The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Calculator and mortgage loan documents showing monthly savings on a refinance

When to Refinance Your Mortgage: Key Factors for Lowering Costs

By Scott Sheldon / November 6, 2024

When to Refinance Your Mortgage: Key Factors for Lowering Costs If you’ve bought a home recently or are considering lowering your mortgage rate, knowing when to refinance can make a significant financial difference. Many homeowners are looking for opportunities to reduce monthly payments or eliminate private mortgage insurance (PMI). Here are essential guidelines to help…

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Chart showing mortgage rates with points and the impact on pricing in high-interest rate environments.

How mortgage rate pricing works when rates decline

By Scott Sheldon / October 9, 2024

When interest rates are high, here’s how mortgage pricing works. Mortgage companies make money in two ways: the origination of the loan and the servicing of the loan, which involves collecting your monthly mortgage payments. When interest rates are higher, say around 7%, mortgage aggregators assess the value of that mortgage. They think, “If rates…

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"A concerned homeowner holding mortgage documents in front of a house, with fluctuating interest rates represented in the background, symbolizing the uncertainty and risks of refinancing."

The Hidden Risk of Lower Interest Rates: Why Refinancing May Not Be as Simple as It Seems

By Scott Sheldon / October 2, 2024

The Hidden Risk of Lower Interest Rates: Why Refinancing May Not Be as Simple as It Seems As the possibility of lower interest rates looms on the horizon, many homeowners and buyers are excited about the idea of refinancing their loans and saving on their monthly payments. However, there’s a risk that comes with those…

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"A person standing in front of a 'For Sale' sign outside a suburban house, holding a clipboard and looking uncertain, reflecting hesitation about buying a home. The house has a well-kept lawn and a clear blue sky in the background, symbolizing the decision-making process in home ownership."

4 Signs You’re Not Ready to Buy a House

By Scott Sheldon / September 23, 2024

4 signs you’re not ready to buy a house when it comes to purchasing a home. It’s probably one of the highest-ticket purchases you’ll ever make in life, if not the most high-ticket purchase. You want to, of course, make sure that affordability is number one. This is primary, above all else. However, just because…

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Modern house with a 'Sold' sign in the front yard, symbolizing successful real estate transactions. In the background, a clipboard with appraisal documents and a magnifying glass emphasizes the importance of accurate property valuations and working with an experienced lender

Why Your Lease is Not a Barrier to Homeownership

By Scott Sheldon / August 27, 2024

For many families considering buying a home, the belief that they cannot proceed because they are bound by a lease is a common misconception. Depending on your state, a lease is not necessarily a barrier to homeownership. If you’re renting and your rent payment is $3,000 a month with another six months left on your…

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Here is a formula to use to determine how much you might qualify for

Here is a formula to use to determine how much you might qualify for

By Scott Sheldon / July 24, 2024

Calculating Your Monthly Income for a Sonoma County Mortgage If you’re a first-time homebuyer in Sonoma County, knowing how to calculate your monthly income and determine your purchasing power is essential. With today’s mortgage rates around 6.5%, having a clear understanding of what you can afford is crucial. This guide will help you with the…

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Navigating FHA Loans for Multifamily Properties: What You Need to Know

Navigating FHA Loans for Multifamily Properties: What You Need to Know

By Scott Sheldon / July 16, 2024

One of the biggest challenges in securing an FHA mortgage for a multifamily property is the sustainability test, a crucial factor that most banks and lenders don’t discuss upfront. Here’s what you need to know if you’re planning to buy a multifamily property with FHA financing. FHA Loans for First-Time and Move-Up Homebuyers As a…

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How to qualify for mortgage with low bank statements and tax returns

How to qualify for mortgage with low bank statements and tax returns

By Scott Sheldon / July 2, 2024

Traditional lenders often require extensive documentation, such as tax returns and bank statements, to verify income. But what if your tax returns don’t reflect your actual earnings, or your bank statements don’t show enough consistent income to meet the lender’s requirements? Fortunately, there’s a solution that can help you qualify for a mortgage without the…

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