By Robert Fishel, on September 22nd, 2010
A Special Program for Members of the Armed Forces: VA LOANS
By Dennis Norman, on September 15th, 2010
Dennis Norman
While much of the talk (including mine) about the real estate market is somewhat negative, there are some positive things to talk about; home prices have fallen back to levels they were at 7 years ago or more and home mortgage interest rates have hit the lowest levels in decades making a home more affordable than ever. This is a great opportunity for someone to buy a home, particularly if a first-time buyer that doesn’t have to deal with selling a home in the current market. In addition, provided Congress doesn’t take them away, there are tax benefits associated with owning a home that makes a home even more affordable.
To explore the tax-related aspects of home ownership I have done an E-View TM with Dan Elder a CPA and principal of Elder & Associates, PC. Continue reading “Tax benefits of home ownership“
By Robert Fishel, on September 15th, 2010
New regulations signed into law by the President allow HUD to increase the amount of premiums charged for FHA single family housing mortgage insurance programs, however lower that actual up-front cost paid by borrowers. Continue reading “FHA Changes Mortgage Insurance Rates-less up front cost but higher payments; St Louis Mortgage Watch“
By Frank Gregoire, on September 13th, 2010
Frank Gregoire
My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was completed through examination of paper and microfiche records. We went through Polaroid SX-70 film packs by the case and always kept a spare camera or two in the back seat or trunk of the car. Life was good. The appraisal profession, at least here in the Sunshine State, was one coveted by many. Continue reading “H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers“
By News Desk, on September 12th, 2010
A Massachusetts attorney, Michael R. Anderson, 41, of Framingham, was charged last week in federal court with wire fraud, bank fraud, and money laundering in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester and Roxbury. United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of Internal Revenue Service, Criminal Investigation – Boston Field Division, announced today that the defendant was charged in an Information with 16 counts of wire fraud, nine counts of bank fraud, and two counts of money laundering. Continue reading “Attorney Charged in Property Mortgage Scam“
By Robert Fishel, on September 8th, 2010
The following are the four common first-time home-buyers mistakes:
Spending the maximum on housing:
First-time buyers can be overly optimistic and excited about buying a home, so they tend to borrow the absolute maximum they qualify for (on paper), not necessarily worrying about a budget or other expenses. Lenders qualify buyers based on their incomes and debt-to-income ratios. However, borrowers have other monthly expenses they need to consider: maintenance and upkeep on their new home, utilities, transportation, savings, and other necessities that are not counted in the debt-to-income ratios. Continue reading “Costly Mistakes of First-Time Homebuyers; St Louis Mortgage Watch“
By Dennis Norman, on September 3rd, 2010
Dennis Norman
Reverse mortgages have become increasingly popular over the past few years with seniors that find themselves with a large amount of equity in their home, but short on cash, or struggling to pay for the upkeep of the home, property taxes, insurance or other living expenses. A reverse mortgage allows people in that situation to pull the equity from their home in a lump sum, monthly payments or just as they need it. Continue reading “New Rule Proposed to Protect Seniors Obtaining Reverse Mortgages“
By Robert Fishel, on September 1st, 2010
As the mortgage industry adjusts to new financial regulations, it is more important than ever to ensure that the financing of your new 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 “The Do’s and Don’ts When Financing Your Home; St. Louis Mortgage Watch“
By Dennis Norman, on August 30th, 2010
Dennis Norman
While many us have been worrying about what is happening to the value of our homes, how to deal with being underwater on a mortgage or even facing the loss of a home, there are many people, families included, in the U.S. whose worry is much more basic….where to find safe shelter for the night. Continue reading “Homelessness in America“
By Robert Fishel, on August 26th, 2010
STEP 1 Get pre-qualified for a loan: talk with your mortgage banker.
Determine your “mortgage goals.” Review your credit history and sources of income. Do you have money set aside for a down payment? Do you have an “ideal payment range” you would be comfortable with? What are your expectations. Continue reading “Six Important Steps on How to Buy a Home; St Louis Mortgage Watch“
By Dennis Norman, on August 26th, 2010
Dennis Norman
After a couple of days of writing about bad reports on the housing market (existing home sales and new home sales to name two) I’m excited that I actually get to write something today that is positive! According to newly released data from CoreLogic, the percentage of homeowners in the U.S. with negative equity in their homes declined slightly at the end of the second quarter of 2010 making it the second consecutive month of declines.
According to the CoreLogic report, 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010. Unfortunately as much I would like to say this was from home price appreciation, unfortunately it appears to have been driven primarily by foreclosures removing some of the homes with negative equity from the scene. Continue reading “Homeowners with negative equity declines for second consecutive quarter“
By Dennis Norman, on August 26th, 2010
Dennis Norman
Before you decide on a mortgage make sure you fully understand all the terms of the loan and make sure you know what you are getting yourself in for. Some home mortgages have features that may be risky and make it difficult for you to make your payments in the future. Be sure that you understand the loan terms, the risks and all the costs of the loan you are getting. To help you, below are 7 key questions to ask your lender about your mortgage BEFORE you accept a loan.
Continue reading “7 Key Questions To Ask Your Lender When Getting a Mortgage“
By Dennis Norman, on August 25th, 2010
Dennis Norman
Over the past couple of years lawsuits have been filed against several lenders over “yield spread premiums” that were paid by the lenders to mortgage brokers originating loans on their behalf. These suits brought a lot of attention to a common practice in the mortgage industry which was to compensate the companies (or loan officers) originating loans based upon the rate and points charged to the borrower. There have been numerous debates on the topic and I’m staying out of it, however, last week the Federal Reserve announced new rules that will go in effect on April 1, 2011 that will end this practice. Continue reading “New Rules Announced to Protect Mortgage Borrowers“
By Dennis Norman, on August 24th, 2010
Dennis Norman
Beginning last November I have written several articles about the “sugar-rush” effect of tax credits and other stimulus on the housing market and voicing my concern that these things are short lived (like a sugar rush on a child) and after the sugar wears off there is a crash….Well, as expected, here it is…
Today’s existing home sales report from theNational Association of REALTORS(R) shows existing home sales in St. Louis for July decreased 36.1 percent from a year ago. For the US as a whole, existing home sales in July were at at a seasonally adjusted-annual rate of 3.83 million units which is a decline of 27.2 percent from June and is a decline of 25.5 percent from a year ago. Continue reading “Home Sales Plummet in July to Record Low“
By Dennis Norman, on August 24th, 2010
Dennis Norman
The U.S. Department of the Treasury has announced yet another new plan to help homeowners avoid foreclosure. This plan targets homeowners that are struggling with unemployment and offers two foreclosure-prevention programs to help them.
The first program will be through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund). Through this program the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Continue reading “Help for unemployed homeowners facing foreclosure“
By Dennis Norman, on August 19th, 2010
Dennis Norman
A new study released by Bankrate, Inc. shows that the costs associated with buying a home are on the rise. Bankrate’s 2010 Closing Costs Survey states the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up 37 percent from $2,732 in 2009.
The good news for us Missourians is that our state had the ninth LOWEST costs associated with buying a home. Missouri’s average cost is $3,356 which is over 10 percent below the national average. New York, with average costs of $5,623, had the highest costs in the nation. Continue reading “Missouri is Ninth Least Expensive State to Close on a Home“
By Dennis Norman, on August 19th, 2010
Dennis Norman
For some time now I’ve been saying the precursor to the housing market recovering is for the mortgage delinquency and foreclosure rates to fall from the present, near-record levels, down to closer to historical norms. The current mortgage loan delinquency report from TransUnion shows that, for the second consecutive quarter, things are headed the right direction. Granted the decline in loans that are 60 or more days past due declined only 1.48 percent to 6.67 percent but at least it is going the right diretion. The loan delinquency rate for the 2nd quarter of 6.67 percent is still an increase of 14.8 percent from a year ago when the delinquency rate was 5.81 percent. Continue reading “Mortgage Delinquencies Fall for Second Consecutive Quarter“
By Robert Fishel, on August 18th, 2010
Every borrower’s situation is different. My goal is to provide various options/loan programs that are available to meet the borrower’s needs. When considering a refinance, the following are typical situations borrowers face: Continue reading “Which refinancing option is best for you?; St. Louis Mortgage Watch“
By News Desk, on August 14th, 2010
For Immediate Release August 12, 2010 |
United States Attorney’s Office District of New Jersey Contact: (973) 645-2888 |
Alleged Schemes Defrauded Investors in Multiple States and Abroad
NEWARK, NJ—Eliyahu Weinstein, aka “Eli Weinstein,” was arrested at his home this morning by federal agents on charges that he ran an investment fraud scheme causing losses of at least $200 million, U.S. Attorney Paul J. Fishman announced.
Weinstein, 35, of Lakewood, N.J., was charged with one count of bank fraud and one count of wire fraud in connection with the alleged scheme. Vladimir Siforov, 43, of Manalapan, N.J., was also charged with one count of wire fraud in connection with the scheme and remains at large. Weinstein is expected to appear later today before U.S. Magistrate Judge Esther Salas in Newark federal court. Continue reading “Leader of $200 Million Real Estate Investment Scam Arrested for Fraud“
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By Robert Fishel, on August 11th, 2010
In the next few days, look for FHA to implement further changes to strengthen its financial situation. An audit in late 2009 showed that the capital ratio of its Mutual Mortgage Insurance Fund (MMIF) had fallen below its statutorily mandated threshold. Over the past few months, FHA has raised premiums on its FHA insurance, prohibited seller-financed down payment assistance, stepped up enforcement of its regulations, tightened appraisal rules, banned several lenders from writing FHA guaranteed loans and brought suit against others. Continue reading “FHA Expected to Announce Further Policy Changes to Address Risk and Strengthen Finances; St. Louis Mortgage Watch“
By Ted Gayer, on August 5th, 2010
Ted Gayer, Co-Director of Economic Studies, Brookings Institute
The U.S. Department of the Treasury and the Department of Housing and Urban Development released June data for the Obama administration’s Home Affordable Modification Program (HAMP). HAMP is the foreclosure prevention program targeted at borrowers who are delinquent in their mortgage payment or facing imminent risk of default on their mortgage.
It has always been an open question whether HAMP would prevent foreclosures or whether it would just delay inevitable foreclosures. While those who qualify for HAMP receive reduced mortgage Continue reading “The Latest Data on the Home Affordable Modification Program“
By Robert Fishel, on August 4th, 2010
A home mortgage is the largest debt of most consumers and is nothing to take lightly or approach without diligence and care.
Here are some tips to help guide you and help you avoid the pitfalls that are out there:
- Continue reading “Mortgage Tips From a Pro; St. Louis Mortgage Watch“
By Dennis Norman, on August 3rd, 2010
- Dennis Norman
NAR Pending Home Sales Index at Lowest Level Since Index Began in 2001
At dropping 30 percent in May as a result of the rush to buy a home before the April 30th tax credit deadline, the National Association of REALTORS Pending Home Sales Index for June shows a further decline of 2.6 percent in the index in June (seasonally adjusted) which is 18.6 percent below June 2009. While the decrease in home sales was expected, I’m a little surprised we are running so far behind last year (which, might I remind you, wasn’t that great of year for home sales?). Continue reading “Pending Home Sales Hit a new Record-Low in June“
By Dennis Norman, on July 30th, 2010
Dennis Norman
A report published by Lender Processing Services (LPS) analyzing homeowner’s performance on their mortgages as of June 2010 shows some encouraging news; there are signs that the foreclosure and mortgage delinquency rates are stabilizing, albeit at very elevated levels. Continue reading “Foreclosure and Mortgage Delinquency Rates Stabilizing“
By Dennis Norman, on July 28th, 2010
Dennis Norman
A report released by CoreLogic showed the St. Louis metro area to have a foreclosure rate in June of 1.48 percent up slightly from May’s rate of 1.46 percent and an increase of 28.7 percent from the year prior when the rate was 1.15 percent. Continue reading “St. Louis Foreclosures Increase in June“
By Robert Fishel, on July 28th, 2010
Fannie Mae Rolls out New Loan Quality Initiative (LQI) Program – Tightens underwriting requirements and aims to reduce borrower fraud.
These rules could derail some closings for buyers who rack up purchases or even take out new store credit cards before their home sales have closed. Continue reading “Fannie Mae Tightens Rules; St. Louis Mortgage Watch“
By Dennis Norman, on July 26th, 2010
Dennis Norman
Asking this question now is about like asking a newly divorced person their thoughts on marriage….nonetheless in challenging times many of us reflect upon our past investment decisions, investment philosophy, etc and see what can be learned from our past to help us in the future. Continue reading “Is a home a good investment?“
By Robert Fishel, on July 21st, 2010
WHAT IS A CREDIT SCORE?
Simply stated, credit scores area 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.
WHAT AFFECTS A CREDIT SCORE?
Keeping a manageable amount of debt and paying on time are ways to positively affect a credit score. Bankruptcy, judgments, collections and liens most negatively affect scores. Scoring factors are “blind” and do not consider anything about an individual other than their creditworthiness. Credit inquiries can ‘ding’, or lower your score. However, any inquiries from one industry within a 30-day period count only once. For example, if a consumer is car shopping and visits three dealers in two weeks who check the consumer’s credit, this only counts as one inquiry and has a minor affect on the credit score.
MORTGAGES AND CREDIT SCORES
Often, underwriters use credit scores as a factor in determining loan approval. This is not the only factor considered, but a credit score can weigh on the loan decision. Good credit pays off. Some loan programs have credit score requirements or offer lower rates for higher credit scores. For example, a credit score above 720 may merit a 1/8% rate decrease. Borrowers that are financially sound enough to buy a home should receive a “market rate” for their loan. Home buyers with scores below 620 may incur higher rates (1-2% above market) or additional fees. Mitigating circumstances can help your approval process if you have credit issues. Your Paramount mortgage banker can help.
To receive a free copy of your credit history you can log on to www.annualcreditreport.com or call 877-322-8228 toll free.
You may also contact the credit bureaus directly:
- Equifax (800) 685-1111
- Experian (888) 397-3742
- Trans Union (800) 916-8800
St. Louis Mortgage Interest Rates – July 21, 2010 *
- 30-year fixed-rate mortgage 4.50% no points
- 15-year fixed-rate mortgage 4.000% no points
- 5/1 adjustable rate mortgage 3.50% no points
- FHA/VA 30-year fixed rate mortgage 4.50%
- Jumbo 5/1 ARM 4.375% no points
- Jumbo 15 year fixed rate mortgage 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on July 20th, 2010
Dennis Norman Finally, some good news!
This morning Standard & Poor’s released their S&P/Experian Consumer Credit Default Index for June showing that first-mortgage default rates declined 5 percent from the month before and were down 45.2 percent from a year ago.
I have been saying for a while, we are not going to see any sort of sustainable recovery of the housing market until we see mortgage delinquency and default rates decline thereby bringing down the foreclosure rate and ultimately easing the downward pricing pressure on the housing market caused by foreclosures. Maybe, just maybe, this is the beginning of the trend for such a decline in delinquencies. Let’s hope we see similar declines in the coming months.
By Robert Fishel, on July 14th, 2010
The mortgage industry has underwent some dramatic changes in the past year as has the regulations and rules the industry must comply with. Lender’s are barely able to keep up with everything new so it’s not surprising home-buyers have many questions when it comes to obtaining a mortgage to buy a home. Therefore, I thought I would take this opportunity to provide a list of questions that a home-buyer should ask their lender that I think will be helpful. Oh, and since I am a loan officer in St. Louis, I did take the liberty of giving my answer to these questions :)
Q: Are you a Banker or a Broker?
A: Mortgage Bankers are companies that fund their own loans with their own money. Mortgage Brokers rely on a third party to make the transaction happen. Paramount is a Mortgage Banker – no delays for closing – we’ll be there with the check!
Q: How can I help the transaction along?
A: Your responsiveness can make a difference in meeting the closing date. Please return any requested paperwork to Paramount as soon as you can. Schedule inspections as quickly as possible to allow for any maintenance that may be required.
Q: Who makes the decision on my loan?
A: We have staff underwriters for FHA, VA and Conventional loans, so we are able to make credit decisions quickly and in-house. Paramount is a locally owned and operated independent mortgage company. Most of our employees are native to St. Louis so we understand the nuances of our town.
Q: Will I need Mortgage Insurance?
A: Mortgage Insurance is required on all loans with less than 20% down to cover the lender in case of default. Private Mortgage Insurance (PMI) for conventional loans can be paid monthly or financed through the term of the loan, while FHA loans have an up front fee as well as a monthly premium. Another option is a Combo Loan – a first and second mortgage – to avoid a PMI premium.
Q: How is my home value determined?
A: Paramount uses certified appraisers with decades of experience and a thorough knowledge of the industry and metropolitan area. To ensure the integrity of valuation we do not accept appraisals from non-certified or non-approved appraisers.
Q: When do I lock in an Interest Rate?
A: First you need a signed real estate contract and a firm closing date. You will lock in your rate once the loan program is determined and you are satisfied with the rate available. We recommend locking in quickly to avoid any potential upswing in the market.
Q: Will I get the best rate possible?
A: You will get the best loan program – including rate, APR and terms – for your needs. We evaluate your current financial situation and where you anticipate you will be down the road to determine what the best program will be for you and your unique needs; down payment assistance, limited documentation, lowest monthly payment, minimize PMI exposure, etc. More than rate determines the best loan for the buyer.
Q: Who will be at the closing?
A: Paramount will be there! Typically the borrower and anyone on the loan papers and your realtor attend closing. Paramount is at every closing delivering the closing documents and check which could save you on title company charges.
If you have more questions or would like additional information feel free to contact me using the contact information at the bottom of this post.
St. Louis Mortgage Interest Rates – July 14, 2010 *
- 30-year fixed-rate mortgage 4.50% no points
- 15-year fixed-rate mortgage 4.125% no points
- 5/1 adjustable rate mortgage 3.50% no points
- FHA/VA 30-year fixed rate mortgage 4.75%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
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