By Christina Dello Buono

Surging mortgage rates combined with double-digit price gains are putting homeowners and potential buyers in a tough spot. First-time homebuyers, in particular, are being squeezed out of the market – due to the fact they don’t have equity or an additional boost from the sale of an existing property.

Despite those challenges, buying a home may not be as out of reach as you think.

We sat down with Denise Richardson, Community Home Lending Advisor at Chase, to discuss how to navigate the mortgage process, what resources are available, and how increasing mortgage rates can impact your family’s homebuying dreams.

Q: How do increasing mortgage rates impact prospective homebuyers?

Richardson: Mortgage rates have nearly doubled in the last six months – from 3% in 2021 to more than 6% in 2022 – making it increasingly difficult for many Americans to purchase a home, especially those on a limited income. That difference is significant by any measure, but it could result in hundreds of dollars added to your monthly payment and thousands of dollars over the life of your loan.

Despite a challenging homebuying environment with high demand and historically low inventory, purchasing a home is still attainable – and you don’t have to go through the process alone. Getting connected early with a home lending advisor will better prepare you for the homebuying process, help you understand how much home you can afford and get you prequalified so you can shop with confidence.

Q: Is it a good idea for homebuyers to lock in a mortgage rate as soon as possible?

Richardson: There’s no one-size-fits-all approach to locking in a mortgage rate and there are many factors to consider. This is where your home lending advisor can provide more individualized counsel specific to your situation and your market.

Given the volatility of interest rates right now, we recommend locking in rates as soon as possible so you can be certain what your payments will look like on your loan. Many lenders require you to have a purchase contract in-hand before locking in your rates, but that isn’t always the case. Chase offers a Homebuyer Advantage Program, which allows you to get conditionally approved while you shop for a home.

Q: What happens if mortgage rates drop after a homebuyer locks in their rate?

Richardson: There isn’t an exact science to timing the market, and while interest rates have risen in recent months, it’s always possible that interest rates could fall. Some lenders offer a mortgage rate lock float down, which allows you to lock in an interest rate with the option to reduce if market rates fall during the lock period. This option provides you with a little more security in a volatile market and allows you to take advantage of falling interest rates.

You may be able to move to a lower rate even without the float down option, but it may require additional fees. Additionally, your lender may have particular requirements, such as being at a certain stage of the loan process, for the customer to be eligible to lower their rate.

Q: Can a homebuyer potentially let the rate lock expire by pushing back their closing date? 

Richardson: It’s certainly possible, but it isn’t likely to be beneficial for the customer. Oftentimes, lenders will only allow you to move forward with the rate you originally lock in – or the rate on the day you relock, whichever is higher.

The other thing to keep in mind is that the ability to move quickly in this environment is critical. It’s important to do your research on lender-backed resources available to you, such as Chase’s Closing Guarantee. This guarantee commits to closing customers in as little as three weeks, or they receive $5,000. The program offers buyers peace of mind knowing that they can close on their new home without delay or receive compensation that can be put toward additional costs.

There are plenty of other resources available to help boost your homebuying knowledge – especially if you are a first-time homebuyer. The Beginner to Buyer podcast is a great resource for prospective homebuyers to get answers to all their homebuying questions. Every episode offers conversations with real buyers and expert guests about each step of the process, from mortgage rates and application to closing.

Christina Dello Buono is a vice president in the Dept. of Communications, JPMorgan Chase/Northern California. 

Content sponsored by JPMorgan Chase & Co.

By Edward Henderson, California Black Media

The California – Hawaii State Conference National Association for the Advancement of Colored People (“NAACP”) NAACP and Conference President Rick Callender have taken legal action against California Secretary of State Shirley Weber asking that a statement included in the Argument Against Proposition 26 in the ballot pamphlet for the Nov. 8, 2022, statewide general election be removed.

Prop 26 would permit federally recognized Native American tribes to operate dice games, roulette and sports wagering on tribal lands. On-site wagering at privately operated horse-racing tracks in four specified counties for betters 21 years or older would become legal as well. The proposition also imposes a 10% tax on sports-wagering profits at horse-racing tracks and directs portion of revenues to enforcement and problem-gambling programs.

The lawsuit is challenging a statement from the “No on Prop 26” opposition using a quote from Minnie Hadley-Hempstead, former president of the NAACP’s Los Angeles branch. Hadley-Hempstead’s opposition statement read as follows:

“‘We oppose Prop 26 to protect young people from developing lifelong gambling addictions that often lead to ruined finances, relationships, even homelessness and crime.’ Minnie Hadley-Hempstead, retired teacher and President Emeritus of the Los Angeles NAACP Branch.”

The lawsuit claims the quote gives “the false and misleading impression” that the NAACP opposes Prop 26. The NAACP endorsed Prop 26 in February 2022. In addition, the Los Angeles branch of the NAACP has not endorsed the No on Prop 26 campaign. The NAACP bylaws prohibit local branches from taking positions contrary to the state branch. The lawsuit also raises concern about how the quote was obtained.

“The NAACP is proud to stand with Indian Tribes in strong support of Prop 26 to help further Indian self-reliance,” Callender said in a statement given to California Black Media (CBM). “We are outraged that the card room casinos and their No on 26 campaign would deceptively use the NAACP name in its arguments despite our strong support. We are suing to have these dishonest statements removed from the ballot arguments so it does not mislead voters.”

Callender’s lawsuit further points out that the position ‘President Emeritus’ does not exist within the NAACP and the only branch that can clear use of the trademarked term NAACP in support or opposition of any legislation is the state branch of the organization.

A declaration in support of the lawsuit from Hadley-Hemp. stead describes how she believes she was misled or misunderstood when she was asked to give the statement by Betty Williams, former President of the Sacramento Chapter of the NAACP.

Hadley-Hempstead declared that she was under the impression that Williams still worked for the state branch and believed that her statement against Prop 26 was in solidarity with Callender and the position of the state branch.

In her declaration, Hadley-Hempstead says “If I had known that Ms. Williams wasn’t working on behalf of NAACP, I would have said no right away…… As a long-time NAACP member, I would not agree to lend my name to a public document that took a contrary position to the official NAACP position and would not knowingly violate the NAACP’s bylaws.”

“The card room casino operators responsible for the deceptive No on 26 campaign have a well-documented and deplorable track record of flouting the law,” Callender told CBM. “They’ve been fined millions for violating anti money-laundering laws, misleading regulators, and even illegal gambling. We are suing to prevent their misleading statements from appearing in the voter information guide sent to tens of millions of voters.”

The Elections Code provides for a 20-day period to review the ballot materials and file any legal challenges. Because all legal challenges to ballot materials for the November 8, 2022, statewide general election must be completed by August 15, 2022, the lawsuit was filed on August 1.

By Tanya Dennis

Last week, the Oakland City Council approved $250,000 to assist the East Bay Association of Black Psychologists (EBABP) and Oakland Frontline Healers (OFH) open two emergency mental health centers, one at True Vine Ministries and BOSS in East Oakland.

Oakland Frontline Healers, a collaborative of Black-led non-profits and medical doctors that joined together in April of 2020, to combat COVID-19 in the African American community by providing free PPE, testing, vaccines and support services.

Last October the collaborative, after assessing their successful frontline status in serving the African American community determined they must address other critical issues. They decided to address Black mental health.

Reaching out to the East Bay Association of Black Psychologists, Oakland Frontline Healers discovered that providing mental health services specifically to Black folks would be more detailed then simply securing a space and providing services.

Dr. Wade Nobles, a co-founder of the Black Psychologists Association, revealed that the European model had done a disservice to the African American community. In October 2021, the American Psychologists Association offered a public apology to the African American community with a commitment to “shed racist and colonial roots to embody the principles of equity, diversity, and inclusion to become an actively antiracist discipline.”

With that knowledge, both EBABP and OFH committed to creating an African-centered mental wellness model.

“The COVID-19 pandemic has glaringly illuminated the disparities in America that compromises Black health daily,” Nobles said. “Unfortunately, incarceration or worse is presented as the only recourse as resources addressing Black trauma is extremely limited and for many non-existent.

The economic, physical, and spiritual damage, coupled with the pandemic crisis, must be met with healing and love, he continued. “Black people must save ourselves, for no one is coming to our rescue. Therefore, we are working towards constructing an African American Healing Hub that embraces African-centric mental wellness modalities utilizing a holistic approach.”

Vice-Mayor Rebecca Kaplan spearheaded the City Council to approve $250,000 of City funds towards the training of “culturally congruent” behavioral specialists and frontline workers to support mental wellness in the African American community.

Vice-Mayor Rebecca Kaplan agreed after attending the group’s town halls and submitted a proposal to award $250,000 to the project for culturally congruent training for behavioral specialists and frontline providers.

“The City Council’s vote of confidence and support is amazing! Their vote aligns with the African-centric tenet that it takes an entire community to ensure the wellness of the village,” said OFH facilitator Tanya Dennis.

The Association of Black Psychologists and Oakland Frontline Healers are currently working with Alameda County on the healing hubs and a healing center that has been in planning since 2015.

Dr. Lawford Goddard, an EBABP representative says, “We are committed to wellness, and treating the whole person and the whole community. Our project with the County, once complete, will also serve as a representative of our culture.”

They envision a space for meetings, conferences and banquets, a place where self-care like yoga, Reiki, urban gardening, massage, dance, drumming, healing circles and fun activities that promote wellness are offered.

“Unfortunately, our project with the County is three years or more in the future and we cannot wait,” Goddard said. “We must help our people now, by working with Oakland Frontline Healers and their emergency healing hubs enabling us to provide services within months.”

The County has committed $19 million toward the purchase of a site to establish a larger complex that will embody African American wellness as envisioned by EBASP.