By Robert Fishel, on June 13th, 2012 
The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury released their May Housing Scorecard, which collects key market data and tracks the administration’s recovery efforts. According to the May scorecard, recent market data contains a number of promising indicators and increasing signs of stability. In April, sales of existing homes increased in every region of the country and the number of new homes rose for the first time since 2007. Continue reading “St. Louis Mortgage Rate Update; Housing Scorecard Finds Promise in Recent Market Data“
By Robert Fishel, on June 6th, 2012 A common complaint that consumers have regarding today’s mortgage loan origination process has to do with all of the hoops they have to jump through in order to get a loan.
Personally, as a loan officer, I try to be as thorough as possible going into the application to avoid “the last minute chase” for additional documentation. I will be the first to admit, I am not perfect. Best intentions. After each deal is closed, I review the loan and how the process went; did I prepare and ask my clients for all that the documentation needed. Did I take a good loan application? Continue reading “St. Louis Mortgage Rate Update; Jumping through hoops to get a mortgage“
By Robert Fishel, on May 30th, 2012 According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to yet another new survey low last week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 3.91 percent from 3.93 percent the week before. Despite the drop, mortgage loan demand was relatively flat. The Refinance Index dropped 1.5 percent from the previous week and the Purchase Index slipped 0.6 percent. The Market Composite Index, which measures total mortgage loan application volume, fell 1.3 percent from the week before. The refinance share of all mortgage activity was unchanged at 76.6 percent. Continue reading “St. Louis Mortgage Rate Update; Rates hit new record low“
By Robert Fishel, on May 23rd, 2012
Fannie Mae’s April 2012 National Housing Survey indicates consumer attitudes toward homeownership, the economy, personal finances, and home prices continuing to improve.
SURVEY HIGHLIGHTS
The Economy and Household Finances Continue reading “St. Louis Mortgage Rate Update; Fannie Mae’s Latest Housing Survey“
By Robert Fishel, on May 16th, 2012
By committing to a mortgage loan, the borrower is entering into a financial agreement with a lender to pay back the mortgage money, with interest, over a set period of time. The borrower’s monthly mortgage payment may change over time depending on the type of loan (Fixed, ARM, Interest Only, etc.). However, for this article, we will address the typical 30 year fixed Principal and Interest loan program. So…
Once the loan closes, over the next 360 months, the borrower will pay the same amount in Principal + Interest (P + I) each payment. As each month passes and the monthly P+I payment is made, the make up of the P + I will Continue reading “St. Louis Mortgage Rate Update; How does amortization work?“
By Robert Fishel, on May 9th, 2012
With interest rates at all time lows, it is worth the few minutes to do a mortgage check up and determine if a refinance would be beneficial to your situation. Since there are many reasons a homeowner may choose to refinance, we’ll take a look at the few most common reasons to consider a refinance. Continue reading “St. Louis Mortgage Rate Update; Why Refinance?“
By Robert Fishel, on May 2nd, 2012
Whatever funds the borrower intends to use to close a transaction has to be sourced and seasoned. Providing proper asset documentation and the actual source of the funds is a critical element of the approval and closing process. There’s nothing worse in a real estate purchase than making it all the way through the hoops and hurdles of the approval process just to have a loan fall apart due to the borrower not using an acceptable source of funds in order to close. In other words, “Mattress Money” is no longer a legitimate source. Continue reading “St Louis Mortgage Rate Update; Cash-To-Close must be Seasoned and come from the Proper Source“
By Robert Fishel, on April 25th, 2012
Mortgage Insurance, also know as Private Mortgage Insurance, is required by lenders on conventional home loans if the borrower is financing more than 80% Loan-To-Value.
Private Mortgage Insurance (PMI) allows borrowers to purchase a property by qualifying for conventional financing with a lower down payment. Private Mortgage Insurance protects your lender against non-payment should you default on your loan. It’s important to understand that the primary and only real purpose for mortgage insurance is to protect your lender—not you. Continue reading “St Louis Mortgage Rate Update; What is Private Mortage Insurance (PMI)?“
By Robert Fishel, on April 18th, 2012
The Federal Housing Administration has announced plans to lower mortgage insurance premiums making it easier for borrowers to take advantage of the current record low interest rates.
Under this program, up-front mortgage insurance premiums will be reduced from 1.75% percent to 0.01 percent of the total loan amount for borrowers with FHA loans made before June 1, 2009. In addition, annual fees will be cut to 0.55 percent from 1.25 percent. This streamlined refinance program is available to borrowers who are current on their payments and may qualify even if they owe more than their homes are worth. Continue reading “St Louis Mortgage Rate Update; FHA Lowers Mortgage Insurance Premiums for loans endorsed before June 1, 2009“
By Robert Fishel, on April 11th, 2012
How can a fully approved loan get denied for funding after the borrower has signed loan docs?
And then it happens. The underwriter runs a new credit report just before closing and it turns out the prospective borrower had run up a credit card balance, buys new furniture/appliances etc. and now the new debt kills the loan.
If you are serious about buying or refinancing a home, be conscientious about your obligations and credit. The following is a quick rundown of issues that come up at the last minute and either delay or kill a closing. Continue reading “St. Louis Mortgage Rate Update; It’s not over till it’s over“
By Robert Fishel, on April 4th, 2012
The primary indicator of value for residential real estate is comparable sales. The appraiser researches the market to gather information pertaining to sales, listings, pending sales that are similar to the subject property, and verfies this information is correct. The appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property.
Since the appraisal provides half the weight in any credit decision involving the security of real estate, the appraisal should be done by a qualified, licensed appraiser whom is familiar with your neighborhood, and the type of home you are buying, selling or refinancing. Continue reading “St. Louis Mortgage Rate Update; What Appraisers Look For When Determining a Home’s Value?“
By Robert Fishel, on March 28th, 2012
MAYBE…Many of my clients and prospects outgrow their current home, or relocate due to a job transfer. Regardless of the motivation for keeping one property while purchasing another, let’s address this question with the mortgage approval in mind:
Do I Have To Sell? No you do not have to sell if you are in a financial position where you qualify, i.e. Debt-to-Income Ratio is satisfactory and on paper you can afford both your current residence and the proposed payment on the new home. However, the borrower in this case must give consideration to other or additional expenses when maintaining multiple properties…increased property taxes, insurance costs, maintenance, un-expected repairs when making that decision. Continue reading “St. Louis Mortgage Rate Update; Do I need to sell my home to buy another?“
By Robert Fishel, on March 21st, 2012
Mortgage rates have been rising nonstop since the end of last week. If you are considering a refinance or taking the plunge and buying a new home, you’d better get moving. I just had a prospect shop rates and terms for his new home over the last couple of weeks and just called back; he finally decided on a lender and wanted an updated rate quote to lock his loan. Needless to say, he was terribly disappointed…the rates we originally spoke about on a 30 year fixed rate a couple of weeks ago was in the high 3’s, my quote yesterday was 4.25% (4.45% APR ). Continue reading “St. Louis Mortgage Rate Update; "You’ll never buy at the bottom" Interest rates are on the rise“
By Robert Fishel, on March 16th, 2012
WHAT IS A CREDIT SCORE?
Simply stated, credit scores are a statistically-based tool to assess the future performance of a borrower. Scores are derived from the history of a borrower as it is reported to the credit repositories from any creditor. Credit scores are a proven indicator of the likelihood to repay a loan or credit obligation. The lower the score; the more risk from a borrower to repay a loan, on time and in full. Scores range from 400 to 850. This process was started by Fair, Isaac and Co., which is why credit scores are also called FICO scores. Scoring factors are “blind” and do not consider anything about an individual other than their creditworthiness. Continue reading “St. Louis Mortgage Rate Update; The Significance to Credit Scores“
By Robert Fishel, on March 7th, 2012
What would it take for you to save $47,000 over the next 20 years or even as much as $72,000 over the next 15 years? Many people think that’s an impossible task. It is very possible and quite simple actually – the answer is in your mortgage.
Consider this scenario:
You have paid 4 years on a 30-year mortgage. Your original loan amount was Continue reading “You Too Can Save $47,000 on your mortgage“
By Robert Fishel, on February 29th, 2012
Acting FHA Commissioner Carol Galante recently announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent . Upfront premiums (UFMIP) will also increase by 0.75 percent.
“After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the Continue reading “St. Louis Mortgage Rate Update; Mortgage Insurance Premiums Increase for FHA Loans“
By Robert Fishel, on February 23rd, 2012 Freddie Mac recently released their fourth-quarter refinance analysis and it shows that 85 percent of homeowners who refinanced their mortgages during the fourth quarter of 2011 maintained or reduced their principal balance by paying-in additional money at the closing table. Frank Nothaft, Freddie Mac’s vice president and chief economist, said savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings.
According to Nothaft, the typical borrower who refinanced during the fourth quarter reduced their interest rate by approximately 1.4 percentage points. During the fourth quarter, 37 percent of homeowners who refinanced their mortgage maintained about the same loan amount and 49 percent reduced their principal balance. The percentage of cash-in borrowers was the highest in the 26-year history of the analysis. Continue reading “St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter“
By Robert Fishel, on February 15th, 2012
In a presentation given at the International Builders Show, Jill Waage, Editorial Director for Home Content for Better Homes and Gardens revealed survey results about consumer attitudes towards home ownership, upkeep and renovations, design and personalization, and more. A primary point revealed in the presentation shows that, despite continuing economic uncertainty, consumer thoughts toward home ownership remain strong with 8 in 10 saying home ownership is still a good investment and an important part of the American Dream. Continue reading “St. Louis Mortgage Rate Update; Survey shows 8 in 10 people still say home ownership is a good investment“
By Robert Fishel, on February 8th, 2012
“Ballparking” mortgage rates just is not the same anymore. Home buyers who obtain online quotes from popular websites and “shopping” mortgage rates on the phone are receiving nothing more than a starting point for what their final mortgage rate will be. This is due to a government-led pricing scheme called loan-level pricing adjustments or LLPAs.”
The government has taken the example of risk-based pricing from the auto insurance industry. “Riskier” car owners pay higher rates for insurance, e.g. a driver with a few accidents and speeding tickets in their past will pay a higher premium than the driver with a clean driving record. Continue reading “St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?“
By Robert Fishel, on February 2nd, 2012
As the mortgage industry continues to adjust to new financial regulations, it is more important than ever to ensure that the financing (or refinancing) of your home goes smoothly. Your loan approval is subject to the financial information you provide at the time of your loan approval. Any subsequent changes in your financial situation before the actual date of closing could jeopardize your loan approval and delay your closing.
By following the simple guidelines below, you are assured a smooth and error-free closing. Continue reading “St. Louis Mortgage Rate Update; The Do’s and Dont’s when financing your home“
By Robert Fishel, on January 27th, 2012
Until recently, home ownership was no bargain compared to renting, according to Paul Diggle, a housing economist at Capital Economics.
Recent data from the U.S. Census Bureau and published statistics from Thomson Datastream indicate that rising rents and falling mortgages are tipping the scales towards home ownership. The median monthly mortgage payment has fallen to about the same as a median monthly rent check. Continue reading “St. Louis Mortgage Rate Update; Should you Rent or Buy a Home?“
By Robert Fishel, on January 18th, 2012
What income is required to qualify for a mortgage? That largely depends on your monthly debt payments and the current interest rate. This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.(click here)
Mortgage interest rates have fallen this year to historical lows and with them so have the costs of home ownership. Regardless of a borrower’s loan amount, bargain-basement interest rates have brought a home buyer’s monthly mortgage payment down to levels never seen in history. Continue reading “St. Louis Mortgage Rate Update; What income is required for a mortgage?“
By Robert Fishel, on January 4th, 2012
The National Association of Realtors’ research staff recently released its comprehensive annual report: Profile of Home Buyers and Sellers for 2011.
Market researcher, Paul C. Bishop, Ph. D., Vice President and Jessica Lautz, Manager of Consumer Survey Research state that they’ve identified “trends that have not been seen in the last 10 years,” which will affect the housing market as we enter 2012. Continue reading “St. Louis Mortgage Rate Update; Trends that will affect the housing market in 2012“
By Robert Fishel, on December 28th, 2011
The characteristics of home buyers has changed fairly significantly in the past year, according to the National Association of REALTORS (NAR) annual Profile of Home Buyers and Sellers. Last year, first-time home-buyers made up 50 percent of the market and in 2011 made up only 37 percent of the market. Continue reading “St. Louis Mortgage Rate Update; Who are the home-buyers?“
By Robert Fishel, on December 21st, 2011
An extraordinary 18 percent of Realtors have experienced contract failures in the last few months according to the National Association of Realtors (NAR). This is double the levels of a year earlier. One of the top reasons that cause these contract cancellations is credit issues. In many cases, understanding how the credit system works would help buyers avoid problems. Utilizing a mortgage banker early in the home buying process can help educate buyers about activities that improve their credit score, such as paying bills on time. They can also learn what actions to avoid, including taking on new sources of debt like buying a car or getting a new credit card before applying for a mortgage. Continue reading “St. Louis Mortgage Rate Update; Credit Score FAQ’s“
By Robert Fishel, on December 14th, 2011
Members of the armed forces who have generally served for two years in peace time, or 90 days during conflict are eligible for a guaranteed VA home loan. Members of the National Guard or Reserves who have served for six years are eligible. Widows of veterans are eligible if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility. A Certificate of Eligibility and DD214 are required. Continue reading “St. Louis Mortgage Rate Update; VA Loans Offer Great Terms to Veterans“
By Robert Fishel, on December 7th, 2011
Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:
- ARM rates are now more attractive than ever before.
- Rates have fallen to 2.50% for a 5/1 ARM.
- ARM’s are predictable.
- Rates are capped so there are no surprises for borrowers.
- Rates adjust only on the remaining principal of the loan.
- Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based).
- Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue reading “St. Louis Mortgage Rate Update; The Benefits of ARM’s“
By Robert Fishel, on December 1st, 2011
After the problems we have seen over the past few of years in the real estate, mortgage and banking industries, it is not surprising we have seen significant changes brought about which makes it more challenging for a home-buyer to obtain a mortgage. Some of the changes borrowers see when they attempt to obtain a mortgage to buy a home or refinance their existing mortgage include: Continue reading “St Louis Mortgage Rate Update; Don’t be afraid of new home loan rules“
By Robert Fishel, on November 23rd, 2011
In this tighter credit environment, FHA remains to be a great alternative for buyers with limited resources for a down payment and closing costs or past credit problems. Underwriting guidelines are more lenient than conventional guidelines. Continue reading “St Louis Mortgage Rate Update; FHA good alternative for many home buyers“
By Robert Fishel, on November 16th, 2011
Conventional Loan Programs
Conventional loans are traditional home mortgages, not backed by any government program of insurance or guarantee. There are standard underwriting guidelines for conventional conforming loans up to $417,000. These loans can carry fixed or variable (ARM) rates and a variety of repayment terms can be tailored to your individual needs. Buyers will need cash reserves/savings to cover two months of payments and generally, there is not a penalty for prepayment. Continue reading “St Louis Mortgage Rate Update; Understanding the types of loans available“
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