Given damage to our economy by Covid-19, many people are concerned about declining property values. Potential declines are possible….even likely, given that recovery won’t happen overnight. However, declines aren’t likely to be as severe as those following the 2008 recession.… Read the rest
In response to economic impact caused by Covid-19, many major lenders have issued advisories offering to allow mortgage clients to defer mortgage payments for three months. Fannie Mae and Freddie Mac, the largest providers of funds for conventional mortgages, agreed … Read the rest
No, this isn’t an error nor is it at all misleading! It really is free money! As I’ve written previously, home ownership does very good things for the homeowners themselves as well as for their communities, state and country.
Also, … Read the rest
A reverse mortgage loan is simply another type of mortgage…with a couple of great features. The best one?
You don’t have to make monthly payments!
You can pay any amount, any time, if you choose, with no penalty but…the choice … Read the rest
Yesterday the Feds increased the Fed Funds Rate by a quarter percent….as expected. Unexpectedly, after-meeting official comments eliminated reference to “accommodative” rates and indicated two more potential increases in 2018 instead of one.
What does this mean? There are pros … Read the rest
The U. S., along with along with many other countries, has reached record levels of consumer and government debt.
The reasons why are too numerous to mention here, but interest rates, kept too low for too long, is one of … Read the rest
There’s no question that high home prices in Silicon Valley makes it difficult for first-time home buyers to purchase homes. Difficult…but not necessarily impossible. Recently (past year), qualification requirements have eased somewhat for many higher balance programs including the minimum … Read the rest
Refinancing a mortgage must make sense…and by “make sense” I mean to the lender receiving the application. For refinance transactions, lenders require that the loan provide a documented “Net Tangible Benefit” to the client.
Lowering interest rate and/or payment, or … Read the rest
Business regulations, including extensive ones governing financial services and lending industries, would be unnecessary if all business people operated honestly.
One of the regulations in RESPA (Real Estate Settlement and Procedures Act) addresses “kickbacks”. It’s illegal to pay commissions, referral … Read the rest
Credit, with debt-to-income ratio and equity, is a critical factor in determining mortgage loan approval. And, for approved applicants, credit score plays a major role in determining loan costs.
For example; let’s assume a mortgage amount of $400,000, 80% of … Read the rest
Despite numerous regulatory changes, new disclosure requirements, and lending restrictions, the same basic loan qualification factors still apply. Does a potential borrower earn enough to be able to make payments on all their monthly obligations? Have they shown consistent willingness … Read the rest
A recent article indicated that all-time low housing inventories and higher prices have hampered affordability both for first-time and move-up buyers.
Today’s low inventories began with the 2008 housing collapse. Foreclosures reached all-time highs and investors bought up foreclosed properties … Read the rest
The question most often asked by mortgage applicants, is “What’s the rate”. But that’s not often their real concern. It’s understandable to think interest is key but it’s only a part of a transaction. The primary concern for most mortgage … Read the rest
Recently, I wrote about mortgage math and this article is another aspect of that math.
Over the years, I’ve observed that most people, but not all, know the approximate rate on their mortgage. They know because it’s usually their largest … Read the rest
As noted recently, Julian Castro, the HUD (Housing and Urban Development) Secretary, announced a rollback of the FHA (Federal Housing Authority)-required mortgage insurance premiums from .85% to .60%. The change was to be effective on January 27th. The … Read the rest