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
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
There is more math in the mortgage process than meets the eye and most borrowers, and even many loan officers, don’t understand all potential ramifications. It’s important to work with someone who does in order for them to present the … Read the rest
A person called me today concerned that the Fed Discount, Prime Rate, etc will be rising and is considering a refinance. I computed for him the cost of ALL money that he has borrowed and this is the formula to … Read the rest
The Mortgage Bankers Association (MBA) has defended the tax deduction for mortgage interest against any and all challenges. Yesterday, in the National Mortgage News, it was reported that David Stevens, head of the MBA, indicated that the agency might not … Read the rest
There are legitimate zero-down programs for first-time homebuyers that have been around for many years. Those never were, nor ever will be, poorly thought out and/or designed to put people in homes they might not be able to afford. These … Read the rest