1.2 Million Borrowers Nationwide Regained Equity in 2014

1.2 Million Borrowers Nationwide Regained Equity in 2014


On today’s new analysis released by CoreLogic, leading global property information, analytics and data Price-Income_Featured-f084f5services provider, reported that 1.2 million borrowers regained equity in 2014. Nationwide, borrower equity increased year over year by $656 billion in Q4 2014. Borrowers with near negative equity are considered at risk of moving into negative equity if home prices fall. In contrast, if home prices rose by as little as 5 percent, an additional 1 million homeowners now in negative equity would regain equity. The calculations are not based on sampling, but rather on the full data set to avoid potential adverse selection due to sampling, and only data for mortgages residential properties that have a current estimated value is included.

Visit me at http://www.sandyflores.com; More information call me (714)963-7462

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Mortgage rates fell!

Mortgage rates fell!

imagesCAE30UQZEconomic data affects rates by motivating investors to seek out or avoid risk. Higher demand means higher prices and lower rates.  Investors are looking for clarity on the Fed’s plans regarding raising rates, among other things.

From here on out, volatility becomes an increasing risk heading into the Fed’s Announcement next Wednesday. It can either work for or against us, but the point is that if it does work against us, the potential damage is bigger than normal.

Opening Doors for Homebuyers!

Opening Doors for Homebuyers!

The Federal Deposit Insurance Corporation is the first of six financial regulators to release the final version of the long-awaited qualified residential mortgage (QRM) rule. The National Association of Realtors applauds this action because it will make possible to incorporate rules that include a broad definition for Qualified Mortgage standards implemented earlier this year.

Got your House?

Got your House?

Under the QRM rule, loans are generally considered qualified if the borrower’s debt-to-income ratio is 43 percent, among other things and there is not onerous down payment requirement, as regulators had originally proposed.

The NAR strongly opposed earlier versions of the rule that included 20 and 30 percent down payment requirements, which would have denied millions of Americans access to the lowest-cost and safest mortgages

For lenders, having these two rules in alignment provides the clarity they’ve long been asking for, widening and deepening loan eligibility and availability, which has been one of the main stumbling blocks to increased home sales.

Homebuyers will have now more credit availability reflecting an increase in home purchases, and refis. Way to go!

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!



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.

Why NOW is a great time to buy a house!

Why NOW is a great time to buy a house!

There has never been a better time to buy a home; the advantage is on the buyer side. Buying is cheaper than renting in most markets. More people want to be homeowners, even younger buyers.  A recent Fannie Mae survey of younger renters and buyers finds out that younger renters prefer owning. They don’t want to be renters – 90% would prefer to be homeowners. Family Savings

Mortgage rates have dropped across all loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac, and 30-year rates are at their best levels of 2014.

Inventory is down but so is the buyer pool. That means prices may be coming down. You may well have less competition for homes right now, especially if you’re in the ultra-competitive first time buyer market. This means that your chances of finding a home—and getting it for the right price—look good.

Credit and affordability issues remain. If you are financially and emotionally prepared, it makes sense to write a check list of what you need to get approved for a mortgage; order your credit reports; get your FICO score; pay stubs and bank statements; shop for the best mortgage rates; cobble together a down payment; meet with your choice of lender, and find out what your monthly payments will be for the home of your dreams, then GO for it!

U.S. construction spending rebounds strongly

U.S. construction spending rebounds strongly

construction-spending-misses-expectations-falls-06U.S. construction spending rebounded strongly to hit its highest level in more than 5½ years in July.

Construction spending increased 1.8 percent to an annual rate of $981.31 billion, the highest level since December 2008, said the Commerce Department on Tuesday.

The housing market recovery is back on track after stagnating from the second half of 2013 in the wake of a spike in mortgage rates and higher home prices amid a stock shortage.

Lower Rates continues to Boost Loan Demand

Lower Rates continues to Boost Loan Demand

After several weeks of drops in interest rates, mortgage applications finally got a modest lift as refinancers and home buyers took advantage of them.apr1

The Mortgage Bankers Association’s weekly mortgage market index showed that total mortgage application volume rose 2.8 percent during the week ending Aug. 22 compared to a week earlier.

Broken out, applications for refinancing’s increased 3 percent last week but remain 25 percent below a year ago — even when mortgage rates were higher, MBA reports. Home-purchase mortgage applications also rose 3 percent during the week and remain 11 percent below its rate last year at this time.

While mortgage rates have teetered within a tight range, even a slight drop in interest rates was enough to boost mortgage applications

Mortgage rates fell for sixth straight day today

Mortgage Rates fell modestly for an impressive sixth straight day today.

Mortgage imagesCAE30UQZrates are driven by movements in financial markets-most directly by MBS (mortgage backed securities) which actually dictate how much mortgage debt is worth to investors. MBS are always trading with some level of correlation to broader bond markets where 10yr Treasuries are one of the best big picture reference points.

Get a More Favorable Mortgage

Get a More Favorable Mortgage

Get a More Favorable Mortgage

By Sandy Flores

Special to Excelsior

Although property prices rise and fall, usually the value of the home increases over time. This means that if you decide to buy a property, the chances of obtaining a significant gain return on investment. Just as important as choosing your property, so is choosing a suitable mortgage loan, depending on your financial situation.

 It is elementary that you compare the prices of mortgages for buying a home and determine which mortgage is offering more favorable financing terms. Different types of financial institutions that provide mortgage loans may quote different prices for the services and products they offer.

Know how much you can pay as down payment and find out all the costs of the loan. It is not enough to be aware of the monthly payment or the interest rate only. Ask about the same loan amount, its maturity and the type of debt, so you can compare the figures.

Request a list of current interest rates of the financial institution and ask if those rates that have quoted are the lowest of the week or day.

Ask if the interest rate they are offering is a fixed interest rate or adjustable. Keep in mind that when interest rates on credit are adjustable, they could also increase the monthly rise.

If you’re quoted a rate of credit with variable interest, will ask how to vary both the interest rate and the monthly payments.

If you are interested in a variable rate loan, or known as “ARM” (adjustable), it is important to have the following information:

The specific dates on which the loan is adjusted.

The “index”, for example, Treasury securities one year or the prime rate.

The “margin” or the amount added to the index when adjusted.

If the mortgage has a “cap” limiting the adjustment sharp increases.

Ask about the annual interest rate (APR, for its acronym in English), which includes not only the interest rate but also includes points, broker costs and certain additional compulsory credit charges expressed as an annual rate .

A mortgage containing different charges, such as charges for initiating and / or verify credit, broker fees, operational costs and settlement fees and closing. Every lender must give you an estimate of these charges, what is commonly known as “Good Faith Estimate”.

Many of these fees are negotiable and some are paid when submitting the credit application (as in the case of application fees and valuation) and other to close the deal. Sometimes you can find loans “without charge”, but usually they have higher interest rates.

Ask what is included in each post, as one could be included several concepts. Ask for an explanation of any fee you do not understand.

Keep in mind that depending on credit institutions, some of these require a down payment of 20 percent of the purchase price of the home. However, other institutions also offer mortgage loans that require less than 20 percent – sometimes as little as 5 percent on conventional loans. When a down payment of 20 percent is not made, lenders usually require the buyer to purchase private mortgage insurance to protect the lender in case the buyer fails to pay. There are also government assistance programs available such as the FHA (Federal Housing Administration), where the minimum down payment is only 3.5 percent.

1. Ask about the requirements of the lending institution for a down payment, including what you have to do to verify that funds for your down payment are available.

Two. Ask if the financial institution provides special assistance programs.

Three. If your loan requires Private Mortgage Insurance:

April. Ask what the total cost of the insurance.

May. Ask how much will the monthly premium including Private Mortgage Insurance (PMI, for its acronym in English).

When you have this information and analyze what each lender offers you negotiate the most favorable deal for you. Agents and financial institutions may offer different prices for the same loan terms to different consumers in one day, even if they have the same credit ratings. The probable reason for this difference in price is that loan officers and brokers Credit is often allowed to retain part or all of this difference as extra compensation.

The difference between the lowest available price for a loan product and the highest price that the borrower is willing to pay, is generally known as excess. When too much is produced, it is incorporated at the price quoted to consumers. It can occur in both variables and fixed loans in the form of points, fees, or the interest rate.

When you are satisfied with the terms you have negotiated, ask the lender or broker a written undertaking unchangeable interest rate including the agreed rate, the duration of the commitment and the number of points to be paid. If you charge a fee to secure the loan interest rate, it can be repaid at closing.

The Law on Equal Credit prohibits lenders from discriminating against an applicant in any aspect of a credit transaction, whether by reason of race, color, religion, national origin, sex, marital status, age, if all or part of the applicant’s income comes from a public assistance program, or if the applicant has exercised any right of good faith protected by the Law of Consumer Credit Protection.

The Fair Housing Act prohibits discrimination in residential real estate transactions based on race, color, religion, sex, handicap, familial status or national origin.

Under these laws, you can not deny a loan to a consumer based on these characteristics nor You may be charged more for a loan or offered less favorable terms.

Performing the research necessary and pay attention to the smallest details and considerations will allow you to take the most convenient and profitable for you, otherwise it could become a very large, or even worse, a nightmare problem decision.

Feel free to ask questions about the details of the loan when you talk to the lender, the realtor, the sellers or your attorney, and keep asking until you receive clear and complete answers.