Posts Tagged ‘home loans’

4 Ways to Take Advantage of the Current Real Estate Market

Monday, January 22nd, 2018


It’s no secret that housing inventory has been low the past year, causing buyer competition and rising home prices/values. Many homeowners don’t realize they may be able to leverage the current market, even if they don’t plan to purchase a new home anytime soon. The mix of rising home values and low interest rates may offer you an opportunity to leverage your home’s equity to:

Refinance and Consolidate Debt – Extracting equity from your home to pay off auto loans, school loans, credit cards, and other debts allows you to roll these debts into one mortgage payment. This can often be beneficial if you are paying high interest rates on your non-mortgage related debts.

Remodel – Today, there are several great loan programs that allow you to finance home renovations, repairs, and updates into your home loan. This can be a great option for homeowners that want to stay in their current home, and utilize their home’s equity to make needed updates.

Eliminate Mortgage Insurance – With the growing home values we have seen the past few years, many borrowers are opting to refinance and eliminate their mortgage insurance. This has the potential to save you a lot of money every month on your mortgage payment.

Refinance into a Shorter-term Loan – Shorter-term home loans, such as 15 and 20-year loans typically offer lower interest rates. Today’s low rates make it a great time to consider refinancing into these shorter-term home loans, as they allow you to pay down your home loan faster and spend less money on interest each month.

If you’re interested in learning more and would like to compare your current home loan to one of these options, please contact us today.

2018 Tax Reform – What Does it Mean for Homeowners?

Monday, January 22nd, 2018

Tax Reform - Mortgage Q&A

As you likely know, Congress passed a tax reform that went into law on January 1, 2018. Several provisions in the bill are directly tied to homeownership. There has been a lot of confusion and misinformation around these amended provisions, as the initial policy that the House of Representatives passed differed from what was actually put into law. While we are not tax advisors – and we do encourage you to consult with your tax advisor – we hope these answers will help clear up some confusion.


Yes, the mortgage interest deduction remains intact for all current homeowners on mortgages up to $1,000,000 ($500,000 if married filing separately). For all new mortgages after December 14, 2017 interest will only be deductible on loans up to $750,000 ($375,000 if married filing separately).


No, in most cases interest on home equity loans is no longer tax deductible for taxable years beginning after December 31, 2017 and through December 31, 2025. There is an exclusion that may allow you to write off the interest if the proceeds of the HELOC are used to substantially improve the property. We encourage you to consult with your tax advisor.


Taxpayers can deduct up to $10,000 in state and local taxes, which include property taxes. You will no longer be able to write off all of them if your state and local taxes exceed $10,000.


Yes, this remained unchanged. Capital gains are exempt up to $250,000 ($500,000 if married) on the sale or exchange of your principal residence if you have lived in the home for the last 2 out of 5 years.


Yes, MCCs were not impacted.


No, job-related moving expenses are no longer tax deductible unless you are a member of the armed forces on active duty that moved due to military orders.

It’s important to note that the above tax write-offs only have value if you will be itemizing your deductions. Unfortunately, the new tax reform raised the standard deduction to $12,000 for taxpayers filing individually and $24,000 if married filing jointly. This means, many taxpayers may not be itemizing their deductions going forward.


Tax Reform Law Chart: Prior Law vs. New Law (Published by the California Association of Realtors® on 12-28-17)

The Modified Home Mortgage Interest Deduction (Published by on 12-28-17)

3 Changes to Itemized Deductions Under Tax Reform Bill (Published by on 12-22-18)

Federal Reserve Raises Benchmark Interest Rate for Third Time in 2017

Monday, December 18th, 2017

Federal Reserve Raises Benchmark Interest Rate

On December 13th, the Federal Reserve once again raised its benchmark short-term interest rate by 0.25%. This was the third rate increase by the Federal Reserve in 2017. With a positive economic outlook for this coming year, the Federal Reserve anticipates further increasing the benchmark interest rate another three times in 2018.1

So, what does that mean for mortgages? If you currently have a fixed-rate home loan, not much. The biggest impact will come for borrowers with adjustable-rate mortgages and Home Equity Lines of Credit (HELOCs), as they will likely see their mortgage interest rate increase the next time their rate is set to adjust.

In addition, those looking for a new home loan in the future – whether fixed or adjustable rate – may see higher interest rates than what we have been currently enjoying. While the Federal Reserve’s rate increases only indirectly impact fixed-rate mortgages, historically they follow the momentum of the Federal Reserve’s benchmark rate. So, it’s anticipated that as the Federal Reserve increases the benchmark rate, mortgages will continue on an upward trend as well.

1Source: (Published 12-13-17)

Purchase and Refinance Home Loans with No Appraisal Required!

Thursday, November 16th, 2017

No Appraisal Required - Purchase or Refinance

Borrowers may now be able to purchase or refinance a home using conventional financing with no appraisal required. This can potentially save you money and time on your next home loan!

  • One-unit properties – Single-family homes and condos
  • Loan must receive approval from Fannie Mae or Freddie Mac’s automated underwriting system to be considered for the appraisal waiver1
  • Purchase – Primary residence and second homes with a down payment of 20% or more2
  • Limited Cash-out Refinance – Up to 90% loan-to-value with Fannie Mae and 80% loan-to-value with Freddie Mac2

1Restrictions apply. Appraisal waivers are offered at the discretion of Fannie Mae and Freddie Mac and not all loans may qualify. To be considered for the appraisal waiver, a prior appraisal must already exist in their database for the same property and borrower. 2If an appraisal waiver has been offered to the borrower, the borrower may still choose to obtain an appraisal. If the borrower has chosen to obtain an appraisal, once it has been ordered, the appraisal must be used on the loan and the borrower cannot revert back to accepting the appraisal waiver.

VITEK Opens New Redding, CA Branch Location

Tuesday, September 19th, 2017

Equifax® Data Breach

VITEK Mortgage Group is excited to announce our new branch location in Redding, CA. VITEK is no stranger to Redding with a previous successful branch from 2003 – 2011. Mark Gazzigli, VITEK’s former Redding Branch Manager, has returned home to VITEK as Regional Manager to help support the growth of VITEK in the region, along with the needs of our borrowers.

Mark’s decision to return to VITEK was, “driven by the company’s core values, competitive pricing, and unwavering commitment to their borrowers and business partners. I am extremely excited about the opportunity to realign with a company that not only shares my vision of an excellent loan experience for the borrower, but has proven again and again they have the resources, knowledge, and platform to close loans on time.”

VITEK President, Harry Duncan, says, “We’re excited for this time of growth and once again to be established in Redding. Our new location will provide us additional resources and opportunities to grow and better serve the home-financing needs of our clients.”

We'll walk you through each step of the loan process.
Contact us today to get started!