Lock Advice: FLOAT MBS prices moved slightly higher and are up +4/32.
RATE NOTES: When MBS prices are up, Rates are down. Lock advice changes throughout the day . Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage Down 0.01% at 5.06% on Nov.9
Fannie Mae Mortgage Backed Securities MBS Opened at 4.673% Down 0.046%.
10 Year Treasury currently 3.470% Down -0.1%
DJI Stocks $10,196.18, Up 172.76, 1.72%
European and Asian Markets Up 1.878%
Nymex Crude Oil currently $79.86 Up $2.43
The big bailout banks find another way to rip off the consumer... just in a nick of time for them, but not for us. FHA is back in the spotlight. They didn't produce the audit that was due yesterday. Another credit tip from Kim Castro! See TBWS Video
Rates 11-09-09, 8:15 AM PT 30 Year Fixed to $417,000 Rate 4.75% Point 0.875, APR 4.889% APR Based on $350,000 Loan at 80% LTV Above Rate can be locked for 30 days. Call for Quotes on FHA and VA loans With Detailed Good Faith Estimates. No Application or Credit Report required
Rate Survey Discover where you will find the best rates
Education is the Only Effective Consumer Protection
Teach Your Clients to Find Legitimate Rate Quotes Read Story
Senate Passes the First Time Buyer Tax CreditRead Story
Bill Introduced to Increase FHA Down Payment to 5.00% from 3.50 Read Story.
Kay, my lovely Mensa wife, reads the San Diego Union Tribune from cover to cover every morning while I peruse the funny papers; blessed is SDUT to offer two full pages. You can immediately see it is a perfect marriage because we never have cause to fight over the morning paper.
While Kay is concerned with pesky facts, (she never loses an argument) I pursue a funny papers inspired overview where there is much to be learned. Below are some selections from Thursday, November 5, 2009.
Take Dilbert for example, In three small panels Scott Adams teaches us three life lessons, maybe four.
Not to mix our meds.
The origin of racism.
Political and criminal philosophy. Of course, this does not apply to your politician(s) eh... eh... eh
In Leaf Zone Ahead and Falling Leaves Next Ten Feet Glenn McCoy in Duplex illustrates the future of nanny Government protection. Not shown are future signs at every restaurant table "chew slowly by order of the President" and signs in our bathrooms, posted at the exact average eye level of all inhabitants. "brush teeth for 60 seconds, or else". A camera will record compliance.
Guys who read the comics section know how to treat their woman and are known throughout the feminine world as better lovers. Try it out yourselves. Guys, next time you are doing the singles bar scene, let it be known that your sensitivity to feminine needs was derived through years of diligent funny paper study. You will never leave another bar alone.
Nest Heads provides younger people and a few middle aged a reason to get flee the nest and buy a home which is good for the economy and more importantely... good for all of us on AR.
I think we have covered a large number of human concerns today; we learned that politicians and criminals are similarly motivated, that government is here to protect us, a proper sharing technique and how to be special.
For those who wish to be surperior humans, my sincere advice is broken into three parts :
Read the Comics Section every day. You will be a better person.
Watch Think Big Work Small every morning; this morning was an educational hoot. TBWS
Attend my FREE mortgage classes (alas, none scheduled at the moment but stay tuned).
I refinanced a loan this week for some past clients. I did their purchase loan in 2005. We did an 80-15-5 because they had another home that had not closed yet. The 15% second was a home equity line of credit. Their previous home sold and they paid off the 15% second in March of 2006. They never drewanother dime on the equity line.
June 2008: They received a letter from Countrywide telling them their 0 balance equity line was frozen. They were not allowed to take any draws on the line because the value had decreased. No problem for them. They weren't using the line anyway.
Like lots of other people, the equity in their home has evaporated but current rates are still better than what they had on their first so we put together a Freddie Relief refinance - a great deal for them. We are able to drop their payment $200+ per month and because they didn't have PMI on the original loan, there is no PMI on the refinance even though their LTV is now 95%.
October 2009: Bank of America (aka Countrywide) rears its ugly head! There had never been a Deed of Release recorded for the "no longer usable" home equity line of credit. The title company received a notice from BofA that there would be a $350 Early Termination Fee in order to do the Deed of Release. Early Termination Fee? On a line of credit they were no longer allowed to use?
Really??This Early Termination Fee showing on theHUD1would prevent them from completing the Freddie Relief refinance.
My client took BofA the statement from March 1996 showing where they had paid it off. She took them the letter from June 2008 saying they no longer had a home equity line of credit. She took them the statement showing the $350 Early Termination Fee. She asked them how in the world they could expect an Early Termination Fee when they were the ones who terminated the line. BofA's response - "We didn't close the line. We just won't let you use it." My client spent over an hour discussing this with the Wizards of BofA. At one point they actually told her "if you do your refinance with us we may consider waiving the fee".
Really?? My client told the Wizards of BofA "either this fee gets waived and you allow the title company torecord a Deed of Release or I will go to the Attorney General and see what they think! You CAN NOT haveit bothways! I didn't terminate the equity line - you did."
Guess what? She got it! Refinance paperwork is all signed - we will record and fund on Monday.
BofA - what are you thinking? How many other people are you pulling this stunt on?
Jane Penttinen, Sr. Loan Officer
Sunstreet Mortgage, LLC
520-547-4150
If you, your friends or family require the services of a mortgage professional, please don't hesitate to call me. I am never too busy for any of your referrals.
More than a month ago on Monday, October 5, The FHA Taxpayer Protection Act of 2009 - HR 3706 - authored by Rep. Scott (Goober) Garrett (R-NJ) was introduced to Congress.
If passed It would increase the minimum down payment for FHA insured mortgages from 3.5% to 5% and the law would prohibit financing FHA closing costs. BUT WAIT there is more!
One tiny fact looms large and questions the Congressman's competence to propose any laws governing FHA is that FHA already no longer allows closing costs to be computed in the loan amount. This changed last year. See FHA Regs 4155 page 35
This ill advised, poorly researched, legislation will not help our recovering market or even our future mortgage stability. FHA is not the culprit or even one of the culprits in the recent mortgage fiasco. That blame lies at the feet of sub-prime mortgages and Wall Street greed.
FHA, with a 3% downpayment had been stabile source of financing for almost 80 years. Actually, because closing costs used to be computed in the loan the previous LTV was more like 2.25%. The minimum down payment was recently increased to 3.5%.
If you feel Congressman Garret's bill must be defeated then email your congressman at: Congressional Email
P.S. I know it serves no intelligent purpose to Gooberize Congressman Scott but it makes me feel good.
Lock Advice: FLOAT Today has been an extremely volatile session. After reaching a Morning low of -2/32, MBS prices turned higher again and are now up +8/32, above 9:45 ET pricing of +5/32. MBS Prices were helped by a higher than expected Unemployment Rate of 10.2%. The number of jobs lost in October was -190K, close to the consensus.
RATE NOTES: When MBS prices are up, Rates are down. Lock advice changes throughout the day . Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage Down 0.01% at 5.07% on Nov.6
Fannie Mae Mortgage Backed Securities MBS Opened at 4.719% Down 0.009%.
10 Year Treasury currently 3.50% Down -0.07%
DJI Stocks Closed today at $10,023.42, Up 17.46, 0.17%
European and Asian Markets Up 0.373%
Nymex Crude Oil currently $77.65 Down $1.97
The big bailout banks find another way to rip off the consumer... just in a nick of time for them, but not for us. FHA is back in the spotlight. They didn't produce the audit that was due yesterday. Another credit tip from Kim Castro! See TBWS Video
Rates 11-06-09, 9:45 AM PT 30 Year Fixed to $417,000 Rate 4.75% Point 1.00, APR 4.901% APR Based on $350,000 Loan at 80% LTV Above Rate can be locked for 30 days. Call for Quotes on FHA and VA loans With Detailed Good Faith Estimates. No Application or Credit Report required
Rate Survey Discover where you will find the best rates
Education is the Only Effective Consumer Protection
Teach Your Clients to Find Legitimate Rate Quotes Read Story
Senate Passes the First Time Buyer Tax CreditRead Story
Bill Introduced to Increase FHA Down Payment to 5.00% from 3.50 Read Story.
Using the FHA 203k Renovation Loan to Purchase a Home and Make Green Improvements
I recently attended a workshop sponsored by Academy Mortgage about Federal Housing Administration (FHA) 203k Renovation Loans. The workshop opened my eyes to a number of possibilities that could greatly benefit homebuyers. In this two part blog post, I’ll share with you a few of the key take-away points I learned about. Part one describes the 203k loan and the type of renovations allowed. Part two will describe the two different 203k loans, how they work and the added benefits of using a 203k loan to make green renovation improvements.
The FHA 203k is a loan available through the FHA mortgage insurance program that enables home buyers to purchase or refinance their home with a single loan that includes renovation and repair costs. This is a huge benefit to homebuyers because the end result is most often a much nicer home they could purchase otherwise. The added benefit is the home is renovated to their specification which gives it a newer and much more personal feel. FHA 203k renovation loans may also be used with the purchase of HUD homes. For homebuyers seeking a healthier, more comfortable and cost-effective home the 203k is an excellent way to renovate their home to include green features and benefits.
Of course, there are guidelines to follow and the process must be adhered to for maximum benefit. Homebuyers must be able to envision the changes and willing to endure the time needed to complete the repairs. Patience and attention to detail are key ingredients to the whole process. But the time and effort required can be well worthwhile.
In today’s real estate market, if a homebuyer is willing to be patient and follow the guidelines, they can purchase a home that needs repair, sometimes at a bargain price, and fix it up to create equity in the property almost immediately. This can be especially benefickal for firt time homebuyers. Academy Mortgage and Universal Lending are two well known national lenders with extensive experience in processing FHA 203k Renovation Loans.
What type of renovations is allowed?
Renovations may include small or big jobs including full remodels. Condos, town homes, manufactured housing, single family and most owner occupied 1-4 family mixed use properties. Almost any kind of renovation or repair can be financed including structural improvements, changes or additions. A partial list of allowed renovations includes:
Kitchen and bath remodels
New siding or roof
Painting, landscaping
Eliminate health or safety hazards such as lead based paint or mold abatement
Add a garage, sun room, deck or finish out a basement
Lock Advice: FLOAT It has been an extremely volatile session this morning. After reaching a recent low of -2/32, MBS prices turned higher again and are now up +7/32, above 9:45 et pricing of +5/32. Initially, MBS Prices moved higher after the Unemployment Rate jumped to 10.2%, which was higher than expected. The number of jobs lost in October was -190K, close to the consensus.
RATE NOTES: When MBS prices are up, Rates are down. Lock advice changes throughout the day . Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage Down 0.02% at 5.06% on Nov.6
Fannie Mae Mortgage Backed Securities MBS Opened at 4.719% Down 0.009%.
10 Year Treasury currently 3.510% Down -0.06%
DJI Stocks $10,014.35, Up 8.39, 0.08%
European and Asian Markets Up 0.373%
Nymex Crude Oil currently $77.35 Down $2.27
The big bailout banks find another way to rip off the consumer... just in a nick of time for them, but not for us. FHA is back in the spotlight. They didn't produce the audit that was due yesterday. Another credit tip from Kim Castro! See TBWS Video
Rates 11-06-09, 9:45 AM PT 30 Year Fixed to $417,000 Rate 4.75% Point 1.00, APR 4.901% APR Based on $350,000 Loan at 80% LTV Above Rate can be locked for 30 days. Call for Quotes on FHA and VA loans With Detailed Good Faith Estimates. No Application or Credit Report required
Rate Survey Discover where you will find the best rates
Education is the Only Effective Consumer Protection
Teach Your Clients to Find Legitimate Rate Quotes Read Story
Senate Passes the First Time Buyer Tax CreditRead Story
Bill Introduced to Increase FHA Down Payment to 5.00% from 3.50 Read Story.
Fannie Mae is implementing the Deed for Lease instead of Foreclosures
FANNIE MAE NEWS RELEASE - September 5, 2009
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for LeaseTMProgram under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.
"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.
Lock Advice: FLOAT MBS prices are up +3/32. Productivity rose far more than expected in the third quarter.
RATE NOTES: When MBS prices are up, Rates are down. Lock advice changes throughout the day . Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage Unchanged at 5.08% on Nov.4
Fannie Mae Mortgage Backed Securities MBS Opened at 4.728% Down 0.015%.
10 Year Treasury Currently 3.530% Down -0.04%
DJI Stocks $9,974.45, Up 172.31, 1.76%
European and Asian Markets Up 0.498%
Nymex Crude Oil Currently $80.25 Down $0.15
The big bailout banks find another way to rip off the consumer... just in a nick of time for them, but not for us. FHA is back in the spotlight. They didn't produce the audit that was due yesterday. Another credit tip from Kim Castro! See TBWS Video
Rates 11-04-09, 8:15 AM PT 30 Year Fixed to $417,000 Rate 4.875% Point 0.75, APR 5.001% APR Based on $350,000 Loan at 80% LTV Above Rate can be locked for 30 days. Call for Quotes on FHA and VA loans With Detailed Good Faith Estimates. No Application or Credit Report required
Rate Survey Discover where you will find the best rates
Education is the Only Effective Consumer Protection
Teach Your Clients to Find Legitimate Rate Quotes Read Story
Senate Passes the First Time Buyer Tax CreditRead Story
Bill Introduced to Increase FHA Down Payment to 5.00% from 3.50 Read Story.
Tax Credit Extended By Senate for First Time Home Buyers It looks like the bill is very getting close to the President's desk.
As of Wednesday November 4, 2009 the Senate officially passed the extension of the first time home buyer tax credit. The bill will now move into the House, and then to the President's desk for a signature.
The Senate has passed a 6 months extension on the first time home buyer tax credit of $8,000. Hopefully this extension will encourage more people to buy homes and help the housing industry bounce back quicker.
There is an $800,000 maximum for the purchase price of the home, and 2 income caps which have been set.
First, if the couple makes a joint income of $225,000 or higher they will not be eligible for the first time buyer credit, and
if an individual makes an income of $125,000 or higher they will not be eligible for the credit.
The senate bill also provides a new $6,500 tax break for existing homeowners who want to move up to a new home, as long as they have lived in their current residence for five consecutive years..
This bill is going to cost $10 billion just for the home buyer tax credit. With the current deficit as a country we cannot afford this bill. However, in order for our economy to have any hope of restoration it appears to be necessary.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Bill Ladewig
Excuse me BofA! You CAN NOT have it both ways!
I recently attended a workshop sponsored by Academy Mortgage about 
In 
Renovations may include small or big jobs including full remodels. Condos, town homes, manufactured housing, single family and most owner occupied 1-4 family mixed use properties. Almost any kind of renovation or repair can be financed including structural improvements, changes or additions. A partial list of allowed renovations includes:
Bill Ladewig
;)
;)
