when there were 9,731 home purchase mortgage loans originated. As the historical table below shows, the peak for loan originations in St Louis was in the 3rd quarter of 2005 when there were 17,698 purchase mortgage Continue Reading →

Nearly 1 In 5 St Louis Home Sales In Past 12-Months Were Cash Deals

By Dennis Norman, on December 7th, 2018

There were 37,721 homes sold in the St Louis metropolitan area during the past 12 months as reported by MORE, REALTORS. Of those, as the chart below illustrates, conventional financing made up the lion’s share of the sales. Conventional mortgages accounted for 18,967 home sales (50.3%), followed by cash transactions with no financing that accounted for 7,109 sales (18.9%), then 6,353 (16.8%) sales with FHA loans, 2,333 (6.2%) with VA loans, and 770 (2.0%) sales financed with USDA financing. The remaining 5.8% of the home sales were financed with one of roughly 30 other lessor popular financing methods.

Search St Louis Homes For Sale Search Continue Reading →

Home Loan Origination Data Showing Impact Of Interest Rates On Refi’s But Not Home Purchases In St Louis

By Dennis Norman, on June 15th, 2018

Mortgage interest rates have been on the rise and hit their highest level in seven years toward the end of May, however, the higher rates don’t appear to be having an effect on the number of people in St Louis obtaining home loans yet. The table below is based upon the latest data from ATTOM Data Research, just released yesterday, and shows that there were 6,830 home purchase mortgage loans obtained in the St Louis metro area during the 1st quarter of this year. This represents an increase of nearly 10% from the number of home purchase mortgage loans that Continue Reading →

What To Look Out For In Credit Repair Companies

By Dennis Norman, on June 29th, 2017

The housing bubble that led to the housing bubble burst in 2008 started a decline in the value of homes, including those in St Louis, for the following 3 to 4 years. This resulted in much larger number of homeowners facing financial struggles including late payments, foreclosures, short sales, bankruptcy and the like, than was the historic norm. As a result, while maybe not a new concept but certainly one that had been more obscure in the past, credit repair, became a lucrative and growing business as consumers sought to repair the damage done and position themselves to buy a home. Continue Reading →

Mortgage Loan Delinquency Rates Hit Lowest Level Since 2000

By Dennis Norman, on June 14th, 2017

According to a report just released by Corelogic, the 30-59 day mortgage delinquency rate in March (the most recent month reported) fell to just 1.7%, the lowest level since January 2000. Continue Reading →

The Truth About The Mortgage Interest Deduction

By Dennis Norman, on January 27th, 2016

Before I begin, I should point out that what I’m about to tell you runs contrary to what the National Association of REALTORS® (NAR), the largest trade association in the country and one I belong to and support, will tell you. The NAR position on the mortgage interest deduction (MID) is, quoting from their website, “the mortgage interest deduction (MID) is a remarkably effective tool that facilitates homeownership.” Continue Reading →

St Louis Mortgage Companies Seeing Fixed Rate Jumbo Mortgages Make Comeback

By Tyler Frank NMLS # 942420, on June 14th, 2013

Tyler Frank,Paramount MortgageNMLS ID 942420

St Louis Mortgage companies were not making many 30-year, fixed-rate jumbo mortgages a year ago, but now many St Louis Mortgage companies are offering fixed jumbos – with very competitive rates, including my firm, Paramount Mortgage.

As interest rates start to rise, homeowners are thinking they may not see rates this low in the future and if their ARM is maturing a couple of years from now, they could be in a tough spot.

Continue Reading →

Survey Shows One-Third Of Homebuyers Lack Info Needed To Get Mortgage

By Tyler Frank NMLS # 942420, on May 13th, 2013

One-third of Homebuyers Surveyed Are Ill-prepared to Get a Mortgage

Tyler Frank,Paramount MortgageNMLS ID 942420

According to a survey recently conducted by Zillow, many homebuyers are really not armed with the information they should have before attempting to obtain a mortgage. For example, over one-third (34 percent) of the prospective homebuyers surveyed did not know that a qualified borrower can obtain a home loan today with less than a five percent downpayment.

In addition, many homebuyers have misinformation that can prevent them from obtaining the best possible mortgage interest rate. For example, 26 percent of the homebuyers said Continue Reading →

Real Estate Recovery "On Its Way"

By Tyler Frank NMLS # 942420, on May 3rd, 2013

Tyler Frank,Paramount MortgageNMLS ID 942420

“The (real estate) recovery has been much more like the tortoise than the hare,” said Stephen Blank, a senior resident fellow of the Washington-based Urban Land Institute. “We’ve become used to slow relief. But we have finally turned the corner.”

Real estate markets on both coasts in places like; New York, San Francisco, Los Angeles and Boston were the first to emerge from recession and will pick up their pace of recovery through 2013, said Blank, a principal researcher for Emerging Trends. He was the main speaker at the annual outlook presented by Continue Reading →

How to make getting a home loan easier; St Louis Mortgage Interest Rate Update

By Robert Fishel, on February 27th, 2013

It is more important now than ever, as a result of increasing regulation and scrutiny of the mortgage industry, to plan ahead when you are planning on obtaining a mortgage loan to buy a house or refinance an existing loan to ensure that the process will go smoothly and as expected. Your loan approval is subject to the financial information you provide at the time of your loan approval. Any subsequent changes in your financial situation before the actual date of closing could jeopardize your loan approval and delay your closing. Continue Reading →

Changes in the Mortgage Industry; St Louis Mortgage Interest Rate Update

By Robert Fishel, on December 12th, 2012

After the problems we have seen over the past few years in the real estate, mortgage and banking industries, it is not surprising we have seen significant changes in the loan process making it more challenging for a home-buyer to obtain a mortgage. Some of the changes borrowers see when they attempt to obtain a mortgage to buy or refinance a home include: Continue Reading →

First Time Homebuyer Interest Rates Fall

By Robert Fishel, on November 7th, 2012

Qualified first-time home buyers can receive a forgivable 3% cash assistance loan for down payment and closing costs on a home. The Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance. Continue Reading →

New Law Improves VA Loan Benefits; St. Louis Mortgage Interest Rate Update

By Robert Fishel, on October 4th, 2012

The new legislation is titled: Honoring America’s Veterans and Caring for Camp Lejeune Families Act (H.R. 1627) and has been signed into law on August 6, 2012. Congress expanded the scope of the legislation and specifically mandated improvements in VA home loan benefits through the VA Home Loan Guaranty Program. Realtors and lenders will now be able to help more veterans and their families become homeowners. A portion of the new law makes VA loans available to more surviving spouses, provides easier funding fee waivers for disabled vets and helps single and dual-duty parents with occupancy hurdles. Continue Reading →

St. Louis Mortgage Rates Drop Even Further; Which refinancing option is best for you?

By Robert Fishel, on July 25th, 2012

Every borrower’s situation is different. My goal is to provide various options/loan programs that are available to meet the borrower’s needs. When considering a refinance, the following are typical situations borrowers face: Continue Reading →

The truth about VA loans; St. Louis Mortgage rate update

By Robert Fishel, on July 19th, 2012

Recently, I heard a radio commercial about “special” financing for certain veterans implying this “special” loan is available for a “limited time only.” The good news is that the Veterans Administration (VA) offers an ongoing mortgage loan program to benefit members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. The VA offers loans to: Purchase a New or Existing Home, Rate Reduction Refinance, and Cash-Out Refinance. Borrowers are evaluated by their credit worthiness and their ability to show stable and sufficient income to cover the costs of owning a home, cover other obligations and expenses and have enough left for family support. Traditional credit scoring is not used by the VA in underwriting. Non-married co-borrowers are not permitted. VA loans must be the borrowers’ primary residence. Continue Reading →

Historic low mortgage interest rates, Refinancing Options & New HUD program

By Peter Wright, on July 5th, 2012

Interest rates have been strong all year, last week however, we saw mortgage backed securities rally each day and with the release of unemployment figures on Friday we are now officially sitting at historic lows! If you have not taken advantage of these rates…what are you waiting for? Maybe you have been told that you don’t have enough equity in your home due to the housing market trending down over the past few years? Continue Reading →

St. Louis Mortgage Rate Update; Jumping through hoops to get a mortgage

By Robert Fishel, on June 6th, 2012

A common complaint that consumers have regarding today’s mortgage loan origination process has to do with all of the hoops they have to jump through in order to get a loan. Continue Reading →

St. Louis Mortgage Rate Update; Why Refinance?

By Robert Fishel, on May 9th, 2012

With interest rates at all time lows, it is worth the few minutes to do a mortgage check up and determine if a refinance would be beneficial to your situation. Since there are many reasons a homeowner may choose to refinance, we’ll take a look at the few most common reasons to consider a refinance. Continue Reading →

St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter

By Robert Fishel, on February 23rd, 2012

Freddie Mac recently released their fourth-quarter refinance analysis and it shows that 85 percent of homeowners who refinanced their mortgages during the fourth quarter of 2011 maintained or reduced their principal balance by paying-in additional money at the closing table. Frank Nothaft, Freddie Mac’s vice president and chief economist, said savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings. Continue Reading →

VA Home Loans for Missouri Veterans

By Kevin Pearia, on February 20th, 2012

For many military members, there is no greater joy than completely service and finally being able to lay some roots, and the first order of business for many is to purchase a home. However, in recent years, purchasing a home hasn’t been as easy as it once was. Conventional lenders have increased their lending requirements sometimes making it nearly impossible for the average borrower to secure financing.

However, the large down payments and high credit requirements of conventional lending don’t have to mean the end of the road for military

Continue Reading →

St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

By Robert Fishel, on February 8th, 2012

“Ballparking” mortgage rates just is not the same anymore. Home buyers who obtain online quotes from popular websites and “shopping” mortgage rates on the phone are receiving nothing more than a starting point for what their final mortgage rate will be. This is due to a government-led pricing scheme called loan-level pricing adjustments or LLPAs.” Continue Reading →

St. Louis Mortgage Rate Update; The Do’s and Dont’s when financing your home

By Robert Fishel, on February 2nd, 2012

As the mortgage industry continues to adjust to new financial regulations, it is more important than ever to ensure that the financing (or refinancing) of your home goes smoothly. Your loan approval is subject to the financial information you provide at the time of your loan approval. Any subsequent changes in your financial situation before the actual date of closing could jeopardize your loan approval and delay your closing. Continue Reading →

St. Louis Mortgage Rate Update; Trends that will affect the housing market in 2012

By Robert Fishel, on January 4th, 2012

The National Association of Realtors’ research staff recently released its comprehensive annual report: Profile of Home Buyers and Sellers for 2011. Market researcher, Paul C. Bishop, Ph. D., Vice President and Jessica Lautz, Manager of Consumer Survey Research state that they’ve identified “trends that have not been seen in the last 10 years,” which will affect the housing market as we enter 2012. Continue Reading →

St. Louis Mortgage Rate Update; Who are the home-buyers?

By Robert Fishel, on December 28th, 2011

The characteristics of home buyers has changed fairly significantly in just the two past years according to the National Association of REALTORS (NAR) annual Profile of Home Buyers and Sellers. In 2009, first-time home-buyers, encourage by tax credits, made up 47 percent of the market and in 2011 made up only 37 percent of the market. Continue Reading →

St Louis Mortgage Interest Rate Update; How to make getting a home loan go smoother

By Robert Fishel, on October 28th, 2011

A common complaint that consumers have regarding today’s mortgage loan origination process has to do with all of the hoops they have to jump through in order to get a loan. Personally, as a loan officer, I try to be as thorough as possible going into the application as possible to avoid the last minute chase. After each deal closed, I review the process and question whether I prepared my clients for all that they needed to have or do in order to get the loan approved and closed. I will be the first to admit, I am not perfect. Continue Reading →

Mistakes borrowers make when refinancing their home loan

By Dennis Norman, on September 15th, 2011

The top five mistakes consumers make when refinancing their home loan were revealed by LendingTree Network’s newly released “Monthly Lender Marketplace Survey”. According to the survey, the top 5 mistakes made by consumers refinancing their home loans are:

Over-estimating the value of the home: With home values dropping in today’s market, borrowers typically over-value their home, causing borrowers to receive higher-than-expected loan offers. Continue Reading →