Mortgage Rates on the Rise in 2021

The conforming 30 year fixed mortgage rates are going up probably going to level off between 3.25 and 3.75 which is a big jump from the mid 2’s we saw just a few weeks ago and everybody wants to know why?

The short answer? The economy is improving, and rates go down with a bad economy and rates go up with a good economy.

Now if you are kicking yourself and feel like you missed the boat on a refinance, fear not! We do have a completely complimentary rate watch feature and when we see a rally we will contact you if you like. Sign up for that here: https://freshhomeloan.com/refinancing/

Market Forecast: https://youtu.be/ZxwOZRSDQFM

Back to the economy, we have hospitality, travel, and entertainment, hurting, or perhaps, completely devastated, but improving.

Remember when the Lock Down happened – that trip to the grocery store? The world was eerie and freaky and we thought we would be on lock down for a couple weeks or months. That is when all this money started going to Mortgage backed Securities and we saw those ultra-low rates. It’s a different world now. Things are looking a lot better. The Vaccine is here.

Unemployment remains high but with the vaccine rolling out, that can change. What is hurting in the economy right now is entertainment, travel, and hospitality, and who does not want to take a trip, go to a ball game or a movie or a concert or a restaurant? Pent up demand will have a huge bounce back.

Outside of those sectors as I am sure you are aware the economy has had some huge gains – take a look at the S&P from March where we see a huge drop at the beginning and then a really strong stock market as we have all witnessed.

Another reason it is happening now is we had congress tide up with the impeachment and now that that’s over it is full board stimulus and economy and rates started going up right after the impeachment. Now we have the Biden administration pushing a 1.9 Trillion dollar stimulus plan through congress. The Fed is going to continue to buy bonds however the reality is central banks around the world think it’s a big deal for inflation.

Also we are seeing:

Oil prices are going up, the world is demanding more oil as it opens.
Lumber costs are going up, the world is starting to build.
Things are going up in price and that is inflation.

What is confusing a lot of the general public is the fed telling the media they are keeping rates at zero. That the federal funds rate and not mortgage rates which are two entirely different animals. Watch our market forecast for more information on that: https://youtu.be/ZxwOZRSDQFM

And what’s confusing a lot of folks is the fed says rates are going to stay at zero but we have seen the fed funds rate at zero and mortgage rates at 5.125 – watch my market outlook – https://www.youtube.com/watch?v=ZxwOZ…

Rates are still historically low and there still is a lot of opportunity to consolidate debt buy a 2nd home or investment property.

So that’s what has happened in the last week – we will see what happens as the world opens up. Make sure you check out my market outlook for 2021 – https://www.youtube.com/watch?v=ZxwOZ…

And rate watch feature https://freshhomeloan.com/refinancing/

Find out more about our loan process here:

The post Mortgage Rates on the Rise in 2021 appeared first on Fresh Home Loan.

< Older Post

Newer Post >

Garrick Werdmuller

510-282-5456

garrick@freshhomeloan.com

A man is standing in front of a before and after picture of a house.

From Garage to ADU: How a 203(k) Loan Helped One Family Maximize Their Space

By Garrick Werdmuller • June 18, 2025

🛠️ From Garage to ADU: How a 203(k) Loan Helped One Family Maximize Their Space 🛠️ Buy It and Fix It With One Loan: The FHA 203(k) Limited A few years ago, I helped a couple purchase their home with just 5% down. It was a great fit for them at the time — solid neighborhood, the space they needed, and a bonus: a detached garage with potential. Fast forward to today — their teenage son was getting older and needed his own space. Naturally, they started exploring how to turn that detached garage into an Accessory Dwelling Unit (ADU) so he could move in and have a bit more independence. They gave me a call, hoping to tap into their home’s equity with a line of credit. But after running the numbers, it became clear that a traditional HELOC wouldn’t provide enough funds to cover the full conversion. That’s when I brought up a lesser-known option: the FHA 203(k) Limited loan . The FHA 203(k) Limited program snapshot outlines a renovation loan product allowing borrowers to finance both the purchase and rehabilitation of a property with a single mortgage , specifically for non-structural repairs or improvements. Here's a summarized overview for reference or communication: 🏡 What Is It? The FHA 203(k) Limited is designed for: Homebuyers purchasing a fixer-upper Homeowners refinancing and remodeling Primary residences only You can finance both the home and non-structural renovations—like kitchens, bathrooms, floors, HVAC systems, roofs, appliances, and more—with a single mortgage . 💡 Why Use a 203(k) Limited? ✅ Finance up to $75,000 in repairs and upgrades ✅ Only 3.5% down payment ✅ One loan, one closing ✅ No 203(k) Consultant required ✅ Ideal for non-structural repairs and cosmetic improvements ✅ Perfect for first-time buyers and FHA borrowers 🛑 What You Can’t Do With It This is for light remodeling only. You can’t use this loan for: Structural changes or additions Foundation work Landscaping (except for erosion prevention) Pools, hot tubs, or other luxury features (Bummer ! I know! 😒) 🧾 Borrower Submission Checklist Here’s what we’ll need to get started on your FHA 203(k) Limited loan: ✅ Basic Docs Loan Application (apply online or schedule an appointment) Government-issued ID Most recent 30 days of paystubs Last 2 years of W-2s or tax returns (for self-employed borrowers) Most recent 2 months of bank statements ✅ Property & Repair Info Signed Purchase Contract (if purchasing) Contractor’s Written Proposal with: Itemized list of repairs Cost breakdown (labor + materials) Statement that work is non-structural W-9 form from contractor Contractor license & insurance (if required by local jurisdiction) ✅ Appraisal & Renovation Docs Appraisal supporting As-Is and After-Improved Value Permit list (if applicable) Final Work Plan (signed off before close) 💬 Final Thoughts The FHA 203(k) Limited can turn a fixer into your dream home—or give your current space the refresh it deserves. With just one loan , you get flexibility , affordability , and peace of mind . Have a property in mind? Let's talk! 👉 Schedule a Free Consultation https://freshhomeloan.com/schedule-a-meeting/ 🏡 #FHA203k #203KLoan #RenovationLoan #FixerUpper #HomeRemodel #MortgageSolutions #FirstTimeHomeBuyer #HomeLoanHelp #RealEstateTips #MortgageBrokerLife #CaliforniaHomes #BayAreaRealEstate #CentralValleyHomes #DreamHomeGoals

A man is holding a card in front of a house.

Guía definitiva de préstamos ITIN – Tu paso hacia la compra de casa

By Smith Chung • June 18, 2025

¿Qué es un préstamo ITIN? Un préstamo ITIN es una hipoteca diseñada para personas que declaran impuestos usando un Número de Identificación de Contribuyente Individual (ITIN) en lugar de un número de Seguro Social (SSN). El ITIN lo otorga el IRS a quienes no son elegibles para un SSN pero aún así deben declarar impuestos en EE. UU. 💬 En resumen: ¿No tienes SSN? ¡No hay problema! Si has sido financieramente responsable y cuentas con documentación básica, ¡podrías calificar! 💪 👨‍👩‍👧‍👦 ¿Quién se beneficia de un préstamo ITIN? Los préstamos ITIN están diseñados para quienes persiguen el sueño americano — incluso sin documentación tradicional. Podrías beneficiarte si: 🌎 Eres inmigrante viviendo en EE. UU. sin green card ni SSN 🧾 Declaras impuestos usando un ITIN 💼 Tienes ingresos estables (W-2, por cuenta propia o incluso en efectivo con comprobantes) 💳 Pagas renta y servicios a tiempo y puedes demostrarlo 💥 Hemos ayudado a familias que pensaban que comprar casa era imposible — ¡y cerraron en solo 30–45 días! 🛠️ ¿Cómo funcionan los préstamos ITIN? Los préstamos ITIN generalmente son financiados por prestamistas no tradicionales (non-QM) o bancos especializados que operan fuera de los lineamientos de Fannie Mae/Freddie Mac. Aquí te explicamos cómo funcionan: 💰 Tipos de préstamo: Tasa fija o ajustable Compra, refinanciamiento o retiro de efectivo Propiedad principal, segunda vivienda y algunas propiedades de inversión 💵 Pago inicial: Generalmente del 10 % al 20 % A menudo se permiten fondos de regalo 📊 Crédito: En algunos casos no se requiere puntaje FICO Se puede usar historial de renta, servicios públicos o incluso crédito internacional 📉 Tasas y plazos: Ligeramente más altas que las convencionales Disponibles con tasa fija a 30 años o ARM de 5/7/10 años 📄 Documentación que necesitarás Para obtener una precalificación, debes demostrar estabilidad, ingresos y solvencia. La mayoría de los prestamistas solicitarán: 🆔 ITIN válido y vigente 📑 2 años de declaraciones de impuestos 💼 Comprobante de ingresos (W-2s, 1099s, o P&L si trabajas por cuenta propia) 🏦 2–3 meses de estados de cuenta bancarios 🌐 Identificación válida (pasaporte, matrícula consular, etc.) 🏘️ Historial de renta (comprobante bancario o carta del arrendador) 💡 Consejo extra: ¡Algunos prestamistas incluso aceptan ingresos o activos del extranjero! 🚫 Conceptos erróneos comunes sobre los préstamos ITIN ❌ Mito 1 : Los préstamos ITIN son ilegales. ✅ Falso. Son 100 % legales y cumplen con las regulaciones federales. ❌ Mito 2 : No calificas si eres trabajador independiente o te pagan en efectivo. ✅ No es cierto. Con declaraciones de impuestos o registros bancarios, definitivamente puedes calificar. ❌ Mito 3 : Te van a estafar o cobrar de más. ✅ ¡No con nosotros! Buscamos la mejor opción para tu préstamo y te explicamos todo con claridad. 🌱 ¿Por qué los préstamos ITIN son importantes para nuestras comunidades? 🏘️ Ser dueño de una casa crea riqueza generacional, estabiliza vecindarios y eleva a las familias. Para muchos inmigrantes, los préstamos ITIN son un puente hacia un futuro mejor — y nos enorgullece ser parte de ese proceso. ❤️ 🧑‍💼 Cómo pueden ayudar los agentes de bienes raíces Agentes inmobiliarios — ¡no dejen pasar esta oportunidad! Los compradores con ITIN son leales, motivados y, en muchos casos, están bien establecidos en sus comunidades. Aquí algunas formas de atenderlos mejor: 🤝 Haz equipo con prestamistas que conozcan las reglas de ITIN • 📆 Establece tiempos y expectativas realistas • 💗 Lidera con empatía y orientación 📣 ¿Quieres destacar? Dirige tu marketing a clientes con ITIN — ¡nosotros te respaldamos! 💼 El enfoque de Fresh Home Loan hacia los préstamos ITIN En Fresh Home Loan Inc., trabajamos con prestamistas confiables para ofrecer soluciones hipotecarias ITIN rápidas, justas y transparentes. Ya sea tu primera casa o una inversión, estamos contigo en cada paso. ✅ 🚀 ¿Listo para comenzar? ¿Conoces a alguien que pueda beneficiarse de un préstamo ITIN? Hagamos realidad el sueño de ser dueño de una casa — de la forma correcta, con apoyo y claridad desde el primer día. 🏠✨ “Llama hoy mismo para empezar tu precalificación — en Fresh Home Loan hablamos tu idioma y creemos en tu futuro.”