Shamun Mahmud Commercial Capital Limited 2 Holly Lane Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1779 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. We actually perform residential Loan Modifications to completion. Ask us about our fast-track commercial mortgages!
Do you want more evidence of a bottoming of the economy? Apparently, Bernanke has seen it. The Federal Reserve Chair referred to the latest data on home sales, home building and consumer spending as evidence that the economy is improving. "A leveling out of economic activity is the first step toward recovery," Bernanke said in prepared remarks. We would like you to look in a different place. Lately the price of gold has lost its luster. What does that mean?
There are two things that can make gold prices soar. One is the threat of inflation. The other is economic or political crisis. Both factors have been at work during the past year. Twice gold has risen near the $1,000 per ounce mark. First it was last year during the rise of oil prices. Then it was early this year as the economic crisis worsened. Though gold prices are a long way from the $400 they were five years ago, they have dropped more than ten percent over the past few weeks. Though there is a threat of long-term inflation because of stimulus spending by the government, there is no current threat of inflation. And the markets seemed to be signaling an end to the economic crisis on the horizon. We must emphasize, this does not mean the economy is recovering. But you have to reach a bottom before you can turn up. Does that mean rates will not go lower? Could be...
The Markets. Rates turned back down this week. Freddie Mac announced that for the week ending April 23, 30-year fixed rates averaged 4.82%, down from 4.87% the week before. The average for 15-year fell to 4.48%. Adjustables were mixed with the average for one-year adjustables increasing to 4.91% and five-year adjustables falling to 4.88%. A year ago 30-year fixed rates were at 5.88%. Frank Nothaft, Freddie Mac vice president and chief economist stated "The housing industry is starting to exhibit some positive signs, albeit scarce and too early to tell how permanent. In its April 15th regional economic report, the Federal Reserve reported that better-than-expected buyer traffic led to a scattered pickup in home sales in a number of its Districts over the 6-week period ending on April 6th. Factors such as homebuyer tax credits, low rates, and more affordable prices were cited as leading to more potential buyers. This may have added to the rise in homebuilder confidence in April, which rose to the highest level in six months, according to the National Association of Home Builders."
Current Indices For Adjustable Rate Mortgages Updated April 17, 2009
Daily Value
Monthly Value
April 16
March
6-month Treasury Security
0.33%
0.43%
1-year Treasury Security
0.54%
0.64%
3-year Treasury Security
1.27%
1.31%
5-year Treasury Security
1.79%
1.82%
10-year Treasury Security
2.86%
2.82%
12-month LIBOR
2.124% (March)
12-month MTA
1.439% (March)
11th District Cost of Funds
2.003% (Feb)
Prime Rate
3.25% (Dec)
The Bank of Mom & Dad has gotten busier since no-down-payment mortgages have practically disappeared. "In the last six months, I've dealt with more parents than I ever have," said Jay Seville, an associate with Re/Max Allegiance in Arlington. "They're part of the financing now, either with the down payment or a secondary loan." FHA loans allow gifts for the entire down payment and closing costs, while conventional loans can be more restrictive. Some families are avoiding the required paperwork by turning over the money months before the home purchase, so it can be considered the buyers' own. Both financial advisors and real estate practitioners who have experience with these kinds of family loans seek to make sure that everyone understands the terms of the loan. They advise that the terms be written down for future reference in the event of memory disputes or legal conflicts. "There are two types of pain in life: the pain of discipline and the pain of regret," said Nicholas Yrizarry, founder of a wealth management group in suburban Washington DC. "In the case of family matters, one must have discipline upfront . . . rather than having pain of regret later." Source: Washington Post
Banks are quickly accepting bids and writing contracts for foreclosed homes, but buyers are complaining that settlements are taking too long. Real estate pros say purchasing a bank-owned property is different than dealing with a regular home owner, considering that banks have to check claims on the property and problems can arise at closing. Plus, in some states, banks also need court approval of the foreclosure. Although banks are swamped by the record number of foreclosures, the bank-owned homes will have to be sold to help stabilize residential prices and boost the housing market. Source: Washington Post
The $8,000 first-time home buyer mortgage tax credit, which is part of the Recovery and Reinvestment Act of 2009, is a great boon. But, it doesn't help people who don't have money for a down payment and closing costs. Now some states are contemplating offering an $8,000 loan to home buyers before they close on the condition that they repay the loans as soon as they get their federal tax credits. The idea has been adopted in Missouri, which advances the money to those who take out first mortgages offered through the state's housing finance authority. The New York State Builders Association is lobbying the State of New York Mortgage Agency to adopt a similar strategy. "A lot of states are trying to get through the technical aspects of this," says Gregory Brown, an assistant vice president for government affairs at the National Association of Home Builders. "I feel very confident they'll find a way to make it work." Meanwhile, some home builders are taking matters into their own hands, offering programs that purchase the tax credit from borrowers prior to closing. Source: The New York Times
Our niche includes Commercial and Investment Property Refinance. To reduce client costs, our sales operations are now a 'virtual' office. If we are not available when you contact us, please leave a message. We shall refer you to a full-time consultant. Our legal team now performs Loan Modifications
Our readers were probably getting tired of us harping about rates on mortgages. We kept explaining why mortgages did not go down despite the fact that market rates had dropped significantly. We also kept explaining how important rates are with regard to the housing and ultimately the economic recovery. Obviously, the Federal Reserve Board agreed with this assessment as they forced rates down significantly throughout this year. But lowering short-term rates was not enough.
This week, the government’s decision to support the credit markets by spending hundreds of billions of dollars to purchase mortgage-backed securities and support Fannie Mae and Freddie Mac did the trick (see news section for more information). Rates on mortgages instantly moved down significantly, narrowing the spread between mortgages and Treasuries. Where they will settle is anyone’s guess, but for now we have a situation that could boost the housing markets instantly. Lower rates help housing by making ownership more affordable. As a matter of fact, coupled with lower housing prices, housing should be more affordable now than at any time in the past several years. This will attract more investors and first-time buyers into the markets. And it could start a cycle in which the markets gain even more confidence in purchasing mortgages because housing prices stop falling and the rate of defaults slow down. Perhaps we are getting ahead of ourselves, but for now, these lower rates are very good news and anyone who has been thinking about buying or obtaining a lower rate on their loan should act accordingly.
The Markets. Rates fell again this week and these numbers may not reflect the full extent of the drop the markets experienced. Freddie Mac announced that for the week ending November 26, 30-year fixed rates averaged 5.97%, down from 6.04% the week before. The average for 15-year fixed rose slightly to 5.74%. Adjustables fell as well with the average for one-year adjustables decreasing to 5.18% and five-year adjustables falling slightly to 5.86%. A year ago 30-year fixed rates were at 6.10%. "Rates fell for the fourth consecutive week as signs the overall economy is flagging lowered most rates market-wide," said Frank Nothaft, Freddie Mac vice president and chief economist. "And economic growth in the third quarter was revised downward this week, led by the first decline in consumer spending since the fourth quarter of 1991 and the largest drop since the second quarter of 1980. However, declining house prices and low rates have raised housing affordability in September to the highest level since February of this year, according to the National Association of Realtors® (NAR)."
Current Indices For Adjustable Rate Mortgages Updated November 28, 2008
Daily Value
Monthly Value
Nov 26
October
6-month Treasury Security
0.48%
1.23%
1-year Treasury Security
0.93%
1.42%
3-year Treasury Security
1.38%
1.86%
5-year Treasury Security
2.01%
2.73%
10-year Treasury Security
2.99%
3.81%
12-month LIBOR–WSJ
3.824% (Oct)
12-month MTA
2.256% (Oct)
11th District Cost of Funds
2.769% (Sept)
Prime Rate
4.00% (Oct)
Rates on mortgages fell sharply last week after the administration announced that it will pump another $800 billion into credit markets to free up frozen consumer and mortgage lending. That number dwarfed previous government actions aimed at bolstering the mortgage lending market. "The feds agreed to spend a half a trillion dollars to buy up mortgage backed securities and another $100 billion to fund lending for Fannie and Freddie; we’re not talking chump change anymore," said Keith Gumbinger of HSH Associates, a publisher of mortgage information. Rates averaged 5.77% for the day on a 30-year, fixed rate loan, down from 6.06% Monday of last week, according to Gumbinger. They fell as far as 0.75 percentage points during the day, according to Orawin Velz, Associate Vice President for Economic Forecasting at the Mortgage Bankers Association. That could save a typical homebuyer more than $90 a month on a $200,000 mortgage. "The government action was geared to bringing rates down," said Velz, "and it did." Most mortgages are sold to investors in so-called secondary markets but with foreclosure rates so high and expensive write downs of mortgage-backed securities so common over the past several months, investors had fled the mortgage market. Instead of buying mortgage bonds, they’ve been snapping up Treasury’s which have a lower risk. That showed up in the falling yields of Treasury bonds and the greater difference between Treasury yields and mortgages. Normally, rates on 30-year fixed rate mortgages are only slightly higher than yields on 10-year Treasury bonds, about 1.5 percentage points. That difference compensates mortgage investors for taking on extra risk. Lately, however, because investors have perceived, quite reasonably, that risks of mortgage-backed securities were far greater than previously supposed, they demanded greater reward for investing in them. Source: CNN/Money
The Federal Emergency Management Agency has released digitized flood insurance rate maps of more areas of the country. The maps were initially rolled out in some areas in 2003. This fall, they have been distributed in 100 communities in Alabama, Georgia, Illinois, Kansas, Mississippi, North Carolina, South Carolina, Tennessee and Wisconsin. By 2010, about 92 percent of the U.S. population and 65 percent of the land will be covered by the maps, FEMA says. Home owners in affected areas should check the new maps, which revise flood zones significantly. Some home owners who never needed flood insurance will need to buy it. Other homes will no longer be in flood zones, relieving their owners of the obligation to buy the insurance. "In the past, we did not have as precise information and so, with the digital products, in some areas the special flood-hazard area has gotten smaller. In other areas it has grown," says Roy Wright, deputy director of the risk analysis division for FEMA. Source: USA Today
Shamun Mahmud Commercial Capital Limited 2 Holly Lane Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1779 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Our niche includes Commercial and Investment Property Refinance. To reduce client costs, our sales operations are now a 'virtual' office. If we are not available when you contact us, please leave a message. We shall refer you to a full-time consultant.
This has been a very tough year for many Americans. When we look at our plight and what has happened this year–let us not forget about those who are making more significant sacrifices for our country. Not only those who are serving right now, but also those who have served in the past. Certainly this Veteran’s Day is a time for us to reflect upon their sacrifices and put our difficulties in perspective. We are still the most prosperous country in the world. That does not mean that we don’t have issues right now. We are in the midst of a recession exacerbated by a fiscal crisis that is spreading around the world.
The loss of 240,000 jobs last month is just a reflection of how severe things are right now. As we wrote last week, the government is doing plenty to help us in many ways. And we expect Congress to get together in a special session now that the election is over and consider additional stimulus aimed at the housing industry. The wild card? Interest rates. Our first story in the news section highlights the possible effects of lower rates on the housing market and thus the economy. The Federal Reserve Board is doing its part in lowering rates, but the markets have failed to respond. Every move by the government to back mortgages will help bring rates in line. Even increased borrowing by the government to fund the huge deficit may not cause rates to rise based upon the fact that inflation pressures have decreased significantly. There are some analysts that have even uttered the "deflation" word. What a difference in perspective since the record high oil prices of just a few months ago.
The Markets. Rates retraced over one half of their increase from the week before. Freddie Mac announced that for the week ending November 6, 30-year fixed rates averaged 6.20%, down sharply from 6.46% the week before. The average for 15-year fixed fell significantly as well to 5.88%. Adjustables went down with the average for one-year adjustables decreasing to 5.25% and five-year adjustables falling to 6.19%. A year ago 30-year fixed rates were at 6.24%. "Rates fell this week amid new indications of a pullback in consumer spending and a weaker jobs market," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy shrank by 0.3 percent in the third quarter, led by the first decline in consumer spending since the fourth quarter of 1991. In September alone, consumer spending fell by the most since June 2004. More recently, job layoffs more than doubled in October compared to September on a year-over-year basis."
Current Indices For Adjustable Rate Mortgages Updated November 7, 2008
Daily Value
Monthly Value
Nov 6
October
6-month Treasury Security
0.83%
1.23%
1-year Treasury Security
1.17%
1.42%
3-year Treasury Security
1.63%
1.86%
5-year Treasury Security
2.46%
2.73%
10-year Treasury Security
3.75%
3.81%
12-month LIBOR–WSJ
3.824% (Oct)
12-month MTA
2.256% (Oct)
11th District Cost of Funds
2.769% (Sept)
Prime Rate
4.00% (Oct)
The National Association of Realtors has stepped up its challenge to lawmakers encouraging them to take new, decisive actions to address the continuing problems in the housing industry, as well as the ongoing economic crisis. The NAR has provided an economic analysis demonstrating that a reduction, or a buydown, of interest rates by just 1 percentage point could result in up to 840,000 additional home sales and reduce the inventory of homes by as much as 20 percent. Inventories currently at 9.9 months’ supply would decrease to approximately a 7.5 month supply. “These changes would help stabilize home values and the housing industry,” Gaylord says. Home price stabilization would bring clarity to the valuations of mortgage-backed securities, removing uncertainty in the financial markets and positively affecting the overall U.S. economy, Gaylord says. A recent consumer survey conducted by NAR member Realogy Corp. reinforces the importance of housing in a broader economic turnaround. The survey found that nine out of 10 home owners believe that owning a home is still the best long-term investment they can make, but nearly one-third of those surveyed said they were putting plans to buy a new or existing home on hold because of the current economic environment. Source: National Association of Realtors
A series of tax credits for wind, solar, geothermal, tidal energy and others was among the tenets of the October congressional financial rescue legislation. The law increased the investment credit for solar from $2,000 to $7,500 for a buyer who spends $25,000 to install solar panels on his roof. In states like California, Connecticut, and New Jersey, where the cost of power is considerable, the pretax compound rate of return on a typical home solar system will be greater than 15 percent per year, says Andy Black, CEO of OnGrid Solar, an industry research firm. Home builders, including some of the biggest, such as Centex, Lennar, Pulte Homes, and Woodside Homes, are seeing advantages to including solar. All are developing successful communities where all of the homes have solar panels capable of making most if not all power. Source: BusinessWeek
Shamun Mahmud Commercial Capital Limited 2 Holly Lane Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1779 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Our niche includes Commercial and Investment Property Refinance. To reduce client costs, our sales operations are now a 'virtual' office. If we are not available when you contact us, please leave a message. We shall refer you to a full-time consultant.
<!-- HTML-FORMATTED MESSAGE BELOW The remainder of this message is in HTML format for use by email clients that can properly display it. If you are seeing this message, it is because your email client cannot properly display HTML. You can ignore the HTML code you will see below. -->
October 28, 2008
Predictions
First of all, we would like to make it abundantly clear that predicting any markets, including stocks, bonds or oil is a very risky business. If anyone could predict any market with accuracy, they would be doing something else for a living. That is why we have to be careful in "couching" speculation in an economic commentary. Last week we noted that rates were up sharply in the aftermath of the moves by the government to fix the economic crisis. We also noted that the economic news was very negative and that this news would put downward pressure on rates. Sure enough, rates came back down very quickly in the past week. Will they continue to drop or bounce back? We don’t know, but we do think lower rates are essential for a housing and economic recovery affected by a credit crisis. Lower rates translate into fewer foreclosures and defaults, especially when considering the fact that adjustable rate loans will not adjust quite so much. And certainly, lower rates make purchasing homes more affordable.
If one is hoping that rates will continue to come down, one would also hope that the economic news is even worse in the near future. That is kind of paradoxical–hoping for news of a bad economy which hurts housing. But lower rates could be one of the ultimate fixes for the overall situation and unlike other fixes, the solution does not cost the government anything. As a matter of fact it saves the government money, especially with a rising deficit. We have some big economic numbers coming, including the snapshot of the economy for the third quarter and employment figures for the month of October, which is the first statistic for the fourth quarter. The markets have already been figuring on bad news for these stats. However, there are degrees of "bad." If the numbers come out worse than expected, we may very well see rates stay down or move down further. The big question? The election results a week from today. Without changing anything substantively, elections can have a short-term bearing on the markets. More on that next week.
The Markets. Fixed rates fell back sharply after the surge of last week . Freddie Mac announced that for the week ending October 23, 30-year fixed rates averaged 6.04%, down from 6.46% the week before. The average for 15-year fixed fell significantly as well to 5.72%. Adjustables were mixed with the average for one-year adjustables increasing slightly to 5.23% and five-year adjustables falling to 6.06%. A year ago 30-year fixed rates were at 6.33%. "Long-term rates fell this week amid news of tame inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer prices were unchanged in September and core prices, which exclude food and energy products, rose by only 0.1 percentage point, all below the market consensus. On a year-over-year basis growth in core consumer prices remained at a 2.5 percent clip. New construction on one-family homes fell 12 percent in September to an annual rate of 544,000 homes, the lowest since February 1982. One-unit housing starts are now 70 percent below its peak set in January 2006, according to the Department of Commerce." Note the more positive information on existing sales in the news section.
Current Indices For Adjustable Rate Mortgages Updated October 24, 2008
Daily Value
Monthly Value
Oct. 23
September
6-month Treasury Security
1.51%
1.64%
1-year Treasury Security
1.61%
1.91%
3-year Treasury Security
1.76%
2.32%
5-year Treasury Security
2.57%
2.88%
10-year Treasury Security
3.63%
3.69%
12-month LIBOR–WSJ
3.337% (Sept)
12-month MTA
2.479% (Sept)
11th District Cost of Funds
2.693% (Aug)
Prime Rate
4.50% (Oct)
Note: Did you know that FHA and conforming loan amounts are scheduled to go down in many areas of the country starting January 1? Talk to us if you are interested in purchasing a home or obtaining a lower rate on your existing loan. Time may be of the essence.
The federal government, which has been criticized for not doing enough for Main Street while coming to the immediate aid of banks, is working on a new plan to help troubled homeowners. The plan was discussed last Thursday at a Senate Banking Committee hearing that probed the federal response to the credit crisis. Lawmakers repeatedly urged Treasury to act with dispatch and draw up clear guidelines to ensure that banks that receive taxpayer funding begin lending again and do all they can to prevent foreclosures. Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., told the Senate Banking Committee that her agency and the Treasury Department are working closely to find ways to prevent avoidable foreclosures. The plan would use the Treasury Secretary’s new authority under the Emergency Stimulus Act to provide guarantees to lenders and companies that service home loans. "Loan guarantees could be used as an incentive for servicers to modify loans," Bair said. "Specifically the government could establish standards for loan modifications and provide guarantees for loans meeting those standards." That way, she said, "unaffordable loans could be converted into loans that are sustainable over the long term." Bair said one way loan guarantees can be used to prod loan servicers to modify more loans is for Uncle Sam to guarantee that the government would compensate servicers for losses in cases of re-default - that is, when a borrower receives a modified loan but then ends up becoming delinquent on the new loan. Source: CNN/Money
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August. Home sales are 1.4 percent higher than the 5.11 million-unit pace in September 2007. Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri, and Rhode Island,” he says. .” NAR President Richard F. Gaylord says low home prices and low rates have helped attract buyers. “This is the first time since November 2005 that home sales have been above year-ago levels,” Gaylord says. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.” Yun says there may still be market disruptions. “The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac," Yun says. Total housing inve ntory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace. This is down from a 10.6-month supply in August and marks two consecutive monthly declines since inventories peaked in July. Source: National Association of Realtors
Shamun Mahmud Commercial Capital Limited 2 Holly Lane Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1779 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Our niche includes Commercial and Investment Property Refinance. To reduce client costs, our sales operations are now a 'virtual' office. If we are not available when you contact us, please leave a message. We shall refer you to a full-time consultant.
The price of a barrel of oil has increased from $20 to over $130 in six years. Is the price about the collapse? Of course, the economists don't agree. Some say prices are just following fundamentals because of world-wide growth. But we have heard similar arguments before. In the late 1970s silver soared because of "scarcity." And prices collapsed. In the late 1990s, technology stocks soared and it was argued that new technologies would change the "fundamentals" of price-to-earnings ratios. And prices collapsed. A few years ago, the price of real estate was soaring and it was argued that we would run out of homes or places to build them. Right now home prices are retreating from these highs. Will oil follow the same pattern? There is certainly the possibility. However, if there is a collapse, don't expect oil to return to $20 per barrel just as we don't expect home prices to return to where they were eight years ago. The fundamentals still show increased demand for oil as real estate will be supported by population growth.
What is likely to happen is a series of corrections will occur in the long-run, from increased production to more fuel efficient cars to alternative fuel sources. These will not happen overnight-but the wheels are already turning on changes in behavior. Indeed, both consumers and the government are changing their behavior in this regard. For now, higher oil prices are keeping inflation higher than the Federal Reserve Board would like and this in turn is causing interest rates to rise. While higher rates are helping get potential home buyers off the fence in the short-run and this likely is partially responsible for the recent increases in home sales, lower rates would help the real estate markets more significantly in the long-run.
The Markets. Fixed rates soared to their highest level in eight months last week with the adjustables again rising more moderately. Freddie Mac announced that for the week ending June 12, 30-year fixed rates averaged 6.32% up from 6.09% the week before. The average for 15-year fixed rose to 5.93%. The average for one-year adjustables increased slightly to 5.09% and five-year adjustables rose to 5.70%. A year ago 30-year fixed rates were at 6.74%. "Rates jumped this week after a number of Federal Reserve officials expressed concern over a threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought. Meanwhile, news reports on the housing market were mixed. Serious delinquencies for both prime and subprime conventional mortgages nearly doubled between first quarter of 2007 and 2008, according to the Mortgage Bankers Association. However, the household debt service and homeowner financial obligation ratios improved over the same period. Moreover, pending home sales for April unexpectedly rose by 6.3 percent and mortgage applications for both home purchases and refinancing were also up last week."
Current Indices For Adjustable Rate Mortgages Updated June 13, 2008
Daily Value
Monthly Value
June 12
May
6-month Treasury Security
2.28%
1.86%
1-year Treasury Security
2.62%
2.05%
3-year Treasury Security
3.35%
2.69%
5-year Treasury Security
3.68%
3.14%
10-year Treasury Security
4.23%
3.88%
12-month LIBOR-WSJ
3.027% (May)
12-month MTA
3.290% (May)
11th District Cost of Funds
3.111% (April)
Prime Rate
5.00% (April)
U.S. Rep. Bob Filner (D-Calif.), chairman of the House Veterans Affairs Committee, is pushing a proposal to raise the ceiling on VA loan amounts to $730,000. Meanwhile, Sen. Daniel Akaka (D-Hawaii), chairman of the Senate veterans' affairs committee, has proposed a bill that would lower the equity requirement for a veteran to refinance a mortgage with a VA loan from 10 percent down to 5 percent; and Rep. Steve Buyer (R-Ind.) wants the maximum for VA-backed loans for refinancing to be at least $417,000. The lack of competitiveness of VA-guaranteed loans has resulted in their nationwide decline from a recent peak of nearly 500,000 in 2003 to just 133,000 last year, Filner says. Although the government's mortgage program for military veterans continues to be hampered by a $417,000 loan limit, it is still making a comeback, according to the head of the Department of Veterans Affairs' loan guaranty service. In May alone, the volume of loans backed by the VA was up more than 50% over that of a year earlier, Judith Caden told the Mortgage Bankers Association's Government Housing and Loan Production Conference in Washington. But despite the resurgence in activity, the agency is unable to help veterans who are looking to the VA as a way out of their subprime loans. Because of what Ms. Caden called "a glitch" in the law, VA borrowers who want to refinance must have a 10% equity stake in their properties and cannot borrow more than $144,000. Sources: Stars and Stripes and National Mortgage News
Who doesn't want their own little slice of paradise? With the real estate market moving slow, some buyers may be looking more seriously at vacation timeshares. Here's some advice for potential buyers, according to certified financial planner John Gin. The purchase price is only part of the equation. What will it cost to maintain the property? What are the property taxes? How much will it cost you to travel to that destination? Find out if there's potential to generate rental income during parts of the year when you don't use your property. You need to investigate and possibly be willing to set up rental arrangements. Does the home have potential as a place you'd want to retire? Retirement can have a big impact on your investment decision, and give you more leeway in terms of your options. The most important factor is to know this is a location you are comfortable spending most or all of your time when retirement comes. Weigh your options and read over all documents carefully before signing anything that commits you to a purchase. A financial adviser may be able to help identify a plan to buying a timeshare or vacation property. Source: The Times-Picayune
Shamun Mahmud Commercial Capital Limited - Interactive Financial Division 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Our niche includes Commercial and Investment Property Refinance. To reduce client costs, we are now a 'virtual' office. If we are not available when you contact us, please leave a message. We shall contact you at our earliest opportunity.
Commercial Capital Ltd - Interactive Financial Div | 2 Holly Lane betterloansNOW, LLC | Stafford | VA | 22556 | US
Several economists are now arguing that rates are heading higher for the rest of the year. Indeed, the 10-year Treasury has risen pretty steadily for the past month or so. Why could rates be headed higher? For one thing, rising oil prices and other inflationary pressures typically translate into higher rates. The higher budget deficit also means that the Federal government will be borrowing significantly which also puts upward pressure on rates. Finally, the economic news in the past few weeks has been a bit stronger than expected. The markets may be thinking that we may actually avoid a recession.
Some are even predicting that the Federal Reserve Board may raise short-term rates by the end of the year. We are not so sure. There are several scenarios that could cause this upward pressure on rates to ease. For example, what if the speculative bubble on oil prices bursts? What if we are just at the beginning of the slowdown, instead of coming out of it? On the other hand, if rates are heading upward it means that the buying opportunity in this housing market could require quick action. Right now we have lower home prices and very low rates. There is always a chance that one of these factors could be removed and those who did not purchase in 2008 may regret their lack of action.
The Markets. Rates were down slightly in the past week, which is interesting because long-term Treasuries rose. Is this evidence that the secondary market for mortgages is getting stronger? The fact that adjustables fell even more may lend evidence to this argument. Freddie Mac announced that for the week ending May 15, 30-year fixed rates averaged 6.01% down from 6.05% the week before. The average for 15-year fixed was unchanged at 5.60%. The average for one-year adjustables fell to 5.18% and five-year adjustables fell to 5.57%. A year ago 30-year fixed rates were at 6.15%. "Recent remarks by Federal Reserve (Fed) officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgages ease up a little this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Fed Chairman Bernanke indicated in a speech on May 13th that the Fed stands ready to continue to add liquidity to the markets. On the same day, San Francisco Fed bank president Janet Yellen added that she anticipates inflation will slow as commodity prices level off in the second half of the year. Despite the bleak housing market, there was positive news on the overall state of the economy. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold."
Current Indices For Adjustable Rate Mortgages Updated May 16, 2008
Daily Value
Monthly Value
May 15
April
6-month Treasury Security
1.90%
1.58%
1-year Treasury Security
2.08%
1.74%
3-year Treasury Security
2.70%
2.23%
5-year Treasury Security
3.10%
2.84%
10-year Treasury Security
3.83%
3.68%
12-month LIBOR-WSJ
2.802% (April)
12-month MTA
3.528% (April)
11th District Cost of Funds
3.280% (March)
Prime Rate
5.00% (April)
Key lawmakers spent last week trying to broker a deal on a bill that would allow the government to insure up to $300 billion of home loans and overhaul oversight of key players in the mortgage industry. By the end of the week, they had come closer together but had not hammered out a final compromise. "We believe we have an agreement in concept," said a spokesman for Sen. Richard Shelby, R-Ala., the lead Republican on the Senate Banking Committee. "We're currently in the process of seeing whether we can translate that agreement in concept into language." At issue is a bill that would allow at-risk borrowers with hybrid adjustable rate mortgages to refinance into fixed-rate mortgages. The new loans would be insured by the Federal Housing Administration (FHA) and be available to homeowners if their lenders agree to write down loan balances below the appraised value of their homes. Source: CNN/Money
Home owners are still optimistic about their home's value, despite falling home prices all around them, according to a survey of homeowner confidence conducted by Harris Interactive for Zillow.com According to the survey, 72 percent of home owners believe their home's value has increased or stayed the same in the past year. The reality is 75 percent of U.S. homes actually decreased in value from the same period a year ago, according to Zillow. In fact, in the first quarter home values dropped 7.7 percent year-over-year, which was the largest year-over-year decline in more than a decade, Zillow points out. But home owners could be growing more realistic. Since the confidence survey was first conducted last December, home owners show signs they are moving closer to reality as 5 percent more respondents in the first quarter said they think their home value has decreased in the past year compared to those surveyed in the fourth quarter of 2007. Source: Zillow.com
Shamun Mahmud Commercial Capital Limited - Interactive Financial Division 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
betterloansNOW, LLC wishes our deepest condolences to the victims of The Station Fire. We are a firm supporter of stationfamilyfund.org. All rights reserved.
Our niche includes Commercial and Investment Property Refinance.
Commercial Capital Ltd - Interactive Financial Div | 2 Holly Lane betterloansNOW, LLC | Stafford | VA | 22556 | US
The "good" news for the economy is that consumers are still spending. Personal debt rose $15.3 billion in March. While the markets seem to have taken this as good news, we are not so sure. First, the fact that consumers have been borrowing too much money is what has helped contribute to the present financial crisis. Second, are consumers borrowing to pay for record high gas prices and to pay for other debts they can't keep up with? Sometimes good news in the short run can mean bad news in the long run. Eventually consumers will have to pay for this debt.
On the bright side, the House passed a housing bill last week. While there is some controversy-the Administration is opposed to at least one part of the bill and the Senate version varies significantly-there are provisions that will no doubt help the housing market. And the fact that the government is committed to support the housing market is good news for all of us. For more details on this legislation, see the news section.
The Markets. Rates were fairly stable again in the past week. Freddie Mac announced that for the week ending May 8, 30-year fixed rates averaged 6.05% down slightly from 6.06% the week before. The average for 15-year fixed rose slightly to 5.60%. The average for one-year adjustables was unchanged at 5.29% and five-year adjustables fell to 5.67%. A year ago 30-year fixed rates were at 6.21%. "Despite a weak housing market, rates remained almost unchanged this week based on better-than-expected economic data releases that indicated the economy still has some staying power," said Frank Nothaft, Freddie Mac vice president and chief economist. "Job losses lessened in April and conditions in both the manufacturing and service industry outperformed market forecasts. Worker productivity also rose in the first quarter as increases in labor costs diminished. The housing market is still struggling amid falling house prices and stricter lending standards. Coupled with higher delinquency and foreclosure rates, a smaller share of families own their homes this year. The national homeownership rate held at 67.8 percent in the first quarter of 2008, down from its recent peak of 69.0 percent in the third quarter of 2006 and was the lowest rate since 67.6 percent in the second quarter of 2002, according to the Census Bureau."
Current Indices For Adjustable Rate Mortgages Updated May 9, 2008
Daily Value
Monthly Value
May 8
April
6-month Treasury Security
1.74%
1.58%
1-year Treasury Security
1.91%
1.74%
3-year Treasury Security
2.47%
2.23%
5-year Treasury Security
2.99%
2.84%
10-year Treasury Security
3.79%
3.68%
12-month LIBOR-WSJ
2.802% (April)
12-month MTA
3.528% (April)
11th District Cost of Funds
3.280% (March)
Prime Rate
5.00% (April)
Home builders are cutting back on square footage and offering fewer amenities to keep the costs down. "We are dealing with realities of the market. Prices have come down somewhat, and some houses are smaller," says Don Knutson, senior regional president for the mid-Atlantic division of Beazer Homes. "I think square-footage reduction has been about 5 percent between 2007 and 2008." A 2007 national survey conducted by the National Association of Home Builders found that 42 percent preferred a bigger house with fewer amenities, compared with 58 percent who said they would prefer a smaller house with "high-quality products and amenities." That represented a change from 2000, when 51 percent wanted a bigger home with fewer amenities. "I would say generally people are realizing bigger is not always better if they can get a smaller home that is affordable," says Knutson. Source: The Washington Post
Interest in purchasing a foreclosed home is rising rapidly, according to a survey conducted in April by Harris Interactive for Trulia.com, a real estate Web site. Here's what the survey revealed about buyers who tend to be interested in buying a foreclosure: About 60 percent of single/never-married adults are more likely to be at least somewhat interested in purchasing a foreclosure; About 50 percent of men are likely to be at least somewhat interested compared with 51 percent of women; Younger adults, ages 18 to 34, are the more likely than other age groups to consider buying a foreclosure with 69 percent expressing interest; Only 32 percent of adults 55 and older are interested in buying foreclosures. Source: Trulia.com
The House of Representatives has passed a Federal Housing Administration refinancing bill by a 266-154 vote, and attention now turns to the Senate Banking Committee, which is expected to mark up a similar foreclosure prevention measure soon. It is estimated that the House-passed bill (H.R. 3221) could refinance up to 500,000 borrowers with "underwater" mortgages into FHA-insured loans. But the bill provides little incentive for investors/servicers to participate, because the principal amount of the loan must be written down to 85% of the current appraised value and the noteholder does not share in any upside if property values increase. H.R. 3221 is a legislative package that also includes two other bills the House passed last year - an FHA modernization bill and a government-sponsored enterprise bill to strengthen supervision of Fannie Mae and Freddie Mac. The House also passed and sent to the Senate a housing tax bill that contains a $7,500 tax credit for first-time homebuyers and $10 billion in revenue bonds that can be used to refinance subprime borrowers. Source: National Mortgage News
Shamun Mahmud Commercial Capital Limited - Interactive Financial Division 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Two weeks ago we wrote...." But in this case the Fed may decide that lowering rates one more time could actually hurt. Yes, the Fed faces a tough decision-and no move or a smaller rate cut could be the result." Well, we could not have been more on-target with this theory. Obviously the Federal Reserve Board opted for a smaller rate cut and the notes released after the meeting this past week indicated that this may indeed be the last cut for some time. Why is the Fed about to end its rate-cutting campaign?
There are several possible explanations. For one, short term rates are so low there is not much room for more on the downside. If something bad happens, the Fed needs more ammunition in reserve. Secondly, higher oil and food prices make higher inflation as much a concern as a slower economy. Finally, the Fed may feel that the worst news is behind us. Though the economic news released in the past week was weak at best, the bottom line is that economic growth was positive. This is better than a recession. On the other hand, preliminary readings are subject to significant revisions.
The Markets. Rates were fairly stable in the past week. Freddie Mac announced that for the week ending May 1, 30-year fixed rates averaged 6.06% up from 6.03% the week before. The average for 15-year fixed fell to 5.59%. The average for one-year adjustables was unchanged at 5.29% and five-year adjustables rose to 5.73%. A year ago 30-year fixed rates were at 6.16%. "This week saw little change in rates on mixed news of higher inflation and a weaker housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "Additionally, in its most recent policy committee statement on April 30, the Federal Reserve (Fed) indicated it expects inflation to moderate in coming quarters but uncertainty about the outlook for inflation remains high. However, the Fed did note that financial markets remain under considerable stress and tight credit conditions, along with the deepening housing contraction, are likely to weigh on economic growth."
Current Indices For Adjustable Rate Mortgages Updated May 2, 2008
Daily Value
Monthly Value
May 1
March
6-month Treasury Security
1.73%
1.51%
1-year Treasury Security
1.94%
1.54%
3-year Treasury Security
2.53%
1.80%
5-year Treasury Security
3.06%
2.48%
10-year Treasury Security
3.78%
3.51%
12-month LIBOR-WSJ
2.802% (April)
12-month MTA
3.528% (April)
11th District Cost of Funds
3.280% (March)
Prime Rate
5.00% (April)
Falling prices are good news for home buyers, making it increasingly likely that they will be able to find a property at a price that is significantly lower than it would have been two years ago and probably less than the house would have brought just a few months ago. Real-estate data company Zillow.com estimates that the median value for all homes in the 12 months ending March 31 fell 25 percent in the Las Vegas metro area, 19 percent in Miami and Orlando, and 16 percent in Phoenix. They declined lesser amounts in most other areas. In the metro areas of Raleigh and Charlotte, N.C., Dallas and Houston, prices are rising - but very modestly. There's a "return to normalcy" in the relationship between home prices and incomes, says Richard DeKaser, chief economist at National City Corp. In an analysis of 330 metro areas in the fourth quarter of 2007, National City and Global Insight, an economic research firm, found that home prices were overvalued in relation to household income and other factors in 21 metro areas, down from a peak of 58 metro areas in the second quarter of 2006. Source: The Wall Street Journalcolor, but decorate with big, fluffy colorful towels; Hang some framed art. Source: The Washington Post
It's getting harder for renters to find an affordable place to live with rents rising and availability falling. The median asking rate for rentals has jumped 14 percent, from $591 a month during the fourth quarter of 2003 to $673 a month in 2007, according to the U.S. Census Bureau. Vacancy rates are down from last year, and average rent is projected to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007, according to the National Association of Realtors. "We've seen demand for rental housing go up," says Mark Obrinsky, chief economist at the National Multi Housing Council. "The ownership side is retrenching, and we're seeing the demand going to the rental side. There's a lot of hesitancy to buy. Others can't get (financing), so they're remaining renters longer." Source: Rentometer and USA Today
Shamun Mahmud Commercial Capital Limited - Interactive Financial Division 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
We are rapidly approaching some very important economic news. Next week we have the release of the first quarter economic numbers (GDP) and employment report for April. This happens while the Federal Reserve Board will be meeting and deciding whether to lower rates one more time. This time the Fed faces a very tough decision. Why? The price of oil hit $115 per barrel on April 16th. The incredible run-up in the price of oil causes a slow down in consumer spending that hurts the economy, but it also fuels inflation. Prices were up significantly on the wholesale level last month and these higher prices are likely to be felt beyond the gas pump.
If the Fed lowers rates, the dollar loses even more value and this causes oil prices to go up even more since most oil is imported. So the Fed lowering rates can not only increase the threat of inflation, it could wind up slowing the economy even more. Conventional wisdom says that lowering rates stimulates the economy. But in this case, the Fed may decide that lowering rates one more time could actually hurt. Yes, the Fed faces a tough decision-and no move or a smaller rate cut could be the result.
The Markets. Rates were stable again this week with fixed rates virtually the same and adjustables lower. Freddie Mac announced that for the week ending April 17, 30-year fixed rates averaged 5.88% the same as the week before. The average for 15-year fixed fell slightly to 5.40%. The average for one-year adjustables decreased to 5.10% and five-year adjustables fell to 5.48%. A year ago 30-year fixed rates were at 6.17%. "Interest rates for fixed-rate mortgages held relatively steady for a second week, while ARM rates continued to decline amid market speculation that the Federal Reserve (Fed) may cut rates again at its upcoming Committee meeting," said Frank Nothaft, Freddie Mac vice president and chief economist. "March's housing starts were the lowest since March 1991 and consumer sentiment in April fell to a 26-year low while homebuilder confidence remains near record lows. Currently, the federal funds future contracts suggest nearly a 100-percent probability that the Fed will cut rates at the end of this month.
Current Indices For Adjustable Rate Mortgages Updated April 18, 2008
Daily Value
Monthly Value
April 17
March
6-month Treasury Security
1.58%
1.51%
1-year Treasury Security
1.77%
1.54%
3-year Treasury Security
2.31%
1.80%
5-year Treasury Security
2.90%
2.48%
10-year Treasury Security
3.75%
3.51%
12-month LIBOR-WSJ
2.512% (Mar)
12-month MTA
3.794% (Mar)
11th District Cost of Funds
3.560% (Feb)
Prime Rate
5.25% (March)
The fast-growing areas in the United States are in the Sunbelt, with Texas leading the way, according to data released last week by the U.S. Census Bureau. Dallas-Fort Worth added more than 162,000 residents between July 2006 and July 2007, more than any other metro area. Three other Texas cities - Houston, Austin, and San Antonio - also were in the top 10. Experts credit much of the growth in the South to strong local economies and housing prices that are among the most affordable in the United States. A report earlier this month by Global Insight found that housing prices in the Dallas area were undervalued by as much as 30 percent. Other areas experiencing growth included the New Orleans area, which is recovering from Hurricane Katrina and grew by 4 percent or nearly 40,000 people. During the same survey last year, the population of New Orleans dropped by nearly 290,000 people. Meanwhile, Detroit lost more than three times as many people as any other metro area - its population declined more than 27,300. Other areas losing more than 5,000 people were Pittsburgh, Cleveland, Columbus, Ga., Youngstown, Ohio, and Buffalo, N.Y. Source: Associated Press
A survey of almost 500 real estate agents commissioned by JELD-WEN Windows & Doors indicates the increasing importance of curb appeal in selling a home. According to the Real Estate Agent Community Trends survey, 82 percent of practitioners polled said buyers unimpressed with a home's exterior will not want to look inside. The results also found that 90 percent of respondents said a sale depends on first impressions of the front entry, while 91 percent said the home's exterior is just as important as what is inside. Additionally, 75 percent of those surveyed said natural light is important; while the appearance of windows and doors and the presence of energy-efficient products were mentioned by 71 percent and 63 percent, respectively. Universal design features are gaining in popularity as well, according to 65 percent of agents. Source: BuildingOnline
There are "some good signs" that the severe downturn in U.S. housing markets might be approaching an end, says James Lockhart, director of the Office of Federal Housing Enterprise Oversight. "It's going to take a while, but we're starting to see some bottoms," Lockhart says. "It may take another six months or so, but hopefully we'll start pulling out of it." But, Lockhart says, the idea of freezing mortgage rates would be a mistake to recovery. "You'd really cause market dislocation. ... I think we're going to have to let the market work," Lockhart told CNBC television in response. "Interest rates have come down dramatically, and people are going to be able to refinance." Source: Reuters News
Shamun Mahmud Commercial Capital Limited - Apex Lending Incorporated 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
betterloansNOW, LLC offers our deepest condolences to the victims of The Station Fire. We are a supporter of stationfamilyfund.org. Our niche includes Commercial and Investment Property Refinance.
Apex Lending - Commercial Capital | 2 Holly Lane betterloansNOW, LLC | Stafford | VA | 22556 | US
The housing "rescue" bill flew through the Senate, similar legislation is taking shape in the House, all three Presidential candidates have presented their plans and the Administration has their own opinion. The good news is that there will be some sort of lift on the way for the housing market. There are still several hurdles to overcome, but it appears that proposals such as tax credits for buying foreclosed properties are a good bet. The bad news is that we don't know if they will work. There are actually dangers if the government goes too far. What are these dangers?
A few weeks ago we cited a lack of confidence in the markets with regard to mortgage securities. This has caused rates on mortgages to be higher than they typically would be, especially when compared to Treasuries bonds and notes issued by the government. The spread has "widened" because of risk of default of mortgages has gone up. But what about the risk that the government will change the rules for mortgages that are already in existence? While more favorable terms would help consumers, they hurt the owners of those mortgages and they are less likely to be buyers in the future. This risk is part of the reason the Administration opposes some components of the rescue bill. Yet, their solution to use the Federal Housing Administration (FHA) as the vehicle to refinance consumers in trouble also has risks. What if the government has to bail out the FHA program? Bottom line-the rescue efforts are welcome, but there are risks and we hope Congress and the President do not go too far. Election years can make for poor economic decisions.
The Markets. Rates were very stable again this week with fixed rates the same and adjustables slightly lower. Freddie Mac announced that for the week ending April 10, 30-year fixed rates averaged 5.88% the same the week before. The average for 15-year fixed was unchanged to 5.42%. The average for one-year adjustables decreased slightly to 5.18% and five-year adjustables fell to 5.56%. A year ago 30-year fixed rates were at 6.22%. "Once again, rates held relatively steady this week amid release of subdued economic data," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, pending existing home sales hit the lowest value since its introduction in January 2001, presaging additional weakness in single-family home sales over the upcoming months. Further, the economy lost 80,000 jobs in March, more than the market had anticipated, and the prior two months were revised downward as well."
Current Indices For Adjustable Rate Mortgages Updated April 11, 2008
Daily Value
Monthly Value
April 10
March
6-month Treasury Security
1.49%
1.51%
1-year Treasury Security
1.61%
1.54%
3-year Treasury Security
2.02%
1.80%
5-year Treasury Security
2.66%
2.48%
10-year Treasury Security
3.55%
3.51%
12-month LIBOR-WSJ
2.512% (Mar)
12-month MTA
3.794% (Mar)
11th District Cost of Funds
3.560% (Feb)
Prime Rate
5.25% (March)
Helping the kids buy a first home is a time-honored tradition that has become even more significant as home prices rise and incomes flatten. For parents with the means, cash is clean and easy. An individual can give $12,000 a year to a recipient without having to pay a tax on the gift. Therefore, a couple could give an adult child and the child's spouse a total of $48,000 in one year. To keep things simple,the gift is best given well in advance of the mortgage application. Cosigning or otherwise jointly investing in the property can work for parents of more limited means or those who want to be paid back. The biggest risk is that the offspring will be unable to meet their obligations and it will affect the parent's credit rating. Parents who can't afford to help financially may be able to provide experience and even some sweat equity to help the kids make a smart housing choice. Source: Market Watch
The number of consumers who say they plan to buy a home in the next six months rose slightly this month to 3.3 percent from 2.9 percent, despite an overall drop in consumer confidence. According to a survey by the Conference Board, a private research group, consumer confidence fell 11.9 points to 64.5, marking a downturn in sentiment to levels usually seen only during recessions. Consumer expectations about the future plunged to their lowest point since 1973, when a recession was followed by painful inflation. Consumers expect inflation to reach 6.1 percent in the next year, the highest rate since the aftermath of Hurricane Katrina in 2005, when gasoline prices surged. "We've been seeing a gradual trend upward since the end of last year, and it's following in line with oil, gas and food prices," said Lynn Franco, who oversees the Conference Board survey. Source: The Wall Street Journal
As April 15 tax day approaches, here is a reminder for home buyers with mortgage insurance. Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. This is a new tax break that Congress has approved through 2010. "On average, this year's tax break could be worth $350 per taxpayer - an annual deduction that qualified home owners can take each year through 2010," says Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA). Source: MICA
Shamun Mahmud Commercial Capital Limited - Apex Lending Incorporated 2 Holly Lane Dept: betterloansNOW, LLC Stafford, VA. 22556 shamun@betterloansNOW.com (703) 879 - 1778 (800) 460 - 1921
We are one of the few National Financial Institutions that specialize in helping businesses find, qualify for, and, finance a dwelling of their own. Often the loan process is performed with little to no money down, even with less than perfect credit, or other qualifying problems. Ask us about our fast-track commercial mortgages!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
More Evidence
The Markets. Rates turned back down this week. Freddie Mac announced that for the week ending April 23, 30-year fixed rates averaged 4.82%, down from 4.87% the week before. The average for 15-year fell to 4.48%. Adjustables were mixed with the average for one-year adjustables increasing to 4.91% and five-year adjustables falling to 4.88%. A year ago 30-year fixed rates were at 5.88%. Frank Nothaft, Freddie Mac vice president and chief economist stated "The housing industry is starting to exhibit some positive signs, albeit scarce and too early to tell how permanent. In its April 15th regional economic report, the Federal Reserve reported that better-than-expected buyer traffic led to a scattered pickup in home sales in a number of its Districts over the 6-week period ending on April 6th. Factors such as homebuyer tax credits, low rates, and more affordable prices were cited as leading to more potential buyers. This may have added to the rise in homebuilder confidence in April, which rose to the highest level in six months, according to the National Association of Home Builders."
The Bank of Mom & Dad has gotten busier since no-down-payment mortgages have practically disappeared. "In the last six months, I've dealt with more parents than I ever have," said Jay Seville, an associate with Re/Max Allegiance in Arlington. "They're part of the financing now, either with the down payment or a secondary loan." FHA loans allow gifts for the entire down payment and closing costs, while conventional loans can be more restrictive. Some families are avoiding the required paperwork by turning over the money months before the home purchase, so it can be considered the buyers' own. Both financial advisors and real estate practitioners who have experience with these kinds of family loans seek to make sure that everyone understands the terms of the loan. They advise that the terms be written down for future reference in the event of memory disputes or legal conflicts. "There are two types of pain in life: the pain of discipline and the pain of regret," said Nicholas Yrizarry, founder of a wealth management group in suburban Washington DC. "In the case of family matters, one must have discipline upfront . . . rather than having pain of regret later." Source: Washington Post
Our niche includes Commercial and Investment Property Refinance. 
;)
;)
