December 27, 2019: "Best Mortgage Refinance of 2020", a Money.com Money Favorites resource guide from the Money Editors included some considerations about refinancing from HSH.com VP Keith Gumbinger:
"You need to look at your goals in reference against interest rates, costs and your expected ownership time frame in order to see if you can actually achieve your goal," says Keith Gumbinger, Vice President of hsh.com, an online consumer mortgage resource. He goes on to caution that many homeowners looking to save money by refinancing with a better rate for a lower monthly payment might actually end up paying more over the full term of the loan.
Refinancing your home is just as complex as applying for a primary mortgage. When asked about the biggest mistake people make when refinancing, Gumbinger identified "confusing cash-flow improvement with actual savings." When refinancing, you need to consider the long-term costs over the life of not one loan term but two.
Another mistake is believing that the lowest interest rate will create the biggest savings. "Certainly it will help," says Gumbinger, "but getting the right product and loan term will bring the greatest value."
December 5, 2019: "Savvy Millennials Are 'House Hacking' Their Way To Homeownership", a Money.com look at housing strategies for millenials by Shaina Mishkin included some expertise from Keith Gumbinger, HSH.com's vice president:
Of course, if you have a lower credit score or extra debt, it might be beneficial to consider FHA loans, which don’t use the same "risk-based" system to determine interest rates, says Keith Gumbinger, vice president of mortgage website HSH.com. While Conventional 97 loans call for a score of 620, credit requirements for FHA loans can go as low as 580.
So, which loan is best for you? Mortgage website HSH has a calculator tool that can help you figure it out. Once you have an idea of what you’re looking for.
Building your equity stake can also lower your mortgage costs. Homeowners that put less than 20% down typically need to purchase private mortgage insurance, or PMI, which reimburses your lender if you default. PMI typically costs between 0.2% and 2.0% of your total mortgage amount but you can shed it when you build sufficient equity. For Conventional 97 loans, PMI drops away automatically once you own 22% of your home, but you can ask to have taken off when you hit 20%, according to Gumbinger. You can’t remove PMI from an FHA mortgage with 10% or less down unless you refinance.
November 26, 2019: "What you should ask before you refinance your mortgage", a Boston Globe consumer advisory piece by Jon Gorey included advice from HSH.com vice president Keith Gumbinger:
"Just because your new mortgage costs you less each month doesn’t mean you are actually saving money in either the short term or long haul," said Keith Gumbinger, vice president at the mortgage website HSH.com. "If it costs you $3,000 out of pocket to refinance, and your cash flow is improved by $100 per month, you don’t start to get actual savings until 30 months have passed," he said. That means that if you sell the home before the break-even point, you will have cost yourself money.
And while it’s not generally recommended, you can extend your loan term to free up cash flow. For instance, refinancing into a new 30-year mortgage when you’re already three years into the original loan will probably lower your monthly payment, even if the rate isn’t much better, simply by stretching out the loan. But this ignores the long haul, Gumbinger said. "You have to consider that you will now have paid for your home not for 30 years, but for 33 years," he said. "While cash-flow improvement can certainly have value, it’s not necessarily savings."
Gumbinger says the best way to estimate closing costs for your specific property is to pull out your existing loan’s "closing disclosure" form or, for older loans, your HUD-1 settlement statement. "These detail each of the fees the borrower paid to get the existing loan, and a refinance will be very similar," he said, except for fees that don’t need to be repeated. "For example, you won’t need to buy a new homeowner’s insurance policy, as you already have one in force. Also, you may be able to get a ‘reissue rate’ for your title insurance, so that would lower some costs, too."
If you’re happy with your current lender, start there. They might be able to offer you a lower-cost, less-hassle, "streamlined" refinance because they have your information on file. "This might mean simply updating certain existing paperwork and signing new documents," Gumbinger said. Federal Housing Administration loans can qualify for a streamlined refinance process as well.
Gumbinger said it’s a mistake to try to time the bottom of the market and obsess over getting the lowest rate. As last year’s expert predictions make clear, no one knows whether rates will rise or fall.
"Mortgage rates are notoriously fickle and can be highly volatile from day to day and week to week," Gumbinger said. "Better you should know the rate that makes your refinance make sense for your situation, and when it becomes available, grab it."
November 4, 2019: "Private-label MBS reaches 12-year high, sans NINJAs", a Housingwire.com look at trends in the non-QM market space by Kathleen Howley featured a forecast and some commentary from HSH.com VP Keith Gumbinger:
Private-label MBS issuance for all of 2019 probably will end up being about $40 billion, said Keith Gumbinger, vice president of HSH.com, a mortgage data firm.
"Lenders and investors are becoming more comfortable moving into these areas where there are still a lot of underserved clients," Gumbinger said. "There’s an audience right now for what you might call near-prime mortgages, and lenders are looking to meet those folks at the margins a little bit."
"Hopefully we’ve learned some of our lessons - lessons that will keep us from going down the slippery slope," Gumbinger said. "For the most part, folks don’t want to own or hold that risk, so it’s a self-reinforcing limit."
October 31, 2019: "The Federal Reserve Has Cut Interest Rates Three Times in 2019. Here's What It Means for You", a Money.com discussion of Fed moves and consumer effects by Brad Tuttle and Kaitlin Mulhere featured some comments by HSH.com vice president Keith Gumbinger:
"Mortgage rates are certainly favorable if you’re interested in refinancing, and even homeowners with fairly recent vintage loans originated a year ago should be able to trim their monthly payment by a fair amount," Keith Gumbinger, vice president of mortgage information site HSH.com, told MONEY via email.
As for a home equity loan or a home equity lines of credit (HELOC), Gumbinger says that the terms are typically tied directly to Fed interest rates, so right about now is indeed an opportune time to borrow in order to replace your roof or take on another home improvement project.
"If it is a good time to renovate the kitchen now it probably was also a good time to do so when rates were slightly above these levels," Gumbinger said. "Except you may have been rewarded a bit for your procrastination."
October 29, 2019: " Why Did My Mortgage Feel So Much More Serious Than My Marriage? ", a Jean Chatzky's HerMoney look at mortgage and homeownership fears by Kathryn Tuggle included things to consider from Keith Gumbinger, HSH.com's vice president:
A mortgage can feel more serious than a marriage for one simple reason, says Keith Gumbinger, Vice President of mortgage resource site HSH.com. Practice.
"You probably had any number of ‘practice’ personal emotional relationships, and those probably happened bit by bit, starting when you were just a kid. So you gained experience and perspective about them along the way. By contrast, buying a home might have felt more akin to jumping in with both feet. You’d had no ‘practice’ ownership to help you gain that perspective and experience," Gumbinger says.
You’re also processing everything from "‘Here’s a giant lump of debt - deal with it’ to ‘Oh my God, I’ll be (some number) years old by the time I pay this place off!’" Gumbinger says. Additionally, there’s the element of committing to buy an asset with uncertain future value. Home prices are likely to rise over time, but there are no guarantees.
"Sure, you did all the research you could, and realized that everything is a compromise. Now that you’ve bit the bullet, what if you haven’t made a good choice?" Gumbinger asks. You can second-guess everything from the house itself, to the schools, the neighbors, the commute, whatever. "What if some of the items you compromised on really should have been deal-breakers?" he asks.
And Gumbinger says you can’t dismiss the fear of adulthood as something that may be lurking in the background. "For some, milestones like buying a home can make them feel suddenly ‘grown up’, as this represents a sort of permanence." The realization that you’re now a grownup with real, adult responsibilities on your shoulders could definitely inspire anxiety.
October 26, 2019: "Scary things", a Real Estate Today Radio interview with HSH.com VP Keith Gumbinger on why consumers shouldn't be afraid of the homebuying and mortgage process.
October 19, 2019: "Maximum value", a Real Estate Today Radio interview with Keith Gumbinger, HSH.com vice president on how homebuyers and sellers can get the best value for their money.
October 10, 2019: " You Could Save $400 Next Time You Buy a Home Thanks to New Banking Rules", a Money.com look at changing rules for getting a mortgage by Shaina Mishkin include some comments from HSH.com VP Keith Gumbinger:
The move marks the first change to the [appraisal] threshold since 1994, when it was set at $250,000. The bump up to $400,000 might seem like a big jump, but the update "really simply reflects home-price inflation over the last 25 years," says Keith Gumbinger, vice president of mortgage website HSH.com. A house that sold for $250,000 in June 1994, for example, would be expected to sell in March 2019 for $643,750, according to the Federal Register document, which sites the Case-Shiller Index.
But, just because you aren’t required to pay for an official appraisal, "that’s not to say that lenders will suddenly be issuing mortgages without evaluating the collateral," says Gumbinger. Regulated lenders are still required to "obtain an evaluation of the real property collateral that is consistent with safe and sound banking practices," according to the document published in the Federal Register.
October 3, 2019: "Looking to Refinance Your Mortgage? Here’s Everything You Need to Know", a Jean Chatzky's HerMoney look at how to take advantage of low mortgage rates by Melanie Brooks included some refinancing tips from Keith Gumbinger, HSH.com's vice president:
Your credit score is probably the biggest factor in whether or not your application to refinance is approved, says Keith Gumbinger, vice president of HSH.com, a mortgage-resource website. The good news is that if your credit score has dramatically improved since you closed on your original loan, you may have the opportunity to get a much better interest rate through refinancing.
Refinancing your mortgage isn’t cheap. You have to pay for many of the same things you’d be responsible for if you were taking out a brand-new mortgage (which, in fact, you are), including closing costs an application fee, an appraisal and a title search. "To find out what you can realistically expect to spend on your refinance, pull out your old mortgage documents," Gumbinger suggests. "These are the actual fees you paid for the property you are refinancing, and they should give you a solid basis for what costs should be." Gumbinger suggests budgeting about 2-3% for closing costs. For example, for a $200,000 mortgage, be prepared to pay roughly $4,000 to $6,000.
September 24, 2019: "Where to Get a Mortgage: Bank, Broker, or Online?", a Realtor.com consumer advisory piece in finding a mortgage outlet by Beth Braverman included some advice from HSH.com VP Keith Gumbinger:
Mortgage broker A mortgage broker has relationships with multiple lenders and works on your behalf to find you the right loan with the best mortgage rate and lowest closing costs for your situation. The key factors would include the amount of down payment you have, your credit score, and other factors. Your real estate agent may recommend a local mortgage broker.
Pros: If you have a unique situation, for example if you are self-employed or have poor credit, a broker will know all of the options that are open to you - and which lender might offer the most appropriate product.
Cons: Brokers receive fees, paid either by the borrower, the lender, or a combination of the two. These are generally 1% to 2% of the value of the loan. There is no guarantee that you'll get a better interest rate than you would have if you'd shopped around on your own, says Keith Gumbinger, vice president of the mortgage site HSH.com.
September 19, 2019: " What Is PMI? Everything You Need to Know About the Hidden Cost Hitting 52% of Millennial Home Buyers", a Money.com look at unexpected housing costs faces by young borrowers by Kevin Max featured some technical details about PMI from HSH.com VP Keith Gumbinger:
When a buyer’s equity has reached 22% of the home’s original appraised value, the loan servicer is required to drop PMI. In many cases, however, homeowners can petition their lenders to drop PMI when they have built up 20% equity in the house. Keep in mind that lenders won’t consider removing PMI until after about a two-year 'seasoning period," according to Keith Gumbinger, vice president of HSH.com, a mortgage information resource, "They could still deny your request," he notes.
Don’t Go it Alone
Add a significant other with another source of income to your loan. "Something new, we’ve seen recently is that PMI is lower with two incomes on the loan than with a single borrower," Gumbinger says.
September 18, 2019: "Interest rates are down again - here’s how to tell if it makes sense to refinance your loans", an Acorns.com consumer advisory by Sam Becker featured some advice from Keith Gumbinger, HSH.com's vice president:
"The Fed cutting rates should capture the attention of homeowners who wouldn’t normally follow interest rates very closely," Keith Gumbinger, vice president at HSH.com, told Grow. The benchmark rate has some influence on mortgage rates.
Gumbinger warns that borrowers should also factor in closing costs as part of their assessment. For example, he says, refinancing a $200,000, 30-year mortgage with a 4% rate to a 3.75% rate would lower your payment by just $28.60 per month, and entail closing costs of around $3,000. "With such a small difference, it will take almost nine years just to cover the cost of refinancing before any actual savings kick in," he says.
September 15, 2019: "Have mortgage rates dropped enough for you to refinance?" a Bottom Line Personal review of market conditions was contributed by HSH.com Vice President Keith Gumbinger.
September 11, 2019: "Denver remains the metro area to beat for home price recovery", a Denver Post review of local housing market conditions by Aldo Svaldi inclused some analysis from Keith Gumbinger, HSH.com's vice president:
And metro Denver continues to hold the top spot, something it has done in every quarter but one since the index launched in 2015.
Home prices in Denver-Aurora-Lakewood are 91% above the old high. Runners up include Austin, Texas, with an 81.4% increase and San Francisco, up 73.5%.
"Aside from routinely strong home price appreciation, it’s important to know that the Denver metro’s housing ‘bust’ was relatively short and shallow," said Keith Gumbinger, the report’s author.
"A short term, relatively small drop meant a sooner start on recovery and less ground to make up," Gumbinger said of Denver.
August 14, 2019: "Lower rates can save typical Twin Cities homeowner who refinances $259 monthly", a Minneapolis Star-Tribune look at refinancing trends by Jim Buchta Star included a quip by Keith Gumbinger, HSH.com's vice president:
"It’s certainly true that lower rates have sparked the refi market pretty strongly, and this even includes folks who got rates as recently as the beginning of this year, which is pretty unusual," said Keith Gumbinger, vice president at HSH.com.
August 8, 2019: "Mortgage-Refi Fever Sweeps U.S., Forcing Brokers to Scramble", a Bloomberg.com look at mortgage market conditions for consumers by Claire Boston included a comment by HSH.com VP Keith Gumbinger:
Now they have to hire workers again, but they’re doing it slowly to avoid having to lay off people soon after adding them. That’s part of the reason why lenders have been slow to cut mortgage rates, even as the Federal Reserve eases the money supply and other borrowing rates across the economy are falling.
"Banks have no reason to slash rates to the bone to bring people through the door," said Keith Gumbinger, vice president of mortgage-data company HSH.
July 31, 2019: "What a Fed move to cut interest rates would mean for your wallet"", a CBS News update of market conditions by Stephen Gandel included some analysis by HSH.com VP Keith Gumbinger:
Mortgage rates on a 30-year fixed loan have recently averaged 3.8%. The Fed's quarter-percentage point cut Wednesday should further boosting the economy, and that should cause the rate on benchmark 10-year Treasury bonds to edge up. Mortgage rates typically sit about 1.6 percentage points above the 10-year Treasury, which would put them about where they are now, or perhaps a little bit higher, said long-time interest rate watcher Keith Gumbinger, a vice president at HSH.com.
"There is an upward bias to rates right now," he said. Home equity loans, on the other hand, which are directly tied to short-term rates, would likely fall.
July 27, 2019: "First-time Sellers", a Real Estate Today Radio segment featured HSH.com VP Keith Gumbinger discussing mortgage issues that home sellers need to concern themselves with.
July 13, 2019: "Secrets of the Pros", a Real Estate Today Radio segment featured HSH.com VP Keith Gumbinger discussing mortgage tips and tricks.
July 11, 2019: "This Chart Shows the Credit Score You REALLY Need to Get a Mortgage", a Money.com review of market conditions by Ian Salisbury included some commentary from HSH.com vice president Keith Gumbinger:
Keith Gumbinger, vice president at mortgage site HSH.com, says the sweet spot for most would-be homeowners is 700 to 720. Borrowers with credit scores below that level could face problems, like high interest rates and lower caps on the amount lenders will allow them to borrow. "You can get a mortgage with a low credit score," he says. "But it may not be beneficial to your [home buying] transaction."
July 10, 2019: "5 Questions to Ask Before Selling Your Home", a Realtor.com homeowner advisory by Daniel Bortz included a rule-of-thumb from Keith Gumbinger, HSH.com's vice president:
1. Can I afford to sell my house?
Closing costs: Closing costs will likely be your second-biggest expense behind commission fees. You can expect to spend roughly 2% of your home’s sale price, says Keith Gumbinger, vice president at mortgage information resource HSH.com.
July 2, 2019: "The best way to tap your home for cash right now", a Hella Wealth review of home equity borrowing conditions by Carla Fried included a quote from HSH.com VP Keith Gumbinger:
Banks are highly motivated these days to suggest HELOCs over home equity loans. Changes in federal regulations since the 2008 financial crisis has made it more expensive for banks to offer home equity loans, but not the cost of offering HELOCs.
"For technical, not sinister reasons, many banks have made the choice to just offer HELOCs," says Keith Gumbinger, vice president of consumer mortgage site HSH.com.
July 1, 2019: "More Ways to Save With All-Star Experts' Tips", a AARP.com savings and debt feature by Tracey E. Hopkins, Claire R. McIntosh and David Schiff that characterized HSH.com vice president Keith Gumbinger as an "online mortgage wizard" and included these useful tips he provided:
62. Retire Mortgage Free
With 15 years left on a 5 percent 30-year mortgage of $100,000, you can retire the loan in seven years by prepaying $442.63 a month. Do that and you'll save $16,035 in interest.
63. Use Adjustables
Adjustable-rate mortgages aren't always a good idea. But refinance with a hybrid ARM and save if you plan to sell in a given time frame. A five-year fixed-rate loan may be available for 3 percent.
June 18, 2019: "Your money: Buying or refinancing? The mortgage rate frenzy is back", a Reuters.com syndicated look at mortgage refinancing conditions by Beth Pinsker included a quote from Keith Gumbinger, HSH's Vice President regarding lower-than-expected interest rates this year triggering homeowners to refinance:
"It’s amazing how many times a once-in-a-lifetime opportunity comes around," said Keith Gumbinger, vice president of hsh.com, a mortgage information website. This is the opposite of the steadily upward movement of rates that experts forecast for 2019.
May 22, 2019: "3 retirement catch-up strategies", a FoxBusiness.com financial planning piece by Vera Gibbons included some advice from HSH.com VP Keith Gumbinger:
Rather stay in your home as you enter retirement? Consider a reverse mortgage. These government-backed loans allow older homeowners (62 years or older) to convert some of their home equity into cash.
The bank makes payments to you and you can use the tax-free funds however you would like. Unlike other kinds of loans, you don't have to pay back the debt immediately. Rather, the balance must be repaid when the last surviving borrower dies, sells the home or moves out.
Sound complex? It is.
"The reverse mortgage is certainly not without risks, either," says Keith Gumbinger, vice president at hsh.com. But unlike years past, it is no longer the loan of last resort for cash-strapped homeowners in retirement.
"It’s now being used as part of an overall financial strategy now that the product has become more respectable," he says.
May 13, 2019: "4 Good Reasons to Not Get a Mortgage Online, a Realtor.com feature regarding how consumers should approach the mortgage market place by Lisa Prevost included advice from Keith Gumbinger, HSH.com's vice president:
1. You want to shop around for the best loan
First and foremost, it's always in a borrower's best interest to comparison shop on rates and fees, says Keith Gumbinger, a vice president at HSH.com, a mortgage information website. Speed and convenience alone do not always translate into a better price for borrowers.
"You should invest some time in it, do your research," Gumbinger says. "Also, do your diligence on your credit. And think about how long you're going to be in your home." The reason? The length of time you estimate you are likely to be staying in the home can be a factor in whether you apply for a fixed or adjustable rate loan.
The research process may ultimately lead you straight to the speedy online mortgage site as the best option anyway. But, Gumbinger says, "You won't know that unless you go out and take a look around."
April 10, 2019: "Retirement realities: What's in, and what's out, a FoxBusiness.com retirement planning story by Vera Gibbons included a clear-eyed assessment of reality for many from HSH.com vice president Keith Gumbinger:
Out: Being mortgage free
In: Having manageable debts
Afraid you will still owe money on a mortgage when you retire? Join the club.
"Being mortgage free in retirement is pretty much out the window as a reality," says Keith Gumbinger, vice president of hsh.com, a mortgage information website. "It’s just not attainable for many, so more retirees are ‘recasting debt’ to make it more manageable."
How so?
"They’re using equity in their homes to pay off debt, they’re taking out reverse mortgages, or they’re refinancing," says Gumbinger.
And it’s an excellent time to do this, he says. With the average rate on a 30-year fixed loan now hovering around 4 percent, nearly 5 million borrowers could likely qualify for a refinance, reducing their interest rate by at least three-quarters of a percentage point.
April 3, 2019: First-time home buyers get a break with lower mortgage rates", a Detroit Free Press a look at help for first time homebuyers by Susan Tompor included some useful tips to find help from Keith Gumbinger, HSH.com's vice president:
Research first-time buyer programs
"Virtually all banks (and some non-banks) have some form of first-time home buyer programs," said Keith Gumbinger, vice president for HSH.com.
You might be able to get some sort of subsidy on a down payment, perhaps a reduction on closing costs. Or maybe some lenders offer a mortgage to first-home buyers through a relaxed credit score or some more wiggle room relating to how much debt you're carrying relative to your income.
Gumbinger said an FHA loan is a favorite of first-time home buyers, as the the U.S. Department of Housing and Urban Development does not use risk-based pricing. In some cases, first-time buyers can find programs that offer a mortgage with down payments for 3% or 3.5% of the purchase price.
"Some of these changes reflect the reality that first-time home buyers find it challenging to find an attractively priced home. A smaller down payment can mean a larger mortgage and higher monthly payments. Many of these programs look to soften that impact," Gumbinger said.
Consumers need to understand that many different home buyer programs exist and will vary by bank and nonbank, as well as by state, Gumbinger noted. The HSH.com site lists a variety of state-backed home buyer programs.
March 27, 2019: "How to Find the Cheapest Mortgage" , a Consumer Reports mortgage-shopping guide by Tobie Stanger included valuable tips for searching the markets from Keith Gumbinger, HSH.com's vice president:
Search online with the name of your home state and terms like "community bank mortgage," "s&l mortgage," and "credit union mortgage." We found lots of options this way.
Keith Gumbinger, vice president of HSH.com, a mortgage information website based in Riverdale, N.J., says these smaller lenders typically have better rates for ARMs and offer better terms and rates to people with variable income streams, like the self-employed.
March 25, 2019: " How to Benefit From Rising Home Prices, a Consumer Reports article on strategically using home equity by Tobie Stanger included some words of caution from HSH.com vice president Keith Gumbinger:
And a HELOC can be far less costly than using a credit card to pay for a home improvement project. Credit card interest rates are typically in the double digits.
But be careful about how much you borrow. Many homeowners who refinanced or took out large home equity lines leading up to the Great Recession ended up owing more than their homes were worth when prices plummeted, says Keith Gumbinger, vice president at HSH.com, a mortgage data provider. While most economists don't see the same debacle on the horizon, history serves as a warning.
"It can take many years to build equity in your home but only a few purchases or a small decline in value to wipe it all out," Gumbinger says.
Also, be wary of borrowing with a reverse mortgage, an option for homeowners ages 62 or older. If after borrowing you can't afford the insurance, taxes, maintenance, or monthly debt payments, you could lose your home.
March 14, 2019: "How Much Do You Need to Make?", a New York Times review of housing market conditions by Michael Kolomatsky incorporated figures from HSH.com's quarterly affordability study:
Buying a home got more challenging in the past year, with rising interest rates and tight inventory the main culprits. If you’re wondering where you can afford to live, HSH.com’s newest report may help.
The report shows how much you need to make to qualify for a mortgage for a median-priced home in the 50 largest American cities. The calculations take into account home prices in each of those cities in the fourth quarter of 2018, as well as 30-year fixed-rate mortgage rates, property taxes and homeowner’s insurance.
March 11, 2019: " How Much You Need To Earn To Buy A Home In America Today", a Benzinga.com update on housing affordability conditions by Wayne Duggan included components of HSH.com's quarterly metropolitan area affordability analysis:
While that surge in home prices is great for homeowners, it’s made it difficult for homebuyers, particularly younger buyers in large cities where the real estate market is hottest.
To make matters worse, rising interest rates have pushed mortgage rates higher than they’ve been in years, creating yet another obstacle for buyers. HSH.com recently compiled a list of the most- and least-affordable U.S. metro housing markets. The list incorporates median housing prices, interest, taxes and insurance payments and is ranked by the salary a homebuyer would need to afford the average home in each market.
On a national level, the salary needed to comfortably afford a home is $61,453, according to HSH.com. That estimate is based on an average mortgage rate of 4.9 percent on a median home price of $257,600. That average home price is up 3.95 percent from a year ago. The average monthly mortgage payment is around $1,433.
March 11, 2019: "I Got a Home Loan in 24 Hours': How to Get a Mortgage Fast, Revealed", a Realtor.com market technology discussion by Daniel Bortz included some advice for consumers from HSH.com VP Keith Gumbinger:
And a growing number of mortgage lenders are stepping up the pace, offering rapid pre-approval to home buyers—some within 24 hours of a borrower submitting an application, says Keith Gumbinger, vice president at HSH.com, a mortgage information website.
“Online-only lenders like Rocket showed this could be done, and now we’re seeing many mortgage lenders taking steps to keep up,” he says.
Example: In simple cases, Bank of America's electronic system can give an applicant pre-approval within 72 hours or less, says John Schleck, senior vice president of sales at the lender.
Nonetheless, “Just because you can get a mortgage more quickly doesn’t necessarily mean it’s the best mortgage for you,” Gumbinger points out. “Speed and convenience can be valuable, but you still have to research the mortgage market and shop around.”
March 5, 2019: "10 Cities Where You Can Own A Home For About $1,000 A Month", a Forbes article about relatively affordable places to live by Brenda Richardson included analysis done by Keith Gumbinger, HSH.com's vice president:
While housing affordability continues to be a concern across the country, there are some metropolitan areas where homes are a relative bargain. Pittsburgh, for example, is the nation's most affordable metro area to buy a home, according to a recent analysis by mortgage data provider HSH.com.
Using the latest quarterly home-price information from the National Association of Realtors, HSH.com crunched the numbers to find the 10 metro areas where a home costs about $1,000 a month. It incorporated local property tax and homeowner's insurance costs to calculate the income needed to qualify for a median-priced home. The median price is the figure in the middle of a data set in which half of the houses are priced for less and half are priced for more.
March 1, 2019: " How Much Mortgage Can You Afford In The 25 Priciest U.S. Markets?", a Investors Business Daily consumer advisory about housing costs by Paul Katzeff used data provided by HSH.com:
Here's what you're up against. In the fourth quarter, monthly base payments for single-family existing homes ranged from $1,430 to $5,946. That was based on median purchase prices in the 25 most expensive U.S. metropolitan markets, according to HSH.com.
Monthly base payments consist of the principal, interest, taxes and insurance (PITI) that comprise typical mortgage payments.
In contrast, the monthly PITI in the 50 most populous U.S. metro areas averaged just $1,434.
That makes home buying a sport reserved for the affluent in those 25 most expensive metro areas. And that's despite the fact that those metro areas include more than just pricey downtown neighborhoods.
February 21, 2019: "This new home-equity tool is like CreditKarma for home value", a Inman News review of a new HSH.com tool by Craig C. Rowe:
If the housing bubble of the mid-2000s wasn’t enough to make home equity an everyday concern for homeowners, surely the Zestimate drove home the idea that a house should be looked at with the same level of daily interest as a checking account.
Today, the imperfect science of home value is an undercurrent in every conversation about real estate, driving sellers to reconsider when they sell and giving buyers a basis for their offers.
HSH.com, a mortgage data and industry content resource, has launched KnowEquity Tracker and Projector, a tool for homeowners to stay abreast of their property’s equity level.
It also provides a home-equity forecast, and not unlike a credit reporting tool, it encourages owners to set and pursue home-equity goals.
February 28, 2019: "7 Cities Where You'll Need A 6-Figure Salary To Afford A Median-Priced Home", a Forbes look at home affordability by Brenda Richardson referred to analysis done by Keith Gumbinger, HSH.com's vice president:
Rising home prices and high mortgage rates have challenged potential home buyers across the country, and for would-be buyers in seven cities, the bar has been set higher. A recent analysis by mortgage data provider HSH.com finds homeownership continues to be out of reach for all but the highest earners in these metropolitan areas.
To arrive at its figures, HSH.com used the latest quarterly home-price information from the National Association of Realtors. It incorporated local property tax and homeowner's insurance costs to calculate the income needed to qualify for a median-priced home.
February 26, 2019: Looking for a home in Silicon Valley? Better make $255,000", a Mercury-Times review of local housing conditions by Marisa Kendall contained a quote from Keith Gumbinger, HSH.com's vice president:
“Potential homebuyers continue to face challenging conditions,” HSH.com vice president Keith Gumbinger wrote in a news release, “given expensive and competitive housing markets.”
January 31, 2019: "Here’s What the Fed’s Halt on Interest Rates Means for Your Wallet", a New York Times update on consumer lending conditions by Tara Siegel Bernard included some analysis from HSH.com VP Keith Gumbinger:
The combination of the recent increases and changes in the tax code that restricted the interest deduction “is a bit of a double pinch for some,” said Keith Gumbinger of HSH.com, which tracks the mortgage market.
The good news related to adjustable-rate mortgages, which typically have a fixed rate for a number of years and then adjust annually, is that few people have them, Mr. Gumbinger said. But even though the Fed is done raising rates, borrowers who are already out of their fixed-rate period can expect to pay more when rates reset, if they haven’t already.
Back to HSH.com in the News — 2018