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Friday, August 15, 2008
| Posted by Gary Holt at 10:13 AM |
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Tuesday, June 03, 2008
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Advantage of FHA Loans
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The Advantages of FHA Loans
In many regions of the U.S., FHA loans have not been utilized for years, so a lot of real estate agents and mortgage originators aren't familiar with this great resource. The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:
1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values surpassed FHA loan limits in many regions of the U.S. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the U.S. through the end of the year. FHA loan limits vary by county, so give us a call for loan limits in your area.
2) The FHA changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans becau...
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| Posted by Cody Waite at 8:56 PM |
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Monday, May 26, 2008
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Fannie Mae Guideline Changes
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Changes to Fannie Mae Guidelines
Fannie Mae has announced a new underwriting model to take effect June 1. There are several changes, some for the better and some for the worse.
Fannie Mae generally sets underwriting standards for "conforming loans". Other than FHA, VA, and a small number of other programs, meeting Fannie Mae guidelines is necessary for the homebuyer to get a "good rate".
Although the conforming universe has tightened considerably in recent months, financing is still readily available at very good rates for the well qualified borrower. These changes have not been directly related to the subprime and Alt A problems, and they have been far less drastic.
Among the changes:
- Maximum allowable debt-to-income ratio will be lowered in many situations.
- Time since a foreclosure will be five years. The old rule is two years.
- 60 days late on a mortgage within the p...
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| Posted by Cody Waite at 10:56 AM |
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Tuesday, May 20, 2008
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Mortgage Bond Foecast For The Week
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Several reports are scheduled to hit the wires this week, with the potential to make for more good or bad days in the Bond Market. A big market mover may come Wednesday at 2:00pm ET, when Ben Bernanke and the Fed release the Minutes from their last meeting on April 30th. These minutes often give us greater insight as to what Bernanke and the Fed may be thinking about inflation and the state of the economy.
Remember when Bond prices move higher, home loan rates move lower...and vice versa. Despite some declines in the early part of the week, Bonds were able to rally back as you can see in the chart below. I'll be watching closely to see if Bonds can remain above the layer of resistance at the 50 and 100-Day Moving Averages.
Chart: Fannie Mae 5.5% Mortgage Bond (Friday May 16, 2008)
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| Posted by Cody Waite at 8:10 PM |
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Saturday, May 03, 2008
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Interest Rates Make a Sudden Drop
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Long-term mortgage interest rates declined Thursday, and the benchmark 10-year Treasury bond yield increased to 3.76 percent.
The 30-year fixed-rate average sank to 5.72 percent, and the 15-year fixed rate dipped to 5.29 percent. Meanwhile, the 1-year adjustable rate fell to 5.9 percent.
The 30-year Treasury bond yield rose to 4.5 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
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| Posted by Cody Waite at 3:35 PM |
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Monday, April 21, 2008
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Mortgage Interest Rate Myths
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Mortgage Interest Rate Myths
This may come as a shock to many borrowers, but it's absolutely true. Mortgage interest rates are not set by the Federal Reserve and, contrary to popular belief, mortgage rates are not directly tied to the yields of US Treasury bills, bonds, or notes ? including the 10-year Treasury Note. That's right. Despite what you might hear in the media, mortgage interest rates are actually set by lending institutions, and are based solely on the performance of mortgage-backed securities.
For years now, the media and inexperienced loan officers everywhere have suggested that the 10-year Treasury Note, a government-backed security, is directly tied to mortgage interest rates, that the two are separated by a specific interval ? which is simply not true. The graph on this page, which shows interest rates for 30-year fixed-rate mortgages and the yield for the 10-year Treasury Note for ...
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| Posted by Cody Waite at 6:45 PM |
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Saturday, April 12, 2008
| Posted by Gary Holt at 10:19 AM |
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Thursday, April 10, 2008
| Posted by Gary Holt at 11:47 AM |
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| Posted by Gary Holt at 10:28 AM |
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