By Robert Fishel, on October 5th, 2011
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 Interest Rate Update; Slash Your Cost of Home Ownership“
By Dennis Norman, on September 30th, 2011
Mark Fleming, Ph.D., Chief Economist for CoreLogic, in a presentation yesterday, said the housing market is not out of the woods yet as the potential of a double-dip in our economy increases and as 30 to 40 percent of economists feel there is a chance of another recession. The economy’s “stall speed” was another issue Fleming said was a concern, describing it as similar to the stall speed of an airplane; that speed at which is still fast enough for the plane to be flying, but just on the edge of stalling and no longer able to maintain flight. Fleming said, for the economy, a 1 percent growth rate is historically the “stall” point and that is right about where we are presently. Continue reading “Housing market not out of the woods yet“
By Dennis Norman, on September 28th, 2011
A report released today by the Financial Crimes Enforcement Network (FinCEN) shows that financial institutions filed 29,558 reports suspecting mortgage loan fraud activity during the 2nd quarter, an increase of 88 percent from the 2nd quarter of 2010 when there were 15,727 reports. Continue reading “Mortgage loan fraud reports in 2nd quarter up 88 percent from a year ago“
By Dennis Norman, on September 22nd, 2011
Robo-signing is one of those terms I never heard until the news of improper foreclosure practices by some of the nation’s largest lenders started hitting the news in the past year and now the word has become synonymous with bad foreclosure practices. As a result, in April of this year the Office of the Comptroller of Currency (OCC), along with other federal agencies, took action against 14 major banks to stop the improper practices. Continue reading “Restitution for victims of improper foreclosure practices“
By Dennis Norman, on September 21st, 2011
I keep saying that, until the foreclosure rate gets back down closer to a “normal” rate and the REO inventory is absorbed to the point where they are no longer putting such immense downward pressure on home prices, we are not going to see any sort of sustainable recovery in the housing market. It all starts with mortgage delinquencies, and as those go so go foreclosures and REO inventory ultimately. Having said that, we have some good news: A “first-look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, shows mortgage delinquencies decreased 2.5 percent in August from the month before and decreased 11.8 percent from the year before. According to the report, the U.S. foreclosure pre-sale inventory rate increased 0.1 percent from the month before and was up 8.2 percent from the year before. Continue reading “Mortgage delinquencies decline in August; down almost 12 percent from year ago“
By Dennis Norman, on September 19th, 2011
Fannie Mae’s Economics & Mortgage Market Analysis Group says that we are not out of the woods yet and that the economy is “flirting with another economic downturn” now after more than two years since the worst recession since the World War II era. Fannie Mae Chief Economist, Doug Duncan, said “the weakening economic backdrop, a persistently high unemployment rate, and fear of a double-dip recession are casting a shadow over the housing market.” Continue reading “Double-dip recession concern by consumers is putting a damper on the housing market“
By Dennis Norman, on September 15th, 2011
The top five mistakes consumers make when refinancing their home loan were revealed by LendingTree Network’s newly released “Monthly Lender Marketplace Survey”. According to the survey, the top 5 mistakes made by consumers refinancing their home loans are:
By Robert Fishel, on September 14th, 2011
Mortgage interest rates have reached historically low levels. It’s truly amazing how much the average borrower’s purchasing power has increased! The following chart tells it all. Check out the chart showing the history of interest rates as well as the examples of the savings below: Continue reading “Today’s historically low rates increase your buying power! St. Louis Mortgage Interest Rate Update“
By Dennis Norman, on September 13th, 2011
A report released today by CoreLogic shows that 17.30 percent (99,792) of all St. Louis homeowners with a mortgage were in a negative equity position in the second quarter of 2011, up slightly from 17.10 percent the prior quarter. Negative equity is also referred to as being “underwater” or “upside down” and refers to homeowners that owe more on their mortgages than the current value of their home. Continue reading “St. Louis homeowners with negative equity increases slightly in 2nd quarter“
By Robert Fishel, on September 7th, 2011
On October 1, 2011, the Federal Housing Administration (FHA) will implement new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA).
As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country, while limits would remain unchanged in most other parts of the nation. Continue reading “New FHA Loan Limits; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on August 31st, 2011
As mortgage rates have dropped this year, so have the costs of homeownership. At every given loan size, bargain-basement interest rates have brought monthly mortgage payments to levels never seen in history.
It’s a great time to buy a home. It’s an even better time to refinance.
This isn’t cheerleading. This is fact. As a homeowner, your “total cost of homeownership” is tied to your mortgage. The higher your mortgage rate, the more interest you pay over time. And regardless of your mortgage interest tax-deductibility, over 30 years, mortgage interest accrues into something fierce.
Continue reading “Slash Your Long-Term Home Interest Costs“
By Robert Fishel, on August 24th, 2011
First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.
Program Highlights:
- 3% Cash Assistance Loan (CAL) can be used for down payment and closing costs.
- CAL is forgivable after 5 years of occupancy.
- 30 Year Fixed Rate Mortgages & Competitive Rates.
- CAL can be used with FHA, VA and USDA Rural Development loan programs.
- First time home buyer requirement only applies to the last three years.
- Loan is assumable for an MHDC-qualified borrower in an FHA, VA or USDA-RD loan program.
- Eligible owner occupied properties include: Single-Family Detached, Duplexes, Semi-Detached, Condominiums, Town Homes. Continue reading “MHDC’s CAL Cash Assistance loan rate is now 4.5 percent!“
By Dennis Norman, on August 19th, 2011
After all the bad press mortgage companies have received lately, this probably won’t come as a surprise, but according to the J.D. Power and Associates 2011 U.S. Primary Mortgage Servicer Satisfaction Study, homeowners satisfaction with their mortgage servicers has “declined notably from 2010.” Continue reading “Homeowners not happy with their mortgage servicers“
By Robert Fishel, on August 17th, 2011
Having been in the mortgage industry for a number of years, I have found a lot of my “issues” when it comes to underwriting was a result of missing something at time of application. The following is a quick rundown of items that should be collected at application: Continue reading “What you need when applying for a home mortgage; St. Louis Mortgage Interest Rate Update“
By Dennis Norman, on August 16th, 2011
A report released this morning by Standard & Poor’s and Experian show a decrease in monthly default rates on first mortgages from 2.02 percent to 1.93 percent and a decrease in default rates on second mortgages from 1.40 percent to 1.25 percent in July. A continuing decline in mortgage delinquencies is one of the things we need to help move the real estate market into a recovery. As the delinquencies come down, so do the foreclosures eventually back to a point where they are not negatively impacting home prices to the extent they are presently. Continue reading “Mortgage delinquency rate continues to fall in July“
By Dennis Norman, on August 16th, 2011
The FBI released it’s Mortgage Fraud Report for 2010 showing that mortgage fraud continued at elevated levels in 2010 and was consistent with levels seen in 2009. The top states for mortgage fraud activity in 2010 were Florida, California, Arizona, Nevada, Illinois, Michigan, New York, Georgia, New Jersey, and Maryland. Continue reading “FBI Report Shows Mortgage Fraud Continues at Elevated Levels“
By Dennis Norman, on August 15th, 2011
Last week, The Washington Post published an article by Kenneth Harney which said “if you take mortgage interest tax deductions, the next 100 days could have significant financial implications for you, thanks to Congress’s new federal debt ceiling plan……the compromise legislation created an unusual mechanism — an evenly split, 12-member bipartisan supercommittee — that could call for major cutbacks on real estate write-offs by Thanksgiving.”
The question is, would doing away with the mortgage interest deduction put the final nail in the coffin for the housing industry? Read on to hear two opposing opinions on the topic. Continue reading “Does the Mortgage Interest Deduction Help The Real Estate Market?“
By Robert Fishel, on August 10th, 2011
Credit Scores have and always be a hot topic in any economy. Recently, Jim Gallagher of the St. Louis Post Dispatch wrote an article regarding consumers that “fork over $1 billion a year to the credit agencies and credit monitoring services to obtain their credit scores.” But the scores they get probably aren’t the ones a lender will use to judge their credit worthiness. Continue reading “What is a credit score? What affects my credit score?; St Louis Mortgage Interest Rate Update“
By Dennis Norman, on August 10th, 2011
This morning, Trans Union released a report showing the national mortgage delinquency rate (the rate of borrowers 60 or more days past due) decreased for the sixth consecutive quarter, dropping to 5.82% at the end of the second quarter in 2011 which is a 5.98 percent from the prior quarter, the largest quarterly decrease in 2 years. Continue reading “Mortgage delinquency rate declines by largest rate in two years“
By Dennis Norman, on August 8th, 2011
A report by MortgageDaily.com shows that 20 percent fewer borrowers obtained a home loan in the second quarter of 2011 than in the first quarter. The report also shows that Wells Fargo again this quarter originated more home loans than any other lender in the U.S.
Originations |
|
Rank |
Q2 2011 |
Q1 2011 |
Q2 2010 |
|
1 |
Wells |
Wells |
Wells |
|
2 |
BofA |
BofA |
BofA |
|
3 |
Chase |
Chase |
Chase |
|
4 |
Ally |
Citi |
Ally |
|
5 |
Citi |
PHH |
Citi |
By Robert Fishel, on August 4th, 2011
Over the past years, many of Americans pulled money out their homes through “cash-out” refis. Today, many of my clients are bringing cash into their refinance transactions. Money is flowing in the opposite direction.
You might consider bringing cash to close your refinance to:
1. Lower your mortgage rate: If your LTV is close to the 80% Loan to Value (LTV) threshold, then bringing money to the table to push your LTV below 80% can get the borrower a better rate. Continue reading “Should you do a ‘cash-in’ refi?; St. Louis Mortgage Interest Rate Update“
By Robert Fishel, on July 28th, 2011
One Additional Mortgage Payment a Year
There’s a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan’s principal. Continue reading “SAVE $$$…Reduce Your Mortgage; St. Louis Mortgage Interest Rate Update“
By Dennis Norman, on July 25th, 2011
A “first-look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, shows mortgage delinquencies increased 2.4 percent in June from the month before and decreased 14.7 percent from the year before. According to the report, the U.S. foreclosure pre-sale inventory rate declined 0.2 percent from the month before but increased 12.8 percent from the year before. Continue reading “Mortgage delinquencies and foreclosure inventory increase in June“
By Robert Fishel, on July 21st, 2011
Over the last few months, I have had a few inquiries from parents of college-bound children about investment properties. The combination of low home prices, low interest rates, and a large inventory of foreclosure and short-sale homes have made buying much more attractive for parents of college-bound children. Continue reading “Should parents of college-bound kids buy an investment property instead of paying for dorm?; St. Louis Mortgage Interest Rate Update“
By Robert Fishel, on July 14th, 2011
The home-buying process can be a little intimidating for not only first-time home-buyers but also repeat home-buyers. Here is a basic outline of the home-buying process as well as recommendations of how to approach each task which I hope will help you with this process:
Get pre-qualified for a loan: talk with your mortgage banker.
By Bob Sargent, on July 12th, 2011
Would you like to buy one of those foreclosure or REO bargains, but don’t have the cash to have the necessary work done? There’s a new rehab loan program in St. Louis that will help homeowners do just this! This program allows buyers to buy Bank Owned or Foreclosed Property (let’s call them “distressed homes”) and also borrow funds for the rehabilitation of these properties. Continue reading “Local Rehab Loan Program Allows Buyers To Take Advantage of Distressed Sale Bargains“
By Dennis Norman, on July 11th, 2011
The U.S. Department of Housing and Urban Development (HUD) announced last week, the launch of the Emergency Homeowner’s Loan Program (EHLP) to help homeowners who are at risk of foreclosure. This program is available in 27 states and is available to homeowners who have experienced a reduction in income due to: Continue reading “HUD Announces Emergency Homeowners’ Loan Program“
By Robert Fishel, on July 7th, 2011
Recently, I heard a radio commercial on the radio about “special” financing for certain veterans. The ad continues to imply this “special” loan is available for a limited time only. The good news is that the VA offers loans to members of the armed forces who have generally served for two years in peace time, or 90 days during conflict. Members of the National Guard or Reserves who have served for six years are eligible along with widows of veterans if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility. Continue reading “‘Special’ Loans Available to Veterans 24/7“
By Dennis Norman, on July 6th, 2011
“FHA still could serve 95 percent of its historic targeted market even if the maximum FHA loan limits were reduced by nearly 50 percent.”
Last week, George Washington University released a report, “FHA Assessment Report: The Role and Reform of the Federal Housing Administration in a Recovering U. S. Housing Market,” in which it revealed that the Federal Housing Administration’s (FHA) current loan limits are larger than necessary to serve its targeted market of first-time and low to moderate income borrowers. The study finds that the Obama Administration’s current proposal to reduce the higher end of FHA’s loan limits would have a small impact on its current market share and that larger changes are needed as FHA phases out its recent role as lender of last resort. Continue reading “George Washington University Study Finds That FHA Loan Limits Are Too High“
By Dennis Norman, on July 1st, 2011
A report issued yesterday by Equifax reveals just how severe the impact of shadow inventory (homes that have been, or should be, foreclosed on but have not been put back on the market for sale yet) and REO’s (properties owned by lenders after acquiring through foreclosure) are on a housing market recovery. Continue reading “REO’s and Shadow Inventory are Roadblock to Recovery of Housing Market“
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