You Too Can Save $47,000 on your mortgage

By , 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“

Is the New Home Affordable Refinance Program Hype or Help?

By , on March 5th, 2012

peter-wright-harp-There are approximately 11-Million homeowners that are underwater, which represents about 23% of all outstanding mortgages. So, here comes another program to help the America Homeowner! Is it hype…or will it help?

Well, the new HARP program (Home Affordable Refinance Program) was released in Continue reading “Is the New Home Affordable Refinance Program Hype or Help?“

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

By , 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“

New home sales decline slightly in January; Inventory of new homes to lowest level in over a year

By , on February 24th, 2012

dennis-norman-st-louis-realtor-real-estate-new-home-salesToday, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for January 2012 showing a decrease of 0.9 percent from the month before, and an increase of 3.5 percent from a year ago. The seasonally-adjusted new home sales rate for January was 321,000 homes, down from an adjusted rate of 324,000 homes the month before. This is the first month new home sales have declined after four consecutive months of increases. Continue reading “New home sales decline slightly in January; Inventory of new homes to lowest level in over a year“

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

By , 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“

VA Home Loans for Missouri Veterans

By , on February 20th, 2012

kevin-pearia-va-home-loansFor many military members, there is no greater joy than completely service and finally being able to lay some roots, and the first order of business for many is to purchase a home. However, in recent years, purchasing a home hasn’t been as easy as it once was. Conventional lenders have increased their lending requirements sometimes making it nearly impossible for the average borrower to secure financing.

However, the large down payments and high credit requirements of conventional lending don’t have to mean the end of the road for military Continue reading “VA Home Loans for Missouri Veterans“

St. Louis Mortgage Rate Update; Survey shows 8 in 10 people still say home ownership is a good investment

By , 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“

Foreclosures in 2011 down 24 percent from 2010

By , on February 9th, 2012

dennis-norman-foreclosures1.4 Million Homes in the Foreclosure Inventory at the End of 2011

According to a report just released by CoreLogic, there were 830,000 foreclosures completed during the year in 2011, a 24 percent decrease from 2010 when there were 1.1 million. For the month of December, there were 55,000 foreclosures, down 3.5 percent from November when there were 57,000 and down 17.9 percent from December 2010 when there were 67,000 foreclosures completed. Continue reading “Foreclosures in 2011 down 24 percent from 2010“

St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

By , 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?“

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

By , 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“

St Louis Foreclosures decline in November after four months of increases

By , on January 30th, 2012

St. Louis REALTOR, Dennis Norman foreclosuresThe St Louis foreclosure rate was 1.69 percent for November 2011, down from 1.75 percent the month before and only up slightly from a year ago when the rate was 1.67 percent, according to newly released data from CoreLogic. As usual, the St Louis foreclosure rate is significantly lower than the national foreclosure rate, which was 3.41 percent in November 2011. Continue reading “St Louis Foreclosures decline in November after four months of increases“

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

By , 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?“

New homes sales fall in December and make 2011 worst year on record

By , on January 26th, 2012

dennis-norman-st-louis-realtor-real-estate-new-home-salesToday, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for December 2011 showing a decrease of 2.2 percent from the month before, and a decrease of 7.3 percent from a year ago. The seasonally-adjusted new home sales rate for December was 307,000 homes, down from an adjusted rate of 314,000 homes the month before.  This is the first month new home sales have declined in four months and unfortunately ends the year with the lowest number of new homes sold since the Commerce Department began keeping track of sales in 1963. Continue reading “New homes sales fall in December and make 2011 worst year on record“

Where is the St Louis Real Estate Market Headed in 2012?

By , on January 19th, 2012

dennis-norman-st-louis-real-estate-market-forecast-2012Shortly after finishing my video recap of the 2011 St Louis Real Estate Market I began analyzing our market data and giving thought to the 2012 St. Louis Real Estate market.  The end result?  The MORE St Louis Market 2012 Forecast.   For a link to my 15 minute video as well as a downloadable report, please submit your name and email address here and you will receive it immediately. Continue reading “Where is the St Louis Real Estate Market Headed in 2012?“

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

By , 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?“

Mortgage Delinquences Increase in December but are Down over 25 percent from a year ago

By , on January 17th, 2012

Dennis Norman, St Louis REALTOR - mortgage delinquency ratesMortgage delinquencies in December increased to 2.24 percent of all mortgages, a slight increase from the month before when delinquencies were at 2.22 percent but a decrease of over 25 percent from a year ago when the rate was 3.01 percent. The mortgage delinquency rate is something I pay close attention to because it is the “leading indicator” of foreclosures and foreclosures and REO’s are one of the major hurdles to a recovery in the housing market. Declining delinquency rates are our first clue that the housing market is headed to a recovery. Continue reading “Mortgage Delinquences Increase in December but are Down over 25 percent from a year ago“

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

By , 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; Forgivable down-payment assistance loan available for first-time homebuyers“

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

By , 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“

Mortgage Rates Finish 2011 Near Historic Lows

By , on December 30th, 2011

Dennis Norman St Louis Realtor, mortgage ratesFreddie Mac released the results of its Primary Mortgage Market Survey® (PMMS), showing average fixed mortgage rates finishing the year near their all-time historic lows. Thirty-year fixed rate mortgages averaged 3.95 percent and have been at or below 4.0 percent for the past nine consecutive weeks keeping homebuyer affordability at a near all-time high. Continue reading “Mortgage Rates Finish 2011 Near Historic Lows“

Home sales rise in November;  second consecutive month of increases

By , on December 29th, 2011
Dennis Norman

The National Association of REALTORS Pending Home Sales Index for November shows an increase of 7.3 percent in the index from the month before (seasonally adjusted), and a 5.9 percent increase from a year ago. This is the second consecutive month that the index has increased and marks the highest level the index has achieved since April 2010 when it was at 111.5.

Continue reading “Home sales rise in November;  second consecutive month of increases“

St. Louis Mortgage Rate Update; Who are the home-buyers?

By , 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?“

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

By , 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“

Mortgage delinquencies increase in November;   Foreclosures decline from month before

By , on December 19th, 2011

The U.S. mortgage loan delinquency rate was 8.15 percent of all home loans in November, up 2.7 percent from the month before and down 9.6 percent from a year ago, according to the “First-Look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data. The foreclosure rate, on the other hand, was 4.16 percent in November, a 3.0 percent decrease from the month before and a 2.0 percent increase from a year ago. Continue reading “Mortgage delinquencies increase in November;   Foreclosures decline from month before“

30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent

By , on December 15th, 2011

This morning Freddie Mac released its Primary Mortgage Market Survey (PMMS) which showed average 30-year fixed-rate mortgages matched an all time record low of 3.94 percent, and there was an all-time record low rate for 15-year fixed rate mortgages. Continue reading “30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent“

St. Louis Mortgage Rate Update; VA Loans Offer Great Terms to Veterans

By , 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“

St Louis Foreclosure Rate Increases In September;  Up 9.5 percent from a year ago

By , on December 8th, 2011

St. Louis REALTOR, Dennis Norman foreclosuresThe St Louis foreclosure rates was 1.72 percent for September 2011, up from 1.67 percent the month before and increased 9.6 percent from September 2010 when the rate was 1.57 percent, according to a newly released data from CoreLogic. As usual, the St Louis foreclosure rate is significantly lower than the national foreclosure rate, which was 3.48 percent for September 2011. Continue reading “St Louis Foreclosure Rate Increases In September;  Up 9.5 percent from a year ago“

St. Louis Mortgage Rate Update; The Benefits of ARM’s

By , 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“

Is the housing market seeing the beginning of a "soft landing"?

By , on December 5th, 2011

Dennis Norman, St Louis REALTOR - Home Prices “We may indeed being seeing the beginning of at least a ‘soft landing’ in housing,” said Michael Feder, President and CEO of Radar Logic.

The latest housing market report by RadarLogic contained said, while trends in home prices remain negative in most major U.S. metropolitan areas, there are indications that market conditions are starting to improve. Continue reading “Is the housing market seeing the beginning of a "soft landing"?“

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

By , 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“

Fewer St. Louis Homeowners Underwater on Mortgage

By , on November 29th, 2011

Dennis Norman St Louis

A report released today by CoreLogic shows that 17.10 percent (96,986) of all St. Louis homeowners with a mortgage were in a negative equity position in the third quarter of 2011, down slightly from 17.30 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 “Fewer St. Louis Homeowners Underwater on Mortgage“

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