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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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!

 

 

Your Home: Modern or Traditional?

Your Home: Modern or Traditional?

fantastic-modest-white-color-scheme-living-roomNothing is extra comfortable than coming back to our homes, full of heat and love after taking care of  stack of issues at work.

Decorating or redesigning our homes should not be thought as an expensive or complicated activity.

We have to make sure that the design Open Plan Livingwe choose will be sophisticated rather than unnecessary. Color, style and balance are not a neutral sort of thing. It affects us and how we see our surroundings.

The usage of appropriate color scheme and fabrics to emphasize and provide light for the rooms in our home play a very important role.     Balance is the most important part of home decorating, and it applies to colors as Luxury Home Kitchen.well. They have the power to affect        how we perceive things.

Room colors can influence our mood and our thoughts. Colors affect people in many ways, depending upon one’s age, gender, ethnic background or local climate. So when it comes to decorating, it is important to choose wisely.

You do not have to worry too much about trends, as they come and go. Make your home beautiful by choosing Colors and styles that reflect your personality.  Have fun!

Mortgage Rates slightly higher

Mortgage Rates slightly higher

Finding-a-refinance-rate-for-your-homeMortgage rates are higher today, leaving September as one of only 3 months this year with noticeable upward movement.

And today was an exception to that recent trend, but it’s tempered by the fact that yesterday’s gains were the best of the month.

The only downside is that the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers remains 4.25% whereas it would have likely moved to 4.125% if rate went the other direction today.

These movement considerations may be small scale compared to what lies ahead.  Several big tickets events are coming up in the second half of this week and they stand a good chance to increase the level of volatility.

September:  Highest Consumer Confidence

September: Highest Consumer Confidence

Consumer confidence reached its highest level since the Great Recession in September, according to the Thomson Reuters and University of Michigan Surveys of Consumers.

consumer-confidenceSeptember’s increase in consumer confidence is the result of optimistic outlooks on the overall economy and personal incomes.  The consumer expectations index rose 5.8 percent over the month of September, while the current conditions index fell 0.9 percent.

Additionally, a growing number of consumers expect their incomes to increase over the next year. The median income growth expectation reported in September was 1.1 percent, which is the highest expectation since late 2008. At the same time, more households anticipate income growth now than at any time since September 2008.

The renewal of income growth is particularly important for sparking consumer spending, and adding pending changes to monetary policy will make income gains prompt to boost even more consumer’s confidence.

80,000 Foreclosures prevented!

The Federal Housing Finance Agency (FHFA) indicated in its report on foreclosure prevention  for Q2 2014 released on September 24, that Fannie Mae and Freddie Mac  prevented nearly 80,000 foreclosures nationwide in the second quarter, raising the total number of foreclosures prevented since the start of the conservatorship in September 2008 to 3.3 million.

fThe measures taken by the two GSEs to prevent foreclosures have helped about 2.7 million borrowers remain in their homes in the last six years, with approximately 1.7 million of those borrowers receiving permanent loan modifications. The number of foreclosures prevented is down 10 percent from Q1, when GSE measures stopped almost 89,000 foreclosures.

FHFA reports as well that about 37 percent of those who received permanent loan modifications were able to reduce their monthly payments by more than 30 percent in second quarter.

FHFA outreaching more Homeowners

FHFA outreaching more Homeowners

In an effort to sign more eligible homeowners up for the Home Affordablefhfa Refinance Program (HARP), the Federal Housing Finance Agency (FHFA)   is holding its third HARP outreach event in October, 2014.

The goal is to get the word out about HARP to borrowers who are current but underwater, and help borrowers who are either delinquent or at risk of losing their home recognize that they too have options.

  • Borrowers are eligible for a HARP loan if they meet the following requirements:
  • Their loan must be owned or guaranteed by Fannie Mae or Freddie Mac;
  • The loan must have been originated on or before May 21, 2009;
  • LTV ratio must be greater than 80 percent;
  • Borrower must be current on mortgage payments.

Borrowers who could benefit from HARP are referred to as “in the money” borrowers; they are “in the money” if they meet all the HARP eligibility requirements, have a remaining balance on their loan of greater than $50,000 with more than 10 years left on their term, and have an interest rate of more than 1.5 percent more than current market rates.

As of June 2014, about 3.1 million homeowners have refinanced through HARP since it was introduced by FHFA and Treasury in 2009 as part of the Making Home Affordable Program.

New homes sales see biggest monthly jump!

New homes sales see biggest monthly jump!

Sales of new single family houses in August 2014 were at a seasonally adjusted annual rate of 504,000, up from July’s printing of 427,000, the fastest rate in six years and the biggest monthly jump since January 1992.

firsthomeblog

The biggest gains and by far the reason for the big increase were new home sales in the West, one of the two largest housing markets, along with the South.

New home sales in the West were up 50% over July.

The South saw an 8% increase. The South is by far the largest region for new home sales, outdistancing all other regions combined.

The median sales price of new houses sold in August 2014 was $275,600; the average sales price was $347,900.

Jumbo Loans Cheaper and Easier to Get!

Jumbo Loans Cheaper and Easier to Get!

bigstock-Resort-collage-made-of-Cyprus--14454446Wealthy home buyers are paying lower average rates on high dollar loans, and in some cases, they don’t even have to worry about a large down payment or mortgage insurance.

For months, lenders of jumbo mortgages have been charging interest rates that are lower  than what average borrowers pay. Jumbo loans are mortgages that above $417,000 or $625,000 or more in high-priced markets.

Many lenders also have requiring as little as 10 percent, which is about half the normal rate, waiving the private mortgage insurance, and even lowered their credit standards for jumbo loan originations.

Luxury homes are selling faster than last year, according to data through July from Realtor.com.   The median age of listings ranged from 80 days  for homes listed at $1 million or more.