Ar_home_b_search
 



interest rates: It's Official, FHA Increasing Mortgage Insurance Premiums April 9th - 02/28/12 11:11 AM
We have all heard the rumors over the last few months that the Federal Housing Administration (FHA) planned to increase their mortgage insurance premiums, but no one really knew when.
In yesterday's press release FHA Takes Additional Steps To Bolster Capital Reserves, acting FHA Commissioner Carol Galante announced a new premium structure for FHA-insured single family mortgage loans. 
The Upfront Mortgage Insurance Premium (UFMIP), typically financed, will increase from 1.0% of the base loan amount to 1.75% of the base loan amount.  On a $300,000 purchase price, this increase will affect a borrower's monthly payment by about $10 per month … (0 comments)

interest rates: Why Rates Moved The Way They Did Last Week - 02/12/12 09:59 PM
With little US economic news this week, investors focused most of their attention on Europe, where Greece is attempting to avoid a debt default. A lack of progress in Greece late in the week caused a minor flight to safety, and mortgage rates ended slightly lower than last week.
For most of the week, it appeared that Greek officials were on track to deliver a package of austerity measures required for Greece to receive additional aid. The negotiations took an unexpected step backward on Friday, however, as Greek political leaders agreed on an austerity package on Thursday, but European Union … (2 comments)

interest rates: Giant Rate Swings This Week, But All Is Well - 08/12/11 04:47 PM
If you were paying attention to mortgage rates this week, then you witnessed one of the wildest rides in quite some time.  Here is a quick blurb from MSBQuoteline:
"In one of the most volatile weeks ever seen, important economic news came out every day and produced major reactions in financial markets.  Investor uncertainty is extremely high, amplifying the price movements. As stock prices fluctuated wildly, so did mortgage rates, which reached new lows for the year.
Into this highly charged environment, a steady flow of significant economic news added fuel to the flames. It began late last Friday with … (2 comments)

interest rates: Rates Move Daily, Are You Prepared To Move? - 05/22/11 02:05 AM
We have seen a nice drop in rates over the last few weeks or so, roughly 0.375% on 30 year fixed rate Conforming loans (up to $417,000) and 30 year fixed rate High Balance Conforming loans ($417,001 to $697,500 in San Diego County). This drop equates to an increase in buying power and an increase in buying options.
Increased buying power, two examples:
· A payment of $2,112 at 4.875% equated to a loan amount of $399,050. Same payment but at 4.50% equates to a loan amount of $417,000. Price range increase of $17,950.
· A payment of $3,638 at 5.125% … (2 comments)

interest rates: Pledged Assets Program Picking Up Steam - 05/10/11 11:03 PM
We have a Pledged Asset program available now that is really picking up steam.  This program allows a 10% cash down payment on loans up to $5million.  The mortgage is for 70% of the purchase price, and the buyer "pledges" the other 20% from their portfolio (401k and IRA excluded).
Why is this attractive?  By not having to liquidate assets such as stocks, bonds, mutual funds, etc, the buyer avoids paying capital gains on that money.  Financial planners love this because their client's money stays with them.
The assets that are pledged can also be those of a family member or … (4 comments)

interest rates: VA Home Loans In Oceanside CA - 04/21/11 05:36 PM
If you are shopping for a VA Loan for Oceanside, CA let over 18 years of experience work for you.
Experience AND new ideas count when helping you close your VA Home Loan in Oceanside CA. For your next home purchase or refinance consider Kevin Kueneke. 
Kevin has closed over 2,500 closed loans in just over 18 years of experience, certified continuing education trainer teaching Realtors and Lenders about VA and HUD loans, and a proven track record of excellent customer service.
Your VA home loan mortgage professional needs to be backed by one of the nations most well respected mortgage … (0 comments)

interest rates: RatePlug Is Expanding To Los Angeles And Orange County - 04/17/11 05:07 PM
RatePlug will soon be offered in LA and Orange County.
The Internet? Is that thing still around?  The internet has obviously helped our businesses grow, but it also has created some frustrating moments. Keeping a client's attention has become far more difficult due to the ease that information is available on-line. With just a click of the mouse, a potential client can find someone else to provide your services.
By now, most everyone has heard of RatePlug, a recently developed lender sponsored (as in free to you) program that combines property listing information with current mortgage payment options. Having mortgage … (4 comments)

interest rates: Rate Vs. Price Reduction...And FHA Loans...Tick Tock Tick Tock - 04/06/11 05:44 PM
The FHA mortgage insurance premium increase date is fast approaching.  Today is April 6th and you must have an FHA case number assigned prior to April 18th to avoid the increase.  Read more: FHA To Increase Mortgage Insurance Premiums.
HOWEVER!!!!! The FHA Connection, the online engine that lenders use to access FHA case numbers, etc, is not available on the weekends.  So, April 15th is the actual date!!!  Is your lender aware of that or does he/she say things like, "my processor handles those kinds of things, they'll take care of it Monday."
I wrote this a couple weeks ago...
I … (0 comments)

interest rates: You Can Wait, But Don't Shoot The Messenger - 03/13/11 08:47 PM
My post: FHA Mortgage Insurance Increase...Have You Refinanced Yet? seems to have driven the point home that now is the time. Remember, lenders will be compensated differently after April 1st, 2011, than they are now and word is that we will lose flexibility in pricing. No flexibility, higher rates. Period.
I wrote a post last week, FHA To Increase Mortgage Insurance Premiums, and I mainly focused on the effect that the increased annual FHA mortgage insurance premium (paid monthly) will have on a buyer's housing expense for FHA case numbers assigned on or after April 18, 2011.
For a purchase … (2 comments)

interest rates: Rate Vs. Price Reduction...And FHA Loans - 03/13/11 08:10 PM
I wrote a post late last year regarding one of the possible disadvantages of waiting to buy called Rate Vs. Price Reduction.  It was short but sweet so here it is:
"Since the Fed's Mortgage Backed Securities purchase program ended, the markets have seen much more volatile price swings...and rates overall are off their lows.  For potential buyers who are waiting to see if home prices come down a little more, that means the wait could cost more money in the long run.Here is an example: Let's say a home buyer finds a home that he likes for $400,000.  The buyer wants a better deal on … (0 comments)

interest rates: RatePlug, An Additional Lender Provided Tool - 03/13/11 07:56 PM
The Internet? Is that thing still around?
The internet has obviously helped our businesses grow, but it also has created some frustrating moments. Keeping a client's attention has become far more difficult due to the ease that information is available on-line. With just a click of the mouse, a potential client can find someone else to provide your services.
By now, most everyone has heard of RatePlug, a recently developed lender sponsored (as in free to you) program that combines property listing information with current mortgage   payment options. Having mortgage information directly on your listing allows homebuyers to view rate and payment … (0 comments)

interest rates: Before You Read Too Much Into The Title, Remember That Rates Are Still FANTASTIC! - 03/04/11 07:57 PM
Finally, I have your attention.
Investors continued to closely watch the events in the Middle East, but there were few new developments there during the week.  As a result, this week's important economic data had the greatest influence on mortgage rates.  Daily rate volatility was high as investors reacted to the major economic reports, but mortgage rates ended the week essentially unchanged. 
Stronger than expected economic data during the week caused investors to prepare for the possibility that the economy is growing more rapidly than expected.  Weekly Jobless Claims dropped to the lowest level since May 2008, and mortgage rates … (7 comments)

interest rates: Mortgage Rates End Lower On Middle East Unrest - 02/25/11 07:20 PM
Unrest in the Middle East caused investors to seek relatively safer investments such as bonds.  As a result, mortgage rates ended the week lower.
The violence in the Middle East reached a much greater level this week, as Libyan leader Gadhafi fought to retain control.  Uncertainty about whether the violence will spread to other nations produced a "flight to safety", which means that investors shifted funds from risky assets such as stocks to relatively safer assets such as bonds. 
Higher demand for bonds, including mortgage-backed securities (MBS) helped mortgage rates improve.  Also as a result of the unrest in the … (2 comments)

interest rates: Mortgage Rates Higher This Week On Inflation Concerns - 02/04/11 03:18 PM
Inflation concerns hit bond markets this week.  Despite soothing comments from Fed Chief Bernanke, stronger than expected economic growth and higher commodity prices raised investor fears that future inflation may increase.  As a result, mortgage rates moved higher during the week, especially in the last two days.
Global economic growth has been picking up, particularly in developing countries, which has increased the demand for commodities.  Many developing countries already have had to deal with rising inflation, and readings in Europe have moved higher recently as well. 
In the US, Fed officials tend to focus on core inflation (which excludes food … (0 comments)

interest rates: And The Rate Carnage Continues... - 12/15/10 02:19 PM
The Federal Open Market Committee met, and left overnight rates unchanged at a range of 0-.25%. We are all learning, however, that there is little correlation between overnight rates and mortgage rates. The actual announcement had some choice, albeit expected, tidbits.
"The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment. Household spending is increasing at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. The housing sector continues to … (0 comments)

interest rates: Mortgage Rates Swinging Wildly This Week - 12/03/10 12:46 PM
I wrote a post a couple days ago, Rate vs. Price Reduction, giving an example of what can happen to buyers that wait around for home prices to drop.   A $10,000 price reduction can be more than offset by a modest interest rate increase. 
Over the last couple weeks, we have seen rates increase almost daily.  The last couple days were no exception to this.  Stronger economic news from the US and China, and recovering Euro markets on Wednesday sent stock prices soaring. 
If investors are putting their money into the stock market, it means that they are typically pulling it … (2 comments)

interest rates: Rate vs. Price Reduction - 11/30/10 08:22 PM
Since the Fed's Mortgage Backed Securities purchase program ended, the markets have seen much more volatile price swings...and rates overall are off their lows.  For potential buyers who are waiting to see if home prices come down a little more, that means the wait could cost more money in the long run.Here is an example: Let's say a home buyer finds a home that he likes for $400,000.  The buyer wants a better deal on the home, so he waits until the price has dropped by $10,000.  However, during that waiting period, rates increase from 4.25% to 5.00%.  
If the buyer planned on putting down 20%, … (3 comments)

interest rates: Additional Market Commentary For Thanksgiving Week - 11/26/10 03:27 PM
One of the benefits of working for Primary Residential Mortgage is that we are provided with a daily market commentary which helps us more easily sift through all of the graphs, charts, numbers, etc, regarding the ups and downs of the US and Global Economy.  I thought today's burb was fairly interesting:
"The quantitative easing program (QE2) pumps dollars into the economy, critics say by merely printing money, and the increased supply weakens the value of the dollar relative to other currencies. Over 50% of our US debt is held outside the United States. When foreign investors sell US securities, they … (2 comments)

interest rates: Thanksgiving Week Mortgage Rates - 11/24/10 04:45 PM
During the short Thanksgiving week, turmoil in Korea had the greatest impact on mortgage rates. A wide range of economic data was released ahead of the holiday, but overall it was roughly neutral for mortgage rates, which ended the week slightly higher.
An attack by North Korea on a South Korean island caused global investors to shift funds to relatively safer assets on Tuesday. As usual, this hurt stocks and helped bonds, including mortgage-backed securities, pushing mortgage rates a little lower. The conflict did not escalate or spread, though, and investors reversed their actions on Wednesday, moving mortgage rates higher.
On … (2 comments)

interest rates: What's Your Rate? - 11/19/10 03:31 PM
When it comes to buying a home, consumers can no longer shop for a mortgage based simply on lowest interest rate quotes. Today's home buyer needs good advice from an experienced, educated mortgage professional who has the consumer's best interest in mind. For consumers, this means beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle. Besides market conditions, your mortgage rate is based on a long list of criteria that are unique to your individual financial situation. There are over 25 individual criteria … (0 comments)