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FHA Cash Out Refinances Getting More Strict As Of April 1, 2009

March 30, 2009

If you’re in want of a cash out refinance, the most liberal cash-out program in town is about to make qualification more difficult. Effective April 1, 2009, the FHA is reducing the maximum loan-to-value on cash-out refinances by 10 percent, dropping the loan size limit from 95% of the home’s value to 85%. In its official press release , the FHA days it’s making the change to “limit its exposure to undue risk”.

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Simple Real Estate Definitions : Refinance

December 12, 2008

A mortgage is a contract between a bank and borrower, defining the terms by which a home loan must be repaid. The paperwork, signed by both parties, includes provisions for things like: The interest rate The length of the loan The amount of money to be borrowed But, like all loans, a mortgage loan can be paid off at any time.

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Conforming Fixed Rate Mortgages Are Now Priced Better Than Comparable ARMs

December 11, 2008

It’s the age-old question for home buyers in need of a mortgage: Which is better: Fixed or ARM? Historically, the answer has hinged on a homebuyer’s desire to meet one of two mutually-exclusive mortgage financing goals: Get low mortgage payments for better cash flow Get long-term payment stability for better budget planning But because of government intervention and lingering questions about the economy, fixed-rate mortgages are now pricing cheaper than their adjustable-rate counterparts.

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Get Extra Tax Deductions In 2008 — Pay Your Mortgage A Few Days Early

December 10, 2008

For most Americans, mortgage interest paid on a home loan is tax-deductible in the year in which it was paid. With advance planning, therefore, homeowners can increase their 2008 tax deductions and limit their tax liability on April 15

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What It Means When More Than Half Of The Delinquent Homeowners Go Delinquent Again

December 9, 2008

Earlier this year and under pressure from the government, mortgage lenders made more than 200,000 loan modifications to delinquent homeowners. The modifications came in one of three forms, or a combination: Interest rate reduction Loan term extension Principal forgiveness But despite the modifications, as of October 1, more than half of the homeowners that received assistance were already two months behind on their modified monthly payments.

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The Truth About Those "4.500 Percent Mortgage Rates" You Keep Hearing About

December 4, 2008

Business television is abuzz this morning with talk of “four-point-five percent mortgage rates”; the clip above ran on NBC Today. The news stems from a leaked story that the U.S. Treasury will intervene in the mortgage market, lowering rates a full percentage point below their current levels

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You Locked In A Low Mortgage Rate — Now You’ve Got To Close On It

December 3, 2008

Each Wednesday, the Mortgage Bankers Association releases its Weekly Applications Survey, a detailed look at new mortgage applications submitted over the previous 7 days. This week’s report will reveal what most of us already know — plunging mortgage rates created a flood of mortgage activity. If you’re among the many Americans taking advantage of today’s […]

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Looking Back And Looking Ahead : December 1, 2008

December 1, 2008

Government action fueled a mortgage market rally last week, leading mortgage rates lower for the second consecutive week. Despite soft housing numbers and evidence of a slowing economy, mortgage rate shoppers found reason to celebrate: Citigroup was “rescued” Wall Street liked the new economic team The government pledged $600 billion to buy investment-grade mortgage bonds […]

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Mortgage Rates Fell But Be Careful Of History Repeating Itself

November 26, 2008

Like everything else on Wall Street, mortgage markets are based on supply and demand. When demand outweighs supply, mortgage rates fall. So, Tuesday, when the government unexpectedly announced a $500 billion budget for buying mortgage debt from Fannie Mae and Freddie Mac, the demand side of the mortgage market ballooned. The surprise demand helped push […]

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The 2009 FHA Loan Limits For Every U.S. County

November 19, 2008

In March 2008, HUD temporarily raised FHA loan limits around the country. Effective January 1, 2009, FHA loan limits revert. FHA home loans are mortgages made by private lenders and insured by the federal government. Historically, FHA home loans have been “easier” for which to qualify than their conforming mortgage counterparts and, therefore, tend to […]

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Simple Real Estate Definitions : Amortization

November 18, 2008

In the widest definition possible, amortization (pronounced: am-ohr-tih-ZAY-shun) is the scheduled process by which a loan’s principal balance pays down to $0. The opposite of an amortizing loan is an interest only loan for which there is no scheduled principal repayment schedule. With respect to mortgages, amortization is what determines how much of a monthly […]

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The 2009 FHA Loan Limits For Every U.S. County

November 18, 2008

In March 2008, HUD temporarily raised FHA loan limits around the country. Effective January 1, 2009, FHA loan limits revert

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The 2009 FHA Loan Limits For Every U.S. County

November 18, 2008

In March 2008, HUD temporarily raised FHA loan limits around the country. Effective January 1, 2009, FHA loan limits revert

Read the full article →

Looking Back And Looking Ahead : November 17, 2008

November 17, 2008

In another week of up-and-down trading, mortgage rates ended the week slightly higher last week. Ping-pong action like this has defined mortgage markets lately. It’s increasingly common for rates to soar one day, and then come crashing down the next. In response to market volatility, mortgage lenders issued as many as 8 distinct rate sheets […]

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Should you Prepay your Mortgage?

November 16, 2008

To pre-pay or not to pre-pay that is the question! Whether ’tis nobler in the mind…okay, I am not a huge Shakespeare guru, but I do fancy myself a bit of a mortgage finance guru. For those of you who like to “really get in there” there was a study released by the Chicago Fed in […]

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How The New Good Faith Estimate Form Can Help You Save Money On Your Mortgage

November 15, 2008

To help demystify the mortgage process, the federal government is giving the much-maligned Good Faith Estimate document a makeover. Effective January 1, 2010, the current, 2-page form will be replaced by a new, easier-to-understand version, spanning 3 pages. The biggest strength of the new Good Faith Estimate is that it uses everyday English to explain […]

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How Big Can A Mortgage Be And Not Be Considered "Jumbo"?

November 15, 2008

For the 4th consecutive year, the government has set the conforming mortgage loan size limit at $417,000. A conforming mortgage is one that, quite literally, conforms to the mortgage guidelines set forth by Fannie Mae or Freddie Mac. The 2009 conforming loan limits, as released by the government, are: 1-unit properties : $417,000 2-unit properties […]

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As LIBOR Falls, Homeowners With Adjusting ARMs Get Lower Rates

November 15, 2008

The interest rate against which adjustable-rate mortgages change is falling — evidence that the global banking system is starting to stabilize. On any adjustable-rate mortgage, the initial “starter rate” remains fixed for some period of time, and then adjusts according to some pre-determined rules. For a conforming mortgage, an ARM will typically adjust once per […]

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Planning To Buy A Home In 2009? Expect A Tougher Mortgage Road Ahead.

November 15, 2008

The Federal Reserve confirmed what most of us already knew — getting qualified for a “prime mortgage” is increasingly more difficult. In a quarterly survey of 84 banks, 75 percent of respondent banks tightened mortgage guidelines over the last 3 months for the most qualified of home loan applicants. “Prime” is a vague term when […]

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Simple Real Estate Definitions : Amortization

October 22, 2008

In the widest definition possible, amortization (pronounced: am-ohr-tih-ZAY-shun) is the scheduled process by which a loan’s principal balance pays down to $0. The opposite of an amortizing loan is an interest only loan for which there is no scheduled principal repayment schedule. With respect to mortgages, amortization is what determines how much of a monthly payment goes […]

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