mortgage: A Timely Reminder of Just How Competitive Mortgage Rates Still Are
- 11/29/16 07:11 PM
An Albuquerque Journal online article certainly grabbed our attention earlier today. The report said that latest Standard & Poor’s CoreLogic Case-Shiller national home price index, released today, is slightly above the peak it reached prior to recession in July 2006, rising 5.5% between September 2016 and September 2015. While this offers a national snapshot, and there are naturally regional variations, it's important to consider the implications of this excellent news at a time when rising mortgage rates have been the overwhelming real estate industry focus since the election (although they do appear to have stabilized in the past few days). Above all, the index … (1 comments)
mortgage: Trended Credit Data Is Finally Here - Here's What It Means
- 09/28/16 08:01 AM
Last weekend marked a significant moment in mortgage finance history as the new, so-called "trended" credit data was launched. We initially looked at trended credit data back in May. However, its planned introduction date of June 25th was postponed until last weekend, so we can now finally look forward to seeing the anticipated positive effect it will have on the mortgage market. To re-cap, trended credit data is a new, more in-depth, method of compiling credit reports on home loan applicants. It has been introduced by Fannie Mae, the government-sponsored, leading source of financing for mortgage lenders. The key difference in trended credit data is … (0 comments)
One of the biggest challenges in buying a home is often the need to have enough money put by for a down payment. A down payment is made by the buyer at the beginning of a home purchase to show commitment to the transaction. It's usually a percentage of the total price of the home and is paid through a wire transfer. This payment is immediately applied to the buyer's equity position in the property. The general rule of thumb is that buyers need to find 20% of the value of their desired residence. In practice, there are a wide range of alternative … (4 comments)
Time flies by so quickly and we rarely get a chance to stop and think about how many things have changed in the past few years. Consider these contrasts with 1990: - A loaf of bread cost 67c. Now it's $2.22. - Gas was less than half of today's price back then. Sobering statistics, but some things really stack up well against what was the norm almost a quarter of a century ago. Mortgage interest rates are a case in point. Right now they are less than half of what they were in 1990, even though home prices have risen considerably since then. That means more … (0 comments)
One of the most recurrent theme in our blogs is the importance of realistically pricing your home "in the market". It's crucial to recognize that generic online home searching websites are not always accurate and up to date! Therefore the quoted price of your home may well be less, or even more, than the true market value. Unfortunately, when sellers reference this information, they often get an unrealistic vision of what their home is worth. Realtors, if they are doing their job properly, will often have a contrasting view of a home's true worth. This is because a quality realtor will study local markets … (0 comments)
One of the best pieces of advice we can offer any prospective home buyer is to obtain pre-approval for a home loan. Let's start off by clearing up the fundamental differences between two often commonly used terms that are often mistaken for one another - pre-qualification and pre-approval. Prequalification is the lender's best guessed estimate of what you can afford. Crucially however, it doesn't guarantee that you will obtain finance. Pre-approval, on the other hand, is a firm commitment from the lender based on your actual finances. Here are some key benefits it provides: - A better relationship with the seller Although you might think the seller is the person … (1 comments)
mortgage: Want to Get Your Albuquerque Area Home Sold? - Go Green!
- 02/08/16 03:11 AM
With energy bills becoming even more expensive, the importance of energy efficiency has grown exponentially, as a key component of many home buyer's wish lists. This is indeed part of a global trend. In Britain, for example, every home that comes onto the market is required to have its "carbon footprint" measured, as part of the UK's strategy of cutting carbon dioxide emissions. Although there are no signs of the same idea being adopted here, Americans are fast becoming more environmentally aware, especially in terms of how energy saving measures can significantly lower monthly household expenditures. The top three most requested green features buyers are … (0 comments)
mortgage: Why Being Pre-Approved Can Give You The Edge
- 02/05/16 11:46 PM
If there is one single piece of advice we always like to give to all prospective buyers it is, quite simply, to get pre-approved for home finance. There are so many benefits to this approach. Crucially, you are going to be very taken seriously by any seller as you are demonstrating your ability to purchase the home in question. Indeed if, as is increasingly happening in the Albuquerque area, you are in competition with other buyers, having pre-approval in your pocket can give you a vital edge. You will also benefit from a potentially more focused home search. Indeed, in many ways pre-approval defines your search … (0 comments)
When buyers search for homes online, they typically type in a few criteria such as the required number of bedrooms and bathrooms. The resulting search results are invariably grouped in price brackets, often displayed in $10,000 or $25,000 increments. What's crucial to understand here is that these brackets drive what buyers actually see. If your home is priced out of its optimal price bracket, the optimum potential buyer could miss your home among hundreds of others that may be larger, newer and have more features and amenities in comparison to yours. Bottom line: By pricing your home in the next price bracket it could be … (0 comments)
mortgage: Low Mortgage Rates - A Great Time to Sell or Buy in the Albuquerque Area
- 02/01/16 11:28 PM
Despite the FED raising its interest rates for the first time in many years... They are still at near historic lows and it's worth bearing in mind they are currently less half what they were in 1990! Despite many predictions to the contrary, the diminution in Federal support for the housing market just hasn't resulted in the anticipated big hike in interest rates. A cocktail of variable economic indicators and uncertain international affairs have certainly contributed to keeping rates at such affordable levels. This is a continuing feel good news story for both buyers and sellers. Home seekers are still finding that the cost of … (1 comments)
mortgage: How A Changing Home Buying Landscape Will Benefit Sellers and Buyers
- 12/31/15 04:51 AM
We've spent a good deal of time in recent blogs looking at the return of the first time buyer, after many years of relative absence. The key reason behind the slump in getting on the house ownership ladder was, of course, the Great Recession. Huge job losses and less available credit, plus the general uncertainties of those very unfortunate few years, saw a diminution in enthusiasm and actual ability to buy a first home. Last month, however, we reported that the first time buyer is well and truly back after a long general absence. As we said then, it is really difficult to … (1 comments)
mortgage: When Can We Own A Home Again?
- 12/31/15 04:47 AM
Last week we looked at the impending and very welcome comeback of many "boomerang" home buyers to the real estate market in the next few years. Just a reminder that boomerang buyers are those unfortunate individuals who ran into financial difficulties during the recession. They may have suffered a big drop in their credit rating, possibly due to a short sale or foreclosure on their property. If you are one of that number then one of the first questions you may be asking is exactly when can you be reconsidered for a home loan? As always with financial matters, the answer is not … (1 comments)
mortgage: Why Residential Real Estate Remains Such A Great Investment
- 12/31/15 04:32 AM
The recent volatility we have seen in stock markets around the world has inevitably once again focused attention on the strength of residential real estate as an investment. Stocks have certainly been on a wild roller coaster ride in recent weeks, as uncertainty over the health of the Chinese economy has had a profound effect on investor confidence. This week has seen press coverage on the resilience of the property market in such times. Articles have focused on the ability of real estate values to rise as stocks fall. Indeed, it is reckoned that, over the past 60 years, residential real estate has … (0 comments)
mortgage: The Ability to Repay Rule Explained
- 12/29/15 11:02 AM
On January 14th, 2014 the new Ability to Repay, or Qualified Mortgage (QM), Rule came into force. The Rule states that a borrower can't have a higher debt-to-income ratio than 43%. It also lowers the fee that can be charged by the lender to three percent of the loan's total amount. Given that a lot of the practices the Rule bans have already disappeared from the mortgage market, the immediate impact on borrowers is going to be minimal. It is also very likely that innovative new mortgage products will launch to further ease the situation. For many new borrowers, however, these changes will not have … (2 comments)
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