rates: Mortgage write-downs - FHA MI increases (3!) - Mortgage app - Rates up - 03/27/12 12:44 PM
Fannie/Freddie are considering mortgage write-downsIn these so-called principal write-downs, a portion of the loan is forgiven for someone who's having trouble paying. Many Democrats like it, Republicans do not. More info
 
Rates upThe 30yr fixed rate mortgage averaged 4.08 percent for the week clearing the 4% barrier for the first time since October 27, 2011. Rates
 
FHA premiums up. 3 Increases:On 4/9 the upfront MIP will increase from 1.00% to 1.75%, and the annual MIP will increase as follows:


No MI portfolio loans, anybody?
 
 
 
Free app to calculate mortgage payments for your smart phone. It gives you the … (1 comments)

rates: Rate projections from the Fed - Pay points? - John Sr & John Jr... - 01/13/12 07:55 AM
Fed will publish short-term rate projectionsThe Federal Reserve will now tell the public its expectations for short-term interest rates, starting after its Jan. 24-25 meeting. I find this odd, and here is why...
 
>>Reliability. If market realities change, the Fed may need to adjust rates. That is the Fed's job first and foremost.
>>Conflict of interest because the Fed may not want to contradict itself, and hesitate to take needed actions that conflict with its own projections.
>>Confusion. This pertains to short term rates, NOT (long-term) mortgage rates. People are constantly confused about this. Mortgage rates are primarily determined by capital markets. I am also concerned … (0 comments)

rates: Stock market up, rates up - Constr loans - PMI or FHA? - Rate credits - 10/28/11 10:11 AM
OK, stock markets up - and upward pressure on rates because bonds compete with stocks for investment money. Maybe also renewed confidence in real estate - we'll see. As of now: Lock ASAP! - Paul
PMI or FHA?Conventional rates are about 0.50% higher. The cost is about the same. FHA is easier to qualify for, you must have it for 5 years (PMI=2 years), and you can refinance without income qualification and without appraisal. No lender fees - what does that mean?No application, processing, underwriting, commitment, tax service fees: None. And if you are a firefighter, police officer, teacher, medical worker, or municipal employee … (2 comments)

rates: A good reason to buy now? - Rates up - Frustrating loan processes - 10/24/10 08:13 AM
October 25, 2010                                                                                 "I'm going to wait for the market to hit bottom before I buy" - a common stance prospects take. Below is an argument for buying NOW. The key question is this: "if rates go back up from the current all-time low (and prices stay the same) how much more will you be paying?". Answer: as high as 17%. See below. /// The mortgage application process can be a frustrating process nowadays. A bit of perspective below. /// Make it a good week folks. - Paul :)
An argument for buying now?Consumers often focus on price and interest rate. Not wrong, but not always right … (1 comments)

rates: Portfolio loans - Rates - FHA refi's: No appraisal or income qualification - 09/11/10 04:03 AM
Portfolio loans represent powerful financing options. Because they are held in house they do not need to conform to Fannie Mae, Freddie Mac, or government (HUD, USDA) criteria many common limitations do not apply. See below. /// Rates were up a bit this week. Rate summary below. /// FHA refinances without appraisal, and no closing cost options. See below. - Paul   Portfolio loans
The pricing of portfolio loans is reasonable and also heavily Fico dependent. Here are some of the unique features of portfolio loans.  - Fixed rate, ARMs, HELOCs, Jumbos - Up to 90% LTV without mortgage insurance - Up to $900K loan … (0 comments)

rates: Improved service - Sub-620 Fico loans - Rates predicted to rise - 12/13/09 07:26 AM
Lenders are subject to extreme scrunity at the moment. Above average defaults can have drastic consequences - and no lender is immune. This has led to over the top caution and excessive documentation and underwriting requirements. Well, it is what it is, so to deal with it I have improved my service by appointing a dedicated processor to provide personal client support to so that all conditions can be met quickly and smoothly! /// Rates continue to be at or near historic lows. Given the eternal optimism that is inside all of us we believe they are here to stay (or go lower yet). … (1 comments)

rates: FHA reaching out to condo buyers - Self managed credit repair/improvement - 11/21/09 07:57 AM
Mortgage applications for home purchases have fallen to the lowest level in 12 years. The Nov 30 deadline for tax credit deals caused an increase in applications through mid-October, followed by a remarkable decrease since of course, but the housing market is still facing major hurdles. /// Both Fannie and FHA have now delegated condo approvals to lenders. I believe this will be a huge improvement. /// Have a wonderful Thanksgiving! - Paul :))   Reaching out to condo buyers
Industry executives say the FHA.’s new rules will open an important lending option to condo buyers, especially those with weak credit. … (0 comments)

rates: Fannie requirements up again - bigfunnels.com - Jumbo limits extended - 11/16/09 12:18 AM
Fannie Mae is again raising lending criteria:  DTI to 45%, Fixo to 620, financing 5 years following foreclosure with 680 Fico, higher PMI requirements, 75% ltv max for 2-unit+ investment property, higher reserves, the official retirement of construction-to-permanent financing!, and more. /// Fannie changes take effect Dec 12. I think it is more than likely that FHA will also up the standards again. Elimination of seller concessions and raising the minimum down to 5% are possible. Read more. /// Make it a good week folks :)  - Paul   Do you qualify for a jumbo mortgage?
Plenty of lenders offer jumbo mortgages now, although the requirements are stricter than … (0 comments)

rates: Rates up a bit - Credit rescoring - 2010 predictions - 5 reasons to use concessions - 10/17/09 03:46 AM
The Fed is buying less mortgage backed securities for the 5th consecutive week. And this is why you care: The gradual effect may be a rise in interest rates. Read more. /// Basically 1 week left for sales that need to close by Nov 30th to take advantage of the tax credit! /// Make it good week folks! - Paul  
What is rescoring?  Rescoring is a legitimate process that seeks to increase credit scores temporarily to secure a mortgage approval, or a better rate. Virtually any score can be improved by at least 20 points. It's cheap, and it takes only 5 days to … (0 comments)

rates: New Fannie condo rules - Fico fixes - Rates down - 10/09/09 04:57 PM
There are new Fannie condo rules. If you think it will make things easier you will be disappointed. Details. FHA is also introducing new rules. More on those next week. /// Rates are still edging downwards. /// Time will soon be running out for November closes (tax credit)!! /// Make it good week folks! - Paul  
Credit score fixes - the basics  1. Credit repair - a long-term fix to permanently increase scores (75 days) 2. Rescoring - a quick fix to qualify for a loan or better rate (5 days) Either fix (or a combination) can deliver increases over 100 points. For further information, please contact me. … (3 comments)

rates: Concessions re-visited - Prequal vs Pre-Approval - Rates may climb - 08/09/09 09:36 AM
Seller concessions are not used enough. All too often people are tight for money at time of close, PMI could have been avoided, or buyers could have benefited from the use of lower payments by way of a (2/1) buydown. More below. // Market alerts seem to point to higher rates. Consider locking now. Again, more below. //  The loan modifications scene is a mess. Lenders are not responsive to the point of not living up to their agreements with the Treasury, Go here if you want to read up on it, and here if you are looking for loan modification … (0 comments)

rates: Where do prices really stand? - 100% financing - Loan mod prospect #1 question - 06/27/09 08:31 AM
span lang="EN">Meltdown 101: Where do home prices really stand?
Is the historic U.S. housing market crash close to being over, or is the end still far, far away? Good read.   Home Buyer Tax Credit could expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. Read more   100% financing not available? - Wrong!
USDA financing (which we offer) allows for 100% financing PLUS seller concession closing cost. There is an upfront funding … (2 comments)

rates: Rates heading to 6% - Buyer tax credit to $15K? - Borrow FHA down pmt - 06/13/09 03:27 AM
Rates are headed for 6.00%. In just 2 1/2 weeks much of the Fed's work to drive rates lower has unraveled. 5 reasons they might retreat - and why they might not. /// The homebuyer tax credit may be expanded in a number of ways. Let's also hope the Nov 30 deadline gets extented (See below) /// You can now publish my newsletter on your website with ann RSS feed. Go here to do it. /// Make it a good week folks! - Paul   Congress weighs tax credit expansion
Legislation introduced in Congress Wednesday would expand the First Time Home Buyer Tax Credit to any purchaser and … (7 comments)

rates: Rates at 25 week high - Multi-family opps - Lowball appraisals - Credit repair - 06/06/09 12:47 PM
Rates are at a 25-week high. They increased again by 0.25% approx on Friday, peaking at just under 6.00% (no points) ///  Reminder that FHA loans with 560+ Fico and stated loans to max 70%LTV are still available /// Make it a good week folks! - Paul   Opportunity: multi-family development and condo conversions
Multi-family development and condo conversions are low-hanging fruit as the market recovers. High density housing, just beginning to gain steam before the housing downturn hit, is poised to be one of a handful of straws that stirs the soup, according to many housing industry experts. Read more. Note that I offer financing and expertise for … (1 comments)

rates: NO use of tax credit as down pmt - Rates to remain flat? - Fico reqs up for FHA - 05/24/09 03:07 AM
Rates to remain flat? Rates are now controlled by the Fed through Treasury purchases. Judging by the trend lines, it looks like they want to keep rates roughly where they are now (30-yr fixed around 5%). For rate shoppers - the way to get the lowest rate is to get the loan approved, set for funding, and then use a short-term lock on a rate dip and close. (This strategy for refi's only!) /// Predictably, FHA loan criteria are going up again: 640 Fico or get no loan, or a higher rate. (FHA 540 Fico still available). Read more /// Speaking of Fico, we can often accomplish 50-100 score improvements in just 75 days with a … (4 comments)

rates: Now a direct lender! - Rates up - Stated loans back - 04/11/09 05:00 AM
This week I joined Prospect Mortgage, the nation's largest independent direct lender. What this means: More options than any single source, faster turnarounds, excellent pricing, and niche mortgage programs. Loan modification service is unchanged. My commitment to excellence and ridiculous work ethic also unchanged :)  I look forward to serving you even better! - Paul    About Prospect Mortgage As the nation's largest independent direct lender, Prospect has greater control over your transaction and is able to quickly approve and close loans in-house. In fact, we are able to fund loans that other lenders may deny. Prospect is a privately-held national mortgage banking firm … (1 comments)

rates: MHAP website - Rates down - MHAP refi's - DPA impact study - 03/24/09 03:21 AM
The big news this week was the 1 Trillion mortgage investment by the Feds, resulting in a drastic reduction in mortgage rates, in turn resulting in another wave of refinances, and even purchase money applications! - Paul   Making Home Affordable Progam website
The Obama administration has a new Making Home Affordable Program to help troubled homeowners reduce monthly payments by refinancing or modifying their current loans. Both programs are aimed at homes occupied by their owners, not investment properties or vacation homes. On March 19, the government launched a website to guide homeowners through the process. Please contact me for questions or service. … (0 comments)

rates: HB tax credit details - Fannie/Freddie fee hikes - New FHA limits - HASP - 02/28/09 08:03 AM
The Homeowner Affordability and Stability Plan (HASP) is launching March 4th. Read about the details here. Meanwhile getting a loan is getting tougher across the board: higher credit scores, more down payment, higher PMI rates, surcharges - and more. See below. Not pretty - Paul
Homebuyer Tax Credit forms and rules now in place
The tax credit represents 10% of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit … (2 comments)

rates: The Homeowner Affordability and Stability Plan (HASP), summary and analysis - 02/22/09 08:26 AM
The Homeowner Affordability and Stability Plan (HASP) is by and large good news. The devil is often in the details with newly announced initatives, and I will keep you posted as more specifics become known. March 4 is the date when most initiatives launch. The plan will help many, but not all - and lenders are incented to help, but they don't have to. Read more   HASP highlights Refi's up to 105% LTV Government subsidized loan modifications to 150% LTV Uniform guidance for loan modifications Bankruptcy judges can modify loans    HASP information Executive Summary (Dept of Treasury)  Read Fact sheet (Dept … (0 comments)

rates: Distressed RE loans - High Jumbo rates still high - "Cram-Downs" - 01/09/09 11:27 AM
It appears that the stimulus plan set to be proposed by President-elect Barack Obama will include the long-contested "cram-down" proposal, which allows bankruptcy courts to modify the terms of a mortgage loan. The most common criticism is that this will raise the cost of borrowing for everybody because lenders need to charge risk premiums. (See below). As real estate pros we should welcome the initiative because it will contribute to the emergence of loan modfication standards. Right now it's a zoo. Having said that, I think that some of the deals we can get for loan loan mods may not be … (3 comments)