Deidre Pfeifer

Real Estate Agent, California

What’s Ahead For Mortgage Rates This Week – December 11, 2023

by

What's Ahead For Mortgage Rates This WeekThis will be another light week before the next large releases of the CPI and PPI data. The overall unemployment numbers have been trending lower which will likely leave the Federal Reserve board in a state of suspension. They have made many assertive statements they do not intend to cut rates soon, but the signs of a soft landing for the economy are numerous, leading to much speculation about impending rate cuts. As a general indicator, lending partners have seen a near 6 week-to-week decline in lending rates. The largest data releases this week are the U.S. Unemployment Reports and Non-Farm Payroll data releases.

Non-farm Payrolls & Unemployment Rate

Total non-farm payroll employment increased by 199,000 in November, and the unemployment rate
edged down to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in
health care and government. Employment also increased in manufacturing, reflecting the return of
workers from a strike. Employment in retail trade declined.

ISM Non-Manufacturing PMI

The numbers: An ISM barometer of business conditions at service companies such as restaurants and hotels rebounded to 52.7% in November from a five-month low of 51.8% in the prior month.

Economists polled by the Wall Street Journal had expected the index to rise to 52.4%. Numbers over 50% indicate expansion in the economy.

Primary Mortgage Market Survey Index

Last 6 weeks have seen a week-to-week decline in rates.

  • 15-Yr FRM rates seeing a week-to-week decrease by -0.27% with the current rate at 6.29%
  • 30-Yr FRM rates seeing a week-to-week decrease by -0.19% with the current rate at 7.03%

MND Rate Index

  • 30-Yr FHA rates seeing a week-to-week decrease by -0.07% for this week. Current rates at 6.43%
  • 30-Yr VA rates rates seeing a week-to-week decrease by -0.05% for this week. Current rates at 6.45%

Jobless Claims

Initial claims have increased to 220,000 compared to the expected claims of 223,000. The prior week was 219,000.

What’s Ahead

Next week is an important release schedule with the final CPI and PPI reports, released on Tuesday and Wednesday respectively. With this final release along with the final GDP release cycle, it should give the Federal Reserve the final numbers to move ahead with a plan for next year, which seems likely to include rate cuts.

Pros And Cons Of Installing A Pet Door

by

If you’ve just moved into your new home and you have a pet, you may be thinking of installing a pet door. A pet door is a permanent door feature that is cut into the bottom third of an entry door. Before making a permanent alteration to your door, consider the pros and cons of installing a pet door. 

Pro: Your Pet Can Come And Go As Needed

A pet door could cut down on indoor pet accidents if that’s a problem you’ve had to deal with in the past. This is especially convenient if you get home late to let the dog out, or if they have a temporary gastric illness that requires more frequent outings. 

Con: An Unwanted Visitor Could Get Inside

Pet doors are designed to give egress to pets, but your pet door might give indoor access to an unwanted animal. It’s not common, but it does occur, particularly in areas where wildlife is abundant.

Pro: You Could Do Without A Litter Box

Cats can be trained to go outdoors instead of using a litter box. With a pet door, you can dispense with the odorous litter box entirely, knowing your cat will always be able to take care of business outside.

Con: It’s Something Else You Must Remember To Lock

Most pet doors have a locking mechanism for times when you need to secure the home, such as at night. But this is just one more thing you’ll have to remember to do, along with setting the alarm and locking windows. And, the more you have to remember, the more you can forget.

Pro: Better Energy Efficiency

Anyone with pets knows that they can ask to go out and come back numerous times per day. Every time you open the door you’re letting hot air in, cooled air out, or vice versa. With a pet door, your conditioned air stays in the home much better because there’s a smaller opening, and less time spent with the door open.

Con: New Homebuyers Might Not Want It

If you ever sell your home, the new homebuyers might see a pet door as a negative. Since a quality new door costs around $500, they could ask for a price discount on the home purchase.

A pet door can be a huge convenience, but there are some drawbacks as you can see. However, depending on your view (and the opinion of your pet!) the pros may outweigh the cons.

If you are interested in buying a new home or refinancing your current property, be sure to contact your trusted home mortgage professional to discuss your current financing options.

First Things First, What To Do Upon Moving Into Your New Home

by

If you have purchased a new home and are going to move in soon, what are the first few things that you will need to do upon moving into your new home?

Moving can be very stressful, but having a checklist can make your move to a new home effortless.

Here are 6 easy steps that can eliminate any frustration and help you feel safe and secure: 

Change Your Address
You will need to change your address for all magazine subscriptions, bills, and other services. You can update your mailing address online or visit your local post office to find out what needs to be done.

Set Up The Utilities
When you move into a new home, you may get all of the contact information from the previous homeowner or real estate agent for the utility companies. Be sure to change the services into your name before you move in, such as gas, cable, electricity, internet, telephone, sewer, and water.

Change The Locks
You have no way of knowing who the old homeowners gave a copy of the key to, so having the locks changed is something that you should do right away when you move into your new property.

Have The Carpets Cleaned
Get your life in the new house off to a fresh start by having the carpets steam-cleaned before you move your furniture in. You could either rent a steam cleaner or pay for a carpet cleaning service, but either way, this will make the house feel really clean and new.

Figure Out Your Breaker Box
Another important first step to owning your new home is to figure out which breakers control each part of your home.

Knowing how the breaker box works will ensure that you can flip the right switch when you need to. You might need to ask someone to help you by standing in another part of the house and letting you know which lights come on or off when you flick the switches.

Check Your Smoke Alarms
The smoke alarms and CO monitors in your home might not have been checked recently, so make sure that they are functioning properly. Depending on how old they are, you might need to change the batteries. This is an important maintenance task for your own safety.

These are just a few of the important first steps that you should take when you first move into your brand-new home.

For more information about buying a new home, feel free to contact your trusted real estate professional today.  

Buying Your First Home? Learn These 5 Essential Home Maintenance Skills as Soon as Possible

by

New homes can be scary. But when you take the time to think about it and plan ahead, maintaining a home is easier than you think a manageable mix of experience and common sense. Here are five skills that will help maintain your new home for years to come.

Fixing A Toilet

It’s not as daunting as it sounds. Just remember that toilets work with gravity the water wants to flow freely. Don’t be afraid to open that tank up and adjust the floater and valves as needed. Occasionally run the water (flush the toilet, turn on the sink) in unused rooms, like the guest bathroom, to keep the pipes clear and functioning.

Dealing With Animals

Sometimes your animal neighbors invite themselves in. While it’s always better to use professionals if you have a large-scale or persistent pest problem, there are steps you can take to minimize animal visitors before it comes to that. Check for termites by looking for raised, hollow tubes along the wood (tubes filled with bugs). If you have mice, and know how they’re getting in, block their holes with steel wool and set friendly traps ones that capture instead of kill. But make sure to release the captives far from your home.

Electricity and Water Awareness

Know how to shut off your electricity and water, just in case. Find the shut-offs when you first move in. And take the time then to test the breakers and label them, clearly, directly, with a permanent marker. That way there is no confusion if one gets tripped.

A Regular Deep Clean

On a regular basis, give your house a deep clean. Scrub the bathrooms, and clean the kitchen appliances and floors/walls. Doing this will not only prevent the accumulation of dirt and grime, which could lead to bigger problems later on but will also give you a chance to do a run-down of your house and see what needs fixing/updating/replacing.

Be Prepared

Gather your home maintenance kit (Home Maintenance for Dummies has examples) before you need it, and keep it up if you use all the nails, replace them. It’s also a good idea to make a maintenance calendar with notes on what needs to be done when this makes it easy for the homeowner, and anyone they need to step in. Finally, in being prepared, don’t forget to maintain your fire and carbon monoxide detectors with regular checks and battery changes (suggested every six months, regardless of battery life).

Your first step in preparation is to contact your local real estate agent, who can help you get started on your road to home maintenance.

Home Improvement Shortcuts That Can Lead to Disaster — and How to Avoid Them

by

Are you starting to get the renovation itch? With spring on the way, you might be tempted to launch those home improvement projects that you contemplated over the winter. However, as with any project, you will want to get things right. Let’s take a look at four renovation shortcuts that can lead to disaster and the steps you can take to avoid them.

Shortcut #1: Not Understanding Your Home’s Structure

Before you undertake any renovation involving your home’s structure, you must be confident that you know exactly what is where. For example, do you know what is inside of your walls? You might be surprised to learn what is hiding behind those pieces of painted drywall. Electrical wiring, plumbing, structural supports, insulation and possibly even soundproofing material can all be damaged by misplaced nails or cuts. You might also discover damage caused by pests, mold, or water which needs to be repaired.

Shortcut #2: Not Measuring Everything (At Least) Twice

You have likely heard this tired cliché: “measure twice, cut once.” However, what you may not realize is that was intended for professionals. If you are new to renovating, you will want to measure at least twice, if not three times or more. A small measuring mistake of one-half-inch can mean the difference between your new cabinets fitting and not fitting. Or your tiles lining up with one another or not.

Shortcut #3: Not Using Quality Tools And Materials

Another shortcut that homeowners try to take when starting do-it-yourself home projects is using cheaper materials or whatever tools they have handy. Keep in mind that you are investing in your home and that you are saving money by not paying for the labor. Use those savings on top-quality materials that will withstand the test of time.

Shortcut #4: Not Calling A Professional After You Mess Up

Finally, one shortcut that must be avoided at all costs is not calling a professional if you have made a significant mistake. If you end up drilling into the wrong wire, or you damage something else beyond your repair skills, don’t try to patch it up. Swallow your pride and make the call. You will be able to sleep soundly knowing that whatever was damaged isn’t at risk of failing later.

Renovating your home is the best way to increase its value, but even the smallest mistake can blow up into a major problem in the future. To learn more about your home’s value, contact us today. 

What’s Ahead For Mortgage Rates This Week – December 4, 2023

by

What's Ahead For Mortgage Rates This Week Dec 4, 2023The first week of December’s largest reports are the GDP estimates, which will be the second estimations of the year prior to the final release. The final GDP reports will be after the new year and are the strongest indicator for the economic state of the country. With the Federal Reserve aiming for a soft landing for the economy, it is important for the GDP and inflation statistics to be in parity with each other. The last but also very important releases for the end of the year are the Personal Income and Spending data.


GDP Estimates (First Release)

The numbers: The U.S. economy grew at an assuring 5.2% annual pace in the third quarter, faster than previously reported, but the surprisingly strong gain appears to have been a one–off occurrence.

Gross domestic product, the official scorecard for the economy, was revised upwards Wednesday from an initially reported 4.9% rate of growth. It was the biggest increase in a decade, excluding the pandemic years of 2020 and 2021.

Consumer Spending

Consumer spending rose a mild 0.2% in October in potentially another sign of a long-predicted slowdown in the U.S. economy. While spending has slowed, many inflation rates, lending rates, and other factors have been showing signs of an improving economy.

Analysts polled by the Wall Street Journal had forecasted a 0.2% increase.

Consumer spending is the main engine of the U.S. economy and outlays grew a robust 3.6% in the third quarter.

Primary Mortgage Market Survey Index

The last 4 weeks have seen a week-to-week decline in rates.

  • 15-Yr FRM rates seeing a week-to-week decrease by -0.11% with the current rate at 6.56%.
  • 30-Yr FRM rates seeing a week-to-week decrease by -0.07% with the current rate at 7.22%

MND Rate Index

  • 30-Yr FHA rates decreased week-to-week, seeing a -0.15% decrease for this week. Current rates at 6.50%
  • 30-Yr VA rates decreased week-to-week, seeing a -0.15% decrease for this week. Current rates at 6.50%

Jobless Claims

U.S. jobless claims drop to five-week low of 209,000.

Initial Claims have increased to 218,000 compared to the expected claims of 215,000. The prior week was 210,000.

What’s Ahead

Next week will be an important release schedule with the final CPI and PPI reports, which saddled alongside the final GDP numbers, will be the largest indicators for the robustness of the current economy and for 2023 as a whole.

The LTV Ratio: How ‘Loan-to-Value’ Works and Why You Need to Understand This Ratio

by

Are you in the market for a new home? If you plan on using mortgage financing to buy your next home you’ve likely heard the phrase “loan-to-value” or the acronym “LTV” before. Let’s take a quick look at the loan-to-value ratio including why it’s important, how to calculate it, and how it can affect your mortgage.

What is the Loan-to-Value or LTV Ratio?

In short, the LTV ratio is a number that compares how much money you owe against your home with its resale value in the marketplace. A low LTV ratio indicates that you have far more equity in your home than you owe in mortgage payments; conversely, a high LTV ratio indicates that you owe almost as much as your home is worth.

Calculating your LTV ratio is easy. Simply divide the amount that you have (or will have) remaining in your mortgage by your home’s value. For example, if you own a home worth $250,000 and you still owe $150,000 on your mortgage, the calculation would be $150,000 divided by $250,000, which gives you an LTV ratio of 0.6 or 60 percent.

Why is the LTV Ratio Important?

Your LTV ratio is important for a number of reasons. First, your mortgage lender will use this figure as part of their risk calculation when they assess your financial suitability for your mortgage. If you’re only putting 5 percent of the purchase price in as a down payment you’ll have an LTV ratio of 95 percent, which is a more risky loan than one with an LTV ratio of 30 percent and thus will almost certainly come with a higher interest rate.

If you have an LTV ratio higher than 80 percent and you’re getting a mortgage from a conventional lender you’ll also be required to pay for private mortgage insurance or “PMI”. Although PMI rates generally sound quite low – in the neighborhood of 0.5 to 1 percent – they can add hundreds of dollars to your monthly mortgage payment. Note that PMI may not apply to you if you’re seeking out a government-backed mortgage from Veteran’s Affairs, the USDA, or the FHA.

While the LTV ratio might seem simple, this number can affect your mortgage in a variety of ways. Contact your local mortgage advisor today to learn more about the LTV ratio and to have your questions answered by an experienced professional.

Speed Your Mortgage Approval up by Following This Checklist

by

Have you finally found your dream home after months of searching, and then you are told that the seller has received other offers? No buyer wants to find themselves in a bidding war against another buyer as it is a stressful situation. Being unprepared and not having your finances in order will make it even more stressful. Here are a few quick ways if you’re looking to speed up your mortgage approval process, here’s a checklist to help you prepare:

·        Review your credit report: Maintain a good credit score by paying bills on time, reducing existing debt, and avoiding new credit inquiries. Check your credit report for errors and make sure your credit score is in good shape. A good credit score can positively impact the approval and interest rate you receive.

·        Gather financial documents: Gather all necessary paperwork beforehand, including pay stubs, tax returns, bank statements, and any other financial documentation. Having these readily available will expedite the application process.

·        Save for a down payment: A larger down payment can reduce the risk for lenders, making them more inclined to approve your loan faster. It can also decrease the time needed for certain approval processes.

·        Stay at your job: It’s best to avoid changing jobs during the mortgage approval process.

·        Avoid new credit: Don’t apply for new credit or take on new debt during the approval process.

·        Don’t make big purchases: Avoid making large purchases, such as a car, during the approval process.

·        Respond promptly to requests: Once you’ve applied for a mortgage, respond promptly to any requests from your lender. Delays often occur when there’s a lack of communication or slow responses to queries or requests for additional information.

·        Work with a reputable lender: Choose a lender with a good reputation and experience in the mortgage industry.

·        Get pre-approved: Consider getting pre-approved for a mortgage before house hunting to speed up the approval process.

Stay informed about the process and ask questions if you’re unsure about any step. Following this checklist can help speed up your mortgage approval process and make the process smoother and less stressful.  Good communication with your lender is key to ensuring a smooth and expedited process.

Three Reasons Why You Might Consider a Reverse Mortgage When Nearing Retirement

by

As retirement approaches, many individuals find themselves faced with financial challenges and uncertainties. One option that is often overlooked but can be incredibly beneficial is the reverse mortgage. A reverse mortgage is a financial tool that allows homeowners aged 62 and older to convert a portion of their home equity into tax-free funds. Here are three compelling reasons why you might consider a reverse mortgage when nearing retirement:

Supplement Your Retirement Income:

One of the most common concerns for retirees is whether they will have enough income to maintain their desired lifestyle throughout their golden years. Social Security and retirement savings may not always be sufficient to cover all expenses, and this is where a reverse mortgage can come to the rescue.

With a reverse mortgage, you receive monthly payments, a lump sum, or a line of credit based on the equity in your home. The funds you receive are not considered taxable income, and they can be used to supplement your retirement income, pay off existing mortgage debt, or cover unexpected medical expenses.

Eliminate Monthly Mortgage Payments:

A significant advantage of a reverse mortgage is that it allows you to eliminate monthly mortgage payments. By converting your home equity into a reverse mortgage, you can live in your home without the burden of monthly payments. This can free up a substantial portion of your income for other expenses, improving your financial security and reducing your financial stress.

Maintain Ownership of Your Home:

Some people worry that a reverse mortgage will require them to give up ownership of their home. However, this is not the case. With a reverse mortgage, you retain ownership of your home as long as you continue to live in it and maintain it. The loan is repaid when you or your heirs sell the property or when you no longer live in the home.

It’s important to note that a reverse mortgage is not suitable for everyone, and there are eligibility requirements and responsibilities associated with it. Before considering a reverse mortgage, it’s advisable to consult with a financial advisor or mortgage specialist to understand the terms, implications, and potential risks involved.

A reverse mortgage can be a valuable tool for retirees facing financial challenges or seeking to enhance their retirement lifestyle. When nearing retirement, it’s essential to explore all your financial options to make informed decisions that best align with your specific needs and goals. A reverse mortgage may be the right choice for you to enjoy a more comfortable and financially secure retirement.

Comparing Temporary and Permanent Mortgage Buydowns

by

When it comes to mortgages, a “buydown” generally refers to paying an extra fee upfront to reduce the interest rate over a specific period. There are typically two types: temporary buydowns and permanent buydowns.

Permanent Buydown:
With a permanent buydown, the borrower pays extra fees at the beginning of the loan to permanently reduce the interest rate over the entire life of the loan. This differs from a temporary buydown because the reduced rate remains constant for the entire loan term, potentially resulting in lower overall interest payments.

Temporary Buydowns

A temporary buydown is a type of mortgage financing in which the borrower pays an upfront fee to temporarily reduce the interest rate on the mortgage for a specific period of time. During this period, the borrower enjoys lower monthly mortgage payments, which can help make homeownership more affordable.

The temporary buydown typically lasts for the first few years of the mortgage, usually 1 to 3 years. The borrower pays a one-time fee at closing, which is used to fund the temporary reduction in the interest rate. The fee can either be paid in cash or financed into the loan amount.

During the buydown period, the borrower’s interest rate is lower than the fully indexed rate. For example, if the fully indexed rate on a 30-year fixed mortgage is 4%, a temporary buydown might reduce the interest rate to 2% in the first year, 3% in the second year, and 4% in the third year, after which it would revert to the fully indexed rate for the remainder of the loan term.

The lower interest rate during the buydown period results in lower monthly mortgage payments for the borrower, which can make homeownership more affordable in the early years of the loan. This can be particularly beneficial for borrowers who anticipate lower income during the early years of homeownership but expect to earn more in the future.

It’s important to note that while a temporary buydown can lower monthly payments during the buydown period, it does not reduce the total amount of interest paid over the life of the loan. In fact, the total interest paid over the life of the loan may be higher due to the upfront fee paid to fund the buydown.

Better to do a Temporary Buydown or buy the rate down forever?

Deciding whether to do a temporary buydown or buy the rate down permanently depends on your specific financial situation and goals.

If you plan to stay in the home for a long time and have the financial means to pay the upfront fee, buying the rate down permanently may be a better option. This will result in a lower interest rate and lower monthly payments for the entire term of the loan, which can save you money in the long run.

On the other hand, if you plan to sell the home or refinance the mortgage before the buydown period ends, a temporary buydown may be a better option. The lower payments during the buydown period can help make homeownership more affordable in the short term, without committing to a higher interest rate for the life of the loan.

In general, it’s important to carefully consider your financial goals and circumstances when deciding whether to do a temporary buydown or buy the rate down permanently. You may want to consult with a financial advisor or mortgage professional to help you make the best decision for your individual needs.

Recent Articles

Equal Housing opp

Our Location


8311 HAVEN AVE STE 180
Rancho Cucamonga, CA 91730