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.

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56 Percent of 3.3 Million HELOCs Scheduled to Reset With Higher Payments

realestatehousemoneymi600-resize-600x338A total of 3,262,036 HELOCs with an estimated total balance of $158 billion that originated during the housing price bubble between 2005 and 2008 are still open and scheduled to reset between 2015 and 2018.

Realty Trac the nation’s leading source for comprehensive housing data, today released its first-ever U.S. HELOC Resetting Report, which found that 56 percent of the 3.3 million Home Equity Lines of Credit potentially resetting with higher, fully amortizing monthly payments from 2015 to 2018 are on properties that are seriously underwater.

With 645,872 HELOCs, California led the way among the states in terms of sheer volume of resetting HELOCs. A total of 423,706 (66 percent) of those resetting HELOCs in California are on homes that still seriously underwater

 

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!

Fannie Mae sets new rates effective October 14

Fannie Mae sets new rates effective October 14

Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program. Fannie Mae will raise its required interest rate for standard modifications from 4.375% to 4.5%.  The rate was lowered from 4.5% to 4.375% on Sept. 15, but will now rise again in one week. Fannie Mae announced the change on Tuesday in an email sent to its servicers.

When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.

“Fannie Mae Standard Modification interest rate is not determined on a preset schedule,” Fannie said in the note to its servicers. “The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”

Fannie also noted that any loan modification requests that were approved at the previous rate are not eligible to be resubmitted for approval under the new modification rule

NOW is the time…Rates don’t wait!

If you have higher mortgage payments, now is the time to change it!  In recent years we have seen many changes in our national economy. We have seen cuts in interest rates given by the Federal Reserve cuts not seen for many years. imagesCA68GG1H

One situation that influenced home foreclosures for many homeowners were the high interest rates they were granted. These mortgage loans  were presented for a large number of months as a fixed payments and later converted into variable rates, causing a drastic financial instability in many homeowners facing now a new higher mortgage payment.

The HARP Refinance Program gives the Homeowners that have not been behind in the last 12 months, and can prove income under the new conditions and repayment capacity; the opportunity to refinance with low current interest rates. This means that you can refinance even if the actual mortgage balance is higher than the value of your property on the market today.  The HARP and FHA programs are the only programs that allow you to refinance under these terms.

Compare and discuss your options and determine if refinancing NOW is financially right for you. The essence of refinancing is to find the best fit and financial balance  for you and your family. Remember, an informed decision is the best guarantee!

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.

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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.

Buying a fixer upper home: FHA-203(K)

Buying a fixer upper home: FHA-203(K)

Homebuyers and the FHA – 203 (K) Loans…What this means for you?

IfPhoto11 you are in the market to buy a home but it needs lot of repairs, then the FHA-203 (K) is the perfect loan for you.

These especial loans allow you to buy and repair a property that needs rehabilitation, such as roof, room addition, or any structural repair.

Lenders currently instituted additional offerings of loan programs like the FHA 203(k) home improvement program to include renovation expenses in their loan amount. One-time-close loans streamline the purchase and financing of new constructi

Do you really need Earthquake insurance?

Do you really need Earthquake insurance?

While earthquakes are more prevalent in the state of California, they can occur in any state. The truth is that an earthquake can occur and cause damage to your property in almost any state.

Earthquake insurance will cover damage to your dwelling and its contents caused by damage from and earthquake such as walls that collapse or valuables that are destroyed inside your home.

CALIFORNIA EARTHQUAKEYour regular homeowner’s policy does not cover damage caused by earthquakes. You must either purchase an earthquake coverage endorsement or purchase a separate policy for earthquake insurance.

Don’t make the mistake of thinking that you will rely on government disaster assistance to help you recover losses from an earthquake.  Government disaster programs, such as FEMA, are designed to take care of immediate needs such as food, clothing, medical assistance and temporary shelter.

If you live in an earthquake prone area, the only way your property and contents will be covered is through Earthquake Insurance.

Do You really need Earthquake Insurance?  Only you can make this determination. Many people, especially people who do not live in earthquake prone areas choose not to get this coverage. Earthquake Insurance policies can be quite expensive. Just know that if you do not have earthquake insurance, rebuilding your home and replacing all of your valuables will come out of your own pocket.

The state of California offers earthquake insurance through the California Earthquake Authority (CEA). Individual insurance companies in the state can elect to participate in the CEA.  By law, if an insurance company offers homeowner’s insurance in the state of California, it must also offer earthquake insurance.

Mini-policies are also available which only cover your dwelling, excluding items such as patios, pools or other detached structures. This was introduced in 1996 by the California legislature in an effort to keep earthquake premiums affordable for homeowners.

Learn How To Save Up To $100K On Your Mortgage Term

Learn How To Save Up To $100K On Your Mortgage Term

You can save up to $ 100,000 – Approximately last the term of the life of your mortgage loan.

       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  that gives you the financial interest and the most convenient terms according to your personal situation, and what is better still compare these rates with various financial institutions through the good Estimate faith. 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 should take advantage of the historic rates of interest today, 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 repayments, check the interest, balance and the term of life pending on your loan, and so you can determine that refinancing, especially through the Government Program HARP not require evaluation of the value of the property, conventional and FHA (Streamline) Refinance Short are great choices to consider allowing substantial savings!

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