Mortgage Rates

February 9, 2010 by Jim Hungerford

Mortgage rates and what will impact them this week!

The biggest report this week will be Retail sales due on Thursday.  There will be treasury auction Tuesday, Wednesday and Thursday.  Trade balance will come out Wednesay and consumer sentiment will round out the week on Friday.

Conforming Limits:  1 unit $417,000; 2 unit $533,850; 3 unit $645,300; 4 unit $801950

These rates do not reference a specific loan program, rather, they reflect general market conditions, which are subject to change at any time.

                  TERM                                                                               Range

Conforming 30 Year Fix                                        High 4 – Low 5

Conforming 15 Year Fix                                                 Low 4 – High 4

Conforming 3/1 Arm                                                Low 4’s

Conforming 7/1 Arm                                                      Low 5’s

Non-Conforming 30 Year Fix                            High 5 – Mid 6

Non-Conforming 15 Year Fix                                     Mid 5 – Low 6

Non-Conforming 5/1 Arm                                  Mid 4 – Low 5

FHA 30 year fix                                                              High 4 – Low 5

FHA 5/1 Arm                                                               Low 4 -Mid 4

VA 30 Year Fix                                                              Low 5 – mid 5

Rural Dev 30 year fix                                           Low 5 -  mid 5

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

 Conforming – Loans designed for primary, second and investment properties. There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

 Non-Conforming – . Typical loan amounts above 417,000.00.

 FHA- 30 year amortized loan. 3.5% down required by the borrower (can be gifted by an acceptable source).

 VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

 Rural Housing- Must be in rural housing area. 100% financing based on appraised value. Adjustable household income cannot exceed the maximum allowable income limits.

 All-in-One Construction – one time close for both conforming and non-conforming.

Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403

Posted in Mortgage Market Update | Leave a Comment »

RESPA/GFE 2010

February 5, 2010 by Jim Hungerford

Still not understanding the new RESPA Rules or why you can not get a good faith estimate (GFE)?  You are not alone!!

HUD issued a 57 pages of RESPA FAQs!!

A GFE shouldn’t be issued until the loan originator has a complete application.  Once the originator has a complete application, they have 3 days to issue a GFE or deny the loan.  In issuing a GFE, the originator creates liabilities for the lender that cannot be modified without a change in circumstances.

RESPA definition of change of circumstances:

 (1)(i) Acts of God, war, disaster, or other emergency;

(ii)  Information particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided. This may include information about the credit quality of the borrower, the amount of the loan, the estimated value of the property, or any other information that was used in providing the GFE;

(iii)  New information particular to the borrower or transaction that was not relied on in providing the GFE; or

(iv)  Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

(2)  Changed circumstances do not include:

(i)  The borrower’s name, the borrower’s monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or

(ii)  Market price fluctuations by themselves.

 

I believe the intent of the new 2010 GFE was to universalize a form that would enable a consumer to  compare lenders/brokers fee’s .  Unfortunately the 2010 GFE is a cumbersome disclosure that has made it difficult for a lender to offer clients a useful to tool.

Pros:

1)  Established what constitutes a complete application

2)  Consistent look of GFE for all loan originators

3)  Protecting consumer from inaccurate rate/fee quotes (GFE/HUD have tolerances they must comply with)

Cons:

1)  Includes costs the buyer may not have to pay(depends on State/County home is in)

2)  Does not include PITI (principal, interest, taxes and insurance) of home

3)  Does not  illustrate true cost to buyer.

4)  Took 1 page form and made it into 3 pages.

If you want a good faith estimate, then be ready to provide a complete application.  Some loan originators will offer you a cost worksheet prior to a complete application.  If the cost work sheet is from a reputable source, then it could be a useful resource.  It should include an estimate on the borrowers out-of-pocket expenses, as well estimate on principal/interested (based on loan amount/interest rate), taxes and insurance (estimate based on price/area of home).

If you are buying or refinancing on the West Coast (Washington, California and Oregon), please give me a call to discuss your options.  I can be reached at 971-226-8403.

Tags: , , , , , , , , ,
Posted in Home Buying | Leave a Comment »

Today’s Mortgage Rates

February 4, 2010 by Jim Hungerford

Conforming Limits:  1 unit $417,000; 2 unit $533,850; 3 unit $645,300; 4 unit $801950

These rates do not reference a specific loan program, rather, they reflect general market conditions, which are subject to change at any time.

                  TERM                                                                               Range

Conforming 30 Year Fix                                        High 4 – Low 5

Conforming 15 Year Fix                                                 Low 4 – High 4

Conforming 3/1 Arm                                                Low 4’s

Conforming 7/1 Arm                                                      Low 5’s

Non-Conforming 30 Year Fix                            High 5 – Mid 6

Non-Conforming 15 Year Fix                                     Mid 5 – Low 6

Non-Conforming 5/1 Arm                                  Mid 4 – Low 5

FHA 30 year fix                                                              High 4 – Low 5

FHA 5/1 Arm                                                               Low 4 -Mid 4

VA 30 Year Fix                                                              Low 5 – mid 5

Rural Dev 30 year fix                                           Low 5 -  mid 5

THERE ARE NUMEROUS LOAN PRODUCTS AVAILABLE:

 Conforming – Loans designed for primary, second and investment properties. There are restrictions in regards to loan amount (SFR is typically 417,000, but in some areas it may be higher).

 Non-Conforming – . Typical loan amounts above 417,000.00.

 FHA- 30 year amortized loan. 3.5% down required by the borrower (can be gifted by an acceptable source).

 VA- Guaranteed by the federal government based on the amount of entitlement to the veteran in conjunction with the loan amount.

 Rural Housing- Must be in rural housing area. 100% financing based on appraised value. Adjustable household income cannot exceed the maximum allowable income limits.

 All-in-One Construction – one time close for both conforming and non-conforming.

Other products available

ANY QUESTIONS REGARDING THIS INFORMATION PLEASE CONTACT:

Jim Hungerford at 971-226-8403

Tags: , , , , , , , , , , , , , , , , ,
Posted in Mortgage Market Update | Leave a Comment »

Part 1 – Powerful tools for a prosperous 2010

February 2, 2010 by Jim Hungerford

Scheduling

1. If it’s not in your schedule, it doesn’t exist.

2. Create your schedule in advance:

a. Every day off, holidays, vacations, birthdays, date nights, exercise sessions, Doctor appointments … everything that will create personal balance for you. Make sure to involve your family & friends.

b. All the training you will do personally and professionally. All of the activities from your business plan …role-playing, planning time, prospecting, lead follow-up, office meetings, staff meetings and your buyer and seller appointments.

3. Once you’ve laid out your schedule for the year never make a commitment of your time without first reviewing your schedule.

4. Be purposeful and outcome driven versus distraction and emergency driven. When you don’t have a schedule, your life and business are driven by distractions and your reactions to them.

5. To force you to stay on your schedule simply tell everyone about your schedule.

6. You can get infinitely more done when you do everything in blocks of time (work expands to fit the time allotted).

7. Your only job is to follow the schedule; not following the schedule is a symptom of meaningless goals.

8. Accept the fact that your prospecting appointments are as important as your listing appointments. You can’t do one without the other.

9. Prospect first thing in the morning, before you do anything else. Here are some reasons why:

a. You have more energy.

b. There are fewer distractions.

c. People are more receptive.

10. The people whom you find home during the day while prospecting are the same people who can list & sell during the day. This can help you eliminate some night & weekend appointments.

11. Everyone struggles with their schedule in the afternoon because they have not scheduled specific, “monitorable” activities.

12. When you don’t complete your prospecting in the morning, you carry the guilt of it around with you all day.

13. Most people in real estate never really work hard. They look busy by reviewing their files, talking to other people, reviewing marketing plans, constantly filling things out, and working on the computer. They are always in a hurry. This is called the rocking chair syndrome: Lots of movement – but you’re not going anywhere.

14. Mental toughness is doing what you are supposed to do even on the days you don’t feel like it.

15. Discipline is the ability to make & keep promises to yourself.

Posted in Home Buying | Leave a Comment »

Weekly Market News

February 2, 2010 by Jim Hungerford

News this week that may impact the mortgage industry:

The biggest event could be the Employment report this Friday.  Personal income and ISM manufacturing will be released on Monday, Pending Home Sales on Tuesday,and ISM on Wednesday.

Tags: , , , , , , , , , ,
Posted in Mortgage Market Update | Leave a Comment »

Mortgage Rates

January 27, 2010 by Jim Hungerford

As expected, the Fed made no changes to the fed funds rate.  The FOMC statement confirms the plans to slow down the process of purchasing Mortgage Backed Securities, and in fact the purchase program is expected to be completed by the end of March.

It is felt that this purchase plan has artificially kept mortgage rates roughly 1% lower.

Tags: , , , , , , , , , , , , , , , , ,
Posted in Mortgage Market Update | Leave a Comment »

Mortgage Market holding somewhat steady

January 26, 2010 by Jim Hungerford

Today the dow was down 50 points and MBS was -2/32nds for the end of the day.

Market movers this week could be:

Wednesday – Fed Meeting and New Home Sales

Thursday – Durable Orders

Friday – GDP and Chicago PMI

Posted in Mortgage Market Update | Leave a Comment »

FHA announces policy changes

January 20, 2010 by Jim Hungerford

FHA announced it will raise mortgage insurance premiums and update the combination of FICO scores and down payments for new borrowers.

 Announced Policy Changes:

1)  Mortgage insurance premium (MIP) will be increased.

  •  Raise up-front MI (increase the loan amount)
  • Second step would be to increase the annual amount (increase monthly payment)
  • Should go into effect this spring

2)  Update the combination of FICO scores and down payments for the new borrower

  • Increase the FICO score to 580 (most lenders will not take anything under 620).  Credit less than 580, will be required to have 10% down payment.

3)  Reduce allowable seller concessions from 6% to 3%

  • Expected sometime early summer

4)  Increase enforcement on FHA lenders

  • Publicly report lender performance rankings

 

HUD Takes Action to speed resale

FHA will look at allowing a buyer to purchase a home where the seller has owned the property for less than 90 days.  The policy change (waiver) will take effect February 1, 2010 and is effective for one year.

The waiver will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales.  However the waiver is limited to those sales meeting the following general conditions:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
  • In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
  • The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website.

Tags: , , , , , , , , , , , , ,
Posted in Home Buying | Leave a Comment »

Mortgage Rates holding steady

January 20, 2010 by Jim Hungerford

Yesterday the MBS lost a bit, but with the weakness of the stock market today it appears we have gained most of the losses from yesterday.

Today’s economic data was mixed.

Tomorrow event include – Philly Fed, leading indicators and the Fed will announce the size of the upcoming auction

Posted in Mortgage Market Update | Leave a Comment »

Mortgage Rates improve over the week

January 15, 2010 by Jim Hungerford

The first couple of weeks in January have been volatile, but rates have improved a bit.   

How long can this go on is the magical question?

The major concern is inflation expectations.  Inflation has not been a factor in the short-term, but core inflation has risen by 1.8% from a year ago (according to the CPI report).  Annual comfort level for inflation to rise is 1 to 2%.

Tags: , , , , , , , , , , , , ,
Posted in Mortgage Market Update | Leave a Comment »

« Older Entries