Mortgage Update – July 26, 2016

    The Six Most Important Things You Need to Know From the Mortgage World this Week.


    FHA is implementing major student loan payment calculation changes effective June 30. Deferred student loan payments must now be included in a Borrower’s debt ratio.


    If the lender can’t document the actual payment via a statement, then the formula to calculate the student loan payment is the greater of 1% of the outstanding loan balance or the monthly payment reported on the Borrower’s credit report.


    Did you know? Jumbo fixed-rate financing now only requires 5% down!


    Sales of existing homes rose in June for the fourth month in a row to an annualized rate of 5.6 million units, the best since February 2007!


    The strong June sales volume was achieved despite a very low supply of homes available for sale, just 4.6 months (6 months is considered healthy).


    Home builders are certainly aware of the lack of supply as they have ramped up construction. The Commerce Department reports that there were more houses under construction at the end of June than at any time in the last eight years.



    Mortgage rates ended last week a little higher mostly due to the European Central Bank’s decision to not make any changes in monetary policy.


    New Home Sales are due out on Tuesday with Pending Home Sales and Durable Orders on Wednesday. The Federal Reserve also meets again on Wednesday. No change in rates is expected, but the statement from the Fed could have a significant impact on mortgage rates.


    Jim Scheu
    NMLS# #659050 GA #51170
    Senior Loan Officer
    Shelter Lending Services
    5780 Windward Pkwy, Suite 100
    Alpharetta, GA 30005
    Visit my Website
    Mobile: 404.906.6010
    Fax: 610.629.6369

    If you have questions about your mortgage needs, please contact our preferred mortgage lender – Jim Scheu with Shelter Lending Services at 404.906.6010 or click the blue banner just below to send him an email.

    The material is intended for licensed mortgage professionals only and is not an extension of credit. Information contained in this document is subject to change without notification. ©2016 Shelter Lending Services, LLC is an Equal Housing Opportunity Lender. NMLS#1033753 ( This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to underwriting and property approval. 695 Mansell Road Suite 200, Roswell, GA 30076. James Williamson NMLS# 552530, AL:#59117, GA:#36174, TN:#120865. Georgia Residential Mortgage Licensee # 38779.

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