2022 Housing Market Forecast

I think we can all agree we are ready for some familiarity and to put these unprecedented times behind us.

However, while we hate to say it, we must; there was nothing predictable about 2021, including the housing market. Interest rates hit record lows and we saw the strongest yearly growth in single-family home prices ever. Foreclosure rates were at historic lows and home sales hit their highest level in 15 years. Continuously, homeowners were able to sell their homes quickly and usually well above asking price. Potential buyers grew fatigued attempting to secure the winning bid after losing out on numerous homes. In short, 2021 brought one of the most competitive housing markets in recent U.S. history. 

Housing Forecast 2022

In regards to 2022… Again, there’s a lot we don’t know and frankly cannot predict. There are still many factors at play, like the pandemic and general economic uncertainty, that will continue to drive the unpredictable housing market. With that in mind, in the following paragraphs, we’ve done our best to lay out where we expect the housing market to go next year. Please remember, we cannot guarantee what will happen with the 2022 housing market. The following predictions are just that, a prediction… An educated guess of what we may expect for the housing market in the coming year. With all that in mind, read on and enjoy!

Home Prices
OUR PREDICTION: Home prices will continue to rise but at a slower pace.
The rate in which home prices were accelerating in 2020 and 2021 simply cannot be compared to any other year. This past year, we saw home appreciation levels at the highest they’ve ever been. Next year we’re predicting more homes to come on the market, which should help to forego such intense multiple offer situations and should take the pressure off of high home prices. Home appreciation is expected to increase, just not so dramatically next year. In fact, as we round out 2021, home prices are already decelerating toward a healthier housing market for 2022. Looking forward, buyers should remain prepared for a competitive market but can expect to have more breathing room.

Inventory & Demand
OUR PREDICTION: Inventory of homes will slowly rise while demand remains high.
In 2022, we predict the market will remain strong, but the pace at which homes are selling will decrease; this in turn should bring an increase in the number of homes available to buyers. Over the past year, it felt like there was no inventory. When in reality, there was inventory, just a lack of ongoing supply. When a home hit the market, it was snatched up in record time. In 2022, we expect that trend to dwindle with less bidding wars and more time for buyers to make decisions. In addition, with the flexibility of the option to work remotely for many, we believe home buyers will have wider options as to where they can feasibly live. Without needing to live within a certain distance from the office, buyers will have an expanded area to shop in, making inventory feel more abundant. 

Interest Rates
OUR PREDICTION: Interest rates will rise, while still remaining historically low.
If we were to choose just one phrase to sum up the 2021 housing market, we would choose “historically low interest rates”. This next year should be no different. While rates are expected to rise, they should still remain historically low. Inflation is climbing, and the main way the FED fights inflation is by raising interest rates; it feels inevitable that with rates so low, they must go up at least a litte. The impact of rising rates will mean rate term refinances will dwindle, and cash out refinances will take their place. Buyers should still feel the urgency to lock in a low rate, as the impact of rock bottom rates are long-lasting.

Bottom Line
Overall, we predict that the housing market will slow down slightly, but really only in comparison to the fast-paced market 2020 and 2021 brought us. The combination of historically low interest rates, a low rate of unemployment and a strengthening job market will continue to cultivate a solid housing market with homeownership becoming more and more accessible to a wider number of people. If the past few years have taught us anything, it is that things can always change and to expect the unexpected. What will come in 2022 is a mystery, but whatever it may be, Cambria Mortgage is here to guide you through it. 

(651) 552-3681 / JoeMetzler.com. NMLS 274132. Serving MN, WI, IA, ND, and SD.


Brock, M. (2021, December 16). Guide To 2022 Housing Market Predictions And Forecasts. Retrieved December 28, 2021, from

KCM Crew (2021, December 29). Expert Insights on the 2022 Housing Market. Retrieved December 28, 2021, from

LePard, C. (2021, December 09). Real Estate Experts Expect Slightly Better Inventory, Double Digit Home Appreciation In 2022 Housing Market. Retrieved December 28, 2021, from

Meyer, D. (2021, December 10). 2021 Housing Market Recap (& What To Watch for in 2022). Retrieved December 27, 2021, from

Richardson, B. (2021, December 13). Experts Predict What The Housing Market Will Look Like In 2022. Retrieved December 28, 2021, from

Schuffet, H. (2021, December 16). 2022 Housing Market Predictions: What To Expect. Retrieved December 28, 2021, from

MN, WI, IA, ND, SD Homeowners Urged To Switch To A 15-Year Fixed Mortgage

MN, WI, IA, ND, SD Homeowners Urged To Switch To A 15-Year Fixed Mortgage

If you still owe on your MN, WI, or SD home, you really need to consider switching to a 15-year fixed. Here at Cambria Mortgage, many of our Loan Officers, including myself **, have made the switch to 15-year mortgages because we’re obsessed with getting the right mortgage and we know all the advantages 15-year mortgages provide.

Using a sample $200,000 home loan, homeowners with a 15-year mortgage can save over $113,000* over the life of their loan. We also help homeowners lock in historically low rates that will never rise. At Cambria Mortgage,  it’s all about helping homeowners find a mortgage they can be confident in, and what better mortgage to offer than the one our own Loan Officers, including myself have.

Get A Mortgage Review Today And See How Much You Can Save With A 15-Year Fixed

15-Year Mortgages Help Homeowners Pay Off Their Homes In As Little As Half The Time And Save Up To $113,000 OR MORE In Interest Payments *

The reason for this is pretty simple. To pay off your house, you have to pay off the principal. In a 30-year mortgage your first 10 years of payments go mostly towards paying interest on the loan – meaning for 10 years you aren’t making a lot of headway towards paying down the principal. In a 15-year mortgage you attack the principal you owe on your home and depending on what your current 30-year mortgage rate is you could actually do so for about the same monthly payment. Think about that, homeowners who switch to 15-year mortgages:

1) chop up to 15 years off their mortgages,
2) save up to $113,000* OR MORE in interest payments, and
3) may be able to do so while keeping their monthly mortgage payments pretty much the same, depending on your current loan and interest rate

How To Switch To A 15-Year Fixed?

It is easy. Start by completing an online application, or call our mortgage experts at (651) 552-3681. We’ve streamlined the refinance process and our team of fully licensed Loan Officers can tell you how much you can save by switching to a 15-year fixed. It only takes about five minutes to use the easy online form to get connected to mortgage experts, and our radically simple mortgage experience can help you see very quickly if you’re in the right mortgage or not. It can’t hurt to look. Rates for 15-year fixed mortgages could be on the rise soon so now is the time to check your eligibility.

Probably because the 15-year payment will be a bit higher than your 30-year payment. While true, most people can easily afford it, and take advantage of the huge savings. We also think it’s probably because homeowners don’t realize the crazy amount they pay in interest payments to have a 30-year mortgage. If homeowners knew they’d have to pay up to an extra $113,000* in interest payments to have a 30-year mortgage instead of a 15-year, we’re guessing most homeowners would make the switch. What we do know for sure is that Cambria Mortgage delivers a simpler mortgage experience, and that we can quickly help homeowners calculate how much they could save by switching to a 15-year fixed.

Apply Online
No Obligation to apply, and see what YOU qualify for.

Start your savings today!

* Savings based on sample $200,000 loan between current 30-yr rates at 4.00% versus 15-yr rates at 3.25%.

Your savings may be much greater or smaller depending on your loan size. Not an offer to enter into an interest rate lock agreement per MN Statute. Not everyone will qualify. Rates subject to qualifications, and can change daily. A full application is required to lock a rate. Equal Housing Lender. NMLS 274132.  ** Joe Metzler

1 Million Homeowners Regain Equity in 2015

An estimated one million homeowners regained significant equity in 2015.

house_moneyThis is according to a report from CoreLogic,  The report indicated the total number of mortgaged residential properties with equity at the end of 2015 was about 46.3 million, or a full 91.5% of all properties that also have a mortgage loan.

Nationally, borrower equity showed a year-over-year increase of $682 billion in the fourth quarter.

The same report indicated the number of upside down properties (negative equity) stood at 4.3 million, or about just 8.5% of all mortgaged properties – at the end of 2015, according to CoreLogic.

That’s a 19.1% decrease year over year, and great news for homeowners!

Of the estimated 50 million home with a mortgage, the survey found that about 9.5 million, or 18.9%, had less than 20% equity, and 1.2 million, or 2.3%, had less than 5%.

The number of homeowners with more than 20% equity is rising rapidly, according to CoreLogic. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and low mortgage interest rates are also factors.

Looking ahead in 2016, pretty much everyone is expecting home equity  levels to continue to build, which is a good thing for the long-term health of the U.S. economy.

Mortgage loans. Why all the paperwork?

Mortgage loans – Why all the paperwork?

Loan PaperworkAs a Loan Officer serving Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, I am constantly asked why is there so much paperwork required to get a mortgage loan today. It seems that the lender wants to know everything about you these days, and you would be correct. Your mortgage lender does want to know a lot about you.  If you were to give a complete stranger a huge loan, for a 30-year commitment, what would YOU want to know about them?

To make it feel worse than it really is, from about 1999 until 2007 during the housing boom, there were many programs available that allowed for limited documentation, or even no proof of income. Many people took advantage of those programs. Unfortunately, a large number of those people were allowed to bite off more loan than they would have been allowed if they proved income, contributing to the real estate collapse starting in 2007.

Loan Documentation Requirements Today

No one wants foreclosures and bad loans. It isn’t good for the home buyer, the neighborhood, or the economy.  For that reason, mortgage companies need to verify and double check everything on the application, and to make sure you are a good risk.

There are three very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

  1. The mortgage industry was a bit too trusting in the past. Lenders for example asked for a pay stub, but we took what you provided at face value, and there was no double check. This allowed fraud to become rampant. How hard would it be to scan a W2 that said you made $30,000 a year into a computer, then use Photoshop to change that the 3 to an 8, and now you make $80,000 a year income.
  2. Even without fraud, during the run-up in the housing market, many people qualified for mortgages that they realistically could never pay back. The government has mandated new guidelines that now demand that the mortgage lender  prove beyond any doubt that you are indeed capable of affording the mortgage. The rule is called ATR, or the “Ability to Repay” rule. So no more stated income, or limited income loans.
  3.  The lenders have never wanted to be in the real estate holding business. Since the collapse, lenders suffered huge losses that came close to destroying the economy, and were were forced to take on the responsibility of liquidating millions of foreclosures,  and negotiating millions of more homes in short-sales.

The Good News About Mortgage Loans

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process. If you got a loan ten to 20-years ago, yes, it was easier. But at the same time, if you never experienced that in the past, your fame of reference is that it really isn’t all that difficult today.

Instead of complaining about the paperwork required, be thankful that that you can get a loan, and get it at these amazingly low mortgage interest rates.

Minneapolis St Paul Home Values Continue to Rise

Minneapolis St Paul area home values continue to rise

Twin Cities area median home prices continue their creep upward, increasing 4.9 percent compared with October of last year.

Housing inventory declined 25.6 percent, to a 3.2-month supply. Generally, five to six months is considered balanced. While the bulk of the metro as a whole is favoring sellers, not all areas, segments and price points reflect that.

The median list price in the metro rose 4.4 percent to $240,000, while average price per square foot rose 3.2 percent to $127, according to The Minneapolis Area Association of Realtors.

Less foreclosures, less homes underwater, less homes on the market, and attractive mortgage interest rates have all combined to push home values nicely higher

  The October median sales price was $218,000 according The St. Paul Realtor Association.

HARP Refinance still helping homeowners

Since the beginning of the real estate bust back in 2007, millions of American’s lost value on their homes.

But with it now being 2015, huge numbers of those same people have regained a significant potion of that value back… Sadly, that doesn’t include everyone.

In 2009, Fannie Mae and Freddie Mac started a mortgage loan program known as HARP (Home Affordable Refinance Program) to help those people refinance into possibly lower interest rates to save money on their home loans.

Millions of people took advantage of the program, yet today, estimates still shows millions of others could, but have not yet refinanced under the HARP program.

HARP Refinance Program in MN, WI, SD

A HARP refinance loan is a great way to get today’s low fixed mortgage rates! 

This program allows more people to qualify under the flexible loan-to-value guidelines. Our clients love the low fixed rates and security of a HARP refinance.

Underwater? No problem!
Lost Value? No problem!
Easier Credit Requirements
Refinance into Lower Mortgage Rates
Save money each month
Fixed Rate Payments for 10, 15, 20, 30-Years

Reduce Your Mortgage Payment

The two biggest requirements is that the current loan must have been done PRIOR to June 1, 2009, and that the loan is either a Fannie Mae or Freddie Mac loan. Who you make your payments to does NOT tell you if the loan is Fannie Me or Freddie Mac. Follow this link to see if Fannie Mae or Freddie Mac own your loan.

Next, understand that you can refinance with ANY lender, just just whomever you make payments to today. Furthermore, you usually get a better deal on the new loan with a new lender than you’d get using your current lender.

HARP loans are available in all 50 States. We are an approved HARP Lender for homes in Minnesota, Wisconsin, Iowa, North Dakota, South Dakota!

Apply for your HARP refinance loan today!

How Mortgage Rates Change

Minneapolis, MN:  Many people believe that if you call around to enough lenders, that you will find someone offering a great deal.  The reality is that it doesn’t really work that way.  We generally say that if you call around to enough lenders, you might find the biggest liar.

Are All Lender Essentially The Same?

First understand that for all your traditional loans; FHA, VA, Fannie Mae, and Freddie Mac loans, which encompass the vast majority of all mortgage loans done in this county, every mortgage lender follows the same rules, have the same underlying costs, and set rates based on the same thing.  If my rates go up, so do theirs.  If my rates go down, so do theirs.

worth_balanceEver notice that most of the time, when purchasing the same item at Target or Walmart, the price is virtually the same thing.  Maybe just a tiny difference?  The same thing goes with mortgage loans.

Are there minor differences in mortgage companies rate?  Yes, but generally, the difference between the best and the worst on any given day is about .25%, and really only has to do with overhead, not one being able to really offer something better.

If my cost is the same as their costs, but they have to pay for advertising on all TV channels, radio stations, and all over the Internet.  If they have to pay for stadium sponsorships, and the brink and mortar buildings on every corner, but I don’t… Who do you think can then offer better deals?  Yes, it is that simple.

So What Changes Mortgage Rates

Long term fixed rate loans, like Conventional fixed rate loans and Government back VA Loans and FHA Loan lenders all set their rates based on the pricing of Mortgage Backed Securities.  These mortgage bonds are traded in real time, all day in the bond market.

This means rates or loan fees (mortgage pricing) moves constantly throughout the day, being affected by a variety of economic or political events.  The bond market most days trades in a small zone. So the mortgage rate the lender sets in the morning, is usually good all day long.  But sometimes, the bond market has bigger changes though out the day, meaning a mortgage lender could potentially change rates during the day, sometimes even multiple times in one day.

This can be very frustrating for mortgage shoppers.  You call this morning to get a mortgage quote. Quote in have, you talk to your spouse about it, calling back in the afternoon, just to get a different quote.  Sometimes this change is in your favor.  Sometime it is not.

Therefore tracking these securities in real-time is critical. When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up. Click this link to track our live mortgage rates for MN, WI, IA, ND, SD.

Working with a mortgage loan officer who knows and understands the mortgage back security market, someone who can help you understand when to lock your interest rate, or if you should float your interest rate it critical.

I am one of those Loan Officers, not just your typical Loan Application Clerk.  I lend in MN, WI, IA, ND, SD.

Top 100 Loan Officer 2015

Cambria Mortgage’s Loan Officer Joe Metzler, out of their St. Paul, MN Office, has been recognized as one of the Top 100 Loan Officers in the Nation by Origination News, coming in at number 98. Read the list at http://tinyurl.com/ljqqkbj

Top Loan Officers 2015This is another is an ongoing set of accomplishments for Mr. Metzler, as he was also recently named the Minnesota Mortgage Associations 2014 Loan Officer of the Year.  Joe Metzler has been a top producing Loan Officer for Cambria Mortgage since 2000, and has over 20-years industry experience.  Joe has received other awards in recent years in recognition of his outstanding service and dedication to the mortgage industry, including:
  • 2011 – Top 40 Most Influential Mortgage Professions to Watch (NMPM)
  • 2010 – Top 150 Loan Officers in the Nation by Dollar Volume (Origination News)

Joe Metzler is a certified MMS (Minnesota Mortgage Specialist). Less than 1% of Mortgage Loan Officers in Minnesota have completed the requirements to earn this designation. This is just one of many ways that shows Joe’s dedication to his career.  His track record is exceptional by any standard. He believes in doing the job right the first time and providing a service you can depend on.

If you’d like to have Joe as your Loan Officer, he is licensed in MN, WI, IA, ND, SD. He can be reached at (651) 552-3681, or you can apply on his web site

Advantages of a Mortgage Professional vs Application Clerk

Advantages of a Mortgage Professional vs Application Clerk

Buying a home is an expensive proposition, and usually the largest single financial transaction of the average persons life.  Not all mortgage loan officers are created equal.  It is important to understand the advantages of a true licensed mortgage professional,  versus an unlicensed application clerk.

A deserved premium is always given to those Loan Officers who have deep knowledge and understanding of the dynamics of mortgage financing and loan programs. They are an asset for different kinds of clients because of their life experiences, loan experiences, wisdom, and resourcefulness.

Most people simply contact their bank, and whomever answers the phone is who they entrust with the mortgage.  Why?  The next biggest group of people use whomever their Real Estate Agent suggests.  Why do you blindly trust these people?

Licensed versus Unlicensed

If I asked you if you preferred to work with a licensed or unlicensed Loan Officer, the answer is pretty simple. Just about everyone would say a licensed person. Yet the vast majority of Loan Officers do NOT have an individual Loan Officer License.  Depending on where they work, they are not ever required to have a license.

licenseIf they work at a bank, credit union, or mortgage company owned by a bank or credit union, no licensed required. If they work at a mortgage broker, or other non-bank owned lender, a license IS required.

But just because a licensed is not required, does not prevent someone from getting a license. If they really cared about you, and being the best they could be, they would show it by obtaining a license. This proves to clients they have met the requirements for background checks, schooling, passing testing, and continuing education.

How to Check for a License

All Loan Officers must have a tracking number, known as an NMLS number (Nationwide Mortgage Licensing System and Registry).  This is NOT a license number!


To verify a Loan Officer is Licensed, not simply registered, go to the NMLS Web Site at www.NMLSconsumerAccess.org.  Type in the Loan Officers name or NMLS number.

Towards the bottom of the page, it will say State Licenses/Registrations, or Federal Registration.

If it says: Federal Registration, and Federal National Mortgage Originator. This means the person is NOT Licensed

If it says: State Licenses/Registration, then lists one or more states, this means the person IS Licensed.

Who to Choose?

I am not saying that the person who is simply registered and NOT licensed is a bad person. I am not saying they don’t have experience. I am not saying that a person with a license is a good person…

But what I am saying, is someone who has taken the time to pass the required background checks, taken the schooling required, pass the required state and federal tests, and receives mandatory continuing education each year show you the consumer that they are true professionals. If the person you are working with doesn’t have a license, ask they why? An answer of “I don’t need one” is a poor answer.

Clients enjoy a peaceful mind knowing that an important aspect of their lives is in the hands of a highly professional Loan Officer. This draws the line between application clerks and real professionals.

In the context of service, respectfulness, dedication, and commitment to helping others, I am choosing a Licensed Professional, regardless of the industry!


Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Cambria Mortgage. He was named the 2014 Minnesota Loan Officer of the Year, and provides Home Mortgage Loans in MN, WI, IA, ND, SD.

He can be reached at (651) 552-3681

Is a Bank Better than other Mortgage Companies?

Is a Bank Better than other Mortgage Companies?

Need a Mortgage Loan?  Where do you get the best deals? Banks?  Brokers?  Direct lenders?

Minneapolis, MN:  Getting a mortgage loan feels complicated and overwhelming for many people, as they worry about getting the best mortgage deal.

ScreenShot12345Generally speaking, there are three ways to get a mortgage loan:  From a Bank or Credit Union, a Mortgage Broker, or a non-bank direct lender (also known as a correspondent lender). All three will get you a mortgage loan, but which one gives you the best deal?

Almost without fail, your best bet is with mortgage brokers and non-bank direct lenders, and your most expensive is with banks.

Why are banks usually more expensive?

It is actually really simple. All lenders get their money from the same bond market on the same day at the same time.  All lenders closing costs are virtually the same.  All lenders have the exact same base fees, and third party expenses to pass along (appraisal, credit report, state deed taxes, title company expenses, origination, processing, etc).

So if all lenders get their money from the same source, have the same basic costs, and underwrite to the same guidelines, why are they more expensive? Profit margin. Profit margin is where it is really at when comparing lenders. The bigger they are, the more they advertise, the faster you should run away. This also included big internet lenders – like the so called “Quick” one.

You see, if my wholesale cost of the loan is the same as everyone else, but I don’t have all the overhead of bank branches on every corner, and I don’t have the overhead of all the advertising they do – I can offer better deals.  It is no more complicated than that.

The other big items is that there are shopping advantages as well to not use a bank. When a customer uses a bank, they only get the bank’s loan products, that one banks rates, and generally a Loan Officer who is more than likely an unlicensed application clerk versus a fully licensed professional Loan Officer.  Non bank lenders generally have multiple wholesale lender contacts so they can shop between them for a better rates, and more product choices.

Why Brokers and direct lenders are better 

The whole concept of mortgage brokers is they are usually smaller, they can do it faster, and with less overhead.  They get a wholesale price for the money from the big banks for delivering a loan to them dramatically cheaper than the bank can do it for themselves, and that better deal is pass on to YOU!

Correspondent direct lenders are even better, as they are sort of really like a broker on steroids. These companies, unlike brokers, actually shop various lenders nationwide for final placement of your loan, but underwrite and close the loans themselves before sending it to the big banks after closing.  Because correspondent lenders do even more of the process than brokers, , many of their relationships often produce significantly better deals for the consumer.

The Bottom Line

The bottom line is that there is no one source that is always the best or cheapest for every situation. If one lender was always the cheapest, eventually, everyone would know about it, right?  The only other way most lenders can compete with one another is to somehow convince the public that they have some “secret way” of providing lower than market rates.  The market is the market and you pay for it one way or another.

Only work with a professional mortgage company where the loan officers are skilled at the mathematics and can explain it in plain English.  Don’t feel pressured, and stop looking at just rate, or just cost!  Don’t gamble with something as important as your mortgage.  LET US “DO THE MATH” by giving you our Total Cost Analysis report. 

Let us show you how you can free up a LOT of money for investments… We provide visual calculations that show how “paying off” the home, versus “financing” the home isn’t always a great idea.

Think you know your credit score? You are wrong!

Minneapolis / St Paul, MN:  These days, everyone seems to know their “credit score”.  Many people subscribe to one or all  3 credit services, or get a score from a place like CreditKarma.com.

Before you get too excited about that credit score, understand that the score numbers you just received most likely was based on the “Advantage Score” model. While that IS a credit score, that is NOT the same scoring model mortgage companies use.

Mortgage Credit Score
Mortgage Credit Score

There are many different ‘types’ of credit scores.

Mortgage lenders care about how you handle mortgages, credit card companies care about how you handle credit cards. The reports these industries pull tend to be weighted towards their industry.  The Advantage score you get when you look at your score, or from your credit card statement simply is NOT the same scoring model lenders use.

Another way to look at is is think about buying a car. You tell someone you bought a new Ford. Great, but what model Ford? Did you get a Ford Focus, or was in a new Ford Truck?

Getting your credit score somewhere?? Great, what scoring model is is based on? They are generally all FICO scores, but what scoring model is it based on?? Advantage score, Beacon Score?   Typically the Advantage Score is noticeably higher than your mortgage score.

If the credit score you are looking at is from a mortgage company, then that should be accurate if any other mortgage company pulls your credit…  Or at least until something changes, and credit scores can potentially change everyday.  I’ll save that for another article…

Ultimately, the ONLY credit score that matters is the credit score your Loan Officer obtains on the day you start your mortgage application!

For most people, the score you see and get on your own, or through your credit card statement are close, and give you a ballpark idea of your lender score, but don’t be surprised when we tell you a different number.

Equity gained – just 10% of homes still underwater

U.S. homeowners gained or regained more than $1 trillion in equity over the year that ended on June 30, 2014.  Less homes underwater according to Core-Logic’s 2nd quarter 2014 analysis, 44 million homes in the country now have positive equity, a gain of 950,000 homes during the quarter.

The number homes which are still “upside-down” or “underwater,” that is the owner owes more on the mortgage than the market value of the home, is now 5.3 million or 10 percent of all homes with a mortgage.  In Minnesota, just 7.8% of homes, and  Wisconsin 10.9%.

In the preceding quarter (Q1) there was a negative equity share of 12.7 percent or 6.3 million homes and in the second quarter of 2013 there were 7.2 million homes or 14.9 percent that were underwater.  This is a year-over-year decline of 1,962,435 or 4.2 percent.

Regaining equity is very important, as it allows many more people to list and sell their existing homes, moving up (or down) to something else, and others to refinance and save on their current homes loans – especially those who want to refinance, but did not qualify for programs like a  HARP Refinance.


Amerisave Mortgage To Pay $19.3M After Mortgage Scam

I’ve been saying this for years… Stay as far away from big internet mortgage lenders as possible, and always go with a local company.

Here is a bit of proof… and interestingly, this is a company The Mortgage Professor claims on his site to be highly regarded “Certified Network Lenders ”   Hmmmm….  Honest assesment, or paid reference?cfpb_logo


The Consumer Financial Protection Bureau (CFPB) says it has taken action against Amerisave Mortgage Corp.; its affiliate, Novo Appraisal Management Co.; and the owner of both companies, Patrick Markert, for engaging in a deceptive bait-and-switch mortgage lending fraud.

The bureau found that Amerisave lured consumers by advertising misleading interest rates, locked them in with costly upfront fees, failed to honor its advertised rates, and then illegally overcharged them for affiliated “third-party” services.



Tips to Improve Your Mortgage Approval and Credit Score

Tips to Improve Your Mortgage Approval and Credit Score

When you are looking to purchase a home, or refinance your exiting home, your credit score is very important.  One of the first things your lender will do is check your credit report to assess your creditworthiness.

As everyone knows,  the better your credit score, the more options you have, and the lower the mortgage interest rates will be available to you.


However, if you have a very bad credit score, it could be causing you to be offered high interest rates on your mortgage that could cost you thousands more in higher payments over the years, and worse yet, cause you to be denied.

Improving your credit score before getting a mortgage loan will ensure that you get the best interest rate possible.

But what can you do to improve your credit score?

Here are a few tips that can help you improve your credit score:

Be Patient – Fixing Credit Takes Time

A good analogy for improving credit is a little bit like losing weight. You might see a big jump right away, then getting to your full goal may take awhile. But the long term benefit of your new good habits that will make all the difference in the future

When it comes to all of the ways to improve your credit score, there can sometimes be something you can do quickly, and other take a long time. Just like weight loss, there are no magic quick-fixes.  The best way to rebuild your credit is to be responsible over time.

Check Your Credit Report For Errors

Your first step is to review your credit report.  Your loan officer is a good place to start, or you can get a copy from www.CreditKarma.com or www.AnnualCreditReport.com. Check it over carefully for errors, and contact the original creditor to correct those errors.

Pay Down debt

Credit cards cause a lot of score damage. This is primarily because the scoring model looks at your credit limit, and then how much you have currently on the card. Think of it in terms of 1/4 percent.   If you have less than 25% of the limit used, this is considered good utilization of credit.  If you are over 75%, or worse yet, max’ed out, you are killing your credit score.

Set Up Payment Reminders

Late payments spread all over your report can be one of the biggest negative factors bringing down your score.  If you have issues paying in a timely manor, simply set up automatic payments, and set up alerts on your accounts to be notified by email or a text whenever your payments are due.

Major Derogatory Items, like Bankruptcy and Foreclosure

Needless to say, these items serious hurt your credit score.  The most important thing to do to restore your credit is to get or maintain current and active credit. You see, the scoring model will see the old nasty negative items.  But they want to see how you are TODAY.  Have you gotten back on track?  If you don’t have current credit, your score will never recover.


Mortgage Buzz Words to Watch Out For

Getting a mortgage loan?  Here are some fancy buzz words and popular phases that you should be aware of:

First, understand that all lenders are essentially the same when it comes to programs, interest rates, and closing costs. If we advertised “USE ME – I AM THE SAME AS EVERYONE ELSE”, it would be pretty hard to get anyone to call.  So the lender game is to use creative buzz words, and creative quoting games to make themselves “appear” better than everyone else, and get you to call:

1) NO Closing Costs: All lenders have costs to close a mortgage loan, and most of the costs are from third parties like appraisers, title company, credit reports and state taxes. The ONLY way for a lender to reduce or claim no closing costs is they simply INCREASE your interest rate to offset your costs.  No Lender Fee, No Origination also apply here.

2) FREE Quote: I don’t know a single lender that charges to quote someone, so this isn’t anything special.

3) QUICK Closings:  There is no such thing anymore. New mortgage disclosure rules mandate minimum numbers of days after disclosure before closing a loan (so you can think about it). Furthermore all the new  rules also seriously slow down the process of getting appraisal, verifying your information with the IRS, and making you prove just about everything has turn a fast loan closing into at least 30-days.

4) In House Underwriting:  Pretty much all lenders have their own underwriting teams, and pretty much all brokers do not.

5) Competitive Rates: Simply “competitive”?  Not the lowest, not the cheapest… but, competitive?  Why don’t they show you the rates?

Trick to pay off your mortgage in 1/2 the time

Pay your home off in half the time…

It isn’t a trick to pay off your mortgage in half the time, it is not some scam, it is actually really simple. Most homeowner don’t think they can do this, but the reality is, most actually can pull it off if you simply put your mind to it.

How?  Dump your 30-year mortgage for a 15-year mortgage. By switching to a 15-year mortgage, the average person will pay somewhere around 64% less over a 30-year loan.

Financially savvy homeowners are capitalizing on the savings they can reap by refinancing to a shorter loan term. Last quarter, nearly 40% of U.S. homeowners refinanced out of an existing 30-year fixed rate mortgage and into a shorter 15 or 20-year loan term.

With 15-year mortgages being near their cheapest levels in history, refinancing to a 15-year term is a very smart decision. Prior to 2012, 15-year mortgage rates were 0.52 percentage points lower than a 30-year loan. However, in last year’s fourth quarter they were averaging about 0.97 percentage points lower that a 30-year loan.

According to Freddie Mac, current 15-year loans require just $28,000 of mortgage interest per $100,000 borrowed. A 30-year mortgage costs $81,000 per $100,000 borrowed. Never in history have savings of this capacity been possible!!

Of course a shorter term loan is going to cost you more money per month today. But generally speaking, many people never ask, and don’t even know what the 15-year mortgage payment would be.

house_calcToday, a $150,000 loan:

– A 30-yr fixed at 4.625% would run $771.21 a month and interest of $131,539 over the life of the loan.

– A 15-yr fixed at 3.375% would run $1,063.14 a month and interest of $45,191 over the life of the loan

The vast majority of people with a slight modification to their financial priorities could easily afford the difference, save themselves a fortune in interest, and own their home in half the time.

View live mortgage rates in MN and WI, calculate your savings, and apply today.