Here at RPM, we see a fair amount of high loan-to-value mortgage scenarios – meaning lower down payments with more borrowed from the lender. It’s because the real estate values in our service areas tend to be high and it can take a while for buyers to save the funds needed to purchase a home. So 10% down payments (or even less) are not uncommon and we see them across the borrowing spectrum, from the conforming range (below $417,000) all the way to homes exceeding $1 million. Some buyers also need a boost in their income to be able to meet the debt-to-income ratio requirements to qualify for a loan.
Spring and summer are typically busy buying and selling seasons for the real estate market. Recent reports from industry experts indicate that the housing market continues to recover at a slow but fairly steady rate. According to Lawrence Yun, chief economist for the National Association of Realtors, the economy should be rising about 4% – 5% percent to make up for the downfall after a recession. Instead Yun calculates that the economy has been growing closer to 2% a year. As market conditions change, RPM Mortgage is keeping pace and is poised to serve the varying needs of community members. With an effective lending structure and a team of experts already in place, RPM is strengthening its presence in existing service areas and expanding into new communities.
The last five years we have been blessed with low interest rates spurred in large part by Quantitative Easing (the purchasing of US securities by the Fed in the open market). The Mortgage and Real Estate sectors as well as the American consumer have all been benefactors of this low rate environment, and played a part in contributing to the recovery in the US economy.
At RPM, we are committed to providing the best information and services to our clients. The government shutdown that began at midnight on October 1 has caused several government agencies that impact the loan process to come to a halt. As a result, some of our services have undergone temporary adjustments.