Stephen Otus, Mortgage Consultant at Solano Mortgage

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Market Update 8/31/2019 With interest rates for 720 plus FICO scores nearing 3.5% average nationwide, refinancing to a lower rate and pulling cash out to remode...l or consolidating debt is what is dominating the mortgage news headlines around Solano County, California and the USA. Real estate sales in Northern Solano County are steady but according to Brian Stumbaugh of Stumbaugh Realty Advisors, inventory for affordable homes below $420,000 continues to be a challenge for buyers and real estate agents. Brian listed a 1296 square foot 3 bedroom 2 bath home built in 1975 in south Vacaville a couple weeks ago at $389,000 for a seller moving out of state for a job relocation and received 6 offers after exposing the home to the full force of the market and accepted an offer for over $400,000. All 6 offers were lender qualified and not contingent on a sale of another property. The 5 disappointed buyers and their hard-working agents are back out there searching for an affordable home. There are currently 320 sales pending and 650 active listings in Solano County today. The upper end of the market is healthy and if the home is priced right, these homes are selling because jumbo financing guidelines have loosened over the last 5 years and loan products have become more abundant, especially for buyers with good FICO scores and qualifying debt ratios. A buyer can purchase a home in Solano County with only 5% down up to a loan amount of $850,000 with a minimum FICO score of 680 and up to 1 million $ with a 720 plus score making it possible with a seller closing costs credit for a buyer to purchase a home for 1 million dollars with only $50,000 out of pocket. PMI costs for high fico score buyers are 50% less expensive than it was just 10 years ago. PMI companies now offer risk-based pricing meaning a 760 FICO score client can get a 95% LTV loan with a PMI factor as low as .29% while a 680 FICO score client may be looking at .69% . 10 years ago, PMI for 95% LTV conventional loans ranged from .78% to .92% regardless of FICO scores, debt ratios or the number of borrowers on the loan. This PMI improvement and this 95% option is extremely helpful for young professionals that have lots of income, lots of student loan debt and minimal savings to purchase their executive level home now rather than later in life. Gift funds are now allowed which was not possible for most of my career on a 95% LTV. This low down-payment option also helps move up buyers that want to buy first and sell their departing residence later. From a financing standpoint this real estate market is as good has it has ever been in my 40 years in the business for qualified buyers. Jim Porter of Solano Mortgage Photo Credit: Dave Horn Unlimited Real Estate Photography

Clear the Shelter event is Saturday 8/17/2019 9-5pm off Claybank road in Fairfield. Clear the Shelters is a nationwide pet adoption initiative that brings shel...ters, rescues, and adopters together to find loving homes for pets in need. The goal is to find ALL of the animals in the shelter a home on this day. ALL ADOPTION FEES WILL BE SPONSORED. Visit http://www.facebook.com/solanoanimalshelter/ to donate or view adoptable pets. (Solano County Dog License fee to be paid by adopters) #cleartheshelters Solano County Sheriff's Office Animal Care Division See more

Holy refi-mania! By Jim Porter Here we go again! Just like during Brexit in 2016, fixed mortgage rates have dropped to 3.875 percent nationwide. Mortgage applic...ations have doubled in America in the second quarter from the first quarter this year. This mortgage rate applies to borrowers with 720-plus FICO scores. Mortgage rates for borrowers with decent 675 FICO scores might pay 4.375 percent. Both rates are OK but as you can see the borrower that has focused on having high FICO scores gets a much better deal. The reason for this better rate is because the statistics show that 720-plus FICO score folks are less risky and have less delinquency over the years. The artificial intelligence programs can review past results and history of loan servicing companies and see how well 675 FICO borrowers perform as opposed to 720 score borrowers. It’s all about the math and the FICO scores. My point here is that some 675 FICO clients are much less risky than the lucky 720 FICO score guys. I have determined that no matter how frustrating it is for me that great people pay much higher rates on auto loans, credit cards and mortgages because of their FICO score, that it is what it is and we have to live with almighty FICO. In order to truly achieve the American dream, a citizen of the USA should just face the fact that the rich are getting richer and the poor are getting poorer and the rich have 720-plus FICO scores. It’s like auto insurance, folks: The drivers with the best driving records should get lower rates than drivers with lots of speeding tickets. Please note if my frustration with FICO isn’t clear. I don’t dislike credit scoring but too often I see a 675 FICO score borrower that gets stuck paying a higher mortgage rate totally based on the credit score even though his or her financial statement is much stronger than some 720-plus borrowers. The problem is that sometimes it is all about the timing of the credit report. Occasionally we see a FICO score of 675 and then 30 days later it is 720 simply because on the date of the first credit report the consumer had a balance on his two VISA cards close to 90 percent of the credit limit. Remember to always make sure your credit card debt is at only 30 percent of the credit line limit on the day your credit is pulled. The other thing to always remember is that your FICO score can be updated during the loan process with some lenders if they help you with a rapid rescore. You must fight to get to 720 or higher to avoid paying 24.99 percent on your credit cards and higher rates on your car and your house. Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Business Oversight under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.

Solano Mortgage achieved 2018 President’s Club & 2018 Top VA Branch for American Pacific Mortgage Corporation.

Thank you for voting Solano Mortgage Best Mortgage Company this year for The Reporter & Daily Republic for the12th year in a row !

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Hey everybody, its Jim Porter here at Solano Mortgage . At the Northern Solano County Association of REALTORS meeting this morning Patty Hopkins and Curtis St...ocking announced a Grant they won for First Time Home Buyers. We have 53 One thousand dollar scholarships for first time home buyers. Payable to the first time home buyer if they use a REALTOR and a mortgage loan. Thank you Curtis Stocking & Patty Hopkins ! See more

Remember to vote for your favorite local companies! Visit www.TheReporter.com & click Vote Now in right corner to Vote Now! Solano Mortgage is up for Best Mo...rtgage Company Customer service Financial Services . On behalf of our team, thank you for your support & vote! Ends 9/30 @solanomortgage Hey Solano County, who remembers the Ben Franklin store shown in this photo? #supportlocal See more