Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.

Todays 3 Percent Down Mortgage Options 2019

44 visualizaciones

Publicado el

2019 Mortgage Data

Publicado en: Economía y finanzas
  • Sé el primero en comentar

  • Sé el primero en recomendar esto

Todays 3 Percent Down Mortgage Options 2019

  1. 1. Today’s 3% Down Payment Options Presented by: Scott Meerstein - Sr. Lead Inside Sales Rep
  2. 2. The information presented in this presentation is for general information only, and is based on guidelines and practices generally accepted within the mortgage finance industry and is not intended to be all- inclusive. MGIC makes no representations or warranties of any kind with respect to the accuracy, completeness or suitability for any purpose of the information contained in this presentation. MGIC expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose regarding these materials and this presentation. In no event will MGIC be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the presentation or materials provided. All examples are hypothetical and are for illustrative purposes only. This presentation is not intended and should not be interpreted or relied upon as legal advice. We encourage you to seek advice from a qualified professional. Before we get started…
  3. 3. Why is it so important? For you
  4. 4. Source: MBA October 2018 forecast 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 ($Billions) Mortgage Originations History & Forecast
  5. 5. Source: MBA October 2018 forecast 0 200 400 600 800 1,000 1,200 1,400 2017 2018 2019 2020 2021 ($Billions) Mortgage Originations History & Forecast
  6. 6. MeetYour Competition Consumers who would consider a mortgage from: • PayPal = 48% • Walmart = 33% Source: Carlisle & Gallagher Consulting Group
  7. 7. • In the UK: If you ask the virtual assistant to "open UKMortgage" it will activate a broker app to help compare home loans • Amazon is looking to hire the head of a newly-formed mortgage lending division (HousingWire March 2018) • Amazon “is definitely looking” to enter mortgage banking but hasn’t decided on the best route (IMF June 2018)
  8. 8. Your Competition &YOU Competition You Rates ✓ ✓ Guidelines ✓ ✓ Products ✓ ✓ Services ✓ ✓
  9. 9. MGIC.com/social Hope is not a strategy
  10. 10. Your Competition &YOU Competition You Rates ✓ ✓ Guidelines ✓ ✓ Products ✓ ✓ Services ✓ ✓ You ✓
  11. 11. Why is it so important? For your customers
  12. 12. MGIC.com/social 80% Non-owners who report that homeownership is part of their American Dream Source: NAR’s 2018 Aspiring Home Buyers profile
  13. 13. MGIC.com/social 82% Non-owners who aspire to be homeowners Source: NAR’s 2018 Aspiring Home Buyers profile
  14. 14. MGIC.com/social Top primary reason for buying now for buyers 62 and younger: Desire to own a home of my own Source: NAR 2018 Home Buyer and Seller Generational Trends
  15. 15. MGIC.com/social Owning a home increases number of hours spent volunteering Source: The Journal of the Center for Real Estate Studies Oct. 2017
  16. 16. MGIC.com/social Children of homeowners do better in school Source: Forbes August 2016
  17. 17. MGIC.com/socialSource: The Journal of the Center for Real Estate Studies Oct. 2017 Homeowners are 2.5x more likely to be in good health
  18. 18. MGIC.com/social $250,000 $264,750 $275,870 $283,870 $291,250 $299,697 January 2018 January 2019 January 2020 January 2021 January 2022 January 2023 $49,697 Increased home equity based on price appreciation projected by the Home Price Expectation Survey potential growth in family wealth over the next five years based solely on increased home equity Source: Home Price Expectation Survey 2018 3Q
  19. 19. MGIC.com/socialSource: The Washington Post September 2017 45x Amount average net worth of homeowner is nearly greater than renters
  20. 20. MGIC.com/socialSource: The Washington Post September 2017 From 2013 – 2016 average net worth Homeowners = +15% Renters = - 5%
  21. 21. Challenges
  22. 22. Inventory
  23. 23. Months Inventory of Homes for sale 2011 - Today Source: NAR 8/2018 January 2011 January 2012 January 2013 January 2014 January 2015 January 2016 January 2017 January 2018
  24. 24. MGIC.com/socialSource: NAR 7/2018 Average days on market
  25. 25. Appreciation
  26. 26. MGIC.com/social Mo Money Source: MSN August 2018 Millennials buying first home will pay 39% more than baby boomers who bought first home in 1980s
  27. 27. MGIC.com/social Year-Over-Year Appreciation WA 11.0% OR 7.9% MT 6.0% WY 3.7% CO 9.6% ID 13.0% NV 17.0% UT 9.9% NM 4.9% ND 2.1% SD 4.5% MN 6.3% NE 6.9% IA 6.0% KS 5.5% MO 5.7% OK 3.4% TX 5.9% AR 3.7% LA 2.3% KY 7.5% TN 7.5% MS 3.2% AL 6.1% WI 7.1% MI 7.7% IL 4.1% IN 8.3% OH 5.8% FL 8.5% GA 8.0% SC 8.3% NC 6.2% VA 4.3% WV 2.3% DE 4.3% NH 6.7% MD 3.8% NJ 4.1% CT 2.4% VT 5.6% DC 11.8% ME 6.6% NY 6.5% PA 4.9% AZ 9.5% AK 2.6% HI 4.7% RI 8.1% MA 5.9% CA 7.1% Four-Quarter Change: Purchase-Only Index 2017Q2 – 2018Q2 United States = 6.5% 0% or less 0.1% - 3.0% 3.1% - 5.0% 5.1% - 10.0% 10.1% or higher Source: FHFA U.S. House Prices August 22, 2018 Appreciation
  28. 28. Rising Interest Rates
  29. 29. Source: August 2018 forecasts Quarter Fannie Mae Freddie Mac MBA NAR Average 2018 2Q 4.5 4.5 4.5 4.5 4.5 2018 3Q 4.5 4.6 4.6 4.7 4.6 2018 4Q 4.6 4.8 4.8 4.8 4.75 2019 Q1 4.7 ----- 4.9 4.9 4.833 2019 Q2 4.7 ----- 5.0 5.0 4.9
  30. 30. U.S.30 year fixed-rate Source: Freddie Mac Rate Survey, August 16, 2018 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 8/16/71 8/16/72 8/16/73 8/16/74 8/16/75 8/16/76 8/16/77 8/16/78 8/16/79 8/16/80 8/16/81 8/16/82 8/16/83 8/16/84 8/16/85 8/16/86 8/16/87 8/16/88 8/16/89 8/16/90 8/16/91 8/16/92 8/16/93 8/16/94 8/16/95 8/16/96 8/16/97 8/16/98 8/16/99 8/16/00 8/16/01 8/16/02 8/16/03 8/16/04 8/16/05 8/16/06 8/16/07 8/16/08 8/16/09 8/16/10 8/16/11 8/16/12 8/16/13 8/16/14 8/16/15 8/16/16 8/16/17 8/16/18
  31. 31. U.S.30 year fixed-rate Source: Freddie Mac Rate Survey, August 16, 2018 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 8/16/15 9/16/15 10/16/15 11/16/15 12/16/15 1/16/16 2/16/16 3/16/16 4/16/16 5/16/16 6/16/16 7/16/16 8/16/16 9/16/16 10/16/16 11/16/16 12/16/16 1/16/17 2/16/17 3/16/17 4/16/17 5/16/17 6/16/17 7/16/17 8/16/17 9/16/17 10/16/17 11/16/17 12/16/17 1/16/18 2/16/18 3/16/18 4/16/18 5/16/18 6/16/18 7/16/18 8/16/18
  32. 32. MGIC.com/social 0% 5% 10% 15% 20% 25% 30% 35% 40% High taxes Affordable housing Income gap between rich and poor Rising interest rates Inflation The federal budget deficit Job opportunities for people without college education Overall employment rate Americans losing jobs to foreign workers The income gap between races The income gap between genders Restrictive immigration policies that reduce available labor The trade deficit All survey respondents “What do you see as the top economic concerns facing the U.S.? Select up to three options.” Source: Redfin February 2018 Interest rate concern
  33. 33. MGIC.com/social 0% 5% 10% 15% 20% 25% 30% 35% 40% High taxes Affordable housing Income gap between rich and poor Rising interest rates Inflation The federal budget deficit Job opportunities for people without college education Overall employment rate Americans losing jobs to foreign workers The income gap between races The income gap between genders Restrictive immigration policies that reduce available labor The trade deficit All survey respondents “What do you see as the top economic concerns facing the U.S.? Select up to three options.” Source: Redfin February 2018 Interest rate concern
  34. 34. MGIC.com/social “If mortgage rates were to rise above 5%, what effect would it have on your home-buying plans?” 0% 5% 10% 15% 20% 25% 30% I'd slow down my search and see if rates come back down No impact I'd increase my urgency to buy before rates went up further My urgency wont change, but I'd have to look in other areas or buy smaller home due to increased payment I'd cancel my plan to buy a home All survey respondents who said they plan on trying to buy a home in next 12 months Source: Redfin February 2018 Interest rate concern
  35. 35. MGIC.com/social Reduced purchase power RATE P&I + MI rounded to the nearest dollar amount; assuming 700 credit score Cost of waiting 5.50 $1,079 $1,109 $1,139 $1,169 $1,199 5.25 $1,052 $1,081 $1,111 $1,140 $1,169 5.00 $1,026 $1,054 $1,083 $1,111 $1,140 4.75 $1,000 $1,028 $1,056 $1,083 $1,111 4.50 $974 $1,001 $1,029 $1,056 $1,083 Purchase price $180,000 $185,000 $190,000 $195,000 $200,000
  36. 36. Slow Wage Growth
  37. 37. 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 All nonfarm employees Source: Economic Policy Institute’s analysis of Bureau of Labor Statistics August 2,, 2018 EPI wage target Growth of nominal wages
  38. 38. August 2017 – August 2018 Wages up 2.9% Cost of living up 2.9% Source: Department of Labor
  39. 39. After adjusting for inflation, wages are only 10% higher in 2017 than they were in 1973 Source: The Hamilton Project, Brookings Institute
  40. 40. Down Payment
  41. 41. $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $900 $950 $1,000 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 28% of nonowners say they can not save for a down payment because of rising rent Source: Nar HOME Survey March 2018 Median asking RENT since 1988 Source: Census
  42. 42. MGIC.com/socialSource: Rentcafe March 2018 $93,000 Amount Millennials spend on rent by time they hit 30
  43. 43. Source: Freddie Mac The Top Misconceptions About Homebuying Dec 2017 70% Of consumers fear not having enough for a down payment
  44. 44. MGIC.com/socialSource: Neighborhood Works America at Home Survey September 2017 What is preventing people from buying? 6% 11% 7% 3% 12% 17% 20% 0% 5% 10% 15% 20% 25% Belief a home is not a good investment now Concerns about maintenance/repair costs Lack of job security Student loan debt Belief you can't afford your preferred neighborhood Weak or bad credit Lack of a down payment If you were in the market to buy a home, which of the following would be the greatest obstacle to you personally? Adults 21% Other/DK/Not in the market to buy a home
  45. 45. MGIC.com/socialSource: Neighborhood Works America at Home Survey September 2017 What is preventing Millennials from buying? 6% 8% 9% 10% 12% 22% 25% 0% 5% 10% 15% 20% 25% 30% Belief a home is not a good investment now Concerns about maintenance/repair costs Lack of job security Student loan debt Belief you can't afford your preferred neighborhood Weak or bad credit Lack of a down payment If you were in the market to buy a home, which of the following would be the greatest obstacle to you personally? 7% Other/DK/Not in the market to buy a home
  46. 46. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Insufficient credit score or credit history Affording the down payment or closing costs Insufficent income for monthly payments Too much existing debt Lack of job security or stability The process is too complicated (select up to 3) Renters Owners Source Fannie Mae June 2018 What would be your biggest obstacle to getting a mortgage to purchase or refinance a home today?
  47. 47. Biggest challenge of all?
  48. 48. Lack of knowledge!
  49. 49. MGIC.com/social How much do lenders require you to put down? 20% 19% 30% 26% 34% 25% 17% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Millennials From what you have seen, read or heard, for someone to be able to purchase a home, what is the minimum percentage down payment (must pay at closing) in order for someone to qualify and finalize the transaction (purchase)? Please give your best estimate. 1-9% 10% 11-20% 21-100% Source: Neighborhood Works America at Home Survey September 2017
  50. 50. MGIC.com/social 0% 20% 40% 60% 80% 100% More than 20% 15%-20% 10%-14% 6%-9% 4%-5% Less than 3% Source: NAR HOME Survey September 2016 86% Millennials who believe you need 10% or more down
  51. 51. MGIC.com/social 0% 20% 40% 60% 80% 100% More than 20% 15%-20% 10%-14% 6%-9% 4%-5% Less than 3% 82% GenXers who believe you need 10% or more down Source: NAR HOME Survey September 2016
  52. 52. MGIC.com/social 0% 20% 40% 60% 80% 100% More than 20% 15%-20% 10%-14% 6%-9% 4%-5% Less than 3% 87% Young Boomers who believe you need 10% or more down Source: NAR HOME Survey September 2016
  53. 53. MGIC.com/social 87% First-time home buyers who would take advantage of down payment assistance programs Source: Bank of America Homebuyer Insights Report April 2017
  54. 54. MGIC.com/social Source: Freddie Mac Less than a third of consumers are familiar with low-down-payment programs
  55. 55. MGIC.com/socialSource: PewResearch Dec 2016 Renters went from 17% likelihood to buy when assuming 20% down payment to 58% when told they could put 5% down.
  56. 56. MGIC.com/social HomeReady® Mortgage Loans • 97% financing • No minimum borrower contribution • Lower than standard MI coverage levels on LTVs above 90% • LLPAs waived on LTVs > 80% and credit score ≥ 680 • Allows for all MI premium plans
  57. 57. MGIC.com/social Home Possible® & Home Possible Advantage® • 97% financing • No minimum borrower contribution • Lower than standard MI coverage levels • May use Loan Product AdvisorSM or manually underwrite • No reserve required for 1-unit primary residence • Allows for all MI premium plans
  58. 58. MGIC.com/social
  59. 59. MGIC.com/social So how do they all compare?
  60. 60. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible First-Time Homebuyer At least 1 borrower Not required At least 1 borrower Not required Income Limits No limits 100% of AMI No limits in low-income census tracts No limits 100% of AMI No limits in low-income census tracts Today’s 97% LTV Options
  61. 61. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible First-Time Homebuyer At least 1 borrower Not required At least 1 borrower Not required Income Limits No limits 100% of AMI No limits in low-income census tracts No limits 100% of AMI No limits in low-income census tracts Borrower Contribution from Own Funds No minimum required No minimum required Reserves Determined by Desktop Underwriter® Determined by Loan Product Advisor® Determined by Loan Product Advisor® or none for manual underwrite Today’s 97% LTV Options
  62. 62. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible CLTV 105% if community Seconds® loan 105% if Affordable Seconds® loan Occupancy Primary residence Primary residence Today’s 97% LTV Options
  63. 63. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible CLTV 105% if community Seconds® loan 105% if Affordable Seconds® loan Occupancy Primary residence Primary residence Today’s 97% LTV Options HomeReady Non-occupant borrowers permitted to maximum 95% LTV in DU; 90% LTV manual with max 43% debt-to-income (DTI) for occupying borrower. Income considered as part of qualifying income and subject to income limits. Home Possible Effective October 29: Mortgages secured by 1-unit properties permitted with maximum 95% LTV for Loan Product Advisor® Mortgages; 90% LTV for Manually Underwritten Mortgages with max 43% DTI
  64. 64. HOME POSSIBLE MORTGAGES Effective October 29, 2018 In response to Seller feedback, we evaluated our requirements for Home Possible and Home Possible Advantage Mortgages and are combining Home Possible and Home Possible Advantage into one offering in an effort to better help Sellers originate Home Possible Mortgages.
  65. 65. Maximum DTI for manual underwrite 45% for all manually underwritten Home Possible Mortgages
  66. 66. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible CLTV 105% if community Seconds® loan 105% if Affordable Seconds® loan Occupancy Primary residence Primary residence Manufactured Homes Ineligible, unless MH Advantage Ineligible Number of Units 1-unit 1-unit Today’s 97% LTV Options
  67. 67. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible Homebuyer Education Not required Required for at least 1 borrower Required for at least 1 borrower when all borrowers are FTHBs* Today’s 97% LTV Options * OR credit reputation established using only noncredit payment (nontraditional) references
  68. 68. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible Homebuyer Education Not required Required for at least 1 borrower Required for at least 1 borrower when all borrowers are FTHBs Required for at least 1 borrower when all borrowers are FTHBs Eligible Homebuyer Education N/A Framework Homeownership* MGIC’s at Readynest.com OR Freddie Mac’s CreditSmart® OR Hud-approved agency Today’s 97% LTV Options * Homeownership education course required by a Community Seconds/DPA program that is provided by a HUD-approved agency OR Housing Counseling from a HUD-approved nonprofit housing counseling agency as evidenced by a completed Fannie Mae Form 1017 (must occur prior to buyer signing purchase contract)
  69. 69. MGIC.com/social Fannie Mae Freddie Mac Standard HomeReady HomeOne Home Possible Homebuyer Education Not required Required for at least 1 borrower Required for at least 1 borrower when all borrowers are FTHBs Required for at least 1 borrower when all borrowers are FTHBs Eligible Homebuyer Education N/A Framework Homeownership* MGIC’s at Readynest.com OR Freddie Mac’s CreditSmart® OR Hud-approved agency MI coverage 35% OR 18% + Minimum MI Loan-level Price adjustment 25% OR 18% + Minimum MI Loan-level Price adjustment 35% OR 18% + Minimum MI Delivery fee 25% OR 18% + Minimum MI Delivery fee Today’s 97% LTV Options
  70. 70. MGIC.com/social
  71. 71. MGIC.com/social So who should go FHA and who should go conventional?
  72. 72. MGIC.com/social Consider & Compare 760 FICO$250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Less down
  73. 73. MGIC.com/social Consider & Compare 760 FICO$250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Upfront Premium (financed into loan amount) $4,222 $0 $0 Total Amount Borrowed $245,472 $242,500 $242,500 $2,972 less
  74. 74. MGIC.com/social Consider & Compare 760 FICO$250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Upfront Premium (financed into loan amount) $4,222 $0 $0 Total Amount Borrowed $245,472 $242,500 $242,500 Interest Rate 4.5% 4.625% 4.75% Monthly MI Payment $170 $65 $81
  75. 75. MGIC.com/social Consider & Compare 760 FICO$250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Upfront Premium (financed into loan amount) $4,222 $0 $0 Total Amount Borrowed $245,472 $242,500 $242,500 Interest Rate 4.5% 4.625% 4.75% Monthly MI Payment $170 $65 $81 Monthly Loan Payment (P&I+MI) $1,414 $1,312 $1,346 Less per month
  76. 76. MGIC.com/social Consider & Compare 760 FICO$250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Upfront Premium (financed into loan amount) $4,222 $0 $0 Total Amount Borrowed $245,472 $242,500 $242,500 Interest Rate 4.5% 4.625% 4.75% Monthly MI Payment $170 $65 $81 Monthly Loan Payment (P&I+MI) $1,414 $1,312 $1,346 assuming 3% annual appreciation Est. MI Cancellation Month Not Cancellable 61 61 Est. Payment in 5 years assuming cancellation $1,398 $1,247 $1,265
  77. 77. MGIC.com/social Consider & Compare $250,000 purchase FHA 96.5% MGIC 97% HomeReady/ Home Possible MGIC 97% Standard/HomeOne Down Payment $8,750 $7,500 $7,500 Base Loan Amount $241,250 $242,500 $242,500 Upfront Premium (financed into loan amount) $4,222 $0 $0 Total Amount Borrowed $245,472 $242,500 $242,500 Interest Rate 4.5% 4.625% 4.75% Monthly MI Payment $170 $160 $200 Monthly Loan Payment (P&I+MI) $1,414 $1,407 $1,465 assuming 3% annual appreciation Est. MI Cancellation Month Not Cancellable 61 61 Est. Payment in 5 years assuming cancellation $1,414 $1,247 $1,265 680 FICO FHA monthly savings = $60 Extra down payment + $1,250 Upfront MI + $4,222 Total = $5,472 $5,472 ÷ $60= 7.6 years
  78. 78. MGIC.com/social When that dream home leaves them cold We insure Fannie Mae HomeStyle® Energy mortgages
  79. 79. MGIC.com/social For when they’re not sure what to do about that fixer- upper… and then it hits them We insure Fannie Mae HomeStyle® Renovation mortgages
  80. 80. MGIC.com/social When that dream home doesn’t quite measure up We insure Freddie Mac Renovation mortgages
  81. 81. Let us help…
  82. 82. MGIC.com/social
  83. 83. MGIC.com/social Readynest.com
  84. 84. @mgic mgic.com/mgicconnects MGICvideos
  85. 85. Thank You!

×