The Mortgage Files

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

Family standing outside their new suburban home, smiling and celebrating homeownership made possible through a no down payment FHA program

How to Buy a House Without Income Limits or Government Red Tape

By Scott Sheldon / December 25, 2024

If you’re looking to buy a house but want to avoid the income limits and red tape often associated with traditional down payment assistance programs, Security National Mortgage Company (SNMC) offers a solution. Their unique FHA program allows you to buy a home without the usual restrictions, making it easier to achieve homeownership. This program…

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Side-by-side comparison of FHA and conventional loans with highlights of key differences, including PMI and down payments

FHA Loan vs. Conventional Loan: Which Is Best for Your Home Purchase?

By Scott Sheldon / December 18, 2024

Deciding between an FHA loan and a conventional loan for your home purchase is an important choice that depends on your financial situation and goals. Both loan options have distinct benefits and considerations, so let’s break down the key differences to help you make the best decision for your needs. A 5% down conventional loan…

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Should You Lock or Float Your Mortgage Rate? Here’s What to Consider

By Scott Sheldon / December 11, 2024

When you apply for a mortgage, one of the key decisions you’ll need to make is whether to lock in your interest rate or let it “float.” This choice can impact your monthly payment and your overall financial comfort, so let’s explore both options to help you decide. What Does It Mean to Lock Your…

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Graph showing mortgage rate trends over time with a highlighted target strike rate, accompanied by a calculator and pen, symbolizing refinancing decisions

How to Decide Your Strike Rate for Refinancing: A Guide to Market Improvements and Timing

By Scott Sheldon / November 12, 2024

When it comes to refinancing your mortgage, knowing your strike rate—the interest rate at which refinancing becomes worthwhile—can save you thousands. But how do you decide what your strike rate should be? And how do you determine whether the market is moving toward your goal? In this post, we’ll break down the concept of a…

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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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A potential homebuyer is sitting at a desk, reviewing their credit report with a concerned expression. Papers and documents related to home loans are scattered on the table, including a visible credit score report with a lower-than-ideal score. A mortgage loan officer is standing nearby, offering advice and support, symbolizing the collaborative approach to improving credit and navigating financial hurdles. The atmosphere suggests a professional but hopeful tone, with natural lighting in a clean, modern office space. The image captures the emotional moment of seeking guidance when facing credit challenges in the homebuying process

How to Buy a House Even with a Low Credit Score: The Real Story

By Scott Sheldon / October 29, 2024

When thinking about homeownership, many people assume their credit score is a barrier. The reality, however, often extends beyond just your credit score. Concerns like not having a sufficient down payment, limited savings, or carrying significant debt such as car loans or credit card balances often cloud the full picture. If you’ve been told by…

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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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"Illustration of a human figure representing the Federal Reserve, holding large scissors and cutting a red percentage sign symbolizing an interest rate. Surrounding the figure are individuals representing homeowners, business people, and families reacting in various ways to the rate cut, with a city skyline in the background, featuring banks, homes, and businesses."

“Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates”

By Scott Sheldon / September 30, 2024

Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates When the Federal Reserve announces a cut in interest rates, many people immediately assume that mortgage rates will drop as well. Unfortunately, this is a common misconception. When the Fed adjusts its rates—specifically the Federal Funds Rate—it doesn’t directly impact long-term mortgage rates. Instead, these…

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