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real estate: Really - lower rates again? Some tips to a successful refinance or purchase: - 06/23/10 10:53 PM
I feel like a broken record, and the market is proving me to be a liar. I keep thinking we cannot go any lower in rates, and bam! here we go again. So how did we arrive at this juncture? Well, the markets are a fickle and sensitive place right now. Some buzz words as of late to create a stir: Europe: Greece, Turkey,etc... Housing Starts Mortgage Applications Existing Home Sales Foreclosures Unemployment This could almost be just today! Regardless of the reasons why, rates are now floating at 4.625% with nominal fees and 4.375% with 1/2 - 1 point origination.These … (4 comments)
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real estate: New Credit Check Policies June 1st! - 05/18/10 11:25 AM
Beginning June 1st, mortgage lenders are likely to order a second full credit screening immediately before closing. This report will be designed to find out whether the borrower has obtained, or even shopped for, new debt between the date of the loan application and the closing. If they have made applications for credit of any type - for furnishings and appliances for the new house, a car, a home equity line, a new credit card - the closing could be put on hold pending additional research by the lender. If borrowers have taken out new loans that are big enough to … (1 comments)
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real estate: SO... WHERE DO WE GO FROM HERE? - 05/08/10 12:29 PM
The housing tax credit is officially over, foreclosures continue to increase, home values remain low, stock market is crashing again; so is there anything positive ahead? I suppose it depends on who you ask! As far as the real estate market, and in this professional’s opinion, yes there is much to come in recovery and market improvement. To back this opinion with some facts on pending home sales and existing home sales:Pending Home SalesMar. index: 102.9Monthly: Up 5.3%Yearly: Up 21.1%Existing-Home SalesMar.: 5.35 millionMonthly: Up 6.8%Yearly: Up 16.1%National Association of Realtors' forecast until 2011: Personally speaking, this has been the busiest … (12 comments)
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real estate: FHA Approval for Condos? Where to start?? - 03/08/10 10:08 AM
Currently, the FHA approval process for condo buildings offers two dimensions for current homeowners and homeowners associations. Two types of FHA approval exist, DELRAP and HRAP. Questions and confusion abound regarding this issue so here are a few details to begin helping you navigate through the web of FHA chaos. FHA Approval Types involved:1. DELRAP: This is an FHA Approval that a lender can approve in conjunction with a loan application. It requires the same paperwork as an full FHA Approval with the addition of a fee. The turn time frame is shortened to approx. 2 – 3 weeks. A few … (3 comments)
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real estate: The Whats, Hows, Whys, & What Thes?? of the Mortgage Market! - 11/05/09 05:53 PM
The uncertainty and confusion surrounding the mortgage and real estate markets are quite extraordinary. Obviously questions arise on a daily basis from people regarding the actual truths. The media does not accurately portray the reality of the market; if you do not want to speak with me I highly suggest you speak with a mortgage professional that has experience to answer any questions. Some common questions lately: • Can I still pull cash out on my primary residence? • Can I pull cash out on an investment property? • If my home has declined in value I cannot refinance? • I … (0 comments)
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real estate: What The Heck is HVCC and HERA??? - 08/12/09 09:07 PM
HVCC stands for Home Value Code of Conduct, it became effective May 1st, 2009. So what did it do? All appraisals for Freddie Mac and Fannie Mae approved loans must be ordered in compliance with HVCC guidelines. This means as loan originators we have no contact or control of our appraisals anymore. We have to use a 3rd party company. Industry Impact:The real estate industry has faced an onslaught of issues from lack of comparable sales data to an increase in pre-foreclosure and foreclosures. These guidelines coupled with banks' newly tightened appraisal standards mandating comparable sales be from the last 3 … (2 comments)
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real estate: Mortgage 101... - 03/25/09 01:21 PM
So some of the most commonly asked questions I recently encountered:
Do I need 20% down? Do my credit scores have to be above 720 to get the best rates? Do condos without 25% equity disqualify me from the best rates? Who qualifies for the $8000 tax credit? What are the restrictions to the tax credit? FHA answers many of these issues:
To clear the myths, most of these questions have reasonable solutions. FHA has become a viable option not only because you only need 3.5% down, but it also eliminates the Fannie and Freddie condo hit of .75%. So a borrower can still … (1 comments)
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real estate: What is Really Affecting Interest Rates - in Laymens Terms! - 03/25/09 12:50 PM
What Really Affects Interest Rates? Mortgage Backed Securities!
In a surprise move, the Federal Reserve allocated an additional $750 Billion to the purchasing of mortgage-backed securities, this is in addition to the $500 Billion already pledged. Not only this, the Fed will also double their purchasing of Fannie Mae and Freddie Mac's debt - up to $200 Billion. So what does all this gibberish actually mean? Well,
Ideally this will drive interest rates lower, below the 5% mark, and I do stress ideally. It is working for the moment! Aside from debating the future generations exposure, this aggressive purchasing by the Fed … (0 comments)
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real estate: First Time Buyer Tax Credit Made Simple: What Does It Mean? - 02/20/09 11:57 AM
There is an abundance of confusion surrounding the stimulus bill right now; which is understandable. Here are a few basic premises to understanding this tax credit and what it actually means for first-time buyers.
Originally the government offered a $7500 tax credit that mandated repayment within 15 years at no interest. This was intended to stimulate the housing market, but the lack of information and repayment issues basically negated the effectiveness of this caveat. So will the homeowners who purchased in 2008 be able to amend their tax returns and take advantage of the new tax credit? Unfortunately, no; the … (2 comments)
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real estate: Digg What? Ping this? Tweet Who? - 02/18/09 09:23 PM
This whole social networking idea is such a brilliant one, both personally and professionally. However I will admit it can be an intimidating feat to master all options available. My goal is to write a comprehensive article describing the tricks of the trade in social networking, but for now I must settle for what I have learned thus far! At this moment I am the proud user of the following:
FaceBook Twitter Delicious Digg LinkedIn Plaxo Ping.fm That is it for now, which, in my opinion, is plenty!
FaceBook:
I personally do not use FaceBook as a professional tool and … (20 comments)
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real estate: Stimulus Package? Marketing Ideas... - 02/17/09 02:03 PM
Although the stimulus package covers a vast amount of areas and programs, the obvious choice of discussion for this blog focuses on the real estate market.
The home-buyer credit directly affects the real estate market, the bill pledges $3.7 billion to repeal a requirement that a $8,000 first-time home buyer tax credit be paid back over time for homes purchased from Jan. 1 to August 31, unless the home is sold within three years. How will this affect our real estate markets? Is this an untapped market? Some ideas to review, not necessarily new but revisited:
Mailers to rental buildings in … (7 comments)
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real estate: FHA Updates & Tricks! - 02/10/09 03:24 PM
Lastly I just wanted to touch on FHA loans, here are some simple facts to understand!
FHA Updates
FHA is making strong gains in applications and will most likely rival Freddie and Fannie for the amount of secured loans in 2009. The main reason being unlike Fannie and Freddie, FHA does not grade pricing based on:
credit score loan to value condo penalties If you have a 620+ and a min. investment of 3.5% down you can be FHA approved at historically low 30 Yr Fixed rates. The maximum loan amount in Cook and DuPage counties is $365,700. Gifts … (12 comments)
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real estate: Fannie Mae and Freddie Mac Oh My!! - 02/10/09 03:19 PM
So what exactly are the new guidelines today?? I will let you know what changes tomorrow!
Fannie Mae and Freddie Mac...
Maximum Loan Amount is $417,000 Minimum Down Payment is 10% Many of the piggyback loans and second mortgage offerings disappeared. PMI is a new reality for many borrowers. There are loan programs that offer many 10% and 15% down options which the borrower can select a slightly higher interest rate and have no mortgage insurance.
Other tidbits...
There are many recent changes to the Freddie and Fannie pricing engines. We can no longer provide a solid quote without delving into … (2 comments)
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real estate: Can we still Predict Interest Rates? - 02/10/09 12:24 PM
Well, the question of the day is always "What do you think rates are going to do?" Obviously there are many answers, opinions, and just plain wrong ideas out there. The past trends used to predict interest rate movement are no longer valid. Here is what we do know:
The Federal Reserve has pledged $500B to purchase Mortgage Backed Securities (MBS), currently they have used $91B of that reserve. Mortgage Back Securities directly impact our rates, they are loans Freddie and Fannie pool together and sell in the secondary market to investors. If the MBS's are purchased our rates should go down, but... Lenders have an … (4 comments)
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real estate: Free Marketing Letter and a Call out to Chicago and Surrounding Area LO's!! - 12/09/08 04:58 PM
So I sent the letter below to my entire sphere, including over 100 realtors. I send out bi-monthly updates via Constant Contact and receive tremendous compliments on my marketing. This one served as a thank you, progress report and a request for any networking opportunities with local Loan Officers.
We are offering an amazing opportunity for qualified LO's in the Chicago area to increase their income by 30% without improving current production levels. I am really excited about this, it is a uni-level team system,no hierarchy, you produce where you produce, but when you reach $20,000 commissionable revenue per month, the surplus is … (0 comments)
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real estate: The Time has Come... - 11/24/08 12:14 PM
...to stop listening to mainstream media on the direness of the mortgage and real estate markets. We all know the numbers are disheartening and at all time lows; but on the positive side, especially in Chicago, people are still buying homes, whether foreclosures, short sales, or yes, even new construction. Although lending criteria has drastically changed, it is still a reality to buy a home, even for first time buyers. Ask a few people what they think is needed to purchase a home these days? Thanks to mass media, the answer is 20% down. So what is everyone doing? Waiting and waiting … (5 comments)
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real estate: Go NAR!!!! - 11/10/08 04:53 PM
Its nice to see some activity happening from the National Association of Realtors, not only have they asked for a reassessment of the current new construction ratios, as commented on in my previous post, they have passed a 4 point stimulus package. The basics of the package include:
Eliminating the repayment of the first-time homebuyer tax credit and expanding it to all homebuyers. Making higher mortgage loan limits permanent. Pushing banks to extend credit to Main Street. Prohibiting banks from entering into real estate. NAR is also requesting a lame duck session of Congress, and possibly a rate buy down to … (5 comments)
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real estate: We Are Still Lending! - 10/27/08 11:11 AM
We are still lending and people are still buying homes; lendingrestrictions have not desecrated the purchase market. Here are a few things we can do:
Lend all the way to 97%, or 3% down for purchases (FHA Loans) and cash-out refinances to 95%. In a period of declining home values, this is an enormous plus! Conventional Loans all the way to 95%, including two loan scenarios with exemplary credit scores to 90%, even on 2 units. New construction condos are not a problem! Some things that we cannot do? Well we can't ignore income requirements, or employment history, or asset requirements, you … (5 comments)
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real estate: A Little Good News... - 10/27/08 10:40 AM
Existing Home sales in September rose 5.5%, the largest increase in five years. This shows a possible glint of hope the housing market may be reaching the near bottom mark. Interest rates are still historically very low, and with the rate of foreclosures increasing, buyers are taking advantage of discounted prices.
… (2 comments)
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real estate: SUMMER RECAP! - 08/25/08 06:40 PM
SUMMER RECAP!
It has been an exciting and confusing summer for most people in regards to the markets, real estate, economy, gas prices you name it! A few facts:
Markets*:
• Yes, the DJIA (Dow Jones) is down 6.8% since Memorial Day, hitting its 52 week low July 15th.
• S & P 500 down 6.1% and NASDAQ down 1.2%
• The 10-Year Treasury yield has hit close to its lowest levels this quarter, hopefully inching the 30 year fixed rate gradually lower.
• Fannie Mae and Freddie Mac stock dipped to lowest levels (FRE $2.26, FNM $3.53). Posting $14.9B … (5 comments)
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Erin Griffin - Green Solutions Consultant
Chicago,
IL
More about me…
Corby Mortgage Services, Inc.
Office Phone: (773) 353-4205
Cell Phone: (773) 353-4205
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