HUD - St Louis Real Estate News

St Louis Mortgage Rate Update; What is Private Mortage Insurance (PMI)?

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.

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St Louis Mortgage Rate Update; FHA Lowers Mortgage Insurance Premiums for loans endorsed before June 1, 2009

By Robert Fishel, on April 18th, 2012

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 →

New home construction activity continues to increase

By Dennis Norman, on April 17th, 2012

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for March 2012 showing a decrease in single-family home building permits from the month before of 3.5 percent and a 17.9 percent increase in new home starts compared to the year before. Continue Reading →

St. Louis Mortgage Rate Update; It’s not over till it’s over

By Robert Fishel, on April 11th, 2012

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. Continue Reading →

Majority of Housing Discrimination Complaints are filed based on disability

By Dennis Norman, on April 10th, 2012

Over forty years ago Congress passed Title VIII of the Civil Rights Act of 1968 known as “The Fair Housing Act”. This act prohibits discrimination in public and private housing markets that is based on race, color, national origin, religion, sex, disability or familial status. At that time, the most common type of discrimination in housing was based upon race or color. Today, according to a recent report by HUD, the majority of housing discrimination complaints filed are based on disability discrimination. Continue Reading →

Lending Tree says FHA’s change in guidelines may increase mortgage rates

By Dennis Norman, on April 9th, 2012

According to the LendingTree Monthly Mortgage Review, average mortgage rates inched up in March, with more borrowers than ever taking advantage of low Federal Housing Administration (FHA) loan rates which averaged just 3.85 percent on a 30 year loan, almost 1/2 of one percent less than a conventional mortgage. However, according to the report, this may change soon as a result of the FHA adjusting its loan program guidelines and insurance premium structure which will cause the cost of a loan for future FHA borrowers to most likely increase. Continue Reading →

St. Louis Mortgage Rate Update; What Appraisers Look For When Determining a Home’s Value?

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. Continue Reading →

St. Louis Mortgage Rate Update; Do I need to sell my home to buy another?

By Robert Fishel, on March 28th, 2012

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; "You’ll never buy at the bottom" Interest rates are on the rise

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 →

New home construction on the increase

By Dennis Norman, on March 20th, 2012

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for February 2012 showing an increase in single-family home building permits from the month before of 4.9 percent and a 9.9 percent decrease in new home starts compared to the month before. Continue Reading →

St. Louis Mortgage Rate Update; The Significance to Credit Scores

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 Continue Reading →

Bank of America, J.P. MOrgan Chase, Wells Fargo, Citigroup and Ally Financial reach $25 Billion Agreement with Fed & State Government over Foreclosure Abuses

By News Desk, on March 12th, 2012

The Justice Department, the Department of Housing and Urban Development (HUD) and 49 state attorneys general announced today the filing of their landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. Continue Reading →

You Too Can Save $47,000 on your mortgage

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

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St. Louis Mortgage Rate Update; Mortgage Insurance Premiums Increase for FHA Loans

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. Continue Reading →

St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter

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. Continue Reading →

New home construction activity picking up

By Dennis Norman, on February 16th, 2012

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for January 2012 showing an increase in single-family home building permits from the month before of 0.9 percent and a 1.0 percent decrease in new home starts compared to the month before. 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 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; What are "loan-level" price adjustments?

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.” Continue Reading →

St. Louis Mortgage Rate Update; The Do’s and Dont’s when financing your home

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. Continue Reading →

St. Louis Mortgage Rate Update; Should you Rent or Buy a 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 →

New Home Starts in 2011 Set All-Time Record Low

By Dennis Norman, on January 19th, 2012

The last couple of months I have said that, “unless something changes dramatically, 2011 will hit a new record low of new home starts. Unfortunately, nothing dramatic happened, and 2011 has ended with only 428,600 new home starts setting a new record low and significantly below the prior all-time low of 445,200 starts in 2009. Continue Reading →

St. Louis Mortgage Rate Update; What income is required for a mortgage?

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.

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St. Louis Mortgage Rate Update; Forgivable down-payment assistance loan available for first-time homebuyers

By Dennis Norman, on January 11th, 2012

First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs. The Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage and is completely forgivable after five years of continuous occupancy. MHDC will have the monies available for the borrowers regardless of bond issuance through Constant Funding. Continue Reading →

St. Louis Mortgage Rate Update; Trends that will affect the housing market in 2012

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; Who are the home-buyers?

By Robert Fishel, on December 28th, 2011

The characteristics of home buyers has changed fairly significantly in just the two past years according to the National Association of REALTORS (NAR) annual Profile of Home Buyers and Sellers. In 2009, first-time home-buyers, encourage by tax credits, made up 47 percent of the market and in 2011 made up only 37 percent of the market. Continue Reading →

New home construction in November inches up; Curent pace slightly ahead of record-low

By Dennis Norman, on December 21st, 2011

The last couple of months I have said that, “unless something changes dramatically, 2011 will hit a new record low of new home starts. Well, the actual numbers this year will still most likely be a record low, but at least the rate of new home starts for November has now inched above the record low New home starts in November were up 2.3 percent from the prior month with the seasonally adjusted annual rate inching its way up to 447,000 homes, just slightly above the all-time low of 445,200 new home starts in 2009. Continue Reading →

St. Louis Mortgage Rate Update; Credit Score FAQ’s

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; VA Loans Offer Great Terms to Veterans

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; The Benefits of ARM’s

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: Continue Reading →

St Louis Mortgage Rate Update; Don’t be afraid of new home loan rules

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:

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