Mortgage rates are still ridiculously low thanks to our governments continued support. Mortgage rates have been trending higher since late last year and may have some who have been "sitting on the fence" to lock in a 30 year Fixed rate in the low 3's. If you missed out on locking into these low rates, a 10 Year ARM may be worth considering.
A 10 year adjustable rate mortgage is Fixed for 10 years and then at 120 months, the interest rate will adjust based on the current 12 mo. LIBOR plus a margin. The rate will adjust again on the anniversary of the first adjustment date for the remainder of the term of the mortgage. If you're not planning on selling or refinancing your home before the 10 year fixed period is over, your risk is the uncertainty of where LIBOR will be 10 years from now. Call me with any questions and I would be happy to compare the two scenarios for you.
The good news coming from the FED is that they will leave rates unchanged and plan to continue to manipulate mortgage rates until unemployment improves. They will continue purchasing additional agency mortgage backed securities at a pace of $40 Billion per month and longer term Treasure securities at a pace of $45 Billion per month. Take together, these actions should maintain downward pressure on longer-term interest rate, support mortgage markets, and help to make broader financial conditions more accommodative.
With this news, we'll hopefully see rates become lower in the coming weeks. I'll keep everyone posted and please don't hesitate to reach out to me if you have any questions or want me to run a quick mortgage analysis.
Wednesday, March 20, 2013
Thursday, March 7, 2013
HARP 3.0 Update
HARP 3.0 has been revised and the bill is being presented to Congress. The bill would change guidelines for ALL Lenders to have access to the exclusive guidelines given to the homeowner's current loan provider/servicer, which will present a level playing field for consumers and/or lenders.
HARP is specific to each agency (Fannie Mae / Freddie Mac ) while there is one set of guidelines for ALL Lenders and another set of guidelines for the homeowner's current servicer. If you decide to refinance under the HARP Program with your current lender/servicer, the guidelines are much easier for you. If the homeowner decides to use any other lender to refinance under the program, the guidelines are much more strict.
The HARP 3.0 proposal would improve several issues such as Underwriting Overlays, Pricing, Non-Servicer refinancing guidelines, etc.....if passed, this will give the homeowner the ability to shop around to multiple lenders so they can guarantee they're getting the best possible rate available to them along with being able to refinance w/ any lender under one set of guidelines. In a nutshell, if passed, this will be very good for homeowners.
If you have any questions, please don't hesitate to reach out to me. I will continue to keep updating this blog when it comes to HARP guidelines and any changes that may occur.
HARP is specific to each agency (Fannie Mae / Freddie Mac ) while there is one set of guidelines for ALL Lenders and another set of guidelines for the homeowner's current servicer. If you decide to refinance under the HARP Program with your current lender/servicer, the guidelines are much easier for you. If the homeowner decides to use any other lender to refinance under the program, the guidelines are much more strict.
The HARP 3.0 proposal would improve several issues such as Underwriting Overlays, Pricing, Non-Servicer refinancing guidelines, etc.....if passed, this will give the homeowner the ability to shop around to multiple lenders so they can guarantee they're getting the best possible rate available to them along with being able to refinance w/ any lender under one set of guidelines. In a nutshell, if passed, this will be very good for homeowners.
If you have any questions, please don't hesitate to reach out to me. I will continue to keep updating this blog when it comes to HARP guidelines and any changes that may occur.
Wednesday, February 27, 2013
HARP 2.0
Hope you all are having a great week! The HARP2.0 (Home Affordable Refinance Program) is designed to assist homeowners with good credit standing, be able to refinance their home loans even if they owe more than the home's current value. The govt. has revamped the guidelines and offers an option for "underwater" homeowner's who owe more than their home's current value to refinance.
The goal of this program is to put responsible borrowers in a better financial position by :
- Reducing the interest rate along with monthly payments
- Possibly reducing the term which means you payoff your mortgage sooner
- Moving from a 'risky' Adjustable Rate Mortgage into a more 'stable' Fixed product under these low rates
There are a few stipulations around the product of course. Those include :
- Currently employed
- No Tax Liens or Judgements on Title
- Loan is owned by Fannie Mae or Freddie Mac prior to June 1st, 2009 : go to www.efanniemae.com/sf/mha/mharefi
There are so many advantages to this program and it's worth looking into to see if you qualify for this loan as it won't be around for much longer. If you fall within the Conforming Jumbo or High Balance loan amounts, there might be some options for you as well. Bottom line is that there are options to refinance if you're underwater. Contact me with any questions, I would be more than happy to do a mortgage analysis for you to see what's available to you. Have a great week!
Jimmy
The goal of this program is to put responsible borrowers in a better financial position by :
- Reducing the interest rate along with monthly payments
- Possibly reducing the term which means you payoff your mortgage sooner
- Moving from a 'risky' Adjustable Rate Mortgage into a more 'stable' Fixed product under these low rates
There are a few stipulations around the product of course. Those include :
- Currently employed
- No Tax Liens or Judgements on Title
- Loan is owned by Fannie Mae or Freddie Mac prior to June 1st, 2009 : go to www.efanniemae.com/sf/mha/mharefi
There are so many advantages to this program and it's worth looking into to see if you qualify for this loan as it won't be around for much longer. If you fall within the Conforming Jumbo or High Balance loan amounts, there might be some options for you as well. Bottom line is that there are options to refinance if you're underwater. Contact me with any questions, I would be more than happy to do a mortgage analysis for you to see what's available to you. Have a great week!
Jimmy
Tuesday, February 19, 2013
Steps To Owning A Home
Hello ALL. I'm finally getting back into posting weekly BLOG posts so keep a look out for these on a regular basis. If homeownership is on your list of goals for 2013, I've put together a list of steps that will help you achieve this goal. This can be very obtainable for everyone, and it doesn't have to be intimidating.
Buying a home is possibly the single biggest investment you are likely to make. Getting as much information as possible from your mortgage advisor is the surest way to make things go smoothly. I have outlined the process to 5 basic steps in buying a home.
1. Preparation : determine how much you can afford. Start by writing down your budget and how much you can comfortably afford each month. Monthly payment, down payments, Fixed rate or variable rate, purchase price, etc... your mortgage professional will help with all of these and create a mortgage analysis based on your specific situation.
A. Credit scores : every loan starts with reviewing your credit scores and credit history. This will affect the interest rate that you're offered from the lender. It is very important to review your credit report that your mortgage professional pulls to validate the report is 100% accurate.
B. Documentation : get your income, assets, personal items in order for review. It is important to show 2 years employment history with NO job gaps unless you're able to explain it to lender.
C. Request Pre-Approval from lender : after your mortgage professional has reviewed all documentation, they will be able to provide you with an accurate Pre-Approval letter that will within your budget.
2. Shop for your home : once you have Pre-Approval letter in hand from your lender, you will begin the home shopping process. It is very important to have a real estate agent that you can trust and that is very determined to find a home that fits your specific needs.
A. Make an offer : you find your home and you make an offer.
3. Choose your Mortgage terms/programs : once you have Mutual Acceptance and the seller agrees to your offer, you will begin the loan process. It is very important to choose a loan type that fits your specific needs and your mortgage professional can assist you with understanding the details of all the programs available to you.
4. Submit the loan application to lender for Loan Approval : this process is the most important one of all in my opinion. You will submit all of the necessary documents to the lender and you will wait for Underwriting Approval. Once you have Loan Approval, you will most likely have some "loan conditions" to meet in order to get this loan closed. You will work on those with your mortgage professional.
5. Close your Loan : once all of the loan conditions have been met to the lender's standards, the lender draws the documents for you to sign and we close on the home loan.
From the time you find your Dream Home, the loan process usually takes anywhere from 2-4 weeks depending on the scenario. It is very important to find a Mortgage Professional that will help you through this process and make it as smooth as possible for you. Hopefully, these simple steps will help you understand the process a little better.
Have a great rest of your day/week! Please don't hesitate to reach out to me if you have a question.
JV
Buying a home is possibly the single biggest investment you are likely to make. Getting as much information as possible from your mortgage advisor is the surest way to make things go smoothly. I have outlined the process to 5 basic steps in buying a home.
1. Preparation : determine how much you can afford. Start by writing down your budget and how much you can comfortably afford each month. Monthly payment, down payments, Fixed rate or variable rate, purchase price, etc... your mortgage professional will help with all of these and create a mortgage analysis based on your specific situation.
A. Credit scores : every loan starts with reviewing your credit scores and credit history. This will affect the interest rate that you're offered from the lender. It is very important to review your credit report that your mortgage professional pulls to validate the report is 100% accurate.
B. Documentation : get your income, assets, personal items in order for review. It is important to show 2 years employment history with NO job gaps unless you're able to explain it to lender.
C. Request Pre-Approval from lender : after your mortgage professional has reviewed all documentation, they will be able to provide you with an accurate Pre-Approval letter that will within your budget.
2. Shop for your home : once you have Pre-Approval letter in hand from your lender, you will begin the home shopping process. It is very important to have a real estate agent that you can trust and that is very determined to find a home that fits your specific needs.
A. Make an offer : you find your home and you make an offer.
3. Choose your Mortgage terms/programs : once you have Mutual Acceptance and the seller agrees to your offer, you will begin the loan process. It is very important to choose a loan type that fits your specific needs and your mortgage professional can assist you with understanding the details of all the programs available to you.
4. Submit the loan application to lender for Loan Approval : this process is the most important one of all in my opinion. You will submit all of the necessary documents to the lender and you will wait for Underwriting Approval. Once you have Loan Approval, you will most likely have some "loan conditions" to meet in order to get this loan closed. You will work on those with your mortgage professional.
5. Close your Loan : once all of the loan conditions have been met to the lender's standards, the lender draws the documents for you to sign and we close on the home loan.
From the time you find your Dream Home, the loan process usually takes anywhere from 2-4 weeks depending on the scenario. It is very important to find a Mortgage Professional that will help you through this process and make it as smooth as possible for you. Hopefully, these simple steps will help you understand the process a little better.
Have a great rest of your day/week! Please don't hesitate to reach out to me if you have a question.
JV
Monday, January 3, 2011
Tuesday, December 14, 2010
Have we seen the last of the low interest rates?
Possibly! The Federal Reserve said Tuesday it will maintain the pace of it's $600 billion Treasury bond buying program because the economy is still too weak to bring down high unemployment. The Fed's purchases are intended to lower long-term interest rates, lift stock prices and encourage spending. It's decision not to increase its purchases rattled bond investors, who fear a tax cut plan in Congress could fuel enough growth to drive up interest rates.
The worry is that the Fed's bond buying plan won't achieve its goal of reducing long-term rates. After the Fed issued its statement, Treasury prices sank, pushing their yields higher and mortgage interest rates higher today. The 10 yr. Treasury note jumped to it's highest level since May....and the 10 yr. note helps set rates on many kinds of loans including mortgages.
With this said, higher mortgage rates could slow, and potentially derail the economy's progress. It will be very interesting to see how this bond buying plan affects the economy and mortgage interest rates over the next few months. Please let me know if you have any questions about your current mortgage financing situation or if I can be of assitance to any of your friends, family members or co-workers.
Happy Holidays!
The worry is that the Fed's bond buying plan won't achieve its goal of reducing long-term rates. After the Fed issued its statement, Treasury prices sank, pushing their yields higher and mortgage interest rates higher today. The 10 yr. Treasury note jumped to it's highest level since May....and the 10 yr. note helps set rates on many kinds of loans including mortgages.
With this said, higher mortgage rates could slow, and potentially derail the economy's progress. It will be very interesting to see how this bond buying plan affects the economy and mortgage interest rates over the next few months. Please let me know if you have any questions about your current mortgage financing situation or if I can be of assitance to any of your friends, family members or co-workers.
Happy Holidays!
Thursday, December 9, 2010
6 smart steps every new homeowner should take
What could be more exciting than taking the leap from renter to first-time homeowner? You can turn the key in a lock that no landlord has access to, read in a hammock in your own backyard and paint your dining room bright red. Some first-time homeowners get swept up in all the excitement and make mistakes that can jeopardize everything they've worked so hard to earn. Don't be one of those people that makes 1 of these seven mistakes so you can ensure that your first home becomes the place of luxury and financial freedom you expected it to be.
Don't overspend on furniture and remodeling
You've just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners. Not only are their savings depleted, but their monthly expenses are often higher as well, thanks to new expenses such as water and trash bills and extra insurance.
You've just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners. Not only are their savings depleted, but their monthly expenses are often higher as well, thanks to new expenses such as water and trash bills and extra insurance.
Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don't go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren't worth jeopardizing your new status as a homeowner. Give yourself time to adjust to the expenses of homeownership and rebuild your savings; the cabinets will still be waiting for you when you can more comfortably afford them.
Don't ignore important maintenance items
One of the new expenses of homeownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent-increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn't neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.
One of the new expenses of homeownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent-increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn't neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.
Hire qualified contractors
Don't try to save money by making improvements and repairs that you aren't qualified to make. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything you value highly. There's nothing wrong with painting the walls yourself, but if there's no wiring for an electric opener in your garage, don't cut a hole in the wall and start playing with copper. Hiring professionals to do work you don't know how to do is the best way to keep your home in top condition and avoid injuring — or even killing — yourself.
Don't try to save money by making improvements and repairs that you aren't qualified to make. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything you value highly. There's nothing wrong with painting the walls yourself, but if there's no wiring for an electric opener in your garage, don't cut a hole in the wall and start playing with copper. Hiring professionals to do work you don't know how to do is the best way to keep your home in top condition and avoid injuring — or even killing — yourself.
Get help with your tax return
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you're already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Homeownership significantly changes most people's tax situation and the deductions they are eligible to claim. Getting your taxes professionally done for one year can give you a template to use in future years if you want to resume doing your taxes yourself. And remember, tax-preparation expenses are tax deductible, so whatever your marginal tax rate is, think of that as a discount on the cost of the service.
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you're already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Homeownership significantly changes most people's tax situation and the deductions they are eligible to claim. Getting your taxes professionally done for one year can give you a template to use in future years if you want to resume doing your taxes yourself. And remember, tax-preparation expenses are tax deductible, so whatever your marginal tax rate is, think of that as a discount on the cost of the service.
Don't confuse a repair with an improvement
Unfortunately, not all home expenses are treated equally for the purpose of determining your home's basis. The Internal Revenue Service considers repairs to be part and parcel of homeownership — something that preserves the home's original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn't care — you did get a discount on the purchase price because of those unmade repairs, after all. Only improvements, such as replacing the roof or adding central air conditioning, will help decrease your future tax bill when you sell your home.
Unfortunately, not all home expenses are treated equally for the purpose of determining your home's basis. The Internal Revenue Service considers repairs to be part and parcel of homeownership — something that preserves the home's original value but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn't care — you did get a discount on the purchase price because of those unmade repairs, after all. Only improvements, such as replacing the roof or adding central air conditioning, will help decrease your future tax bill when you sell your home.
or gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant. And on a nontax-related note, don't trick yourself into thinking it's OK to spend money on something because it's a necessary "repair" when in truth it's really a fun improvement. That isn't good for your finances.
Get properly insured
Your mortgage lender requires you not only to purchase homeowners insurance, but also to purchase enough to fully replace the property in the event of a total loss. But that's not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it's a girlfriend or a child, you'll need life insurance with that person named as a beneficiary so he or she won't lose the house if you die unexpectedly. Similarly, you'll want to have disability insurance to replace your income if you become so disabled that you can't work.
Also, once you own a home, you have more to lose in the event of a lawsuit, so you'll want to make sure you have excellent car-insurance coverage. If you are self-employed as a sole proprietor, you may want to consider forming a corporation for greater legal protection of your assets. You may also want to purchase an umbrella policy that picks up where your other policies leave off. If you are found at fault in a car accident with a judgment of $1 million against you and your car insurance covers only the first $250,000, an umbrella policy can pick up the rest of the slack. These policies are usually issued in the millions.
Wednesday, November 17, 2010
Mortgage Rates Heading Higher
Mortgage Rates are .25% higher from last week at this time. This also translates that the same rate a week ago that you could have gotten for NO Points, now will probably cost you anywhere from .75% - 1% in fees. Something to keep in mind too, are that mortgage rates tend to go UP a lot faster than they go down - so they might stay up a bit for a while. I will be posting weekly rates for your convenience starting next week.
If you have any questions about financing, please don't hesitate to reach out to me. I'm happy to help you with all of your mortgage needs! Have a great rest of your day.
If you have any questions about financing, please don't hesitate to reach out to me. I'm happy to help you with all of your mortgage needs! Have a great rest of your day.
Thursday, July 22, 2010
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