Mortgages Needing 45 Days To Close // Today’s Mortgage News – Growella


This is Dan on your inside team at Growella with today’s Mortgage Minute-and-a-Half It’s taking mortgage lenders longer to close loans and it’s a development that could cost you money According to Ellie Mae, whose mortgage software processes more than three million loan apps each year, the number of days to close on a purchase loan moved higher by one day nationwide to forty-five days on average

This is an important data point to mortgage applicants because mortgage rate locks get priced in fifteen-day increments with prices worsening as time to close increases When borrowers can close in thirty days, they get access to lower rates than if they needed forty-five days to close And when borrowers can close in forty-five days, they get access to lower rates than if they needed sixty days Each additional fifteen-day block will often add an eighth of a percentage point to your mortgage rate lock commitment, which adds eighteen dollars per month to the payment on a typical sized loan As a borrower, you can’t control the things that might slow a lender down, but you can do a lot to speed a lender up

Have your paperwork ready for when you’ll need it, be responsive to texts, emails, and notifications; and, schedule things like appraisals and inspections for your first available date-and-time Work quickly to close your loan faster, which saves money month after month and month Mortgage rates are easing in a week of light activity Conforming 30-year rates are near 40 percent, with FHA mortgage rates slightly lower near 3

875 VA mortgage rates and USDA mortgage rates are near 375 Remember, these aren’t rate quotes They’re ballpark figures

Your rates may be higher or lower depending on your loan size, your credit score, and where you live Plus, loans with fees like discount points will have lower rates and loans with your lender’s zero-closing cost option will be slightly higher For today’s up-to-the-minute mortgage rates, make sure to talk with a lender One other interesting data point in the Ellie Mae Origination Insight Report A sampling of consumer data showed two-thirds of mortgage borrowers using government-backed conventional mortgages for their homes, which leaves the remaining 33 percent mixed between the other government-backed programs, the FHA loan, the VA loan, and the USDA, along with a few others

Collectively, these government loans are what’s known as non-conventional loans but that doesn’t mean they’re non-normal “Non-conventional” in the mortgage sense is not the same non-conventional in the everyday english sense Non-conventional in mortgage simply means that the loan is backed by the FHA, VA, or USDA These are the groups that do no-money-down loans for military borrowers, 100 percent loans for buyers in less dense areas, and a whole bunch else Don’t let the negative connotation of the name scare you off

Non-conventional are common, they’re popular, and they represent one-third of the entire mortgage market You can read more about non-conventional loans using the link in the description For more mortgage and personal finance news, visit Growellacom and don’t forget to subscribe

Source: Youtube


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