Friday, July 8, 2011

Why Buyer's Should Get Off The Fence

In this article, why should I start with interest rates as to why potential buyer's should get off the fence?  Strong economic factors are weighing in on interest rates daily and when the recovery gets feet underneath it, rates will move up quickly and not look back to the levels we have today.  Rates today are the best we have seen since December 13, 2010 and we have had 8 consecutive weeks of dropping mortgage rates.

Housing prices are officially in double dip territory and prices are allowing buyer's to see dreams come true with homes prices and low interest rates giving them a payment that fits into their budgets.  Considering the home mortgage interest tax deductibility safe for now in our tax code, the advantage of interest and private mortgage interest tax breaks figures favorably into future homeowners benefit balance sheet.

And add mortgage financing into the mix of reasons and this may be the biggest factor of all to consider buying a home now.  FHA has recently been talking about increasing the down payment from 3.50% to 5% and conventional lenders are consistently sending a message of higher return (higher interest rates) for higher risk borrowers (lower credit scores and higher debt to incomes).

A strengthening economy inevitably pushing rates higher, the highest affordability index since 1963 (home price, household income and low interest rate measure), and looking at potentially a more difficult loan qualification situation in the future are the 3 reasons I believe buyer's should get off the fence.  Read more here about why buyer's whould get off the fence. When you have mortgage questions, call me for a personal consultation regarding your financing options.

Thursday, July 7, 2011

How are the summers of 2003 and 2011 the same?

According to a S&P/CaseShiller Home Price Index report just released, home values in the United States in April 2011 have returned to an average level of value which was last seen in the summer of 2003.

Excellent purchase opportunities continue for first time home buyer's and for investor property purchasers.  With the home affordability index at the best level seen since 1963, call me if you would like to review your purchase options. 

Wednesday, July 6, 2011

Why loans are now FULL Documentation with NO exceptions

"I have NEVER been under the microscope in ANY of my other mortgage loan applications like I have been this time!", said my "perfect" (they really were a perfect borrower) investment property borrowers after visiting with them about some underwriting conditions in my office the other day. 

Many things have changed in the mortgage lending world over the past 3 years; some occurred subtly and other suddenly.

Why are ALL loans now so accurately and completely documented?  This is the subject of my Blog post today.

Tuesday, July 5, 2011

Counseling IS an effective tool to PREVENT Forclosure!

The probability of staying in your home (if you are in financial difficulty) can be increased dramatically (in certain cases, up to 200% improvement in your chances) if you receive financial counseling! 

The latest report from the Homeownership Preservation Foundation (HPF) makes a compelling argument for continuing support of Home Owner Counseling opportunities be made available to struggling homeowners.

During my loan application process I have a form that which says (and this is how I explain it, in layman's terms): "The mortgage company doesn't want your home back.  If you get in trouble, they will offer counseling and will help you stay in your home."

Until I read this article, I wondered if the mortgage servicing companies really had success with their customers who went through counseling.  Here is the article which tells me that we are successful in helping homeowners stay in their homes: Counseling is an effective tool to prevent foreclosure