massachusetts: 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 06:36 AM
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)
massachusetts: Jumbo Mortgages in 2010 - Will the secondary market keep forcing ARMs on owners?
- 01/13/10 08:52 AM
Jumbo Mortgages in 2010 - Will the secondary market keep forcing ARMs on owners? Flash back a couple of years, and you'll remember the Federal Government initiating a program to allow Fannie Mae and Freddie Mac to purchase loans greater than $417,000 on a temporary basis. Fannie and Freddie had been limited as part of their charters to a set amount which started at $93,750 in 1980, and which has since been adjusted based on year-over-year housing price changes. The economic stimulus package of 2008 gave provisions for the limit to be temporarily increased in "High-cost areas" to an amount … (0 comments)
massachusetts: Conforming Loan Limits for Massachusetts for 2010
- 01/11/10 08:30 AM
Conforming Loan Limits for Massachusetts for 2010 For 2010, the Federal Housing Finance Agency has set revised conforming loan limit at $417,000, the same limit it has offered for several years now. Certain counties designated as high-cost areas have received higher limits in conjunction with the economic stimulus package of 2008, extended in late 2009. These extended limits are available through December 31st, 2010. For Massachusetts, the following counties received higher limits than the national $417,000 cap: Barnstable County: $462,500 Bristol County: $475,000 Dukes County: $729,750 Essex County: $523,750 Middlesex County: $523,750 Nantucket: $729,750 Norflok County: $523,750 Plymouth County: $523,750 … (0 comments)
massachusetts: Mortgage Disclosure Improvement Act, or why I'm working late tonight
- 07/28/09 09:57 AM
Good evening! I wanted to post a quick note tonight to let you all know what I’ve been working on for most of this working week so far. The Mortgage Disclosure Improvement Act, or MDIA, was enacted as a rider to one of the many stimulus-related bills that have cleared congress this year, and will be implemented on July 30th. The act brings with it significant changes to disclosure paperwork that are intended to make consumer choice among mortgage sources more competitive, and, for the most part it should succeed there. It also contains certain procedural changes that will have a … (3 comments)
massachusetts: FHA is great, but don't forget conventional options, too!
- 05/11/09 10:55 AM
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)
massachusetts: Mortgage - Treasury Spread Closes as Homebuyer Incentives Suggest Home Prices May Stabilize
- 03/12/09 09:03 AM
February was a significant month for the mortgage and real estate markets, as a massive bailout package was signed into law, and further talk of foreclosure prevention efforts at the federal level reassured mortgage investors of the safety of their investments. An $8000 tax credit for first-time homebuyers sparked hope for increased home sales in 2009, both for starter homes and condominiums, as well as for so called "move-up" homes needed by those current homeowners able to sell into the current market and purchase significantly discounted replacement homes. Entering March, the Mortgage - Treasury spread reached its lowest point since June, … (1 comments)
massachusetts: Why You Should Talk to Your Creditors
- 12/15/08 05:50 AM
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)
massachusetts: Buying a foreclosed home? Look out for these property pitfalls
- 12/08/08 06:50 AM
Today's buzzword in buying a reasonably priced home is "foreclosure". Foreclosed homes sell anywhere from 20%-60% lower than non-foreclosed homes, making their pricing much more attractive, but there are hurdles to overcome, especially when it comes to property condition. Even though the home is foreclosed, it still must meet the requirements of new financing. I've been working with foreclosed homes for more than 40% of my buyers lately, so I wanted to review a few of the problems we've encountered, and how to avoid them. To lend on a property, each type of mortgage will have its own requirements as to … (1 comments)
massachusetts: Fed Intervention Fails to Close Mortgage Treasury Spread
- 12/05/08 02:47 AM
In spite of an unprecedented move by the Federal Reserve on November 25th to purchase $600 billion in mortgage-related assets, the spread between mortgage and treasury rates remained at its highest level on record for the week ending December 4th, closing at 2.96%. Investors sought the safety of treasury securities in droves, increasing their prices, and depressing the yield of the 10-year treasury note to its lowest close ever at 2.57% this Thursday. In spite of rampant speculation that the Fed may be prepard to act again, mortgage securities found few buyers. Mortgage rates averaged 5.53%, according to Freddie Mac. The … (6 comments)
massachusetts: Stop the insanity! No, wait, keep it going!
- 11/26/08 06:36 AM
Phew, what a busy couple of days! I’m sure at this point you’ve been inundated with emails from loan officers since yesterday morning, so I probably don’t need to tell you that many buyers are qualifying for 5.5% with no points today. We saw a huge drop yesterday in rates, so, rather than harping on how attractive they are, I thought I’d let you know some of the why behind it. Over the past 4-5 weeks, investor demand for mortgage securities had waned considerably, as wave upon wave of bad economic news suggested consumers and homeowners would face greater difficulty in … (0 comments)
massachusetts: Rates drop sharply on $600 Billion Fed Purchase - expect to see 5.5% 0 points in some cases
- 11/25/08 01:12 AM
I only have a minute to post right now, but I wanted to make sure you're aware that there has been a dramatic shift in mortgage pricing this morning. This morning the Fed announced it was going to buy $600 Billion in mortgage assets. This has had a huge impact on rates, with most mortgage rates at least .375% better on RATE than they were yesterday. If you’ve been waiting for the right time to lock a floating loan, or you’ve been waiting on refinancing for a better rate, it’s here. Today is the day to make that move, but don’t … (0 comments)
massachusetts: Get to the High Point, Then Climb Higher
- 06/26/08 01:11 AM
This Saturday, I climbed Round Mountain in Salisbury, CT, and Mount Frissel, in the town of Mount Washington, MA. It is a relatively short hike, at just over 1 mile, however, that involves a total of 800 feet of vertical ascent (and about 200 feet of descent along the way) which makes it a very steep, challenging climb. The peak of the mountain is fairly unremarkable, as it has a significant amount of tree coverage, and although there is supposed to be a log book there where you can read the comments and names of others who have completed the climb … (8 comments)
massachusetts: 8 Simple Rules For FHA Financing
- 03/03/08 02:44 AM
There has been a lot of talk lately about the resurgence of the FHA loan program. It meets many of the needs of borrowers who may have qualified for sub-prime mortgages. Here are some basic guidelines to consider with the FHA option for your clients: FHA requires some credit: In spite of the notion that FHA is an easy program, buyers still need to have some credit. This can be as simple as credit reference letters from utilities, though, so don't get too worried.FHA allows some collections: For buyers with a few minor collections, it is possible to get by without paying … (15 comments)
massachusetts: What's the best weekend to get your more marginal clients signed into purchase agreements?
- 11/30/07 06:50 AM
This weekend is, if a massive pricing adjustment I just received from one of our lenders spreads across the whole market. I just received an email indicating that borrowers with credit scores below 680, along with borrowers with debt-to-income ratios higher than 50%, will be charged as much as an additional 1% add-on to their interest rate, or as much as 4 points upfront, for conventional loans on Fannie Mae and Freddie Mac guidelines. For a buyer putting 5% down on a $200,000 home, that translates into $127 per month, or as much as $7600 upfront! How many of your buyers can … (2 comments)
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!
Financial market recap for the week of June 1 to June 4;)
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