Two Cents: Mortgage Market | AI Tools | AMI Limit

 Good News: AMI Limits Have Increased 

In the U.S., if your annual income is below 80% of your area's Median Income (AMI), you may qualify for mortgage products with more favorable interest rates. Starting May 18, Fannie Mae has updated the AMI limits for 2025.

What does this mean for you? If you were previously just over the income threshold and missed out on programs like HomeReady, you might now be eligible. For example, in Austin, Texas, the qualifying income limit has increased from $100,800 to $107,040.

Want to check if the AMI in your area has gone up too? Click here to find out: AMI Lookup Tool

If you or someone you know is planning to buy a home soon, feel free to reach out. Let’s see if there’s a new opportunity to save money on your mortgage.

New AI-Powered Mortgage Tool

LE Optimizer – Smart Loan Estimate Analysis Tool Simply upload a client’s Loan Estimate, and LE Optimizer will automatically identify areas for cost savings—helping your clients complete the loan process faster, cheaper, and more smoothly. If you have clients comparing different loan options, give this tool a try. It provides clear, side-by-side cost comparisons that enhance your professional credibility and build client trust. Interested in a demo or have any mortgage-related questions? Feel free to reach out anytime.。

AI Loan Officer Assistant:  My intelligent loan assistant is named Jenny, You can reach her at 248-801-1872. 20 Days After Closing: Jenny will kindly remind you to set up automatic mortgage payments, helping you avoid any risk of missed or late payments. 180 Days After Closing: She’ll give you a friendly call to check in, see how things are going, and find out if you have any new financing needs or questions. Ongoing Rate Monitoring: Jenny constantly monitors market interest rates. If she spots a great opportunity to refinance and save money, she’ll contact you right away so you don’t miss out.

 

May Mortgage Market Recap

Despite several positive signals for the mortgage market in May—including the Federal Reserve's decision to hold interest rates steady and April’s Producer Price Index (PPI) showing signs of easing wholesale inflation—mortgage rates unexpectedly moved higher, reaching their highest level since February this year.

This upward trend in rates has been driven by multiple factors, including bond market volatility, renewed concerns over inflation, mounting U.S. government budget deficits, and Moody’s recent downgrade of the U.S. credit rating.

In the face of persistently high mortgage rates, some homebuyers have opted to move forward with their purchases now, aiming to avoid the risks of further home price increases or rising rental costs. Many of them plan to refinance in the future when rates decline, in order to optimize their loan terms and reduce long-term costs.