Archive for January, 2010

Springtime Homebuyers Start Early

by Justin Miller on January 31, 2010 in General News with No comments

I think this was a given in most people’s minds since the homebuyer tax credit is only good if you under contract by April 30th and close by June 30th.  And they should be out now especially with interest rates as low as they are which in my opinion is more important than the tax credit.  The tax credit is just a bonus. 

I am glad someone else is talking about how long you should give in order to close on a home.  It should always be at least 30 days.  “The average time it takes to get a home loan processed is about eight weeks now — two weeks more than it used to be, according to the National Association of Realtors.”

http://www.usatoday.com/money/economy/housing/2010-01-19-spring-home-buyers_N.htm?csp=usat.me 

Divorce and Your Home

by Justin Miller on January 31, 2010 in Refinance with No comments

Not only is it important to talk with a divorce attorney but you will also want to speak with a mortgage professional if you and your spouse own a home together.

If you choose to keep you home you will want to know how to go about refinancing the mortgage and the best route depending on whether you need to take cash out of the property or just remove the spouses name from the loan. 

Many do not know that you can get a name delete assumption.  A name delete assumption is getting someone else’s name removed from the mortgage and keeping the same loan.  It is much less expensive then your traditional refinance.  You will want to call your mortgage servicer and ask for the assumption department.  Every bank is different so the costs will vary.  I believe Wells Fargo charges $500 but if you have an interest rate of 5% and rates are now at 6% you will want to keep that low interest rate. 

The article below has a lot of great information. 

http://mortgageminute.mortgage-market-news.com/2009/11/12/divorce-mortgage-–-essential-things-you-need-to-know-about-your-house/

Don’t Be Complacent With Interest Rates

by Justin Miller on January 30, 2010 in Interest Rates with No comments

That’s what the Fed’s Kohn said and I agree 100% with him.  Kiplinger predicts that rates will be at 6% towards the end of the year.  No one knows what will happen and as I have said time and time again what we do know is that interest rates are at historic lows now.

Don’t wait around because it could cost you tens of thousands of dollars.  If you are in a low adjustable rate you should refinance now if you plan on staying in the home.  I know that some have rates in the 2 and 3 percents which is great but don’t wait around. 

When the Fed stops buying at the end of March rates will most likely go up.  It might not be by a full percentage but they will probably be higher.  We have seen what greed has done to our economy so don’t let it happen to you. 

http://online.wsj.com/article/SB10001424052748704343104575033422444625754.html?mod=rss_economy 

Appraisal Management Companies Conflict of Interest

by Justin Miller on January 29, 2010 in Appraised Values with No comments

This was not written by me but by Rob Chrisman who is a director of Capital Markets.  I found it very interesting since we have all own that the big banks have interests in the appraisal companies just like Countrywide did with Landsafe which the owned.  

“How far can an appraisal management company go toward originating mortgages? We may find out shortly. It is well know that many large companies such as Wells and BofA have interests in AVM’s but recently a story has made the press about an appraisal company getting involved in mortgage banking. Is it a possible conflict of interest? Stay tuned.”

http://www.prweb.com/releases/appraisal_management/hvcc_compliance/prweb3494924.htm 

Can I look Up My Mortgage Broker?

by Justin Miller on January 29, 2010 in Mortgage Education 101 with No comments

Apparently you can now.  “By clicking onto NMLS Consumer Access, borrowers have entry to a single source of information, updated nightly, that tells them whether the loan officer or broker with whom they are working is licensed, the company he or she is licensed with, the branch where the originator works and his employment history going back 10 years.” 

Florida is on the list yet but here is what they said.  “Currently, 31 states, the District of Columbia and Puerto Rico are on the NMLS, Twelve more started “transitioning” onto the system earlier this month, leaving just seven more to go. And those seven — Florida, Hawaii, Maine, Minnesota, Missouri, Nevada and Texas — have all indicated their intention to meet the federally mandated July 31 deadline.”

http://www.marketwatch.com/story/new-web-site-lets-consumers-check-up-on-lenders-2010-01-29?siteid=rss&rss=1

Fannie Mae: Free Toasters To Spur Home Buying

by Justin Miller on January 28, 2010 in Conventional Loans with No comments

Fannie Mae (FNM ) this morning announced it plans to give home buyers who purchase before May 1 3.5% of the closing costs of their home if they purchase from its HomePath.com site, or alternatively, “the equivalent amount in their choice of appliances.”

As a move to reduce the amount of housing stock, the company said the offer was critical to “stabilizing neighborhoods and helping the market recover.”

Fannie shares are off 2 cents, or 2%, at 99 cents; cousin Freddie Mac (FRE ) is down 4 cents, or 3%, at $1.17.

http://blogs.barrons.com/stockstowatchtoday/2010/01/28/fannie-mae-free-toasters-to-spur-home-buying/?mod=rss_BOLBlog 

The Fed’s Interest Rate Decision

by Justin Miller on January 28, 2010 in Interest Rates with No comments

The Fed did not announce today about extending their buying of mortgage-backed securities.  I wasn’t expecting them to announce it now.  I think they will wait until the end of March if they are going to do anything.  They like to keep everyone on their toes and surprise you.  That way if they do announce they will extend it anyone who may have just closed with a higher rate will have lost additional monies for the life of the loan.  Life can be unfair and so can our government. 

Here is what The Wall Street Journal reported and I certainly do not agree with the last sentence of this. 

“The Federal Reserve offered a slightly rosier economic outlook and reaffirmed it would stop buying mortgages in March, on the eve of the Senate vote Thursday on Ben Bernanke’s nomination for a second term as Fed chairman.  The Fed’s policy-making arm, the Federal Open Market Committee, said it would continue to keep interest rates near zero for an “extended period,” meaning at least several more months, according to a statement released Wednesday after a two-day meeting.  But in the first sign of dissent in a year, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, voted against the action, saying the economy and markets were strong enough for the Fed to remove its commitment to keep rates low.”

http://online.wsj.com/article/SB10001424052748704094304575029140633699592.html?mod=rss_whats_news_us

Housing Markets Most Undervalued Cities

by Justin Miller on January 28, 2010 in General News with No comments

Would you believe Florida is on it?  Of course along with CA, Nevada, Michigan, and NJ to my surprise.  They do name individual cities and there are many others especially in Florida such as Fort Lauderdale, Miami, Palm Beach, and all of South Florida. 

You can certainly find an article that says just the opposite and I read them all of the time. I don’t choose to post them because a big part of all of this is consumer confidence.  Also, I want people to consider buying a home and then talk to a mortgage professional to determine what is best for them.  As I have said before, now isn’t the time to buy for everyone. 

This statement stood out to me and I am sure there is truth behind it but don’t let this article or any other article convince you to do something you don’t want to do or shouldn’t do.  The saying that I mentioned before that I heard is “owning a home is a lifestyle.” 

“I’ve done some research that shows when you get a bubble, you don’t just return to normalcy,” he added. “You go past normalcy for a long period of undervaluation.”

http://money.cnn.com/2010/01/27/real_estate/most_overvalued_metro_areas/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Making Home Affordable Program

by Justin Miller on January 27, 2010 in Foreclosure, Loan Modification with No comments

Here is a horror story of one families attempt to get help with the Home Affordable Modification Program (HAMP).  I am sure there are many others that can tell similar stories and I am sure it will just continue. 

The only thing I can say is that we all need to learn from what is going on right now.  We need to be more responsible, do a better job of saving money, etc.  You cannot control what the banks, Wall Street, and the government do but we can control our decisions.  Believe me, I am guilty myself.  I am human and I have made mistakes of my own but I will tell you right now I will not them repeat. 

If you are buying a house, make sure to have 12 months or more in reserves for your mortgage payment.  This is just one of many things we can do.  Go see a Financial Planner to figure out what you need to do to better prepare for your future. 

http://redtape.msnbc.com/2010/01/for-nine-months-deb-franklin-says-she-did-exactly-what-jp-morgan-chase-and-president-barack-obama-told-her-to-do-she-made.html

Bank of America To Modify Second Mortgages

by Justin Miller on January 27, 2010 in Foreclosure, Loan Modification with No comments

They are the first servicer to sign on but I am not going to write anything on this because of this statement.  “The Treasury Department has not yet issued final guidelines for the program; administration officials say they expect to do so soon.”

Feel free to click on the link below and read it in it’s entirety. 

http://blogs.wsj.com/developments/2010/01/26/bank-of-america-agrees-to-modify-second-mortgages/ 

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