Best Ways to Use Your Record-High Home Equity

Blog posted On September 22, 2022

Homeowners are gaining record amounts of wealth. According to a recent report by CoreLogic, Home equity has soared nearly 28% over the past year alone. That’s an average gain of $60,200 per homeowner. Now, the average

Best Ways to Use Your Record-High Home Equity

Blog posted On September 22, 2022

Homeowners are gaining record amounts of wealth. According to a recent report by CoreLogic, Home equity has soared nearly 28% over the past year alone. That’s an average gain of $60,200 per homeowner. Now, the average homeowner now has $300,000 in home equity – an all-time high. What does this mean? How can you take advantage of the equity in your home? 

Home equity is how much of the home that you own. It's the difference between the market value of your home and the amount of your mortgage that you still owe. If your home is worth $600,000 and you still owe $400,000 on your mortgage, then you have $200,000 in equity. Many homeowners will never use their home’s equity, but for some it can be extremely beneficial. 

“Rising equity is a big deal for many families,” writes Money contributor, Sarah Hansen. “It means better opportunities to buy a new home, since their original home may sell for significantly more than the original purchase price. It also means more flexibility when it comes to credit, and can give families options if they need access to cash for large expenses.” 

If you’re wondering how to use your home equity to build wealth, there are several options. 

Consolidate debt 

With a cash-out refinance, you can take some of your home’s equity and use that cash to fund other investments. One great way to use your equity is to consolidate high interest debt like credit cards, student loans, and auto loans. Even in the current housing market, mortgage rates tend to be much lower than interest rates on these types of debt.

Finance renovations 

Love your home’s location but need more room? Tired of using the kitchen as a home office? Ready to finish your basement? Your home’s equity is a great resource to tap into that can then be used to finance a home addition, renovations, or any initial costs for a Renovation Loan. With additional upgrades or renovations, you can also boost your home’s value (giving you more equity back in your pocket). 

Purchase an investment property 

Rent prices have been soaring recently. Many homeowners are converting their homes into investment properties or Additional Dwelling Units (ADUs) to reap the benefits. Not only do ADUs add space to convert into an AirBnb, but they also add value to your property. 

Switch to a HELOC 

A HELOC, or home equity line of credit, is an alternative to cash-out refinances. Unlike cash-out refinances, HELOCs are a revolving line of credit that you can access as you need over time. As home equity has increased, HELOCs have soared in popularity, with HELOC origination up 41% year over year. Another benefit of HELOCs compared to cash-out refinances is that you only pay interest on the amount of equity that you use – not the entire line of credit. 

Don't just let your equity go to waste. You worked hard to build your equity, and now it's time to put your equity to work for you. Let us know if you want to explore your options or if your curious about how much equity you’ve earned.

Sources: Money, Money

It's Still a Good Time to Buy; Here's Why

Blog posted On September 20, 2022

Since the beginning of the year, countless articles have claimed that it's the worst time to buy a home. Their reasoning?

It's Still a Good Time to Buy; Here's Why

Blog posted On September 20, 2022

Since the beginning of the year, countless articles have claimed that it's the worst time to buy a home. Their reasoning? Rising rates. “From an affordability perspective, this might be the worst time you could buy because mortgage rates have spiked quite a bit,” said Chistopher Mayer, co-director of the Paul Milstein Center for Real Estate and professor at Columbia University. This is the narrative dominating the industry right now. But rising rates are just the tip of the housing market iceberg. Below the surface, there are several encouraging signs for hopeful buyers.  

Higher rates certainly can affect home buyer affordability. However, they can also affect the housing market in other ways that could potentially benefit buyers.  

1) Buyers are gaining more power  

“If you have gotten to the point where you have been approved for a mortgage and there are homes within your budget that you see on the market, then I think you do have the upper hand,” says Redfin Chief Economist Daryl Fairweather. 

2) Home prices are cooling  

In August, home prices fell 0.3% month-over-month according to Zillow’s August market report. This marks the largest monthly drop in home prices in over a decade.  

3) Buyer competition is at a two-year low  

Fewer buyers on the market means fewer bidding wars and more options for hopeful owners.  

4) There are many ways to increase your home’s affordability 

Options like our Mortgage Payment Buydown, adjustable-rate mortgages, VA Loans, USDA Loans, and HomeFundIt™ are all ways that can help you lower your down payment and/or interest costs.  

We have plenty of options that can help you navigate the current housing market. And if your current situation allows it, now could be a great time to consider buying.   

Sources: MarketWatch, Yahoo! News, Zillow 

Market Update: Rates Rise; Housing Starts and Building Permits, Existing Home Sales, and FOMC Announcement Coming Up This Week

Blog posted On September 19, 2022

Mortgage rates trended higher last

Market Update: Rates Rise; Housing Starts and Building Permits, Existing Home Sales, and FOMC Announcement Coming Up This Week

Blog posted On September 19, 2022

Mortgage rates trended higher last week after the consumer price index showed much higher levels of inflation than what economists were expecting. The market was also preparing for the upcoming Federal Open Market Committee (FOMC) meeting later this week, which will reveal any increases to the benchmark interest rate. Oftentimes the market tries to predict any hikes the Fed might make and price itself for those changes.  

The Federal Open Market Committee (FOMC) sets the federal funds rate. The federal funds rate will influence mortgage rates but not set them exactly. When the Fed raises rates, mortgage rates typically go up. When the Fed lowers rates, mortgage rates typically go down. Following the Fed’s most recent meeting, it announced another rate hike of 0.75%, which brought the Federal Funds Rate to a range of 2.25%-2.50%. Following months of stronger-than-expected economic reports and resilient inflation levels, many experts are predicting another aggressive move by the Fed this week. 

Housing starts track ground broken on residential projects and building permits track permits issued. In July, housing starts were at a seasonally adjusted annual rate of 1.45 million, a 9.6% month-over-month decline. Building permits were at a seasonally adjusted annual rate of 1.69 million, a 0.6% drop from the month before. Increasing mortgage rates have been impacting builders' production levels. 

Existing home sales or resales track the sales of previously constructed homes and make up approximately 90% of residential real estate transactions. Existing home sales were at a seasonally adjusted annual rate of 4.81 million units in July. This is 5.6% lower than the seasonally adjusted annual rate in June. Rising mortgage rates are putting increasing financial pressure on many buyers, but home prices are expected to show more deceleration in coming months. We also offer several mortgage products that can ease the strain of rising rates like adjsutable-rate mortgages (ARMs) and our Mortgage Payment Buydown.

As more important market-moving data continues to be released, we will continue to keep you updated. Let us know if you have any further questions.  

Sources: Bloomberg, Mortgage News Daily 

CMG Financial Named a Best Mortgage Company to Work for Once Again

News posted On September 14, 2022

SAN RAMON, CA - CMG Financial, a well-capitalized privately held mortgage banking firm headquartered in San Ramon, CA, has been recognized for the second consecutive year as a Best Mortgage Company to Work For. On September 4th, 2022, Wells Fargo’s Equity Research Division put out an Industry Update

CMG Financial Named a Best Mortgage Company to Work for Once Again

News posted On September 14, 2022

SAN RAMON, CA - CMG Financial, a well-capitalized privately held mortgage banking firm headquartered in San Ramon, CA, has been recognized for the second consecutive year as a Best Mortgage Company to Work For. On September 4th, 2022, Wells Fargo’s Equity Research Division put out an Industry Update titled, “The Best Mortgage Company to Work for Is...”. The annual report analyzes and ranks the nation’s top 25 non-bank mortgage companies based on employee feedback in a variety of categories. This year, CMG Financial was ranked number two, just behind Veterans United but much higher than many notable industry names including Guaranteed Rate, Movement Mortgage, Caliber Home Loans, and Better.com.  

“Results of the analysis indicate that many of the mortgage lenders that were better ranked are smaller and privately owned,” notes CFA, CPA, and Wells Fargo Equity Analyst, Michael Kaye. 

The companies were rated based on three statistics: employee overall satisfaction, the percentage of employees who would recommend their company to a friend, and the percentage of employees who approve of their company’s leader. CMG Financial stood out with 4.3 stars, 91% who would recommend it to a friend, and 96% who approve of CEO Chris George.  

CMG makes exhaustive efforts to ensure employee success and satisfaction by offering location flexibility, generous PTO, company-paid paternity and maternity leave, 401(k) matching, and equal pay. CMG Financial also provides reduced pricing on employee home loans, free 24/7 access to licensed mental health clinicians, and paid-on-the-job training and tuition reimbursement. Additionally, CMG Financial has unique proprietary products like HomeFundIt™ and the All In One Loan™ to help originators reach more clients and help more buyers achieve the American Dream.  

“You ask anybody that works here, we are a family,” says CMG Loan Officer, Tim Loss, NMLS 187037. “The ability to communicate with the underwriters on a loan officer level to problem solve challenging loans. It doesn't stop with operations – I have access to upper management right on my cell phone, and when you call, they really pick up the phone. The difference between CMG and other companies is they actually listen when you have something to say.” 

If you’re interested in joining team CMG or would like to learn more about our benefits, visit https://www.cmgfi.com/careers.  

You can also hear about life at CMG directly from its originators by clicking here.

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About CMG Financial 

CMG Financial is a well-capitalized, privately held mortgage banking firm founded in 1993. The company makes its products and services available to the market through three distinct origination channels: retail lending, wholesale lending, and correspondent lending. 

CMG Financial currently operates in all states, including the District of Columbia, and holds federal agency lending approvals with HUD, VA, RHS, GNMA, FNMA, and FHLMC. CMG Financial is widely known throughout the mortgage banking and housing markets for responsible lending practices, industry and consumer advocacy, product innovation, and operational efficiency. 

Media Contact:   Annaugh Madsen  Phone: (667) 260-6360  Email: amadsen@cmgfi.com

Whether You’re Headed Back to The Office or Working Remote, Here’s How We Can Help

Blog posted On September 13, 2022

Labor Day has always been an unofficial end to summer. Pools have shut down, kids have headed back to the

Whether You’re Headed Back to The Office or Working Remote, Here’s How We Can Help

Blog posted On September 13, 2022

Labor Day has always been an unofficial end to summer. Pools have shut down, kids have headed back to the classroom, and larger companies now want their employees back in the office. After over two years of working remotely, many don’t share their employer’s desire. So what are your options?  

Despite employees’ desires and preferences, most larger companies are cranking up the heat in the ‘back to the office’ battle. In a recent survey conducted by consulting firm Gartner, 69% of mid-to-large-sized companies say that they are requiring employees to be in the office a set number of days – even if their jobs can be done fully remotely. Other companies, like Meta, have left the decision completely up to employees. They can choose to be fully remote or opt to go into the office. “Productivity [did not suffer] despite many companies going fully remote,” said Ben Wigert, director of research and strategy for workplace management at Gallup. “Many thrived through that process and continue to hire at record pace.”  

The choice is ultimately up to you. Whether you’re excited to get back to the office or exploring fully remote opportunities, we can help you navigate both situations.  

Staying remote? It might be time to invest in a home office. We offer some great construction renovation loan options that can help you create the dream home office.  

Excited to return to the office? We have plenty of loan options that can help you find the perfect place with a shorter commute. 

Some of our mortgage options include  

Let us know if you want to learn more! 

Sources: CNN, CNN 

Market Update: Rates Unchanged; Consumer Price Index Coming Up This Week

Blog posted On September 12, 2022

Mortgage rates ended last week relatively unchanged from the week before, or slightly lower

Market Update: Rates Unchanged; Consumer Price Index Coming Up This Week

Blog posted On September 12, 2022

Mortgage rates ended last week relatively unchanged from the week before, or slightly lower in some cases. This week’s rate volatility could be higher as the consumer price index is scheduled for release and the Federal Reserve is it its usual public comment ‘blackout’ prior to the Federal Open Market Committee (FOMC) meeting next week. 

The consumer price index tracks the changes in the average price of a fixed basket of goods and services sold to final consumers. Right now, it is arguably one of the most important economic reports that could influence the trajectory of the Federal Funds rate. Inflation levels surged to 40-year highs earlier this year, which caused a huge jump in not only the Federal Funds rate trajectory but the monthly/bimonthly Federal Funds rate hikes. Raising the benchmark interest rate is one of the primary tools the Fed uses to help curb inflation. As written by Mortgage News Daily COO, Matthew Graham, “inflation is the reason the Fed continues to say it's willing to attempt to restrain economic activity via rate hikes.”  

Luckily the consumer price index gave the first glimpse of hope in its most recent data from July. In July, the consumer price index saw a 0% monthly change, down from 1.3% the previous month. Year-over-year, the consumer price index was brought back to 8.5%. However, the bigger factor in the eyes of the Federal Reserve is the core consumer price index, which strips out food and energy costs. In July, the monthly change of the core consumer price index was 0.3% while the annual change was 5.9%.  

The target range for monthly core inflation and annual core inflation is around 0.2% and 2% respectively. Therefore, “core inflation only needs to move down 0.1% in the next report to put [month-over-month] numbers on pace to hit the target range,” writes Graham. “Once the Fed is reasonably sure that's happening, it can begin to consider a friendlier shift in the monetary policy that has recently put so much upward pressure on rates.”  

For more information on market news, contact us. 

Sources: Bloomberg, Mortgage News Daily, Mortgage News Daily 

How Your Rent Payments Can Help You Qualify for a Mortgage

Blog posted On July 21, 2022

One of the biggest obstacles for first-time home buyers is their limited credit history. Credit history is a big factor in the mortgage application process. However, we’re now offering an alternative solution

How Your Rent Payments Can Help You Qualify for a Mortgage

Blog posted On July 21, 2022

One of the biggest obstacles for first-time home buyers is their limited credit history. Credit history is a big factor in the mortgage application process. However, we’re now offering an alternative solution for first-time buyers. With positive rent payment history, we can include your completed rent payments in the application process, which may help boost your overall credit assessment and allow you to qualify for a mortgage more easily.

Buyers who are eligible for positive rent history consideration must:

How to get started

How to prepare

If you’re not sure if you’re ready to buy or you’re still saving for a down payment, there are a few ways you can prepare in the meantime.

If you’re interested in our positive rent payment history, let us know. We can explain the digital process in more depth when you’re ready!

Sources: Fannie Mae