ARE WE ON THE RIGHT TRACK?

ARE WE ON THE RIGHT TRACK?

foreclosure-montageEight national banks,  Bank of America, JPMorgan Chase, Citibank, HSBC, OneWest Bank, PNC, U.S. Bank, and Wells Fargo  saw the performance of their first-lien mortgages improved in the fourth quarter of 2014, while the delinquency rate on those mortgages and the foreclosure activity continued to decline, according to a quarterly report on mortgage performance by the Office of the Comptroller of the Currency (OCC) released Friday.

The mortgages covered in the report comprised about 45 percent of all outstanding residential mortgages in the United States – about 23.1 million mortgages with principal balances totaling about $3.9 trillion as of December 31, 2014.

Foreclosure inventory dropped by 39.7 percent year-over-year in Q4 down to 315,022, and Home retention actions, which included modifications, trial period plans, and shorter-term payment plans, totaled 195,577 in Q4, a decline of 19.5 percent year over year.

What do you think…

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Mortgage Rates plummeted today after Fed’s announcement

While the average improvement of 0.10% might not look like much at face value, it’s the biggest Finding-a-refinance-rate-for-your-homeone-day drop we’ve had in 2015, and in a league with very few other players historically.

With today’s improvement, the most prevalently-quoted conventional 30yr fixed loan for top tier borrowers falls back to 3.75%.   Some lenders will remain at 3.875% today, but many feel that  those lenders held back from passing on the full effect of the market movement not an uncommon occurrence after a volatile swing like today’s.

Negative Equity continues being a Serious Concern Despite Year Over Year Decline!

Negative Equity continues being a Serious Concern Despite Year Over Year Decline!

HARP-Refinance

While the percentage of homes in the United States with negative equity has declined substantially since the fourth quarter of 2013, they experienced a slight increase quarter-over-quarter in Q4 2014, according to CoreLogic‘s Q4 2014 Equity Report released last Tuesday.

CoreLogic reported that 10.8 percent of all residential homes were underwater in Q4, this is about 5.4 million properties approximately, which was down from 13.3 percent  in the same quarter a year earlier. The Q4 total was up slightly from the 10.3 percent that was reported for Q3 2014 – an increase of 3.3 percent.

Despite the year-over-year decline in the percentage of underwater residential properties, negative equity remains a serious issue, according to Anand Nallathambi, president and CEO of CoreLogic. For the full year of 2014, 1.2 million borrowers regained equity – but nearly five and a half million properties remained in negative equity as of the end of the year after approximately 172,000 homes slipped into negative equity from the third quarter to the fourth quarter in 2014.

Approximately 10 million of the nearly 50 million residential properties with a mortgage in the United States, which is about 20 percent of these properties have less than 20 percent equity, a condition known as under-equitied.

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Timing the Real Estate Market?

Timing the Real Estate Market?

Don’t obsess with trying to time the market and figure out when is the best time to buy.  actnowTrying to anticipate the housing market is impossible.

The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again.

So, if you try to wait for the perfect time, you’re probably going to miss it out!

 

$4.5 Billion on Delinquent Debt ready to Hit the Market

$4.5 Billion on Delinquent Debt ready to Hit the Market

Three of the nation’s largest mortgage lenders have put sizable packages of nonperforming and reperforming mortgage loans on the realestatehousemoneymi600-resize-600x338 market for investors to buy, according to New York Mission Capital Advisors.

Bank of America has put up approximately $2.56 billion worth of delinquent debt for sale, including nonperforming loans, reperforming mortgages (those in which the borrower was 90 days or more behind but has resumed making payments), and home equity lines of credit (HELOCs), according to Mission Capital.

Citigroup has put up $1.8 billion worth of reperforming mortgages for sale, and JPMorgan Chase is looking for a buyer for $143 million worth of nonperforming mortgage loans, Mission Capital said. Last month, Freddie Mac announced that it intended to sell $410 million worth of delinquent mortgage loans. But there has been so much of a demand that the suppliers cannot keep up, Mission Capital said.

Two new regulations affecting Homeowners will increase energy efficiency standards.

Energy Efficiency

Every year, much of the energy the U.S. consumes is wasted through transmission, heat loss and inefficient technology costing American families and businesses money, and leading to increased carbon pollution.   Energy efficiency is one of the easiest and most cost-effective ways to combat climate change, clean the air we breathe, improve the competitiveness of our businesses and reduce energy costs for consumers.

The Department of Energy is working with universities, businesses and the National Labs to develop new, energy-efficient technologies while boosting the efficiency of current technologies on the market.

Increasing energy efficiency has been a long-awaited mission for The U.S. Department of Energy (DOE). This year the DOE launched two new regulations involving air conditioning equipment and water heaters that will increase energy efficiency finally accomplishing these goals.

1.  The first change involves raising efficiency standards for Air Conditioning equipment.

Two-thirds of all homes in the United States have air conditioners. Air conditioners use about 5% of all the electricity produced in the United States, at an annual cost of more than $11 billion to homeowners. As a result, roughly 100 million tons of carbon dioxide are released into the air each year, an average of about two tons for each home with an air conditioner.

Beginning January 1, 2015, new Seasonal Energy Efficiency Ratio (SEER) standards will increase from 13 to 14. The higher the SEER rating, the more energy efficient a unit is. For those not familiar with the term, SEER is calculated by dividing how much a unit cools by how much energy it uses during a typical cooling season.

There are many other alternatives that provide cooling with less energy use. You might also consider fans, evaporative coolers, or heat pumps as your primary means of cooling. In addition, a combination of proper insulation, energy-efficient windows and doors, day lighting, shading, and ventilation will usually keep homes cool with a low amount of energy use in all but the hottest climates. Although ventilation is not an effective cooling strategy in hot, humid climates, the other approaches can significantly reduce the need to use air conditioning.

2.  The second big change involves water heater replacements. This is an amendment to the  National Appliance Energy Conservation Act known as the 2015 DOE      Final Rule.

When the amendment takes effect on April 16, 2015, the DOE will require higher energy factor ratings on virtually all residential gas, electric, oil and tankless gas water heaters.

Hot water has become essential to our daily lives — from washing hands to cleaning dishes to showering — and quickly adds up to higher energy bills. It comes as no surprise that water heaters account for nearly 17 percent of a home’s energy use, consuming more energy than all other household appliances combined.

We are all guilty of using a little too much hot water in our daily lives — whether it is spending an extra two minutes in the shower, leaving the water running while washing dishes or washing clothes on hot water instead of cold. Taken together, these habits of wasting water add up. So it is no surprise that the average household spends $400-$600 a year on water heating — accounting for 14-18 percent of homeowners’ utility bills.

Homeowners need to be familiar with these new regulations to benefit from them, and avoid difficult and costly decisions in the future regarding energy efficiency standards.

 

Are you better off fixing or buying a home?

Are you better off fixing or buying a home?

There is neither a specific answer nor one size fits all!  There are plenty of considerations to review. First of all, your financial ability and market demands are some of the factors to survey before deciding if it’s wiser to find a new dream home or fix your current home.Luxury Home Kitchen.

Before considering renovating your existing home, take an inventory of your home’s physical current condition, and deal with contractors for renovation costs. Major home renovations bring stress, unexpected complications and budget overruns. Depending on the age of your current home, you may also have to jump through additional hoops to meet newer building code requirements.

Purchasing a new home could actually cost you less monthly than renovating your home depending on its age, and types of renovations you’re considering. If you intend on financing renovation costs,  find out how much you will be adding to your existing mortgage, home equity loan or line of credit  versus obtaining a new home mortgage.

Keep in mind that even if you renovate your older home, in a future buyer’s eyes, it’s still an older home. It is a good idea to have a sense of the market activity in your neighborhood to consider trading up or renovating your current home. The main purpose of home renovations is primarily to increase your home’s enjoyment. While you may be able to recoup some or most of the costs during the home’s sale, there are no guarantees.

Save on your Mortgage NOW!

HELOCs the next thing home credit product? Mortgage rates are historically low, and many owners have the opportunity to take advantage, but not all owners pay close attention to these numbers.  

You have the opportunity to investigate the possibility of refinancing through HARP or stream line if your loan is FHA to take advantage of the historic rates.  

You can analyze  what financial options give you the best interest rate and  most convenient terms according to your personal situation, and you do this by comparing these rates from various financial institutions through the Good Faith Estimate. This simple action prompts banks to be more competitive and offer rates lower while they. 

Mortgage rates are closely linked to the action of the Federal Reserve – Fed and the economy, so it’s important that you analyze your financial situation to see if you could take advantage of the today historic rates, before they take off.     

Let me explain with numbers in this example:

Balance of   mortgage:  $ 200,000 –

§  Interest @6.5% Monthly Payment 1,440.                                           

§  Interest @3.75% Monthly Payment $ 1,014.                                           

§  Total Savings Monthly $ 426.                                                          

§  Total Savings Per Year $5,112.

§  30 Years Total Savings  $153.360.

Check your mortgage payments,  interest rate,  balance and the pending term of the life on your loan, so you can determine if refinancing is best for you. The Government Program HARP that does not require evaluation of the value of the property, conventional and FHA  Streamline Refinance are great choices to consider allowing substantial savings.

Don’t Miss It Out!

 

 

HELOCs the next home credit product?

HELOCs the next home credit product?

HELOCs the next thing home credit product?

HELOCs the next thing home credit product?

Highest level of home equity loans since June 2009. A total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since the 12 months ending June 2009, according to RealtyTrac.

The report also shows HELOC originations accounted for 15.4% of all loan originations nationwide during the first eight months of 2014, the highest percentage since 2008.

“This recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery and, more importantly, have regained much of their home equity lost during the housing crisis,” said Daren Blomquist.

Among the nation’s 50 largest metropolitan statistical areas with HELOC data available, 49 posted year-over-year increases in HELOC originations in the 12 months ending in June 2014.

Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).

Borrowers may now have a chance to build equity fast

Borrowers may now have a chance to build equity fast

Don't Get Left OutTwo major banks have agreed to originate a new 15-year mortgage under pilot programs aimed at low- and moderate-income borrowers.

In addition, the creators of the so-called Wealth Building Home Loan,   allows home buyers to build equity at a much faster clip than they would with a standard 30-year loan. Typically, the monthly payment on a 15-year loan is higher than that on a 30-year loan. But the loan amortizes much more quickly, meaning you build wealth — or equity — faster.

According to the latest Federal Reserve Survey of Consumer Finances, an owner’s net worth is 36 times greater than that of a renter. The survey found that the average owner’s net worth is $194,500, whereas a renter’s is $5,400.