FHA Interest Rate Change: MHDC’s Cash Assistance Loan (CAL) is now 4%! (APR 4.93) MHDC is raising mortgage interest rates offered to first-time homebuyers. First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs. Continue Reading →
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A survey conducted by Prudential Real Estate revealed that 75 percent of Americans associate owning a home with the “American Dream” and 96 percent feel home ownership is important and 77 percent of the 25-34 year olds feel home ownership is VERY important. The top reasons given for wanting to own a home include to control their living space, safety and for the investment aspect of it. Interestingly, tax benefits, such as the mortgage interest deduction that REALTORS® have fought to preserve for years, finished a distant 6th on the list of reasons. Continue Reading → Federal Housing Administration Commissioner Carol Galante recently announced a series of changes to be issued that will allow the agency to better manage risk and further strengthen the health of the Mutual Mortgage Insurance Fund (MMI). FHA will increase its annual mortgage insurance premium for most new mortgages by 10 basis points, or 0.10%. The FHA will also require most borrowers to continue paying annual premiums for the life of their mortgage loan. The St. Louis foreclosure rate in November 2012 was 1.27 percent of all outstanding home mortgages, a decrease of 26.6 percent from a year before when the rate was 1.73 percent, according to a report just released by Corelogic. Foreclosure rates in St. Louis were well above the national foreclosure rate for November 2012 of 2.97 percent. In addition, mortgage delinquency rates declined in November 2012 as well falling to 4.39 percent of all mortgage loans (90 days + delinquent), down from 5.00 percent in November 2011. Continue Reading → As part of the fiscal cliff deal, Congress extended the cancellation of mortgage debt relief provision for 1 year, through the end of 2013. It seems there is little focus on the importance of this law, it is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales. Continue Reading → The foreclosure inventory in the U.S. dropped to 3.51 percent in November, a decline of 2.84 percent from the month before, according to the November Mortgage Monitor report released by Lender Processing Services. This trend may not continue though as, during the same period, the mortgage delinquency rate (the precursor to foreclosures) increased 1.2 percent from the month before and has increased 3.7 percent since August. Continue Reading → So…you are looking to buy a home in 2013 and are considering using a FHA mortgage for financing…don’t delay, because that FHA mortgage could end up costing more very soon. HR 4264 or The Fiscal Solvency Act of 2012 is a bill that has overwhelmingly passed the House and is on its way to the Senate. This bill among other things grants FHA the power to raise its mortgage insurance premiums to as high as 2.05% annually — nearly twice the 1.20% rate most FHA-Insured homeowners currently pay today. Continue Reading → Mortgage Interest Tax Deductibility passed as part of the American Taxpayer Relief Act of 2012. This allows MI to be tax deductible for 2012 and 2013. The provision extends the ability to deduct the cost of mortgage insurance on a qualified personal residence. The deduction is phased-out by 10% for each $1,000 by which the taxpayer’s AGI exceeds $100,000. Thus, the deduction is unavailable for a taxpayer with an AGI in excess of $110,000. The bill extends this provision for two additional years, through 2013. Continue Reading → Fannie Mae has declared that housing is finally providing a tailwind to economic growth. The company’s December Economic and Strategic Report says that the market “has turned the corner and a sustained recovery is under way.” Looking into 2013, economists predict mortgage originations will increase by 15% while refinance volume is expected to fall 26%. Continue Reading → Shadow Inventory (properties with seriously delinquent mortgages, are in foreclosure or owned by lenders (REO) but not currently listed on the MLS) are a leading indicator of future foreclosure rates so it is good to see that the shadow inventory in the U.S. in October fell to 2.3 million units, a decline of 12.3 percent from a year ago, according to a report from CoreLogic. Continue Reading → “Every single thing about housing is flashing green,” stated James Dimon, chief executive of J.P. Morgan Chase, in an interview with CNBC last month. “Household formation is rising, inventory is falling, and affordability is near a record high.” This should mean many potential homebuyers will be assessing their finances in 2013 to get ready to buy a home. Checking your credit score is at the top of the list, and in turn credit myths and credit misconceptions are plentiful. Continue Reading → Lately we have seen several reports on the housing market that show the housing market is improving and may even be headed toward a recovery however some experts, including Cliff Rossi, Tyser Teaching Fellow and executive-in-residence for the University of Maryland’s Robert H. Smith School of Business, say it may be premature to call this a “real recovery.” Rossi is not entirely negative on the housing market and does admit that home prices are stabilizing and inventories are declining, however he has concerns as a result of the “fiscal cliff”, regulatory reform and tightness of credit, to name a few. Continue Reading → Freddie Mac says about 30% of borrowers this year have opted for shorter-term home loans when they refinance, with most picking a 15-year mortgage. Shorter-term loans are particularly attractive to people “who have been homeowners for a number of years…or who want the security of knowing they will own their home free and clear when they retire,” Continue Reading → In a vote of confidence for an improving real estate market, seventy-one percent of homebuyers surveyed by Redfin said they are expecting house prices to increase during the coming year in their neighborhood. Additionally, the survey showed that over half (59 percent) of homebuyers are concerned about the lack of inventory of homes for sale. Here in St. Louis, as the table below shows, we have over 25 zip codes that have a 3 month, or less, supply of homes for sale which is making it more of a challenge for home buyers to find a home they like and supports rising home prices so, if you are one of those home buyers waiting for the “right time to buy”, I wouldn’t wait any longer if I were you. Continue Reading → After the problems we have seen over the past few years in the real estate, mortgage and banking industries, it is not surprising we have seen significant changes in the loan process making 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 or refinance a home include: Continue Reading → According to Lawrence Yun, Chief Economist for the National Association of Realtors, home prices nationally are up 11.1% in October compared to this point last year. The number of homes available for sale nationally fell reducing the available supply to a level below that of one year ago. The result is tighter supply of homes helping boost the national median existing-home price level to $178,600 in October; price increases have helped home owners regain equity lost during the housing crisis.
The Federal Housing Administration (FHA) has lowered mortgage insurance premiums on Streamline Refinance transactions. It will now be it easier for borrowers to take advantage of record low interest rates and save money each month. Under this program, up-front mortgage insurance premiums will be reduced to 0.01 percent of the total loan amount for borrowers with FHA loans made before June 1, 2009. Continue Reading → In October 7.03 percent of homeowners with a mortgage were delinquent on their loan payments, this is a decline of almost 5 percent from the month before and 7.19 percent less than the year before, according to Lenders Processing Services’ First Watch report. Foreclosure pre-sales (borrowers somewhere in the foreclosure process but have not yet lost their homes) declined 6.77 percent from the month before and was down 15.99 percent from a year ago. LPS does not break out data specific to St. Louis but recent data from RealtyTrac showed that St Louis foreclosure activity increased over 10 percent in October from the month before and was up over 7 percent from a year ago, so St Louis may be lagging behind the national trend in terms of improvement in foreclosure rates. Continue Reading → This morning, the Commerce Department released its new home construction report showing that, on a national basis, all aspects of new home construction, permits, starts and completions, are up double digits in October 2012 from the year before. The Home Builders Association’s new home report shows similar results in St. Louis as well with permits in St. Louis county up almost 24 percent in October from a year before, a 44 percent increase in St. Charles County and modest decreases in Jefferson County and Franklin County. Continue Reading → Determine your “mortgage goals.” What are your expectations? If everything falls into place, what mortgage payment “range” you would be comfortable with? Review your credit history and sources of income. How much money are you willing to commit to buying a home; do you have money set aside for a down payment? Will you get a gift from a family member? Continue Reading → Annually, the National Association of REALTORS (NAR) conducts a survey of people that bought and/or sold a home in the past year to learn about their shopping habits, what motivated them to do what they did, etc. The NAR “Profile of Home Buyers and Sellers” for 2012 was just released and shows, among other things, that 90 percent of home buyers used the internet in finding the home they bought and, of those, about half used a local MLS site and/or agent/company site Continue Reading → During the third quarter of 2012, 3.71 percent of St Louis homeowners with a mortgage were 60+ days delinquent on their mortgage, a slight decline from the prior quarter when the rate was 3.88 percent and a decline of over 10 percent from a year ago when the St Louis mortgage delinquency rate was 4.13 percent, according to TransUnion. This marks the third consecutive quarter the St Louis mortgage delinquency rate has declined. Continue Reading → Qualified first-time home buyers can receive a forgivable 3% cash assistance loan for down payment and closing costs on a home. 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 completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance. Continue Reading → The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. This way, lenders can’t “hide” fees and upfront costs behind low advertised rates. Continue Reading → Over 10,000 St. Louis homeowners (10,101) lost their homes in foreclosure for the 12 month period ending September 2012, according to a report released by Corelogic. We should see fewer Saint Louis homeowners lose their homes to foreclosure in the coming year though as the St. Louis foreclosure inventory (those homes in some stage of the foreclosure process) is declining with 1.5 percent of all St Louis homes with a mortgage being in the foreclosure process in September, down 0.3 percent from the rate a year ago. Continue Reading → The St. Louis foreclosure rate fell to 1.55 percent in August, 2012, the lowest rate since August, 2010 when the rate was 1.54 percent, according to a report released by CoreLogic. Other encouraging news in the report was that the mortgage delinquency rate fell in August to 4.52 percent, the lowest it has been in well over two years! Continue Reading → Over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name” however, there are truly benefits to utilizing an ARM, which include: Continue Reading → If the last time you looked at your mortgage was when you closed on your loan, it’s time to take it out for an annual once over. New loan programs and opportunities to leverage your home equity can bring you lower mortgage payments and new investment opportunities. Continue Reading → “The time needed to close a mortgage loan has increased by almost 25 percent over the last year, from an average of 40 days to 49,” reports Mortgage News Daily, “and it was refinances that drove the change.” Continue Reading → Strategic defaults are something I’ve written about several times over the past few years and is something that there are very strong feelings within the industry at opposite ends of the spectrum on in terms of whether they are OK to do or not. A strategic default is essentially when someone that has the ability to pay their mortgage but, usually because they are “underwater” (meaning they owe more than the property is worth), choose to “walk away” and allow the home to go into foreclosure. Almost one-third (32 percent) of Americans think there is nothing wrong with doing a strategic default, according to survey results just released by ID Analytics. Continue Reading → |
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