The Los Angeles Times
Many homeowners refinancing mortgages to shorter terms borrowers who can afford higher mortgage payments, and who meet lenders’ stricter loan guidelines, often opt to replace their 30-year mortgages with shorter term loans at near-record low rates.
Making sense of the story
The latest Freddie Mac quarterly survey of homeowners who refinanced found that more than one in three borrowers who refinanced from a 30-year fixed-rate loan opted to replace it with 15-year or 20-year mortgages at near-record low rates.
Homeowners considering refinancing into a shorter-term mortgage must have the income or financial reserves sufficient to pay the extra money each month.
Borrowers not only need to have the income or financial reserves, they also have to qualify for a refinance, have the credit score needed, and the home appraisal to support it.
For some low-cost refi programs, lenders want to see at least 25 percent equity in the house. Higher FICO credit score requirements by Fannie Mae and Freddie Mac are another impediment, as both companies reserve their best rates for borrows with FICO scores of 740 or higher.
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http://lat.ms/kmv9mS
The Wall Street Journal
While home prices may be falling, insurance premiums are on the rise after five years of relatively stable premiums, some of the country’s biggest insurers have raised rates – or say they plan to.
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http://online.wsj.com/article/SB10001424052748704281504576327391187988696.html?mod=WSJ_RealEstate_LeftTopNews
Sacramento Bee
Housing crash means bargains for some buyers distressed properties – short sales and foreclosures – continue to dominate the market, driving down prices for everyone. That’s bad news if you own a home and are watching it slowly slip under water. But for investors, first-time buyers, and those with the ability to move up, the market couldn’t be better.
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http://www.sacbee.com/2011/05/22/3644881/housing-crash-means-bargains-for.html
Los Angeles Times
California creating mortgage fraud task force California Attorney General Kamala Harris is creating a 25-person task force to target mortgage fraud of any size – from small operations that preyed on troubled borrowers to corporations that sold risky loans as safe investments.
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http://lat.ms/jWf9DP
Los Angeles Times
Foreclosure rate slows as repossession timeline lengthens increased scrutiny of how lenders foreclose on Americans has dragged the repossession process out to unprecedented lengths, driving down the pace at which banks are taking back homes.
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http://lat.ms/iu1Ynf
CNN Money
Remodeling your home? Watch out for scams for many homeowners, the warmer months is the prime time to remodel a kitchen or bathroom. But beware – there are some contractors who may offer a deal that’s simply too good to be true.
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http://money.cnn.com/2011/05/23/pf/saving/home_remodeling_tips/index.htm
Los Angeles Times
Mortgage delinquencies level off the percentage of homeowners who are behind on their mortgage payments inched higher in the first quarter while the number of new foreclosures declined, a lobbying group for the homelending industry says.
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http://latimesblogs.latimes.com/money_co/2011/05/new-mortgage-delinquencies-slow.html
CNN Money
Foreclosures for sale: Big supply, low prices foreclosures accounted for 45 percent of sales in California and Arizona, and 28 percent of all existing home sales during the first three months of 2011, according to RealtyTrac.
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http://money.cnn.com/2011/05/26/real_estate/foreclosure_sales_report/index.htm?iid=HP_River
Orange County Register
Calif. pending home sales fell in April the CALIFORNIA ASSOCIATION OF REALTORS®’ pending home sales index shows that the number of new deals going into escrow decreased 11% from March and was down 19.2% from April of last year.
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http://lansner.ocregister.com/2011/05/20/calif-pending-home-sales-fell-in-april/110511/
What you should know about the market
Mortgage rates are still relatively low, and with an abundant supply of inventory, house hunters have plenty of opportunity. Nevertheless, the changed housing market has brought new aspects to consider when looking to purchase a home.
During the peak of the current housing cycle, developers began breaking ground on “up and coming” neighborhoods, to meet demand. Unfortunately, that demand stalled in many areas, leaving home buyers to question whether location is still considered favorable. Before housing hunting, buyers should research the county auditor’s website, consult with their REALTOR® on the amount of time homes in the neighborhood take to sell, and inquire about foreclosure rates.
The days of buying a home with no money down are virtually over, with the exception of some very specific VA and USDA loans, which are reserved for certain kinds of borrowers. Additionally, most conventional mortgage mortgages now require at least a 5 percent down payment, and FHA loans generally required approximately 4 percent down.
The housing market will recover, but many analysts disagree on when. Homeowners may have no choice but to stay in their newly purchased home for many years, so buyers should think long term about the size of the home, location, and how it fits into their lifestyle.
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