It just got a little easier to navigate the complicated mortgage process.
New disclosure rules went into effect in the mortgage world Saturday that require lenders to provide home buyers two new forms that clearly detail their loan terms.
"For consumers, it's going to be viewed as an improvement in what can be a somewhat scary and intimidating process in the biggest investment of their life," said David Stevens, CEO of the Mortgage Bankers Association.
The rule, formally known as the TILA-RESPA Integrated Disclosure rule, reduces what used to be four forms from two different government agencies to two forms: the Loan Estimate and Closing Disclosure.
Here's what buyers can expect:
read more: http://money.cnn.com/2015/10/05/real_estate/new-mortgage-disclosure-forms/index.html?iid=ob_homepage_money_pool&iid=obnetwork
Tuesday, October 6, 2015
Wednesday, September 16, 2015
Cathedral Development Group Closes on Refinancing of Seniors Property
The $44 million refinancing of Westward Ho Apartments, a historic building that once was a premier hotel for the city, includes a Federal Housing Administration (FHA) Sec. 221(d)(4) substantial rehabilitation loan, 9% low-income housing tax credits (LIHTCs), and federal historic tax credits.
Multiple federal, state, and local entities were involved in the loan restructuring, including three Department of Housing and Urban Development offices and the city of Phoenix. The FHA loan was provided through Berkadia Commercial Mortgage, and the LIHTC equity was syndicated through The Richman Group and provided by Bank of the West. Arizona Department of Housing allocated the tax credits.
“What’s unique about this refinancing is that it is for a nationally registered historic structure located in the heart of downtown Phoenix within a quarter of a mile from the nearest light-rail station and close to amenities,” said Robert Gaudreau Jr., president of CDG, in a statement. “Additionally, the facility will offer residents health and social services through a unique partnership with Arizona State University who will occupy the first floor of the Tower building on the property.”
The building opened as a hotel in 1928 and underwent an expansion in 1948 to grow to 600 rooms. The hotel was converted to affordable housing in 1979.
The approximately $14 million rehabilitation will include repairs and upgrades to windows, HVAC equipment, and central plant mechanical and plumbing systems, as well as new cabinets, floors, and fixtures in units.
“Select in-unit improvements will enhance the residents’ living experience and improve the desirability and marketability of the property,” said Gaudreau.
read more: http://www.housingfinance.com/finance/cathedral-development-group-closes-on-refinancing-of-seniors-property_o
Multiple federal, state, and local entities were involved in the loan restructuring, including three Department of Housing and Urban Development offices and the city of Phoenix. The FHA loan was provided through Berkadia Commercial Mortgage, and the LIHTC equity was syndicated through The Richman Group and provided by Bank of the West. Arizona Department of Housing allocated the tax credits.
“What’s unique about this refinancing is that it is for a nationally registered historic structure located in the heart of downtown Phoenix within a quarter of a mile from the nearest light-rail station and close to amenities,” said Robert Gaudreau Jr., president of CDG, in a statement. “Additionally, the facility will offer residents health and social services through a unique partnership with Arizona State University who will occupy the first floor of the Tower building on the property.”
The building opened as a hotel in 1928 and underwent an expansion in 1948 to grow to 600 rooms. The hotel was converted to affordable housing in 1979.
The approximately $14 million rehabilitation will include repairs and upgrades to windows, HVAC equipment, and central plant mechanical and plumbing systems, as well as new cabinets, floors, and fixtures in units.
“Select in-unit improvements will enhance the residents’ living experience and improve the desirability and marketability of the property,” said Gaudreau.
read more: http://www.housingfinance.com/finance/cathedral-development-group-closes-on-refinancing-of-seniors-property_o
Monday, September 7, 2015
A risky type of mortgage, back with a twist
Don’t call it a comeback.
Interest-only mortgages got a bad reputation in the aftermath of the housing bust, but they’ve managed to stick around as an option for homebuyers who can meet stricter lending guidelines enacted by the government in recent years.
The loans can lower monthly mortgage payments by letting borrowers put off paying the principal on their loan for several years. When the interest-only period ends, the borrower’s monthly payment spikes as they begin to pay a combination of principal and interest until the loan is paid off.
That monthly payment shock, often accompanied by a higher interest rate on adjustable-rate interest-only loans, is what got many borrowers in trouble a decade ago.
One reason is that many of those borrowers qualified for their loans on the basis of their ability to repay the lower, interest-only payment. When their monthly payment reset higher, many couldn’t keep up.
That’s no longer the case. Now lenders are required to determine whether borrowers qualify for any interest-only loans, or other adjustable-rate mortgages, based on whether they can afford to make the eventual bigger monthly payments that await them once the initial interest-only period ends.
As a result, such interest-only loans now make up only about 0.2 percent of all adjustable-rate mortgages, or ARMs, which account for about 4 percent of all home loans for purchase and refinancing, according to data from CoreLogic.
Use of interest-only mortgages peaked 10 years ago at the height of the housing bubble at around 10 percent of all ARMs.
“The big difference here is interest-only loans are back to being the niche product that they traditionally had been,” said Greg McBride, chief financial analyst at Bankrate.com. “The go-go days of the housing boom were the exception.”
Still, rising home prices can make interest-only loans a tempting option for borrowers who are interested in a lower mortgage payment and can qualify for such a loan under today’s stricter guidelines.
At least one lender is looking to expand access to interest-only loans to a broader range of homebuyers, not just the affluent buyers who typically take advantage of such loans.
In July, United Wholesale Mortgage began making interest-only home loans through its network of mortgage brokers. The loan program covers mortgages as low as $250,000. That’s just above the U.S. median home price of $236,400.
Even with today’s stricter guidelines aimed at ensuring borrowers can handle interest-only loans, they carry potential financial risks. Here are some things to consider when weighing whether such a loan is right for you:
PAYMENT CHANGES
Interest-only mortgages can come with a fixed or variable interest rate and an initial period when the borrower pays only interest on the loan. That’s usually three, five, seven or 10 years. After the interest-only period, the monthly payment can increase sharply as the borrower begins to also pay down the principal.
In addition, the borrower is left with 20 years to pay off the balance of the loan.
LENDING REQUIREMENTS
To ensure borrowers can afford an interest-only mortgage, lenders often require large down payments compared to what one can find with a traditional 30-year, fixed-rate home loan backed by the government.
read more: http://www.watertowndailytimes.com/curr/a-risky-type-of-mortgage-back-with-a-twist-20150906
Interest-only mortgages got a bad reputation in the aftermath of the housing bust, but they’ve managed to stick around as an option for homebuyers who can meet stricter lending guidelines enacted by the government in recent years.
The loans can lower monthly mortgage payments by letting borrowers put off paying the principal on their loan for several years. When the interest-only period ends, the borrower’s monthly payment spikes as they begin to pay a combination of principal and interest until the loan is paid off.
That monthly payment shock, often accompanied by a higher interest rate on adjustable-rate interest-only loans, is what got many borrowers in trouble a decade ago.
One reason is that many of those borrowers qualified for their loans on the basis of their ability to repay the lower, interest-only payment. When their monthly payment reset higher, many couldn’t keep up.
That’s no longer the case. Now lenders are required to determine whether borrowers qualify for any interest-only loans, or other adjustable-rate mortgages, based on whether they can afford to make the eventual bigger monthly payments that await them once the initial interest-only period ends.
As a result, such interest-only loans now make up only about 0.2 percent of all adjustable-rate mortgages, or ARMs, which account for about 4 percent of all home loans for purchase and refinancing, according to data from CoreLogic.
Use of interest-only mortgages peaked 10 years ago at the height of the housing bubble at around 10 percent of all ARMs.
“The big difference here is interest-only loans are back to being the niche product that they traditionally had been,” said Greg McBride, chief financial analyst at Bankrate.com. “The go-go days of the housing boom were the exception.”
Still, rising home prices can make interest-only loans a tempting option for borrowers who are interested in a lower mortgage payment and can qualify for such a loan under today’s stricter guidelines.
At least one lender is looking to expand access to interest-only loans to a broader range of homebuyers, not just the affluent buyers who typically take advantage of such loans.
In July, United Wholesale Mortgage began making interest-only home loans through its network of mortgage brokers. The loan program covers mortgages as low as $250,000. That’s just above the U.S. median home price of $236,400.
Even with today’s stricter guidelines aimed at ensuring borrowers can handle interest-only loans, they carry potential financial risks. Here are some things to consider when weighing whether such a loan is right for you:
PAYMENT CHANGES
Interest-only mortgages can come with a fixed or variable interest rate and an initial period when the borrower pays only interest on the loan. That’s usually three, five, seven or 10 years. After the interest-only period, the monthly payment can increase sharply as the borrower begins to also pay down the principal.
In addition, the borrower is left with 20 years to pay off the balance of the loan.
LENDING REQUIREMENTS
To ensure borrowers can afford an interest-only mortgage, lenders often require large down payments compared to what one can find with a traditional 30-year, fixed-rate home loan backed by the government.
read more: http://www.watertowndailytimes.com/curr/a-risky-type-of-mortgage-back-with-a-twist-20150906
Monday, August 31, 2015
Average 30-year mortgage rate drops to 3.84% from 3.93%
WASHINGTON (AP) — Average long-term U.S. mortgage rates dropped this week to their lowest levels since May, in a week marked by turmoil in global markets that was stoked by economic developments in China.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage fell to 3.84% from 3.93% a week earlier. The benchmark rate hasn’t been that low since May 21.
The rate on 15-year fixed-rate mortgages declined this week to 3.06% from 3.15%.
The panic selling and extreme gyrations in stock markets sent investors to the safety of U.S. government bonds, raising their prices and dampening their rates. Mortgage rates often track the yield on the 10-year Treasury bond, which dipped below 2% on Monday, a day of epic losses and price swings on Wall Street. The yield recovered to 2.18% Wednesday. That compared with 2.22% last Wednesday.
On Monday, a brief 1,000-point plunge in the Dow Jones industrial average just minutes after stocks opened for trading sent shivers from Wall Street to Main Street. The average ended the day down 3.6%. The market staged a robust recovery Wednesday, clocking its best day in nearly four years as the Dow average gained 4%.
The recent economic jitters and stomach-churning markets have thrown into question whether the Federal Reserve will raise a key interest rate next month, as has been long anticipated. A rate hike by the Fed could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis year 2008.
Steady U.S. job growth and low mortgage rates have improved home sales this year. Data issued Thursday by the National Association of Realtors showed that slightly more Americans signed contracts to buy homes in July, as pending sales edged up after dipping in June.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan also held steady at 0.6 point.
read more at: http://www.usatoday.com/story/money/personalfinance/2015/08/27/mortgage-rates/32477661/
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage fell to 3.84% from 3.93% a week earlier. The benchmark rate hasn’t been that low since May 21.
The rate on 15-year fixed-rate mortgages declined this week to 3.06% from 3.15%.
The panic selling and extreme gyrations in stock markets sent investors to the safety of U.S. government bonds, raising their prices and dampening their rates. Mortgage rates often track the yield on the 10-year Treasury bond, which dipped below 2% on Monday, a day of epic losses and price swings on Wall Street. The yield recovered to 2.18% Wednesday. That compared with 2.22% last Wednesday.
On Monday, a brief 1,000-point plunge in the Dow Jones industrial average just minutes after stocks opened for trading sent shivers from Wall Street to Main Street. The average ended the day down 3.6%. The market staged a robust recovery Wednesday, clocking its best day in nearly four years as the Dow average gained 4%.
The recent economic jitters and stomach-churning markets have thrown into question whether the Federal Reserve will raise a key interest rate next month, as has been long anticipated. A rate hike by the Fed could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis year 2008.
Steady U.S. job growth and low mortgage rates have improved home sales this year. Data issued Thursday by the National Association of Realtors showed that slightly more Americans signed contracts to buy homes in July, as pending sales edged up after dipping in June.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan also held steady at 0.6 point.
read more at: http://www.usatoday.com/story/money/personalfinance/2015/08/27/mortgage-rates/32477661/
Tuesday, August 25, 2015
Double-Edged Sword for Mortgages as Market Fears Drive Rates Down
The recent global market turmoil could be good news for banks and mortgage lenders if a further drop in long-term interest rates sparks another wave of refinancing.
It also could spell trouble for lenders that have not properly hedged the value of their servicing rights, however, and the benefits of lower rates are far from assured.
U.S. Treasury yields, which mortgage rates are tied to, slumped to a four-month low Monday, as investors remained anxious about China's woes and the slower pace of global growth and sought a safe haven in government bonds. The 10-year Treasury yield fell as low as 1.95% during the session, down six basis points from late Friday.
For now, mortgage rates would have to drop at least 25 basis points or more from recent levels to spark a major wave of refinancings.
"A big chunk of 2013 and 2014 loans are just out of the money to refinance," said Scott Buchta, head of fixed income strategy at Brean Capital.
The stock market plunge has some investors assuming that the U.S. economy is heading into a recession, with the potential for massive layoffs at manufacturing firms that could be crippled by lower commodity prices.
Ivy Zelman, the CEO of Zelman and Associates, a housing analytics firm, said the sell-off hitting homebuilders, mortgage insurers, title companies and financial stocks, is an overreaction. With yields on 10-year Treasury notes falling to 2%, the market is assuming much slower economic growth ahead, she said.
"It's more about slowing economic growth than about rates," Zelman said. "There's a lot of knee-jerk reactions."
The biggest concern is that manufacturers would start laying off employees, resulting in job losses.
"If people lose their jobs, they can't buy a house," Zelman said.
Uncertainty about whether the Federal Reserve will raise short-term rates in September or delay a rate hike until December or early next year has contributed to the market volatility.
Some nonbank mortgage servicers will be aggressive at soliciting borrowers to refinance. Since most banks and mortgage lenders are seeing a steady flow of home purchase and refinance volume, they may be loath to lower mortgage rates much further, since doing so would cut into profits.
read more: http://www.nationalmortgagenews.com/news/origination/double-edged-sword-for-mortgages-as-market-fears-drive-rates-down-1059696-1.html
It also could spell trouble for lenders that have not properly hedged the value of their servicing rights, however, and the benefits of lower rates are far from assured.
U.S. Treasury yields, which mortgage rates are tied to, slumped to a four-month low Monday, as investors remained anxious about China's woes and the slower pace of global growth and sought a safe haven in government bonds. The 10-year Treasury yield fell as low as 1.95% during the session, down six basis points from late Friday.
For now, mortgage rates would have to drop at least 25 basis points or more from recent levels to spark a major wave of refinancings.
"A big chunk of 2013 and 2014 loans are just out of the money to refinance," said Scott Buchta, head of fixed income strategy at Brean Capital.
The stock market plunge has some investors assuming that the U.S. economy is heading into a recession, with the potential for massive layoffs at manufacturing firms that could be crippled by lower commodity prices.
Ivy Zelman, the CEO of Zelman and Associates, a housing analytics firm, said the sell-off hitting homebuilders, mortgage insurers, title companies and financial stocks, is an overreaction. With yields on 10-year Treasury notes falling to 2%, the market is assuming much slower economic growth ahead, she said.
"It's more about slowing economic growth than about rates," Zelman said. "There's a lot of knee-jerk reactions."
The biggest concern is that manufacturers would start laying off employees, resulting in job losses.
"If people lose their jobs, they can't buy a house," Zelman said.
Uncertainty about whether the Federal Reserve will raise short-term rates in September or delay a rate hike until December or early next year has contributed to the market volatility.
Some nonbank mortgage servicers will be aggressive at soliciting borrowers to refinance. Since most banks and mortgage lenders are seeing a steady flow of home purchase and refinance volume, they may be loath to lower mortgage rates much further, since doing so would cut into profits.
read more: http://www.nationalmortgagenews.com/news/origination/double-edged-sword-for-mortgages-as-market-fears-drive-rates-down-1059696-1.html
Tuesday, August 18, 2015
MBA: Mortgage Delinquencies, Foreclosures Continued To Fall In Q2
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.30% of all loans outstanding at the end of the second quarter - down 24 basis points from the first quarter and down 74 basis points from the second quarter of 2014, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.
It was the lowest delinquency rate since the second quarter of 2007.
Meanwhile, about 2.09% of all loans were in some stage of foreclosure as of the end of the second quarter. That's down 13 basis points compared to the first quarter and down 40 basis points compared to the second quarter of 2014, the MBA reports.
It was the lowest foreclosure inventory rate since the fourth quarter of 2007.
The percentage of loans on which foreclosure actions were started during the second quarter was 0.40%, a decrease of five basis points compared to the first quarter but basically unchanged relative to the second quarter of 2014.
The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.95%, a decrease of 29 basis points from the previous quarter, and a decrease of 85 basis points from the second quarter of 2014. This was the lowest level since the fourth quarter of 2007.
Marina Walsh, vice president of industry analysis for the MBA, says "nearly every state in the nation reported declining foreclosure inventory rates over the second quarter."
"The overall delinquency rate for Federal Housing Administration [FHA] loans dropped to 9.01 percent in the second quarter from 9.10 percent, as the 90 day or more delinquent category declined," Walsh says in a statement. "However, the 30-day and 60-day delinquency rate was up by a combined 10 basis points from the previous quarter. In addition, the FHA foreclosure inventory rate rose to 2.68 percent in the second quarter, four basis points higher than the previous quarter but still 13 basis points lower than a year ago. As more recent loan vintages begin to age and as older vintages enter the foreclosure process, we may see volatility in FHA delinquency and foreclosure rates."
Walsh points out that although only 40% of all mortgage loans serviced are in judicial states, "these states account for a growing majority of loans in foreclosure."
"For states where the judicial process is more frequently used, 3.41 percent of loans serviced were in the foreclosure process, compared to 1.15 percent in non-judicial states," she says. "States that utilize both judicial and non-judicial foreclosure processes had a foreclosure inventory rate closer that of the non-judicial states at 1.36 percent."
New Jersey, New York, and Florida had the highest percentage of loans in foreclosure in the second quarter.
"Despite a 36 basis point decline in foreclosure inventory over the first quarter, New Jersey's foreclosure inventory rate was still 7.31 percent, while New York, which had a 20 basis point decline over the first quarter had the second highest foreclosure inventory rate at 5.31 percent," Walsh says. "Both states primarily use a judicial foreclosure process."
Although it is still lingering, the foreclosure inventory is shrinking faster than it was in a majority of the judicial states.
see more: http://www.mortgageorb.com/e107_plugins/content/content.php?content.17101
It was the lowest delinquency rate since the second quarter of 2007.
Meanwhile, about 2.09% of all loans were in some stage of foreclosure as of the end of the second quarter. That's down 13 basis points compared to the first quarter and down 40 basis points compared to the second quarter of 2014, the MBA reports.
It was the lowest foreclosure inventory rate since the fourth quarter of 2007.
The percentage of loans on which foreclosure actions were started during the second quarter was 0.40%, a decrease of five basis points compared to the first quarter but basically unchanged relative to the second quarter of 2014.
The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.95%, a decrease of 29 basis points from the previous quarter, and a decrease of 85 basis points from the second quarter of 2014. This was the lowest level since the fourth quarter of 2007.
Marina Walsh, vice president of industry analysis for the MBA, says "nearly every state in the nation reported declining foreclosure inventory rates over the second quarter."
"The overall delinquency rate for Federal Housing Administration [FHA] loans dropped to 9.01 percent in the second quarter from 9.10 percent, as the 90 day or more delinquent category declined," Walsh says in a statement. "However, the 30-day and 60-day delinquency rate was up by a combined 10 basis points from the previous quarter. In addition, the FHA foreclosure inventory rate rose to 2.68 percent in the second quarter, four basis points higher than the previous quarter but still 13 basis points lower than a year ago. As more recent loan vintages begin to age and as older vintages enter the foreclosure process, we may see volatility in FHA delinquency and foreclosure rates."
Walsh points out that although only 40% of all mortgage loans serviced are in judicial states, "these states account for a growing majority of loans in foreclosure."
"For states where the judicial process is more frequently used, 3.41 percent of loans serviced were in the foreclosure process, compared to 1.15 percent in non-judicial states," she says. "States that utilize both judicial and non-judicial foreclosure processes had a foreclosure inventory rate closer that of the non-judicial states at 1.36 percent."
New Jersey, New York, and Florida had the highest percentage of loans in foreclosure in the second quarter.
"Despite a 36 basis point decline in foreclosure inventory over the first quarter, New Jersey's foreclosure inventory rate was still 7.31 percent, while New York, which had a 20 basis point decline over the first quarter had the second highest foreclosure inventory rate at 5.31 percent," Walsh says. "Both states primarily use a judicial foreclosure process."
Although it is still lingering, the foreclosure inventory is shrinking faster than it was in a majority of the judicial states.
see more: http://www.mortgageorb.com/e107_plugins/content/content.php?content.17101
Thursday, August 13, 2015
Mortgage applications land flat for week
Mortgage applications increased 0.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 7, 2015.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index increased 3% from the previous week to its highest level since May 2015. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 20% higher than the same week one year ago.
The refinance share of mortgage activity increased to 53.1% of total applications from 51.3% the previous week. This is the highest refinance share since April 2015. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.8% of total applications.
The FHA share of total applications decreased to 13.3% from 13.8% the week prior. The VA share of total applications increased to 11.3% from 10.5% the week prior. The USDA share of total applications decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.13%, with points decreasing to 0.31 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.08%, with points increasing to 0.34 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
read more: http://www.housingwire.com/articles/34741-mortgage-applications-land-flat-for-week
The Market Composite Index, a measure of mortgage loan application volume, increased 0.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week. The Refinance Index increased 3% from the previous week to its highest level since May 2015. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 4% compared with the previous week and was 20% higher than the same week one year ago.
The refinance share of mortgage activity increased to 53.1% of total applications from 51.3% the previous week. This is the highest refinance share since April 2015. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.8% of total applications.
The FHA share of total applications decreased to 13.3% from 13.8% the week prior. The VA share of total applications increased to 11.3% from 10.5% the week prior. The USDA share of total applications decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.13%, with points decreasing to 0.31 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.08%, with points increasing to 0.34 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
read more: http://www.housingwire.com/articles/34741-mortgage-applications-land-flat-for-week
Sunday, August 9, 2015
Ask an Attorney: Foreclosure of a second mortgage
Question: Back in 2009 when the economy tanked, I took a pay cut at my job and couldn’t afford to pay my mortgages. In 2013, I got a loan modification on my first mortgage and have been making payments on it for the past two years. Now, my second mortgage is threatening to foreclose. They tell me that unless I pay six years of past-due payments, they’re going to take my home. Can they do that? I thought second mortgages can’t foreclose. Please help!
Lenders that hold liens in second position, often referred to as second mortgages and/or HELOCs, typically have the right to foreclose on a home when the loan is in default. Collectively, all nonpriority liens placed after a first mortgage are called junior mortgages, and lien holders generally have the right to foreclose when the repayment terms are not met.
That said, it isn’t so much that junior lien holders can’t foreclose. A more accurate statement is that second lien holders typically don’t foreclose. The reasoning is simple.
NRS 40.462 explains how the proceeds of a foreclosure auction are distributed to various lien holders. Essentially, mortgage liens are paid in the order they were recorded on the property. The first mortgage is paid first, the second is paid second and so on. So, for example, if a first mortgage holder is owed $150,000 and the second mortgage holder is owed $50,000, there is no benefit for the second mortgage holder to foreclose unless the house will sell at auction for more than $150,000.
In other words, unless the sale price on the foreclosed property is higher than the first mortgage, the second mortgage holder won’t get any money, even if it were to foreclose.
Applying this to what happened recently in Nevada, lenders with second and third mortgages on properties that had values less than what was owed on the first mortgage wouldn’t foreclose. Instead, they waited until homeowners modified their first mortgages, often lowering the amounts owed on the homes, then waited until property values recovered enough that foreclosure would get them paid — at least in part. Now that home values have risen, junior mortgage foreclosure is becoming more common.
This isn’t the end of the world, though. Junior mortgages can be modified and/or reinstated. In some cases, it also is possible to settle the balance for pennies on the dollar or get them stripped entirely with zero cash out of pocket.
If you are going to pursue one of these alternatives, I’d urge you to act quickly before home values rise too far. The less your home is worth, the greater the chance to work something out with your junior lender.
read more: lasvegassun.com/native/panda/2015/aug/09/ask-an-attorney-foreclosure-second-mortgage/
Lenders that hold liens in second position, often referred to as second mortgages and/or HELOCs, typically have the right to foreclose on a home when the loan is in default. Collectively, all nonpriority liens placed after a first mortgage are called junior mortgages, and lien holders generally have the right to foreclose when the repayment terms are not met.
That said, it isn’t so much that junior lien holders can’t foreclose. A more accurate statement is that second lien holders typically don’t foreclose. The reasoning is simple.
NRS 40.462 explains how the proceeds of a foreclosure auction are distributed to various lien holders. Essentially, mortgage liens are paid in the order they were recorded on the property. The first mortgage is paid first, the second is paid second and so on. So, for example, if a first mortgage holder is owed $150,000 and the second mortgage holder is owed $50,000, there is no benefit for the second mortgage holder to foreclose unless the house will sell at auction for more than $150,000.
In other words, unless the sale price on the foreclosed property is higher than the first mortgage, the second mortgage holder won’t get any money, even if it were to foreclose.
Applying this to what happened recently in Nevada, lenders with second and third mortgages on properties that had values less than what was owed on the first mortgage wouldn’t foreclose. Instead, they waited until homeowners modified their first mortgages, often lowering the amounts owed on the homes, then waited until property values recovered enough that foreclosure would get them paid — at least in part. Now that home values have risen, junior mortgage foreclosure is becoming more common.
This isn’t the end of the world, though. Junior mortgages can be modified and/or reinstated. In some cases, it also is possible to settle the balance for pennies on the dollar or get them stripped entirely with zero cash out of pocket.
If you are going to pursue one of these alternatives, I’d urge you to act quickly before home values rise too far. The less your home is worth, the greater the chance to work something out with your junior lender.
read more: lasvegassun.com/native/panda/2015/aug/09/ask-an-attorney-foreclosure-second-mortgage/
Thursday, August 6, 2015
J.P. Morgan Loosens Terms for Huge Mortgages
According to Market Watch J.P. Morgan Chase & Co. is slackening its endorsing criteria for major mortgages, as competition to grab a bigger share of the high-end housing market among lenders rapidly rise.
The nation's largest bank, J.P. Morgan Chase & Co., plans to release an announcement as soon as Tuesday that it is lowering the minimum credit score and down payment it will requires for mortgages as great as $3 million.
The move of the big New York firm is similar to the steps of firms like the Bank of America Corp, Wells Fargo & Co., and other banks for requirements on big mortgages, for example those that exceed $417,000 in most parts of the country or $625,500 in high-priced markets. At the same time, the big banks are veering away from smaller loans where regulatory and litigation risks are higher.
Following the financial crisis, a recovery in the economy including the mortgage market has faced a lot of challenges, but the jumbo market, which is prevalent with wealthy borrowers, has rebounded along with sales of more expensive homes. In the second quarter, overall jumbo beginnings went up to an eight-year high that is at $93 billion, up by 58 percent from a year ago, according to an initial estimate from an industry newsletter Inside Mortgage Finance.
Furthermore, by dollar volume, big mortgages given out by moneylenders last year accounted for about 20 percent of all first-lien mortgages, used for the purpose of purchasing or refinancing a home, according to Inside Mortgage Finance. That is up from 5.5% in the year 2009. By record, the last time jumbo mortgages accounted for a larger share was way back in 2005.
J.P. Morgan Chase & Co (NYSE: JPM) is one of the oldest financial institutions in the United States with its head office located in New York City, New York.
read more: http://www.realtytoday.com/articles/24925/20150805/j-p-morgan-loosens-terms-huge-mortgages.htm
Sunday, August 2, 2015
The Risks of Refinancing Student Loans, Credit Cards and Mortgages
Refinancing high interest rate debt to a lower interest rate can be a great way to save money. While this strategy can make a lot of sense, there are some risks. Before signing on the dotted line, make sure you consider those risks carefully.
Student Loans
The student loan market has experienced dramatic growth, and Americans now owe a staggering $1.2 trillion, which is more than credit card debt. If you are making student loan payments today, your interest rate could be above 6%. The leaders in student loan refinancing offer variable interest rates as low as 1.90% and fixed rates as low as 3.50%. Refinancing to these rates could save borrowers more than $10,000.
But there are two big risks that you should consider before refinancing.
If you have a federal loan, you will give up federal protections when refinancing to a private loan. The most important protection currently offered for federal loans is income-based repayment, which can cap your monthly payment to 15% of your discretionary income. If your income stays low, the federal programs even have principal forgiveness after 20 years.
If you switch from a fixed interest rate to a variable interest rate, you will be taking significant interest rate risk. The last five years have made many of us believe that interest rates will always be low. However, history reminds us that rates can be a lot higher. Look for lenders that offer interest rate caps as a protection.
Refinancing private student loan debt makes a lot of sense. For federal student loan debt, you need to gauge the likelihood that your income could drop dramatically over the term of your loan. There are a number of lenders out there offering to refinance student loan debt, and you should shop around for the best deal. I keep an updated list of student loan refinance options, and interest rates, at my website MagnifyMoney.
Credit Cards
Americans still have a lot of credit card debt. According to NerdWallet, the average US household debt stands at $15,863. And the average interest rates on credit cards remain above 13%.
Marketplace lenders like Lending Club and Prosper are helping people refinance their credit card debt. On average, borrowers at Lending Club are receiving interest rates that are 31% lower than their credit card rate.
However, borrowers should consider two risks before proceeding.
Most lenders charge an origination fee, which will not be reimbursed if you pay off your loan early. Although there are no prepayment penalties, the origination fee is a kind of prepayment penalty in disguise.
see more: http://www.forbes.com/sites/nickclements/2015/08/01/the-risks-of-refinancing-student-loans-credit-cards-and-mortgages/
Student Loans
The student loan market has experienced dramatic growth, and Americans now owe a staggering $1.2 trillion, which is more than credit card debt. If you are making student loan payments today, your interest rate could be above 6%. The leaders in student loan refinancing offer variable interest rates as low as 1.90% and fixed rates as low as 3.50%. Refinancing to these rates could save borrowers more than $10,000.
But there are two big risks that you should consider before refinancing.
If you have a federal loan, you will give up federal protections when refinancing to a private loan. The most important protection currently offered for federal loans is income-based repayment, which can cap your monthly payment to 15% of your discretionary income. If your income stays low, the federal programs even have principal forgiveness after 20 years.
If you switch from a fixed interest rate to a variable interest rate, you will be taking significant interest rate risk. The last five years have made many of us believe that interest rates will always be low. However, history reminds us that rates can be a lot higher. Look for lenders that offer interest rate caps as a protection.
Refinancing private student loan debt makes a lot of sense. For federal student loan debt, you need to gauge the likelihood that your income could drop dramatically over the term of your loan. There are a number of lenders out there offering to refinance student loan debt, and you should shop around for the best deal. I keep an updated list of student loan refinance options, and interest rates, at my website MagnifyMoney.
Credit Cards
Americans still have a lot of credit card debt. According to NerdWallet, the average US household debt stands at $15,863. And the average interest rates on credit cards remain above 13%.
Marketplace lenders like Lending Club and Prosper are helping people refinance their credit card debt. On average, borrowers at Lending Club are receiving interest rates that are 31% lower than their credit card rate.
However, borrowers should consider two risks before proceeding.
Most lenders charge an origination fee, which will not be reimbursed if you pay off your loan early. Although there are no prepayment penalties, the origination fee is a kind of prepayment penalty in disguise.
see more: http://www.forbes.com/sites/nickclements/2015/08/01/the-risks-of-refinancing-student-loans-credit-cards-and-mortgages/
Wednesday, July 29, 2015
Reverse Mortgage To Buy New Homes For Seniors
Seniors are also entitled the right to decent housing, and as such the reverse mortgages scheme has been proved useful in ensuring the security for a longer home stay for this age group.
Realtytimes.com discussed in a report following what's next on reverse mortgages. The advent of the reverse mortgages industry not only mobilized seniors into deciding whether to continue living in their current homes but has also offered seniors a better chance in purchasing a new home. The U.S. Department of Housing and the Urban Development FHA Reverse Mortgage To Purchase Program will allow them to experience the benefits of the traditional reverse mortgage scheme, for seniors who still have equity for their homes with the ability to supplement on their current income. Among the benefits that seniors can enjoy out of this kind of mortgage includes paying property taxes, home maintenance, as well as zero credit requirements. How this incentive works can be further read here.
Prior to doing a reverse mortgage loan, take note of using the services of an FHA (Federal Housing Administration) approved lender. A homeguides.sfgate.com article provides meaningful information as a guide to learning the ins and outs for this affordable home financing option, especially for borrowers with poor credit, on low income, even below minimum down payment funds. Health care centers, homes with single or multi-family dwellings and senior citizens can be insured through an FHA loan.
Another article on the benefits of reverse mortgages was also featured in aag.com. An inviting reason to choose it as a safe financial tool is: the borrower has no personal liability, thus safeguarding the borrower from owing more than what the house costs if sold. Read more about them here
read more: http://www.realtytoday.com/articles/23097/20150728/reverse-mortgage-buy-new-homes-seniors.htm
Realtytimes.com discussed in a report following what's next on reverse mortgages. The advent of the reverse mortgages industry not only mobilized seniors into deciding whether to continue living in their current homes but has also offered seniors a better chance in purchasing a new home. The U.S. Department of Housing and the Urban Development FHA Reverse Mortgage To Purchase Program will allow them to experience the benefits of the traditional reverse mortgage scheme, for seniors who still have equity for their homes with the ability to supplement on their current income. Among the benefits that seniors can enjoy out of this kind of mortgage includes paying property taxes, home maintenance, as well as zero credit requirements. How this incentive works can be further read here.
Prior to doing a reverse mortgage loan, take note of using the services of an FHA (Federal Housing Administration) approved lender. A homeguides.sfgate.com article provides meaningful information as a guide to learning the ins and outs for this affordable home financing option, especially for borrowers with poor credit, on low income, even below minimum down payment funds. Health care centers, homes with single or multi-family dwellings and senior citizens can be insured through an FHA loan.
Another article on the benefits of reverse mortgages was also featured in aag.com. An inviting reason to choose it as a safe financial tool is: the borrower has no personal liability, thus safeguarding the borrower from owing more than what the house costs if sold. Read more about them here
read more: http://www.realtytoday.com/articles/23097/20150728/reverse-mortgage-buy-new-homes-seniors.htm
Friday, July 24, 2015
Refinancing? 3 Mortgages That Require Less Documentation
Looking to avoid all the paperwork associated with getting a mortgage? Here are three loan programs with no laundry list. See if you’re eligible…
Most mortgage loan products require you to provide two years of tax returns and W-2s, 30 days of pay stubs and at least two months of bank statements to provide a basis demonstrating your ability to repay the note. If you’re buying a home, there’s no back step, you will be subject to the scrutiny of the bank’s underwriter.
If you are looking to reduce your fixed housing costs here’s three programs that could meet you in the middle of the road. After all, who wants to go through a financial analysis every time you want to save a few hundred dollars per month?
Harp 2 -
If your loan is owned by Fannie Mae or Freddie Mac, and it was taken out no later than May 31, 2009 you’re gold. The role of the Making Homes Affordable Programwas to aid homeowners in refinancing due to loan-to-value restrictions, do so without limitation. The program still has the same flexible appraisal threshold. Each mortgage company offering the program must perform an automated underwriting analysis on your loan application. Automated underwriting is the nationwide algorithm lenders use in originating loans sold to Fannie Mae and Freddie Mac. The automated underwriting results determine a loan that is eligible for sale delivery to either entity. If the automated underwriting results reveal your loan does not require an appraisal, you need not obtain one. Additionally, even if you have a debt to income ratio as high as 60%, this may also fly with your mortgage company.
Mortgage tip: some mortgage companies have debt related adjustors built into their origination guidelines, meaning that even though the program does not have a debt to income ratio requirement, you might still be limited to 45% and it may mean having to request an exception for approval.
Additionally, if automated underwriting only requires pay stubs and for example one year of federal income tax returns, you need only that information in conjunction with your mortgage loan application. This may be acceptable with the mortgage company who we were working with to provide documentation specifically consistent with the automated underwriting results.
The same credit characteristics might apply as identified above, your mortgage company may still require full documentation. For the loan to be considered eligible for delivery to Fannie Mae and Freddie Mac, the only documentation that is required is specifically identified on the automated underwriting result your loan officer has access to. If your mortgage company is still asking you for more financial documentation, ask them to provide a copy of the Desktop Underwriter (Du) Fannie Mae’s algorithm or Loan Prospector (LP) Freddie Mac’s algorithm results on your application.
read more: http://patch.com/california/northhollywood/refinancing-3-mortgages-require-less-documentation
Most mortgage loan products require you to provide two years of tax returns and W-2s, 30 days of pay stubs and at least two months of bank statements to provide a basis demonstrating your ability to repay the note. If you’re buying a home, there’s no back step, you will be subject to the scrutiny of the bank’s underwriter.
If you are looking to reduce your fixed housing costs here’s three programs that could meet you in the middle of the road. After all, who wants to go through a financial analysis every time you want to save a few hundred dollars per month?
Harp 2 -
If your loan is owned by Fannie Mae or Freddie Mac, and it was taken out no later than May 31, 2009 you’re gold. The role of the Making Homes Affordable Programwas to aid homeowners in refinancing due to loan-to-value restrictions, do so without limitation. The program still has the same flexible appraisal threshold. Each mortgage company offering the program must perform an automated underwriting analysis on your loan application. Automated underwriting is the nationwide algorithm lenders use in originating loans sold to Fannie Mae and Freddie Mac. The automated underwriting results determine a loan that is eligible for sale delivery to either entity. If the automated underwriting results reveal your loan does not require an appraisal, you need not obtain one. Additionally, even if you have a debt to income ratio as high as 60%, this may also fly with your mortgage company.
Mortgage tip: some mortgage companies have debt related adjustors built into their origination guidelines, meaning that even though the program does not have a debt to income ratio requirement, you might still be limited to 45% and it may mean having to request an exception for approval.
Additionally, if automated underwriting only requires pay stubs and for example one year of federal income tax returns, you need only that information in conjunction with your mortgage loan application. This may be acceptable with the mortgage company who we were working with to provide documentation specifically consistent with the automated underwriting results.
The same credit characteristics might apply as identified above, your mortgage company may still require full documentation. For the loan to be considered eligible for delivery to Fannie Mae and Freddie Mac, the only documentation that is required is specifically identified on the automated underwriting result your loan officer has access to. If your mortgage company is still asking you for more financial documentation, ask them to provide a copy of the Desktop Underwriter (Du) Fannie Mae’s algorithm or Loan Prospector (LP) Freddie Mac’s algorithm results on your application.
read more: http://patch.com/california/northhollywood/refinancing-3-mortgages-require-less-documentation
Monday, July 20, 2015
Former coach of Andy Murray visits Broadstairs tennis club
While Andy Murray was helping Britain to their first Davis Cup semi-final in 34 years, a former coach of his was putting the next generation of tennis stars through their paces in Broadstairs.
Jason Barnett, who worked with the 2013 Wimbledon champion when he was just nine, travelled from Aberdeen to Broadstairs & St Peter's Lawn Tennis Club for the weekend.
He held sessions with the club's senior and junior players across the weekend, and believes the future of tennis is bright on the Isle.
"It's lovely," he said. "It's good to come down and play some tennis in an area where there's actually some good weather.
"I've been coaching up in the Highlands and the conditions are tough. It's nice to come down into a lovely, vibrant club, and see familiar faces, get them on court and improving their tennis."
"The enthusiasm in this club is brilliant and what we need to do is capitalise on that.
"Tennis is a sport where I feel it's not embraced enough when we have the biggest tournament on the planet in Wimbledon."
Barnett, now 40 and a former world number one in the over-35 game, believes Murray's achievements can be the catalyst for a spike in tennis participation.
And he still remembers the driven youngster he worked with at Stirling University almost 20 years ago.
"He was feisty as he still is and he wasn't short of telling me his opinions about tennis, even at nine," Barnett said. "You need that forceful attitude and I'm so impressed with his work ethic, how hard he trains and the role model he has become for tennis.
"Hopefully we can get more people playing tennis. Andy winning Wimbledon could hopefully be like a Bjorn Borg effect in this country, where all the boys will be inspired and catch on to that dream and maybe think they can achieve it.
Read more: www.thanetgazette.co.uk/coach-Andy-Murray-visits-Broadstairs-tennis-club/story-27446659-detail/story.html
Jason Barnett, who worked with the 2013 Wimbledon champion when he was just nine, travelled from Aberdeen to Broadstairs & St Peter's Lawn Tennis Club for the weekend.
He held sessions with the club's senior and junior players across the weekend, and believes the future of tennis is bright on the Isle.
"It's lovely," he said. "It's good to come down and play some tennis in an area where there's actually some good weather.
"I've been coaching up in the Highlands and the conditions are tough. It's nice to come down into a lovely, vibrant club, and see familiar faces, get them on court and improving their tennis."
"The enthusiasm in this club is brilliant and what we need to do is capitalise on that.
"Tennis is a sport where I feel it's not embraced enough when we have the biggest tournament on the planet in Wimbledon."
Barnett, now 40 and a former world number one in the over-35 game, believes Murray's achievements can be the catalyst for a spike in tennis participation.
And he still remembers the driven youngster he worked with at Stirling University almost 20 years ago.
"He was feisty as he still is and he wasn't short of telling me his opinions about tennis, even at nine," Barnett said. "You need that forceful attitude and I'm so impressed with his work ethic, how hard he trains and the role model he has become for tennis.
"Hopefully we can get more people playing tennis. Andy winning Wimbledon could hopefully be like a Bjorn Borg effect in this country, where all the boys will be inspired and catch on to that dream and maybe think they can achieve it.
Read more: www.thanetgazette.co.uk/coach-Andy-Murray-visits-Broadstairs-tennis-club/story-27446659-detail/story.html
Thursday, July 16, 2015
Bank of America says it’s No. 2 for mortgage customer satisfaction. So does Chase.
In the competitive U.S. mortgage market, bank giants are battling to be runner-up in customer satisfaction for home loans.
On Wednesday, Bank of America BAC, +0.83% boasted of earning the No. 2 spot in J.D. Power’s customer-satisfaction study for mortgage originations. On Tuesday J.P.Morgan Chase JPM, +0.51% proclaimed it was No. 2 in J.D. Power’s customer-satisfaction study for mortgage servicing.
Both claims are true, with a caveat: USAA out-scored Bank of America in the origination study, but it wasn’t included in the ranking because its mortgages are only available to those who have been or are in the military, plus their families.
So, who is No. 1 for mortgage-customer satisfaction? That’s Quicken Loans, an online lender based in Detroit. Quicken nabbed top spots last year in customer satisfaction for both originations and servicing.
For the origination survey, Quicken has ranked No. 1 for five consecutive years, with good marks for loan offerings, the application and approval process, and problem resolution, among other categories. For the servicing study, 2014 was the first year that J.D. Power included Quicken, which promptly beat its competition. Quicken performed well in categories such as billing and payment process and escrow-account administration.
source: http://www.marketwatch.com/story/bank-giants-battle-to-be-no-2-for-mortgage-customer-satisfaction-2015-07-15
On Wednesday, Bank of America BAC, +0.83% boasted of earning the No. 2 spot in J.D. Power’s customer-satisfaction study for mortgage originations. On Tuesday J.P.Morgan Chase JPM, +0.51% proclaimed it was No. 2 in J.D. Power’s customer-satisfaction study for mortgage servicing.
Both claims are true, with a caveat: USAA out-scored Bank of America in the origination study, but it wasn’t included in the ranking because its mortgages are only available to those who have been or are in the military, plus their families.
So, who is No. 1 for mortgage-customer satisfaction? That’s Quicken Loans, an online lender based in Detroit. Quicken nabbed top spots last year in customer satisfaction for both originations and servicing.
For the origination survey, Quicken has ranked No. 1 for five consecutive years, with good marks for loan offerings, the application and approval process, and problem resolution, among other categories. For the servicing study, 2014 was the first year that J.D. Power included Quicken, which promptly beat its competition. Quicken performed well in categories such as billing and payment process and escrow-account administration.
source: http://www.marketwatch.com/story/bank-giants-battle-to-be-no-2-for-mortgage-customer-satisfaction-2015-07-15
Monday, July 13, 2015
Millions could be saving $200 a month on mortgages
About 6.5 million mortgage borrowers could qualify for and benefit from refinancing their home loans, according to the "Mortgage Monitor Report" from Black Knight Financial Services, which could translate into massive savings for those consumers.
The report, based on May 2015 data, puts the total potential annual savings at $20 billion, with as many as 3 million borrowers saving at least $200 a month inmortgage payments.
The vast majority of homeowners could realize these savings through traditional refinancing, the analysis showed, while roughly 450,000 homeowners would be eligible for lower interest rates on their home loans through HARP, the Home Affordable Refinance Program. HARP is geared toward borrowers whose homes have declined in value, therefore preventing them from securing traditional refinancing.
Black Knight arrived at these figures by analyzing borrower and mortgage data, specifically the 30-year fixed-rate loan. In a news release about the analysis, Black Knight noted that rate fluctuations could change borrowers' ability to save.
"It's important to remember how rate-sensitive this population is, too," said Ben Graboske, senior vice president of Data & Analytics at Black Knight, according to the news release. "[I]f rates go up just half a percentage point, 2.6 million people fall out of that refinanceable population."
Rates haven't shifted much since May, but they have edged upward, suggesting that 6.5 million-borrower figure has already shrunk.
Borrowers considering a refinance also need to be sure that what you'll pay in upfront costs versus what you will save in monthly payments makes the move worthwhile for you. You'll have to consider closing costs and also the amount of time you want to stay in the home. For example, if you're planning to sell in the next couple of years, be sure to crunch the numbers and make sure the savings are worthwhile in the long-run.
see more at : http://www.usatoday.com/story/money/personalfinance/2015/07/12/credit-dotcom-saving-on-mortgages/29892627/
The report, based on May 2015 data, puts the total potential annual savings at $20 billion, with as many as 3 million borrowers saving at least $200 a month inmortgage payments.
The vast majority of homeowners could realize these savings through traditional refinancing, the analysis showed, while roughly 450,000 homeowners would be eligible for lower interest rates on their home loans through HARP, the Home Affordable Refinance Program. HARP is geared toward borrowers whose homes have declined in value, therefore preventing them from securing traditional refinancing.
Black Knight arrived at these figures by analyzing borrower and mortgage data, specifically the 30-year fixed-rate loan. In a news release about the analysis, Black Knight noted that rate fluctuations could change borrowers' ability to save.
"It's important to remember how rate-sensitive this population is, too," said Ben Graboske, senior vice president of Data & Analytics at Black Knight, according to the news release. "[I]f rates go up just half a percentage point, 2.6 million people fall out of that refinanceable population."
Rates haven't shifted much since May, but they have edged upward, suggesting that 6.5 million-borrower figure has already shrunk.
Borrowers considering a refinance also need to be sure that what you'll pay in upfront costs versus what you will save in monthly payments makes the move worthwhile for you. You'll have to consider closing costs and also the amount of time you want to stay in the home. For example, if you're planning to sell in the next couple of years, be sure to crunch the numbers and make sure the savings are worthwhile in the long-run.
see more at : http://www.usatoday.com/story/money/personalfinance/2015/07/12/credit-dotcom-saving-on-mortgages/29892627/
Wednesday, July 8, 2015
Landlords fear budget tax squeeze
The National Landlords Association has sent a letter to Chancellor George Osborne warning against altering the current system, which allows rental income to be offset against mortgage interest payments.
Richard Lambert, the NLA's chief executive, wrote: "It has been suggested that private landlords receive too many perks or reliefs which give them an unfair advantage compared to owner-occupiers, but this ignores the fact that letting residential property for profit is a business.
"Removing their ability to deduct legitimate costs before declaring their taxable profit would essentially force them to suck up one of the most significant expenses they face in being able to provide homes for others.
"I hope you will give an unequivocal reassurance that the government will continue to regard Buy-to-Let mortgage interest payments as a legitimate business cost and give landlords the confidence and certainty to invest for the future."
John Heron, the managing director of buy-to-let lender Paragon Mortgages, agreed that it would have a negative impact on the UK economy should the government meddle with the current system.
He said: "It's an entirely reasonable way for landlords to be treated and it works in the same way as any other business would operate.
"I haven't seen any official source that suggests there might be any changes, but you never know with budgets."
Previously the NLA has warned that if mortgage interest payments were classed as non-deductible landlords would have to raise rents to compensate.
see more: http://www.mortgageintroducer.com/mortgages/253036/5/Industry_in_depth/Landlords_fear_budget_tax_squeeze.htm
Richard Lambert, the NLA's chief executive, wrote: "It has been suggested that private landlords receive too many perks or reliefs which give them an unfair advantage compared to owner-occupiers, but this ignores the fact that letting residential property for profit is a business.
"Removing their ability to deduct legitimate costs before declaring their taxable profit would essentially force them to suck up one of the most significant expenses they face in being able to provide homes for others.
"I hope you will give an unequivocal reassurance that the government will continue to regard Buy-to-Let mortgage interest payments as a legitimate business cost and give landlords the confidence and certainty to invest for the future."
John Heron, the managing director of buy-to-let lender Paragon Mortgages, agreed that it would have a negative impact on the UK economy should the government meddle with the current system.
He said: "It's an entirely reasonable way for landlords to be treated and it works in the same way as any other business would operate.
"I haven't seen any official source that suggests there might be any changes, but you never know with budgets."
Previously the NLA has warned that if mortgage interest payments were classed as non-deductible landlords would have to raise rents to compensate.
see more: http://www.mortgageintroducer.com/mortgages/253036/5/Industry_in_depth/Landlords_fear_budget_tax_squeeze.htm
Monday, July 6, 2015
Nonprofit: Seniors can learn about reverse annuity mortgages
Find out what happens to older adults when their trust is undermined by con artists, unscrupulous sales people, risky investments or unfair financing plans.
Missoula Aging Services and Montana Senior Medicare Patrol are presenting a free documentary film screening Wednesday, July 15, from 1 to 2:30 p.m. at the Missoula Senior Center, 705 S. Higgins Ave. The film “Fleeced” shows examples from around the country of how seniors are protecting themselves from financial fraud and fighting back. It will be followed by a panel discussion with local experts from Adult Protective Services, Missoula Police Department and financial services.
The event is free and open to the public.
***
The 2015 Power of Pink Variety Show invites singers, dancers, actors and other performing artists to volunteer their talents to help end breast cancer in Ravalli County. Every act is asked to prepare a piece based on the theme of hope and strength, rehearse it, and come to one dress rehearsal Sunday, Sept. 27. The show will be performed at the Mary Stuart Rogers Theater in Victor on Friday, Oct. 2.
If you would like to participate, auditions will be held Thursday, July 30, from 4 to 6 p.m. at Marcus Daly Memorial Hospital in Conference Room C. Call Sherry at 375-4675 to reserve an audition slot.
The Power of Pink is supported by community members, Mary Stuart Rogers Performing Arts Center, Victor schools, Ravalli County dance and theater companies, Bitterroot Valley Chamber of Commerce and Marcus Daly Memorial Hospital.
see more: http://missoulian.com/lifestyles/hometowns/nonprofit-seniors-can-learn-about-reverse-annuity-mortgages/article_cdf699d8-d76c-5a10-9e39-57275e8ad33a.html
Tuesday, June 30, 2015
Average US Rate on 30-Year Mortgage Edges up to 4.02 Pct.
Average long-term U.S. mortgage rates were mixed last week, marking slight increases or declines but remaining close to high levels for the year.
Mortgage giant Freddie Mac said the average rate on a 30-year fixed-rate mortgage edged up to 4.02 percent this week from 4 percent a week earlier. The rate on 15-year fixed-rate mortgages slipped to 3.21 percent from 3.23 percent.
Mortgage rates have increased in recent weeks, in the midst of the spring home buying season, as the economy has shown signs of improvement.
Government data issued showed that purchases of new U.S. homes surged in the Northeast and West last month, as steady job growth over the past year has lifted the housing market. Sales of new homes have soared 24 percent year-to-date and are on pace for their best year since 2007. They've been bolstered by the additional incomes from employers hiring 3.1 million workers in the past 12 months and mortgage rates that remain low by historical standards despite their recent increase.
A year ago, the average 30-year rate was 4.14 percent; the 15-year was slightly above its current level, at 3.22 percent.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.7 point. The fee for a 15-year loan rose to 0.6 point from 0.5 point.
The average rate on five-year adjustable-rate mortgages fell to 2.98 percent from 3 percent; the fee remained at 0.4 point. The average rate on one-year ARMs declined to 2.50 percent from 2.53 percent; the fee rose to 0.3 point from 0.2 point.
read more: http://www.edgeboston.com/business/corporate/news/179960/average_us_rate_on_30-year_mortgage_edges_up_to_402_pct
Mortgage giant Freddie Mac said the average rate on a 30-year fixed-rate mortgage edged up to 4.02 percent this week from 4 percent a week earlier. The rate on 15-year fixed-rate mortgages slipped to 3.21 percent from 3.23 percent.
Mortgage rates have increased in recent weeks, in the midst of the spring home buying season, as the economy has shown signs of improvement.
Government data issued showed that purchases of new U.S. homes surged in the Northeast and West last month, as steady job growth over the past year has lifted the housing market. Sales of new homes have soared 24 percent year-to-date and are on pace for their best year since 2007. They've been bolstered by the additional incomes from employers hiring 3.1 million workers in the past 12 months and mortgage rates that remain low by historical standards despite their recent increase.
A year ago, the average 30-year rate was 4.14 percent; the 15-year was slightly above its current level, at 3.22 percent.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged from last week at 0.7 point. The fee for a 15-year loan rose to 0.6 point from 0.5 point.
The average rate on five-year adjustable-rate mortgages fell to 2.98 percent from 3 percent; the fee remained at 0.4 point. The average rate on one-year ARMs declined to 2.50 percent from 2.53 percent; the fee rose to 0.3 point from 0.2 point.
read more: http://www.edgeboston.com/business/corporate/news/179960/average_us_rate_on_30-year_mortgage_edges_up_to_402_pct
Friday, June 26, 2015
Strong housing data pushes 30-year fixed mortgage rate higher
Economists have been declaring for years that mortgage rates were going to rise. Now those predictions seem to be coming true.
As the Federal Reserve contemplates raising its benchmark federal funds rate, home loans are becoming more expensive. Indications are that the days of the 30-year fixed-rate home loan at a rate below 4 percent are gone, if not for good, certainly for a long time.
For the third week in a row, the 30-year fixed-rate average remained above the 4 percent mark, according to the latest data released Thursday by Freddie Mac. It rose to 4.02 percent with an average 0.7 point this week. (Points are fees paid to a lender equal to 1 percent of the loan amount.) The 30-year fixed rate was 4 percent a week ago and 4.14 percent a year ago.
Although rates are rising, they remain near their all-time lows. The 30-year fixed-rate average hasn’t been above 5 percent since February 2011, and it hasn’t topped 6 percent since November 2008.
The 15-year fixed-rate average dropped to 3.21 percent with an average 0.6 point. It was 3.23 percent a week ago and 3.22 percent a year ago.
Hybrid adjustable rate mortgages also fell. The five-year ARM average edged down to 2.98 percent with an average 0.4 point. It was 3 percent a week ago and 2.98 percent a year ago.
The one-year ARM average slipped to 2.5 percent with an average 0.3 point. It was 2.53 percent a week ago.
see more at: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/06/25/strong-housing-data-pushes-30-year-fixed-mortgage-rate-higher/
As the Federal Reserve contemplates raising its benchmark federal funds rate, home loans are becoming more expensive. Indications are that the days of the 30-year fixed-rate home loan at a rate below 4 percent are gone, if not for good, certainly for a long time.
For the third week in a row, the 30-year fixed-rate average remained above the 4 percent mark, according to the latest data released Thursday by Freddie Mac. It rose to 4.02 percent with an average 0.7 point this week. (Points are fees paid to a lender equal to 1 percent of the loan amount.) The 30-year fixed rate was 4 percent a week ago and 4.14 percent a year ago.
Although rates are rising, they remain near their all-time lows. The 30-year fixed-rate average hasn’t been above 5 percent since February 2011, and it hasn’t topped 6 percent since November 2008.
The 15-year fixed-rate average dropped to 3.21 percent with an average 0.6 point. It was 3.23 percent a week ago and 3.22 percent a year ago.
Hybrid adjustable rate mortgages also fell. The five-year ARM average edged down to 2.98 percent with an average 0.4 point. It was 3 percent a week ago and 2.98 percent a year ago.
The one-year ARM average slipped to 2.5 percent with an average 0.3 point. It was 2.53 percent a week ago.
see more at: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/06/25/strong-housing-data-pushes-30-year-fixed-mortgage-rate-higher/
Tuesday, June 23, 2015
70% of Greek mortgages aren't being paid
The economy in Greece is so bad that Greeks have stopped paying their personal and consumer debts and are raising cash by selling family heirlooms, according to an astonishing article in the Financial Times.
Here is the scariest quote:
“There’s a real issue of moral hazard . . . Around 70 per cent of restructured mortgage loans aren’t being serviced because people think foreclosures will only be applied to big villa owners,” one banker said.
Greece has become an upside-down world where no one feels ashamed about not paying their debts, the FT reports, because no one can pay their debts:
The family still owes a year’s worth of school fees at the private international school their daughter attended, which George admits is not a priority. He is no longer embarrassed by his inability to pay, he says, because so many other parents are in the same situation.
At the same time, consumers are pulling all their cash out of the Greek banks, for fear they will fail. Greece needs to make a €1.5 billion payment to the IMF by the end of June.
Read more: http://www.businessinsider.com/70-of-greek-mortgages-arent-being-paid-2015-6
Here is the scariest quote:
“There’s a real issue of moral hazard . . . Around 70 per cent of restructured mortgage loans aren’t being serviced because people think foreclosures will only be applied to big villa owners,” one banker said.
Greece has become an upside-down world where no one feels ashamed about not paying their debts, the FT reports, because no one can pay their debts:
The family still owes a year’s worth of school fees at the private international school their daughter attended, which George admits is not a priority. He is no longer embarrassed by his inability to pay, he says, because so many other parents are in the same situation.
At the same time, consumers are pulling all their cash out of the Greek banks, for fear they will fail. Greece needs to make a €1.5 billion payment to the IMF by the end of June.
Read more: http://www.businessinsider.com/70-of-greek-mortgages-arent-being-paid-2015-6
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