December 2016 Mortgage Opportunity Report: Insights About Today’s Home Buyer

Mike Nelson - AFN

In this month’s Mortgage Opportunity Report, we discover that today’s home buyers are some of the most studious and prepared of any generation. We could see a stable housing market for years to come.

Source: December 2016 Mortgage Opportunity Report: Insights About Today’s Home Buyer | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

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I am seeing more savvy, qualified, knowledgeable buyers enter the market.

This has certainly been my experience in the past few months.  For the most part, buyers I am dealing with are technical, have a much better understanding of Mike Nelson - AFNfinance,  mortgage products, have little debt, and are looking to leverage their assets into increased wealth.  I am also asked a lot of really good questions about the mortgage process and various products available for their benefit.

There is a lot of confusion in the marketplace regarding ATR products.  ATR stands for Ability To Repay.  You will also hear these products referred to as Alt-QM and Non-Prime.  I have decided not to use either of these names anymore.  Alt-QM is jargon and just weird.  Non-Prime conjures up fears of the financial crash, bad loans made to unqualified borrowers, bad banks, and bad government policy.

We must know our mortgage and real estate products to fulfill the needs of knowledgeable customers

ATR or Ability to Repay are laws for lending/loans that do not fit under the Fannie/Freddie/Ginnie Qualified Mortgage (QM) world.  In short, there is a whole market of financially responsibleMike Nelson - AFN low risk borrowers who do not have equal access to capital under the QM laws.  So, ATR was born.  ATR supports loan products that are fully regulated and underwritten.  In short, lenders and borrowers have to satisfy Ability To Repay laws, which ensure our financial markets are not at undue risk.  There are several posts on this blog that describe the ATR products in detail.

These products are also referred to as Non-Prime and are then erroneously associated with the crash.  I have found most realtors don’t understand the key distinctions between QM and ATR.  This is a shame because ATR products will certainly open up realtors databases to more buyers.  Obviously we need more buyers, because more buyers in turn creates more sellers, which in turn creates more buyers…….

As always, especially in this time of moving interest rates and changing inventories, get good advice from a team of trusted professionals.  Please feel free to send me a text, give me a call, or shoot me an email if you want to continue the dialogue.

Happy House Hunting!

720.213.6260 (voice & text)
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Mike Nelson - AFN

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