Like almost every other student in Florida, our five kids went back to school this week. It's been a rollercoaster, but one we were prepared for and really enjoy (with the exception of those few nerve-wracking moments right before the fun begins, lol).
Along with the kids going back to school this week, however, I'm also gearing up for continuing education as a licensed MLO with the state of Florida.
This is something that every licensed mortgage loan originator in the country has to do before the end of each year (some have to follow state-specific guidelines-- like Florida-- as well as federal guidelines for their continuing education and licensure renewal).
And, I can tell you, due to the ever-changing mortgage industry, continuing education is something I practice year-round (not just when it's time to renew my license). Why? Well, because it's a necessity in order to provide unparalleled service for my clients. In fact, it changes so frequently that one might say it's a rollercoaster you never get off once you're on.
Here are a few examples of recent changes to the mortgage industry (and by recent, I mean, within the last month) that affect you as a homebuyer right now:
While interest rates have been steadily rising since January of 2022, in July we saw them tick down and then back up slightly for homebuyers looking to buy a primary residence. This was largely due to an down-and-up concern over recession (which contributes to lowering rates) versus inflation (which contributes to rising rates). NOTE: there are many other factors that have affects on whether rates go up or down, but this is a current factor for both.
Latest news today, however, says that we will most likely see more rate hikes that stem from the FEDs.
This fluctuation in rates is causing some home buyers to look at an old-fashioned type of mortgage called a "Graduated Payment Mortgage" (or GPM). These types of loans were very popular in the 1960s and '70s, but fell out of fashion in the 90s. (You think that flare jeans (aka, bell bottoms) are the only tidbits that can be revived from the '60s? Think again!)
A GPM is not for everyone, but it can help some borrowers who expect to earn more income in future years. A perfect example of this might be a nurse who knows she will have a higher designation (resulting in higher pay) within the next two years. Be on the lookout for a future blog that digs a little deeper into GPMs.
These are just a few examples of how the mortgage industry is everchanging, and how some old mortgage products are being dusted off and made new again as a result of current trends.
If you have questions about whether now is a good time for you to buy a home, don't hesitate to get in touch. I'm happy to answer your questions and help you discover if now is a good time or if it might be best to wait. If you have questions about what factors contribute to getting you qualified, check out this blog. Happy reading and until next time, I hope your kids have had a great first week of school.
NMLS #1682906
Comments