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home: Crazy to calm - a new week begins in financial markets with no jobs data on the way - June 1-4 market recap - 06/07/10 01:36 PM
Financial market recap for the week of June 1 to June 4
This is a new feature I plan to continue posting each Monday. I was planning to wait until next week, but an email server outage forced my hand. I hope you find this information helpful!
If I were looking for a word to recap what happened in the financial markets last week, I would probably settle on "disappointment". Last week was the first business week of the month, a week which normally brings big quantities of important economic data, and last week certainly had its share. Pending home sales, … (0 comments)
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home: Mortgage-Treasury Spread Hits New Lows - Are mortgages safer now? - 04/05/10 11:51 AM
Mortgage-Treasury Spread Hits New Lows - Are mortgages safer now?
In mid-March, a number of articles were published suggesting that the end of the Federal Reserve's Mortgage Backed Security purchase program might drive mortgage rates somewhat higher, fairly quickly. The Fed had telegraphed this upcoming action very loudly and very clearly since 2009.
The program has had substantial effects on mortgage rates over the past 16 months. It immediately lowered mortgage rates by 1/2% or more, and, over its course, brought 30-year fixed rates to their lowest point ever, at 4.71% in December of 2009. It also had a profound effect … (0 comments)
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home: 2010 New Hampshire FHA and Conventional Loan Limits by County - Jumbo Cutoffs - 01/12/10 04:38 PM
2010 New Hampshire FHA and Conventional Loan Limits by County - Jumbo Cutoffs
Wondering what makes a Jumbo mortgage in New Hampshire for 2010? Here's the updated limit information, compiled from the Federal Housing Finance Authority and the Federal Housing Administration by county.
County FHA Limit Conventional Limit
Belknap $281,250 $417,000
Carroll $271,050 $417,000
Cheshire $271,050 $417,000
Coos $271,050 $417,000
Grafton $281,250 $417,000
Hillsborough $402,500 $417,000
Merrimack $302,500 $417,000
Rockingham $523,750 $523,750
Strafford $523,750 $523,750
Sullivan $271,050 $417,000
Again, for 2010, neither Agency nor FHA loans will observe a different limit amount than 2009.
Please contact me if … (0 comments)
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home: 2010 FHA Loan Limits for Massachusetts - A New Year, Same Numbers - 12/31/09 02:39 PM
2010 FHA Loan Limits for Massachusetts - A New Year, Same Numbers
As I reported previously for Rhode Island and Connecticut, 2010 is an year off from changes in maximum FHA loan amounts, and the same holds true for Massachusetts. Here are the area loan limits, by county:
Barnstable County: $462,500
Berkshire County: $271,050
Bristol County: $475,000
Dukes County: $729,750
Essex County: $523,750
Franklin County: $318,750
Hampden County: $318,750
Hampshire County: $318,750
Middlesex County: $523,750
Nantucket County: $729,750
Norfolk County: $523,750
Plymouth County: $523,750
Suffolk County: $523,750
Worcester County: $385,000
For those who have read the Connecticut article, you'll notice that … (0 comments)
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home: 2010 FHA Loan Limits for Rhode Island - Unchanged from 2009 - 12/31/09 01:28 PM
2010 FHA Loan Limits for Rhode Island - Unchanged from 2009
Yesterday, I wrote about the updated FHA lending limits for Connecticut. To learn more about the methodology used in calculating limits, I would suggest circling back to that article. Today, I want to pass along the same information for Rhode Island.
This year has been a relatively quiet one in real estate pricing in Rhode Island. Almost all areas saw a decline in value, some very significant. If anything, I believe Rhode Island is fortunate not to have seen its FHA loan limits cut for this year. FHA limits are … (0 comments)
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home: 2010 FHA Loan Limits for Connecticut - Just How Much Can You Borrow with less than a 5% Down Payment? - 12/30/09 02:15 PM
2010 FHA Loan Limits for Connecticut - Just How Much Can You Borrow with less than a 5% Down Payment?
There are fewer than 36 hours left until 2010, so it's time to start thinking about some of the changes we'll see in mortgages in the New Year. One aspect of lending that changes eery year is the amount that can be borrowed using the government's Federal Housing Administration (FHA) insurance program. Each county across the country is given a different amount based on average home prices within that county.
For 2010, as 2009, certain counties have received higher than normal … (2 comments)
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home: New Green Shoots? How About Significant Improvements to FHA Condo Guidelines!!! - 08/10/09 07:16 PM
Washington's buzzword last month was "green shoots" to suggest tiny indications of improvements to the economy and financial markets. After 2 years of lender closures and program cuts, this fall we may just start seeing some green shoots in mortgages, as well.
Mortgage financing on condominium properties has been a sore point for mortgage and real estate professionals this year due to the intensified scrutiny these properties receive from underwriting, and the often-frustrating guideline variations from one lender to the next. Perhaps most challenging for the mortgage professional is that we are unable to provide our clients with assurance that the … (0 comments)
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home: Mortgage-Backed Securities Losing their Stigma - What we can learn from the current Mortgage - Treasury Spread - 06/15/09 01:13 PM
Is there a light at the end of the tunnel? Investors may be suggesting so with the recent surge in the Dow Jones Industrial Average from its March low below 7000 to a recent peak over 8700. Still, some doubt should exist considering the recent economic data hasn't so much indicated the United States economy is getting better, rather that the economy is worsening at a slower pace. Still there is one area, very close to the epicenter of the economy's troubles, that suggests recent changes are achieving their desired results.
In the 18 months leading up to December, 2008, the … (18 comments)
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home: From the Mailbag - FHA gift money - 05/21/09 10:59 AM
I got this message from a reader here on Activerain, and thought I'd share the answer.
Subject: FHA Gift Money (Sent via Activerain)
Dan, My wife and I are in the process of buying a house. During the FHA preapproval process we noticed that we possibly were going to need a little help monitarily. Mywife's parents were more than happy to help us out. The only catch and this is my problem, is that the money that they gave us was cash and is considered "matress money," as it was never in the bank. We have filled out a gift … (2 comments)
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home: FHA is great, but don't forget conventional options, too! - 05/11/09 05:55 PM
I know that FHA, and other government products, have been all the rage lately due to difficulty in getting conventional loans and conventional mortgage insurance, but I think that a lot of mortgage originators have forgotten that there are still good conventional loans available without the high down payments frequently associated with them. For cost conscious borrowers, this can be especially important, as conventional loans do not require the high upfront mortgage insurance or guarantee premiums associated with government programs.
In most areas, well qualified first time homeowners can get financing at as high as 97% of the purchase price of … (1 comments)
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home: Economic Stimulus Act Signed Into Law - What does it mean for homebuyers? - 02/17/09 12:02 PM
As I write this, the president is poised to sign the American Recovery and Reinvestment Act of 2009, better known as the $787 billion Economic Stimulus Plan. There has been much speculation about what this plan might do for housing, real estate, homebuyers, and mortgages, ranging from 2.99% to 4.5% mortgage rates, $15,000 tax credits, and more, but when the dust settles and the plan is signed into law, the final effect will be quite different.
The most important thing the finaliztion of this plan will accomplish is it will end that speculation. Over the past few weeks, I have spoken … (31 comments)
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home: Why You Should Talk to Your Creditors - 12/15/08 01:50 PM
One night last week, I got home bright and early at 8:00 PM after a busy day of networking and loan applications. I opened my mail, and near about flipped. There on my credit card statement it said:
“11/xx Late Fee: $39.00”
People who know me well will tell you that I’m not a person who gets terribly angry, but after I read that, I have to admit that I didn’t really want to talk to anyone, and I certainly didn’t feel like addressing the problem.
So I did what a lot of people will do – I set it aside … (1 comments)
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home: CHFA and the $7500 Federal First-Time Homebuyer Credit - 11/17/08 10:11 AM
Many of you who work in Connecticut are familiar with a very effective First-Time Homebuyer mortgage program offered by the Connecticut Housing Finance Authority. The CHFA Homebuyer Mortgage Program follows most FHA guidelines, but is restricted in regards to the buyers' income, and offers subsidized interest rates that are typically at a small discount to FHA rates. In my experience, the only reason I ever lose a Connecticut loan is to the CHFA program; unfortunately, it is a program we are unable to offer, as it is only available to mortgage companies with offices in Connecticut.
On Thursday, I spoke with … (2 comments)
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home: Province Mortgage Associates Celebrates 3rd Anniversary - 07/03/08 06:49 PM
I don't write a lot of what I consider "shameless self-promotion" articles, but I think that a mortgage company completing its 3rd year in existance given current market conditions is a great testament to the quality people I work with, to their dedication, and to their perseverence. We held an anniversary celebration event last Thursday, which was attended by over 75 prominent attorneys, realtors, and financial planners. I was asked to give a speech about the market and our company at that event, and the following is what I presented:
It's difficult to argue that the past 12 months has not … (3 comments)
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home: Understanding Construction and Rehab Mortgage Options - 06/11/08 09:23 AM
Great opportunities exist in the real estate market right now. Many homes are selling for far lower prices than they brought at their last purchase. 3- and 4-unit properties are often available for a song due to extreme reductions in viable financing options. But what about getting a home that is right for you? The problem with real estate on the market right now, is that none of it is customized to your tastes.
Enter Construction and Rehab Mortgages. These mortgage programs allow for things that regular loans do not, specifically the financing of funds to build a new home, or … (2 comments)
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home: Rhode Island Fire Code Changes Coming in July - 05/05/08 10:45 AM
Rhode Island is implementing the next step in its updated fire code this July, when all existing 3-unit properties must have a hard-wired alarm system installed in order to maintain their certificates of occupancy. This change can be traced back to the tragic fire at the Station nightclub in 2003, and follows on changes in other property types, including commercial properties, and places of assembly.
According to the 1998 Census Bureau housing survey, 23% of housing units in Rhode Island are in 2 to 4 unit properties, with a substantial proportion of those being in 3-unit properties. Many of these homes … (1 comments)
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home: Ten Important Things to Know About Mortgages for 2008 - 04/28/08 09:46 AM
You may not be considering doing anything with your mortgage at present, but there are still several important details to know in order to make the best of the current challenges being faced by the largest mortgage lenders. Here are a few things to consider:
Things to Know if You Already Own:
Know your loan terms - you can find this information in the documents you received from your attorney at closing. Older ARMs are good to have at the moment because low short-term rates are causing their rates to decrease.There is nothing to worry about if your servicer fails - your loan … (4 comments)
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home: Mortgage / Treasury Spread Widens, On Average - 04/21/08 02:48 PM
Mortgage rates moved up sharply as last week drew to a close, propelled by a string of positive news out of Wall Street. Several major banks reported colossal losses, yet, because these losses were less than the even more colossal losses that had been expected, the stock market reacted by increasing over 4% on the week, taking wind out of the sails of bonds. Remember that when bonds fall, yields, or rates, increase, and on the week we saw between .25% and .375% increase in rates on most mortgages.
We've seen a few months now of a higher-than-normal spread between 30-year … (0 comments)
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home: Tulips & Mortgages: Centuries apart, and yet eerily similar - 04/19/08 10:12 PM
From time to time, an asset, or a class of assets, will become so popular among investors that its value will grow to exceed the inherent value of the asset. This event is referred to as a financial bubble, as it is perceived that values become over-inflated, and must eventually deflate. Historically, this has happened dozens of times to a greater or lesser extent, with the best remembered occurrence being the Internet Bubble of the late 1990's.
The first recorded bubble occurred in the tulip trade in Holland in the early 17th century. An affliction struck a very small proportion of … (2 comments)
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home: Rates improve sharply - will it hold? - 03/03/08 11:27 AM
Last week was just what many loan officers and borrowers were looking for: a week of sharp improvements in rates. What we saw was a substantial "flight-to-quality" as investors shied away from stocks and moved their money into safer treasury bonds. This was triggered by several reports indicating higher than expected inflation, and reaffirming slow economic growth. Chairman Bernanke's comments to congress also supported the weakening of the economy, but reaffirmed the Fed's commitment to encourage growth.
The challenge is a pheonmenon called "Stagflation".
Stagflation is said to occur when economic growth is shrinking, or stagnating, and inflation is increasing. The challenge … (3 comments)
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Dan Hartman
Providence,
RI
More about me…
Province Mortgage Associates - (401) 263-8655
Address: 10 Davol Sq, Providence, RI, 02903
Office Phone: (401) 490-4400 x 114
Cell Phone: (401) 263-8655
Email Me
Dan Hartman's Blog about mortgages, real estate, and the economy in New England, and the United States, especially Rhode Island Rates, Connecticut Mortgages, Massachusetts Rate Locks, and New Hampshire Home Sales. Let Dan leverage his MBA in Finance and experience as a college professor for you!
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