We all know that the “most qualified” borrowers–those with the highest credit scores, solid incomes, strongest payment histories, and either a substantial equity stake or large down payments–have access to the best mortgage rates available.
But there’s another way borrowers can make sure they have access to the lowest possible mortgage rates: Read the rest of this entry »
The Bureau of Labor Statistics reported this morning that the U.S. added no new jobs last month, and the unemployment rate remained at 9.1 percent.
When was the last time this country reported a net job change of zero? The answer is 1945. Not good.
While mortgage rates are pretty flat at the moment, at least some folks are starting to worry about the coming market for jumbo loans.
A change in the maximum loan sizes that Fannie Mae and Freddie Mac can buy (or that the FHA can back) is the culprit. It is only the first of what will be many changes in the market in the months to come.
Albert Einstein once said, “The hardest thing in the world to understand is the income tax.” It’s safe to say that understanding the intricacies of your home loan and the mortgage market may be the second-hardest thing for consumers to understand. When you’re dealing with what likely will be the largest transaction of your life, you better make sure you understand what you’re getting into and what it’s going to cost you.
As we mentioned yesterday, many homeowners aren’t even taking the time to read their Good Faith Estimate, the document designed to breakdown your mortgage costs. That’s just one reason why HSH.com has made our very own expert available to all of you.
What would your reaction be if lawmakers decided to do away with the mortgage interest deduction? For certain homeowners, tax season, along with all the usual stress it brings, means the opportunity to deduct some of the interest they paid on their mortgages all year long. However, there have been some discussions, both on Capitol Hill and beyond, of doing away with the famed mortgage interest deduction as a way to correct this country’s ever-growing deficit.
As you might anticipate, many homeowners and professionals are up in arms over the idea, while others think eliminating the deduction could be a reasonable solution.
With the current mortgage market in such a state of transition and change, it’s hard to keep track of all the different regulatory changes, let alone when they are slated to begin. Today, April 1, 2011, two changes to the mortgage market are officially underway: The banning of yield spread premiums (YSPs) and changes to Fannie and Freddie’s risk-based pricing adjustments.
If that sounds like a mouthful of technical terms and industry mumbo-jumbo, you’re not alone. However, this mortgage industry jargon is expected to shape the future landscape of the mortgage market and is highly-anticipated to affect your mortgage experience and increase costs.
There was a really interesting article written by Binyamin Appelbaum in the New York Times yesterday titled “Without Loan Giants, 30-Year Mortgage May Fade Away.” There has certainly been a lot of chatter about the possible disappearance of the 30-year mortgage given the pending Fannie, Freddie reform. Appelbaum not only delved into why the long-term loan may disappear, but also the impact to our mortgage market.
What would a non-GSE mortgage market be like?
You’ve finally gone to contract on your home, and now you’re sorry you have. How can you get out of the contract?
Marcie Geffner has a new article on HSH.com that will help answer that question and more. Below is an excerpt from Marcie’s article, “Seller’s remorse? How to back out of a home sale contract,” but be sure to read it in its entirety:
Jane Blume’s story is one many middle-aged Americans can relate to: Her aging parent was beginning to run out of money. The money her mother spent her whole life saving was quickly dwindling. When Social Security was no longer enough to help Blume’s mother cover her bills, maintain her home and pay for her every-day expenses, she suggested her mom apply for a reverse mortgage.
“Older Americans born in the pre-war era have a stigma about reverse mortgages,” says Eric Declercq, national retail leader for reverse mortgages at MetLife. “They [don't] want to strip their equity.” Read the rest of this entry »
Adjustable rate mortgages (ARMs) were blamed by some financial commentators for the rise in foreclosures, so many homeowners are wary of them. Indeed, only 5 percent of mortgage applications at the end of 2010 were for ARMs. While it’s true that ARMs are a bit more complicated than fixed-rate loans, in an environment of rising mortgage rates, ARMs are especially worth a second look if you’re refinancing.
ARMs offer low initial mortgage rates
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
