The post Length of History appeared first on Mike Stoy - Epic Mortgage.

Utilization Matters

When it comes to credit cards it’s all a game, borrower’s utilization too high? A strategy needs to be created to get the overall utilization under 30%. Borrower’s cards at $0? We need to look at the date of last active to see when’s the last time they got points for the cards, we might need them to put a small balance on them to trigger some extra points the next time they report.

Below is a graphic going over do’s and dont’s of credit cards and some tips and tricks to keep those balances low and the scores high!

The post Credit Card Do’s and Dont’s appeared first on Mike Stoy - Epic Mortgage.

An article from the Consumer Financial Protection Bureau (CFPB) sheds light on the challenges around rental debt collection that impact millions of renters nationwide. With over 4.5 million households behind on rent, rental debt has become a major barrier to homeownership for many.

From the article there are two key findings from approx. 1,700 complaints filed from Aug. 2023 – Dec. 2023:

Improper Debt Collection: Debt collectors are sometimes charging inflated fees or attempting to collect based on illegal rent increases.

Credit Reporting Concerns: Rental debt is commonly reported to credit bureaus, which can lower credit scores and create hurdles for those looking to qualify for a mortgage.

Even if a renter’s credit score meets the minimum requirements, unpaid rental debt can still impact their chances in the mortgage approval process. No mortgage lender wants to take on the risk of unpaid housing debt.

The CFPB is working to address these issues, but for many renters, the need for support is immediate. Here at Epic Mortgage, Mike Stoy and his team can guide clients through the complexities of rental debt and help boost their loan readiness. Our mission is to make the path from renting to homeownership as smooth as possible!

If you know someone facing rental debt challenges? Send them our way, and we’ll help them explore their options for becoming homeowners. Let’s move from renting to owning together!

Reach out to Mike Stoy, Senior Loan Officer at Epic Mortgage in Milwaukee, to get started today! Visit www.mikestoy.com for more information.

The post The Impact of rental debt impacting Americans appeared first on Mike Stoy - Epic Mortgage.

If you or your children have Federal Student Loans in default there are two ways to get them into a better standing. If you haven’t defaulted on the loans before they’re eligible for a rehabilitation program, if they have then their only option is a consolidation program.

Below is a graphic that breaks down the difference between the two, why the rehabilitation program is the better option if available and how you can get the process started to get your student loans back into good standing.

This only applies to Federal loans, for Private loans you will need to reach out to the loan servicer to see what options are available to them.

One out of every ten Americans has defaulted on a student loan, life happens and it’s nothing to be ashamed about. If you’re trying to purchase a home and you have student loans in a charge-off status – you have options. Don’t let your student loans hold you back from achieving your goal of being a homeowner.

Why work with Mike?

With years of experience in the Milwaukee area, Mike understands the local market and has the expertise to make financing your home a smooth experience. Whether you’re a first-time homebuyer or looking to refinance, he’s here to tailor a plan that aligns with your financial goals.

• Interest Rate Expertise: Rates can be tricky these days, but Mike can help you lock in competitive options that work best for you.
• Clear, Simple Guidance: Mike explains your mortgage choices in straightforward terms, making the process as stress-free as possible.
• Online, Local, Personalized: Mike can meet in person or online, at your convenience. You get the flexibility to handle your loan wherever, whenever.

Ready to take the next step? Contact Mike Stoy today for a no-pressure consultation and see how easy home financing can be with the right expert by your side!

The post Student Loans getting the best of you? Rehabilitation vs Consolidation appeared first on Mike Stoy - Epic Mortgage.

With higher mortgage rates slowing buyer activity and more homes hitting the market, it’s crucial to be diligent in your selling process. Sellers benefit a great deal by using an agent to help walk you through. Agents help you stay informed and flexible while helping you navigate a smoother path to a successful closing! Here’s how a real estate agent can help you avoid costly mistakes:

1. The Value of a Real Estate Agent  Going it alone can be a big mistake. An agent’s expertise in pricing and negotiations can lead to a smoother process and a better sale price. Time is money and getting help will be a huge deal!

2. Setting the Right Price  An agent can help you set a competitive price based on local trends and recent sales. Overpricing can cause your home to sit on the market, potentially deterring buyers.

3. Don’t Let Pride Get in the Way  Remember, it’s business. Low offers are a starting point for negotiation, not an insult. An experienced agent will guide you through this process.

4. Attention to Detail  Overlooked repairs can turn buyers away. A professional, unbiased eye can help identify even minor issues. It’s best to address these before listing your home.

5. Be Flexible in Negotiations  With more homes available, buyers may request repairs or help with closing costs. Being open to these discussions can keep the sale on track. Your agent will advise you on reasonable requests.

6. Third Party Connections  You may need other professionals to help you through the process. One example is when repairs are needed or negotiated. Roofers, Electricians, Drywall Specialists, Painters, Plumbers, Tree Services not to mention Attorneys and Title Companies are just a few that can be costly if you do not have a great recommendation. Timing is important, but managing stress is also critical.

My Best Recommendation: Work with a real estate agent!

For all your mortgage needs, trust Epic Mortgage’s Mike Stoy, a Senior Mortgage Professional, to guide you through the financing process and ensure a successful sale! He can recommend some of the best Real Estate Agents in the Business.

The post Are You Thinking of Selling Your Home? Here are some Common Mistakes You May Want to Avoid! appeared first on Mike Stoy - Epic Mortgage.

As interest rates dipped this past week, nearing levels last recorded in March, the focus intensifies on the Federal Reserve’s stance and the path forward.

Will there be Cuts?

During the recent Federal Reserve meeting, Chair Powell surprised many by suggesting no further rate cuts in 2024, a sharp reduction from earlier predictions. This cautious stance stems from inflation running higher than anticipated, prompting the Fed to contemplate just one rate cut this year.

Conversely, market sentiment, including views from Wall Street, leans towards expecting two cuts: possibly in September followed by another in November. This discrepancy underscores differing outlooks on economic conditions and the Fed’s response.

Understanding the Divide

Amidst signs of economic slowdown and indications of waning consumer spending—a critical driver of economic growth—the outlook appears cautious. Consumer spending constitutes a substantial portion of economic activity, making any retreat worrisome. A key concern for the Fed is avoiding a scenario where economic stagnation leads to rising unemployment and potential recession. Their strategy aims for a ‘soft landing’, maintaining relatively higher rates to navigate economic adjustments with minimal disruption.

Indicators to Watch

Recent Retail Sales figures, adjusted for inflation, reveal a concerning trend: real sales have turned negative, suggesting a shift towards higher prices rather than increased consumption. Historically, such patterns precede economic downturns, highlighting the importance of consumer behavior as a leading economic indicator.

Similarly, declines in Housing Starts and Permits for May underscore challenges in the housing market, influenced by affordability concerns amidst elevated interest rates. Expectations of rate adjustments could swiftly alter this landscape.

Observing Real-World Impacts

Amidst economic data revisions and volatility, real-world observations offer insights. Recent initiatives by major corporations—such as value meals and price reductions by McDonald’s and Starbucks—reflect efforts to stimulate consumer interest amidst economic uncertainties. While such measures aid in curbing inflation, excessive consumer caution could inadvertently trigger a recessionary cycle.

Responding to Unforeseen Weakness

The Fed’s strategy hinges on sustained economic resilience, albeit poised to react to ‘unexpected weakness’ in the labor market. Current indicators, like a notable rise in initial unemployment claims, suggest potential vulnerabilities. Meanwhile, job market dynamics, including hire rates, depict a gradual return to pre-pandemic norms, albeit with declining momentum.

Looking Ahead

In conclusion, the recent labor market softness and economic indicators could align with the Fed’s goal of moderating inflation. However, ongoing scrutiny of economic fundamentals remains imperative, as developments in consumer behavior and job market health will guide future policy decisions.

As always, look to your Epic Mortgage Team to find you and your clients the best possible options and rates for your clients. Contact Mike Stoy with any questions, we are here to help.

The post The Fed’s Dilemma: Interest Rates and Economic Signals appeared first on Mike Stoy - Epic Mortgage.

Interest rates on mortgages reflect the level of risk for lenders. The higher the perceived risk of repayment, the higher the interest rate charged to offset that risk.

Factors Affecting Your Rate

Several factors influence the interest rate you’ll receive:

1. Credit Score

Your credit score is paramount. Most lenders use FICO scores, ranging from 300-850, to gauge creditworthiness. A score of 720 or higher historically gets you better rates, but even higher scores can improve your terms. Target 780 or better for best results. If your score is low, you may not qualify for a mortgage or may need a larger down payment.

2. Loan-to-Value Ratio and Down Payment

The loan-to-value (LTV) ratio compares the loan amount to the home’s value. A higher down payment lowers the LTV ratio, reducing risk for lenders. Borrowers with lower LTV ratios are often considered less risky and may get better rates. Additionally, a down payment of 20% or more typically avoids private mortgage insurance.

3. Loan Purpose, Type, and Term

The purpose of your loan (e.g., purchase, refinance) and its type (e.g., fixed-rate, adjustable-rate) affect your interest rate. Purchase loans may have lower rates than cash-out refinances, and fixed-rate loans generally have higher rates than adjustable-rate loans. Loan terms also impact rates, with shorter terms often having lower rates.

4. Loan Amount

Loan size can affect rates. Smaller loans may have slightly higher rates to cover fixed costs, while larger loans may have slightly lower rates.

5. Location

The location of the property can influence rates due to local default rates, risk factors, and foreclosure laws.

Ways to Lower Your Rate

If you want to secure a lower interest rate, consider these strategies:

1. Improve Your Credit Score

Know your FICO score and take steps to raise it if necessary. Correct any errors on your credit report promptly. Seek out a mortgage professional’s help and advice.

2. Increase Your Down Payment

A larger down payment signals lower risk to lenders, potentially leading to a lower interest rate. First Time Homebuyer specific loans can have lower rates and discounted mortgage insurance rates.

3. Pay Points on the Loan

Paying mortgage points upfront can reduce your interest rate. Each point typically costs 1% of the loan amount and can result in significant savings over time, especially if you plan to stay in the home long-term. Another way to help bring your rates down is to seek out a Temporary Buydown. You can buy down your rate for 1 to 3 years, with an idea of looking to refinance down the road when rates come down. In some cases a good way to get a Temporary Buydown to work for you is to ask the seller to pay for it. Instead of increasing or lowering a price, use a seller concession in a creative way. Seek out a mortgage professional’s help to get this done.

Contact Mike Stoy at Epic Mortgage

For expert help navigating mortgage rates and terms, contact Mike Stoy at Epic Mortgage. He can provide personalized assistance to help you secure the best possible rate for your situation. Reach out at 262-424-9820 or email mike@yourepicender.com.

Understanding how lenders determine your interest rate and taking steps to improve your financial profile can save you thousands of dollars over the life of your loan.

The post Understanding Interest Rates appeared first on Mike Stoy - Epic Mortgage.

Interest rates climbed to their highest level since November this past week amid ongoing concerns about inflation. Let’s delve into what unfolded and explore the significant news for the week ahead.

Dwindling Confidence

Federal Reserve Chairman Jerome Powell addressed the issue on Tuesday:

“At the FOMC, we’ve stated that we require greater confidence in inflation moving sustainably toward 2% before considering easing policy. Recent data haven’t bolstered that confidence; instead, they suggest it may take longer than anticipated to reach that goal. Currently, given the robustness of the labor market and the progress on inflation so far, it’s appropriate to give restrictive policy more time to work and let data and the evolving outlook guide us. If higher inflation persists, we can maintain the current interest rates for as long as necessary.”

In essence, Powell indicates that recent inflation figures remain high, with unclear progress toward the Fed’s target, and they intend to keep rates elevated for an extended period.

This stance prompted a negative reaction in the bond market, with the 10-year Note spiking to 4.70%, the highest level of 2024. There’s growing skepticism in the financial markets regarding the Fed’s ability to bring inflation back down to 2% without risking a recession due to prolonged higher rates.

“Sell in May and Go Away” Coming Early?

Stocks reacted unfavorably to the surge in interest rates, experiencing a sharp selloff, pushing indices to their lowest levels since February. There’s a common adage in financial markets, “Sell in May and go Away,” suggesting investors sell stocks during May to avoid the summer months, then repurchase in the fall. The spike in rates and increasing uncertainty might have prompted investors to kick off this phenomenon a few weeks early.

Coping with Higher Rates

When interest rates spike, higher yields eventually attract investors, tempering the rate increases. This was evident as the 10-year Note reached 4.70% on Tuesday before easing to 4.57% by Thursday.

On Wednesday, in another indication that higher rates draw buyers, the Treasury Department successfully auctioned billions of dollars in 20-year bonds, with strong demand from investors.

Decline in Oil Prices

High oil prices contribute to inflation and are unfavorable for bonds. Oil, which recently hit $90 a barrel, declined to $82 on Thursday. Lower oil prices were welcomed by the bond market and provided some relief from the 2024 highs in rates.

Housing Impact

Housing Starts and Building Permits for March fell well below expectations. With the market in need of housing inventory, this weak signal is unwelcome as we enter the spring housing market. With rates still elevated in April, home builders may also express doubts that rates will come down.

With inflation concerns high and the Fed stepping back from a potential June rate cut, it’s challenging to foresee any near-term relief in interest rates. Monitoring incoming data for signs of cooling inflation will be crucial.

The post April 2024 Market Interest Rates Updates appeared first on Mike Stoy - Epic Mortgage.

The post Join us! | Open House April 20th 1:30pm-3pm appeared first on Mike Stoy - Epic Mortgage.

Are you a landlord or investor in the Milwaukee area looking to maximize your rental income and expand your portfolio? If so, you’ll want to explore the benefits of Debt-Service Coverage Ratio (DSCR) loans, a financing option that has surged in popularity since early 2023.

What are DSCR Loans?

DSCR loans are a type of financing specifically tailored for landlords and investors who own or are looking to purchase rental properties. Unlike traditional mortgages, which rely heavily on personal income and credit scores, DSCR loans primarily evaluate the income generated by the property itself to determine eligibility. This means that even if you don’t meet the standard criteria for traditional loans, such as regular employment or low debt-to-income ratios, you may still qualify for a DSCR loan.

Why Choose DSCR Loans?

1. Maximized Rental Income: By basing the loan amount on the income generated by the property, DSCR loans allow landlords and investors to leverage their rental assets to secure more favorable financing terms. This means potentially higher loan amounts and increased cash flow from your rental properties.
2. Portfolio Expansion: With DSCR loans, you can more easily finance the acquisition of additional rental properties, enabling you to grow your portfolio and diversify your investment holdings. This can lead to greater long-term wealth accumulation and financial stability.
3. Flexible Eligibility Criteria: Unlike traditional loans that heavily weigh personal financial metrics, DSCR loans offer more flexibility in eligibility requirements. Investors with non-traditional income sources or higher debt-to-income ratios can still access funding, making it an attractive option for many in the Milwaukee area.

Introducing Mike Stoy with Epic Mortgage

For over three decades, Mike Stoy with Epic Mortgage has been a trusted partner for landlords and investors in the Metro Milwaukee community. Specializing in DSCR loans since 1987, Mike and his team understand the unique needs of rental property owners and are committed to providing tailored financing solutions to help you achieve your investment goals.

Why Choose Mike Stoy with Epic Mortgage?

1. Expert Guidance: Mike Stoy and his team have a wealth of experience navigating the complexities of DSCR loans. They will walk you through every step of the loan process, ensuring you have a clear understanding of your options and helping you make informed decisions.
2. Personalized Service: At Epic Mortgage, we understand that every investor’s situation is unique. That’s why we take the time to listen to your specific needs and goals, crafting customized loan solutions that align with your investment strategy.
3. No Ratio DSCR Loans: In addition to traditional DSCR loans, Mike Stoy with Epic Mortgage also offers a No Ratio DSCR loan option. This innovative financing solution removes traditional barriers such as employment history, regular income, or debt-to-income ratios, providing even greater flexibility for investors.

Unlock the Potential of Your Rental Portfolio

Don’t let traditional financing constraints hold you back from realizing the full potential of your rental properties. Explore the benefits of DSCR loans with Mike Stoy and Epic Mortgage, and take the first step towards maximizing your rental income and growing your investment portfolio. Contact us today to learn more about how we can help you achieve your financial goals.

If you have no experience in rental property ownership or management, we do have programs that will fit that profile.

The post Unlocking Rental Potential with DSCR Loans in Metro Milwaukee appeared first on Mike Stoy - Epic Mortgage.