A first time home buyer tax extension has been a very hot topic in Washington this past week. The tax credits are set to expire on April 30th, and many first time and move up buyers are wondering if there is gonig to be another extension. At this time it looks as if there will no extension and the expiration will take place on Friday.
I will keep you updated regarding the extension. Let me know if you have any questions.
Tuesday, April 27, 2010
Tuesday, April 20, 2010
Are You Looking to Refinance or Purchase a New Home?
Now is a great time to do either one of these if you're thinking about it while interest rates are still very low.
Refinancing : there are many programs available that are designed to help homeowners refinance even if you're underwater and your home value has gone down like in most cases these days. You can potentially save several hundred dollars monthly to go along with skipping 1-2 months of your current mortgage payments. With interest rates still very good, it's a great opportunity to take advantage of these Home Affordable Refinance Programs that won't be around for much longer.
Purchases : the same goes for purchasing a new home. I'm hoping the government decides to extend the tax credit again as this one ends April 30th, that will be a great incentive to upgrade your home or get a tax credit if you're a First Time Home Buyer. The home inventory is very high and prices are low, it's a great opportunity to get into your dream home at an affordable price.
Please don't hesitate to reach out to me so I can do an individual mortgage analysis and see what you can qualify for. I look forward to hearing from you and please refer any friends, family members or co-workers that are in the market as well.
Have a great rest of your day and week! Take care ~
Refinancing : there are many programs available that are designed to help homeowners refinance even if you're underwater and your home value has gone down like in most cases these days. You can potentially save several hundred dollars monthly to go along with skipping 1-2 months of your current mortgage payments. With interest rates still very good, it's a great opportunity to take advantage of these Home Affordable Refinance Programs that won't be around for much longer.
Purchases : the same goes for purchasing a new home. I'm hoping the government decides to extend the tax credit again as this one ends April 30th, that will be a great incentive to upgrade your home or get a tax credit if you're a First Time Home Buyer. The home inventory is very high and prices are low, it's a great opportunity to get into your dream home at an affordable price.
Please don't hesitate to reach out to me so I can do an individual mortgage analysis and see what you can qualify for. I look forward to hearing from you and please refer any friends, family members or co-workers that are in the market as well.
Have a great rest of your day and week! Take care ~
Wednesday, April 14, 2010
Fed Stopped buying Mortgage Backed Securities ; What happens to Mortgage Rates now?
Mortgage Rates took a major beating last week after the FED officially stopped buying mortgage backed securities. If last week was any indication this is not going to be a slow rise in interest rates as a lot of experts had predicted.
From what I've seen so far, we are definitely looking at mid to high 5% by the end of the year, if not higher.
If you we're looking to buy a house and had a Pre-Approval done, it may be a good idea to get it reviewed again by your lender. An already .25% increase in rate means that you may not qualify for the same amount of mortgage that you did 1 or 2 weeks back. And, if you are looking to refinance, your opportunity to get a low rate may be limited.
If you like to be updated on the mortgage market on a daily basis and hence the mortgage rate market is moving, follow my blog.
From what I've seen so far, we are definitely looking at mid to high 5% by the end of the year, if not higher.
If you we're looking to buy a house and had a Pre-Approval done, it may be a good idea to get it reviewed again by your lender. An already .25% increase in rate means that you may not qualify for the same amount of mortgage that you did 1 or 2 weeks back. And, if you are looking to refinance, your opportunity to get a low rate may be limited.
If you like to be updated on the mortgage market on a daily basis and hence the mortgage rate market is moving, follow my blog.
Thursday, April 8, 2010
HomeBuyers Scramble As Mortgage Rates Rise
Here is a great article that I thought I'd share.
http://www.msnbc.msn.com/id/36231595/ns/business-real_estate
Interest Rates as we have learned to know them are soon to be on the rise. If you're looking to either refinance or purchase a new home, now would be the time as these historically low interest rates won't be around much longer. Give me a call if you have any questions.
http://www.msnbc.msn.com/id/36231595/ns/business-real_estate
Interest Rates as we have learned to know them are soon to be on the rise. If you're looking to either refinance or purchase a new home, now would be the time as these historically low interest rates won't be around much longer. Give me a call if you have any questions.
Friday, April 2, 2010
First Time Home Buyer Tax Credit Ends on April 30th - Time Is Running Out!!!
The expiration of the first time home buyer tax is April 30th and so many buyers will be scrambling to get under contract before this date to qualify. It will be very interesting to see if there is an extension to this Tax Credit (again). If there is going to be an extension it is going to have to come very soon.
The housing market has shown signs of stabilization but there is still a long way to go. It will be interesting to see how the Obama Administration crunches the numbers when it come to the economy and home prices. Some markets still yet to recover and the tax credit may help if extended.
This is a great opportunity if you're looking to buy a home, but time is running out. Please contact me if you have any other questions regarding this tax credit or anything else related to home financing. I look forward to hearing from you.
J
The housing market has shown signs of stabilization but there is still a long way to go. It will be interesting to see how the Obama Administration crunches the numbers when it come to the economy and home prices. Some markets still yet to recover and the tax credit may help if extended.
This is a great opportunity if you're looking to buy a home, but time is running out. Please contact me if you have any other questions regarding this tax credit or anything else related to home financing. I look forward to hearing from you.
J
Thursday, March 25, 2010
Bank of America to reduce mortgage principal for some homeowners
This won't apply to everyone, only about 45,000 homeowners across the nation but think this is a great avenue for homeowners who aren't able to refinance or underwater currently.
http://seattletimes.nwsource.com/html/businesstechnology/2011432198_mortgages25.html
Please don't hesitate to call or email me if you have any questions or want me to do a quick mortgage analysis. Take care ~
http://seattletimes.nwsource.com/html/businesstechnology/2011432198_mortgages25.html
Please don't hesitate to call or email me if you have any questions or want me to do a quick mortgage analysis. Take care ~
Tuesday, March 23, 2010
2 Refinancing Options If You're Underwater
Government-backed programs can help with refinancing for homeowners who don't have equity in their property.
Homeowners whose mortgage balance exceeds the current property value know the futility of trying to refinance. Refinancing options for so-called "underwater" mortgages are limited because most lenders require some equity in the property - ideally about 20 percent.
However, borrowers should NOT give up hope. Options do exist, especially via the governments Making Home Affordable program.
First option: HARPIf you meet certain criteria, your underwater loan may be eligible for a refinance through the federal Home Affordable Refinance Program, or HARP. The program allows qualified borrowers to refinance a loan that is from 105% to as high as 125% of a home's value.
However, not every underwater loan qualifies for HARP. First, you must not be on the road to foreclosure: Any delinquent payments in the past 12 months will automatically disqualify you from eligibility.
Second, either Fannie Mae or Freddie Mac must own the loan. You can find a loan lookup tool and other calculators at the government's Making Home Affordable Web site.
Please don't hesitate to reach out to me if you have any questions or concerns about your current mortgage loan or have friend, family member or co-workers that are interested let me know. I can run a quick mortgage analysis and find out if you qualify. Look forward to hearing from you.
Homeowners whose mortgage balance exceeds the current property value know the futility of trying to refinance. Refinancing options for so-called "underwater" mortgages are limited because most lenders require some equity in the property - ideally about 20 percent.
However, borrowers should NOT give up hope. Options do exist, especially via the governments Making Home Affordable program.
First option: HARPIf you meet certain criteria, your underwater loan may be eligible for a refinance through the federal Home Affordable Refinance Program, or HARP. The program allows qualified borrowers to refinance a loan that is from 105% to as high as 125% of a home's value.
However, not every underwater loan qualifies for HARP. First, you must not be on the road to foreclosure: Any delinquent payments in the past 12 months will automatically disqualify you from eligibility.
Second, either Fannie Mae or Freddie Mac must own the loan. You can find a loan lookup tool and other calculators at the government's Making Home Affordable Web site.
Please don't hesitate to reach out to me if you have any questions or concerns about your current mortgage loan or have friend, family member or co-workers that are interested let me know. I can run a quick mortgage analysis and find out if you qualify. Look forward to hearing from you.
Tuesday, February 23, 2010
Nearly 25% of all mortgage are underwater
NEW YORK (CNNMoney.com) -- More bad news on the housing bust front: Nearly 25% of all mortgage borrowers were underwater, meaning they more on their loans than their homes are worth.
First American CoreLogic, the research firm that monitors housing equity, reported Tuesday that 11.3 million homeowners -- or 24% of all homes with mortgages -- were underwater as of the end of 2009. That's up from 23% and 10.7 million borrowers three month earlier.
Nevada was the state with the worst record at 70% of all mortgaged properties underwater. That was followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
For many homeowners, being underwater, also know as negative equity, has few consequences. If they're not planning to sell and can afford their monthly bills, they can wait out the downturn.
Foreclosures: Where does your state rank?
For others, however, plunging underwater can spell disaster. If they become unemployed or have a financial emergency, they have no equity to tap. Or, if they need to downsize or sell their home to relocate for a job, they can't.
"Negative equity is a significant drag on both the housing market and on economic growth,"said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners."
Traditionally, being underwater was one of two main factors in determining a borrower's likelihood of foreclosure. The other is having sufficient income to pay bills. But, there's an increasingly important exception: strategic default. As equity gets more and more negative, some homeowners are choosing to quit paying and give the keys to the bank.
As long as negative equity remains a big problem, it will be difficult to stem the tide of foreclosures that continue to plague many local real estate markets around the nation.
"Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come,"
First American CoreLogic, the research firm that monitors housing equity, reported Tuesday that 11.3 million homeowners -- or 24% of all homes with mortgages -- were underwater as of the end of 2009. That's up from 23% and 10.7 million borrowers three month earlier.
Nevada was the state with the worst record at 70% of all mortgaged properties underwater. That was followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
For many homeowners, being underwater, also know as negative equity, has few consequences. If they're not planning to sell and can afford their monthly bills, they can wait out the downturn.
Foreclosures: Where does your state rank?
For others, however, plunging underwater can spell disaster. If they become unemployed or have a financial emergency, they have no equity to tap. Or, if they need to downsize or sell their home to relocate for a job, they can't.
"Negative equity is a significant drag on both the housing market and on economic growth,"said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners."
Traditionally, being underwater was one of two main factors in determining a borrower's likelihood of foreclosure. The other is having sufficient income to pay bills. But, there's an increasingly important exception: strategic default. As equity gets more and more negative, some homeowners are choosing to quit paying and give the keys to the bank.
As long as negative equity remains a big problem, it will be difficult to stem the tide of foreclosures that continue to plague many local real estate markets around the nation.
"Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come,"
Why Are There No More Stated Income Loans?
It wasn’t all that long ago that there was the “perfect” loan for people who were small business owners and had very little income according to their tax returns.
They had all different kinds of names – most of them sounded pretty cool at the time. NINJA, NINA, STATED, NO DOC, LOW DOC and I am sure quite a few other names — just to name a few. There wasn’t a week that went by where some lender somewhere didn’t come out with a new loan for some market segment that up to that point was unable to obtain financing.
Had bad credit?
No problem – there was a loan program available for you.
Didn’t have any income?
Again, no problem — there was a loan program for you too.
Just filed bankruptcy?
Yep, there was a loan program for you — as long as you were at least one day out of bankruptcy.
And then it all changed.
Almost as quickly as they came, the various loan programs with cool sounding names went away.
And although there are many factors as to them going away, perhaps no factor was as big in the elimination of stated income loans as the 4506T.
The 4506T is a document that allows the lender to go and pull your tax returns with the IRS for the last few years. Prior to only a couple of years ago, virtually no lender required that you signed the 4506T when applying for a loan. Now, I am not aware of a lender who will give you a loan without a signed 4506T on file.
And although that isn’t the only reason that stated income loans went away — it is one of the biggest. Now, rather than just making you provide your income documentation prior to underwriting your loan application, most lenders now require that you also sign the 4506T so that they can actually verify that your income is correct.
And I think it was one of the wise-old-Presidents who once said:
Trust but verify.
They had all different kinds of names – most of them sounded pretty cool at the time. NINJA, NINA, STATED, NO DOC, LOW DOC and I am sure quite a few other names — just to name a few. There wasn’t a week that went by where some lender somewhere didn’t come out with a new loan for some market segment that up to that point was unable to obtain financing.
Had bad credit?
No problem – there was a loan program available for you.
Didn’t have any income?
Again, no problem — there was a loan program for you too.
Just filed bankruptcy?
Yep, there was a loan program for you — as long as you were at least one day out of bankruptcy.
And then it all changed.
Almost as quickly as they came, the various loan programs with cool sounding names went away.
And although there are many factors as to them going away, perhaps no factor was as big in the elimination of stated income loans as the 4506T.
The 4506T is a document that allows the lender to go and pull your tax returns with the IRS for the last few years. Prior to only a couple of years ago, virtually no lender required that you signed the 4506T when applying for a loan. Now, I am not aware of a lender who will give you a loan without a signed 4506T on file.
And although that isn’t the only reason that stated income loans went away — it is one of the biggest. Now, rather than just making you provide your income documentation prior to underwriting your loan application, most lenders now require that you also sign the 4506T so that they can actually verify that your income is correct.
And I think it was one of the wise-old-Presidents who once said:
Trust but verify.
Thursday, February 18, 2010
Fed Just Raised Discount Rate For First Time In 3 Years
The Fed raised the discount rate which won't bode well for interest rates. If you're thinking of refinancing or purchasing a home right now, I would recommend acting fast as this is probably just the beginning of rates on the rise. Below is an article....
Feb. 18 (Bloomberg) -- The Federal Reserve Board raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent and said the move will encourage financial institutions to rely more on money markets rather than the central bank for short-term liquidity needs.
“These changes are intended as a further normalization of the Federal Reserve’s lending facilities,” the central bank said today in a statement. “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”
The dollar jumped and Treasuries extended losses as the Fed took another step in a gradual retreat from its unprecedented actions to halt the deepest financial crisis since the Great Depression. The Fed has provided hundreds of billions of dollars in backstop credit to banks, bond dealers, commercial paper borrowers and troubled financial institutions such as American International Group Inc.
The U.S. currency rose to $1.3541 per euro at 4:40 p.m. from $1.3616 before the announcement, while the yield on two- year Treasuries increased to 0.93 percent from 0.87 percent.
The discount rate increase is effective on Feb. 19. The Board also said that effective March 18 “the typical maximum maturity for primary credit loans will be shortened to overnight.”
January Statement
The Fed Board said the outlook for policy remains “about as it was at the January meeting of the Federal Open Market Committee.” The central bank also cited last month’s statement, which said economic conditions are likely to warrant “exceptionally low” levels of the federal funds rate “for an extended period.”
It was the first increase in the discount rate in more than three years.
Feb. 18 (Bloomberg) -- The Federal Reserve Board raised the discount rate charged to banks for direct loans by a quarter point to 0.75 percent and said the move will encourage financial institutions to rely more on money markets rather than the central bank for short-term liquidity needs.
“These changes are intended as a further normalization of the Federal Reserve’s lending facilities,” the central bank said today in a statement. “The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy.”
The dollar jumped and Treasuries extended losses as the Fed took another step in a gradual retreat from its unprecedented actions to halt the deepest financial crisis since the Great Depression. The Fed has provided hundreds of billions of dollars in backstop credit to banks, bond dealers, commercial paper borrowers and troubled financial institutions such as American International Group Inc.
The U.S. currency rose to $1.3541 per euro at 4:40 p.m. from $1.3616 before the announcement, while the yield on two- year Treasuries increased to 0.93 percent from 0.87 percent.
The discount rate increase is effective on Feb. 19. The Board also said that effective March 18 “the typical maximum maturity for primary credit loans will be shortened to overnight.”
January Statement
The Fed Board said the outlook for policy remains “about as it was at the January meeting of the Federal Open Market Committee.” The central bank also cited last month’s statement, which said economic conditions are likely to warrant “exceptionally low” levels of the federal funds rate “for an extended period.”
It was the first increase in the discount rate in more than three years.
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