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Mortgage Rates The Week Of March 29, 2010

yourmortgageplanner — Mon, 29 Mar 2010 21:05:59 +0000

Mortgage markets tanked last week, raising rates to their highest levels in a month.

Most of the losses occurred Wednesday in what was the worst 1-day mortgage market performance in more than 6 months. Even Friday’s rally could barely dent the losses. Most of the movement was tied to geopolitical concerns and worries of a ballooning federal debt load.

The best time to lock a conventional or FHA mortgage rate last week was Tuesday morning.

This week, markets should remain volatile. There’s a large set of economic data due for release, plus trading volume will thin as the week goes on because markets are closed Friday for Good Friday.

Coincidentally, Friday is also the day that the March jobs report is released.

The non-farm payroll report is expected to show net job growth of 187,000 in March. This is a large number as compared to last month’s net loss of 36,000 job. However, analysts are already dismissing March’s numbers as skewed by both the bad storms of February, and the temporary hiring of Census workers.

In most months, major job growth would be bad for mortgage rates. This month, that won’t be the case. It will take a figure north of 200,000 to cause rates to rise and the higher the actual number, the more that rates will respond.

Also this week, on Wednesday, the Federal Reserve’s $1.25 trillion program to support mortgage markets sunsets. Fed insiders estimate that the program dropped rates 1 percent since its inception in 2008. It’s reasonable that mortgage rates will rise after its end, therefore.

Seattle Mortgage Rates, Seattle Home Loans, Washington home loans, Washington Mortgage Rates

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First Time Home Buyer Tax Credit Ending Soon!!

yourmortgageplanner — Mon, 22 Mar 2010 22:47:14 +0000

Don’t forget that the end of the first time home buyer tax credit is in sight, and I have heard nothing about any extensions. Borrowers need to be in contract by April 30 and close by June 30.

Seattle Mortgage Rates, Seattle Home Loans, Washington home loans, Washington Mortgage Rates

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Home Prices Still On The Rise

yourmortgageplanner — Wed, 23 Sep 2009 20:20:09 +0000

As reported by the government, home prices are rising nationwide, up 0.3 percent in July.

Furthermore, versus November 2008, the Home Price Index has clawed back to unchanged.

The housing market appears to be holding its own.

However, we have to be careful about putting our full faith in the Federal Housing Finance Agency’s data. It’s somewhat flawed.

The Home Price Index is a national statistic and all real estate is local
The Home Price Index’s methodology specifically excludes key housing demographics

As an obvious example, HPI only accounts for homes with Fannie Mae- or Freddie Mac-backed mortgage. Lately, the percentage of homes meeting that description is shrinking.

As FHA financing rises in popularity, Fannie and Freddie back far fewer loans than in the past. Furthermore, the HPI sample set also excludes newly-built homes and multi-unit properties.

Because of these exclusions, some analysts call the HPI incomplete. The same could be said of all home price metrics, however – including the venerable Case-Shiller Index.

Therefore, what should be of interest to today’s buyers and sellers is that all of “popular” home valuation models seem to be telling the same story – home prices have stopped falling and look like they’re beginning to rebound.

For a region-by-region breakdown of the Home Price Index, visit the FHFA website.

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FHA Streamline Refinance Update

yourmortgageplanner — Wed, 23 Sep 2009 19:24:12 +0000

This update contains the pertinent changes to FHA Streamline Refinance guides as outlined in Mortgage Letter 2009-32 and are effective on November 17th, 2009..

Here are the 11 things you need to know about these changes:

1. Current loan must have 6 months payment history.

2. Current loans with 6 to 12 months payment history, NO 30 day late payments are allowed.

3. Current loans with 12 month payment or greater there is a maximum of ONE 30 day late payment in the last 12 months.

4. Refinance must reduce PITI by 5%, OR take them from an ARM to a Fixed (Fixed rate can’t be more than 2% higher. For Hybrids, new fixed rate can’t increase more than 20%), OR take them from a Fixed to an ARM (ARM must be 2% less than fixed rate).

5. If borrower is reducing the term, it must be processed as a rate and term refinance.

6. Investment properties and second homes are no longer eligible for the Streamline Refinance program.

7. Lender must include a signed and dated letter on their letterhead, that the borrower is employed and has current income.

8. The maximum CLTV is 125% of the new value or the original value if the loan is processed WITHOUT an appraisal.

9. Lenders should NOT use TOTAL on Streamlines unless they want to process the loan as a regular rate and term refinance

10. Lenders may NO LONGER use the short Loan application URLA (1003).

11. Payoff statement of current mortgage CANNOT include delinquent interest, late charges, or escrow shortages

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Using First-Time Homebuyer Tax Credits – Cannot Be Used For The 3.5% Required Down Payment

yourmortgageplanner — Wed, 03 Jun 2009 03:26:18 +0000

The First-Time Homebuyer Tax Credits – Cannot Be Used For The 3.5% Required Down Payment.

• Pursuant to 12 U.S.C. 1709(b)(9), the homebuyer’s downpayment required for eligibility for FHA insurance may not consist of any funds (including funds derived from a sale of the homebuyer tax credit) provided by the mortgagee, the seller, or any other person or entity that financially benefits from the transaction (or by any third party or entity that is reimbursed, directly or indirectly, by the financially benefiting person or entity). Accordingly, the proceeds of the sale of the tax credit to FHA approved mortgagees, the seller, or any other person or entity that financially benefits from the transaction (or any third party or entity that is reimbursed, directly or indirectly, by the financing benefiting person or entity), may not be used to meet the 3.5% minimum downpayment, but may be used as additional downpayment, buying down of interest rate, or other closing costs. – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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Using the $8,000 First Time Homebuyers Tax Credit as a Down Payment. – NOT So FAST!

yourmortgageplanner — Tue, 02 Jun 2009 17:25:10 +0000

I am sure you have heard all the Hype about the new ability about Using the $8,000 First Time Homebuyers Tax Credit as a Down Payment. Not so FAST! As a lender on the Broker side I am all over this; I have queried multiple lenders and have included there response. In short not one lender has implemented it and feel it will only be available towards the Closing Cost not the 3.5% required down payment.

Most borrowers will still have to come up with the FHA’s required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies. – AP: By ALAN ZIBEL

At this time Eagle has no investors who will take this. David feels that we need more time for the program to “evolve” as no one know who will monetize these funds. Borrowers can not yet use this as down payment, they still need the 3.5% down, it may let sellers off the hook for closing costs, but at this point no one knows.

When this is available to us, we certainly will let the world know, that includes YOU! – Eagle Funding.

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Mortgage Rate Week Review April 24, 2009

yourmortgageplanner — Sat, 25 Apr 2009 19:20:25 +0000

Mortgage rates ended the week of April 24, 2009 lower. The MBS FNMA 30 YR 4.0% finished up 21bp higher for the week (higher is better for the MBS, price and interest are inverse). The historically low rates for both conforming and FHA products are intended to help stimulate the economy by giving home owners a reduction in monthly housing obligations. The low rates are also intended reduce the excess supply of

mortgage-rates-april-24-09

home sitting on the market. One would hope the Monetary and Fiscal policy will eventually lead us to equilibrium and a stable economy and housing market.

Friday’s better than expected New Home Sales number (337K estimated 356K actual). The positive number could be the first chute to sprout for this spring recovery.

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FHA Streamline Refinance – No Credit Score Needed

yourmortgageplanner — Fri, 10 Apr 2009 17:00:16 +0000

What Is A Streamline FHA Refinance
The Traditional and Original FHA Streamline which I still offer consist of the following:

NO Appraisal
NO FICO Score
NO Income Verification
NO Asset Verification

After reading that there is little to nothing in order to qualify; you are probably asking what’s the catch, or this can’t be real.
First off FHA Streamlines have been around for years. To start your current mortgage must be a FHA insured mortgage. The intent is to lower the monthly principal and interest payments (P&I). The Streamline must decrease P&I by the lesser of $50 or 10%.

A streamline is considered a Rate and Term refinance, thus paying off debt or taking cash out is not an option ($500 max cash back).

Credit guidelines are what make the FHA Streamline unique. The credit profile is based on mortgage only. Although many lenders require a minimum 600 mid score. The benefit of the mortgage only is the fact that liabilities are not calculated into a debt to income (DTI) ratio. Underwriting is only concerned with the performance of the FHA loan. A delinquent mortgage is generally not eligible for streamline refinancing until the loan is brought current.

One of the Standout benefits of a Streamline is that Subordinate financing (2nd mortgage) may remain in place, regardless of the total loans against the property, with or without appraisals. What this means is that for homeowners in declining markets and who are upside down on their mortgage, they can still qualify for today’s historic Mortgage Rates.

Contact Me NOW to get started!

[where: 98109] [where: 85012] [where: 85029]

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Good Faith Estimate (GFE) – Understanding

yourmortgageplanner — Tue, 07 Apr 2009 17:45:40 +0000

Throughout my day and in this current market I provide and disclose GFEs; I move on assuming all borrowers understand the alphabet of acronyms. A potential client made me aware today that although I have been serving up GFEs for a better half of this decade that the majority of borrowers have no clue what our industry acronyms and initials stand for. With that said I will break down the GFE essentials. On a GFE to the right of all fees you will see check marks and above those check marks you will see the following acronyms.

PFC – Prepaid Finance Charges (APR items)
S – Seller Paid
F – FHA Allowable
POC – Paid Outside of Closing

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FHA Is Reducing The Maximum Loan-To-Value On Cash-Out Refinances

yourmortgageplanner — Fri, 27 Mar 2009 19:30:00 +0000

If you’re in need of a cash out refinance, the most liberal cash-out program in town is about to make qualification more difficult.

Effective April 1, 2009, the FHA is reducing the maximum loan-to-value on cash-out refinances by 10 percent, dropping the loan size limit from 95% of the home’s value to 85%.

In its official press release, the FHA says it’s making the change to “limit its exposure to undue risk”.

It also lists the following cash-out requirements:

With less than 12 months since the purchase date, a home’s value cannot exceed its original purchase price — even if home improvements were made.
A homeowner must be current on his mortgage payments to qualify
A second, verifying appraisal may be necessary, depending on loan traits
Co-signers may not be added to the mortgage note in order to qualify

The last day to register a FHA 95% cash out refinance is Tuesday, March 31, 2009. The loan does not need to be “locked” — only registered.

So, if you know that a 95% cash out FHA refinance is in your future, you maybe out of luck?

[where: 98109] [where: 85012]

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