Tuesday, May 13, 2008
by Phoenix Heritage Real Estate Group
Interesting opinion article in the Wall Street Journal about why the Housing Crisis is over for the most part.
The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.
Read the text of the full article here.
Friday, May 02, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates went lower this week. The Fed dropped their Fed Funds Rate by .25% on Wednesday. More important than what the Fed did, was what the Fed said. They hinted that this would likely be the end of their rate cuts which is good news to Mortgage Lenders. The Fed now sees inflation as their number one concern (once again good news to Mortgage Lenders). When the Fed cuts their Funds Rate it spurs on the economy by dumping money into the economy immediately but also increases the likelihood for inflation. Inflation is always a major concern for Mortgage Lenders because they lend money today and then get paid back over many years.
As of 5/2/08 based on a 200k purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
95% 30 Year Fixed = 6%
95% 15 Year Fixed = 5.625%
97% FHA 30 Year Fixed = 6.125%
100% VA 30 Year Fixed = 6.25
80% 30 Year Fixed = 6.25% (Stated Income Stated Assets)
80% Jumbo 5 Yr ARM = 5.625% (417k+ Loan Amount)
Keep in mind…….FHA loans are not affected by Declining Market policies which means maximum financing is still available. We have access to programs such as AmeriDream which allow the seller to contribute for the borrower’s entire down payment and all of their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1751 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Tuesday, April 29, 2008
by Phoenix Heritage Real Estate Group
Perhaps one of the most frequently asked questions we get these days, is whether this is a good time to buy or not. The sound of "doom and gloom" in the media is hard to get over, but the reality is that most savvy Buyers and Sellers are contrarians by nature. They buy when everyone else is selling and they sell when everyone else is buying. In addition, the raw facts and data point to the reality that this is, indeed, a good time to buy, and in fact a great opportunity.
Here are three excerpts that we like from various sources:
1. "The best buyer's market in 35 years. In April of 1973, mortgage rates were about the same as they are today. Since that time, we have only had mortgage rates this low during 2001 and 2002, the height of the seller's markets where there was little inventory. In the last two major buyer's markets, one in the early 1980s and the other in the early 1990s, the rates were much higher. When I started in the business in 1978, interest rates were at 9.75 percent, en route to 18 to 21 percent in 1980. In the early 1990s, the rates were hovering in the 11 to 12 percent range. Thus, today's buyer's market, with exceptionally low mortgage rates plus a substantial supply of inventory, is the best time in decades to purchase."
Source: Inman News
2. "Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be."
Source: Time Magazine
3. "30-Year Rates Jump to 6.03%. Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ended April 24, from 5.88 percent the prior week, marking it the first time in six weeks that mortgage rates rose above 6 percent. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent. The five-year adjustable mortgage rate increased to 5.68 percent from 5.48 percent, while the one-year adjustable rate shot up to 5.28 percent from 5.10 percent. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns."
Source: Baltimore Sun
The fact of the matter is: We will know for sure that we are at the bottom of the downturn, once the prices start going back up. When this happens, it is already too late. Every buyer that is currently sitting on the fence is going to jump in, and attempt to buy. This will create a fast paced, competitive market. The good deals will go to the strongest Buyers, and the options available will rapidly decrease. So, perhaps this is the best buying opportunity! Learn the lessons of the past decade – buy a house that you can afford. Don’t speculate. Work with a professional who knows and understands the market. More importantly, find a professional that works in and understands THIS market - with all of its unique challenges and opportunities. And most importantly – ignore the headlines, and have fun!
Friday, April 25, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates held steady compared to last Friday. We dropped lower early in the week and then bounced back up late in the week. Once again, exactly the opposite path as the stock market.
As of 4/25/08 based on a 200k purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
95% 30 Year Fixed = 6.125%
95% 15 Year Fixed = 5.75%
97% FHA 30 Year Fixed = 6.25%
80% 30 Year Fixed = 6.375% (Stated Income Stated Assets)
80% Jumbo 5 Yr ARM = 5.625% (417k+ Loan Amount)
Keep in mind…….FHA loans are not affected by Declining Market policies which means maximum financing is still available. We have access to programs such as AmeriDream which allow the seller to contribute for the borrower’s entire down payment and all of their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1751 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Friday, April 18, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates increased this week. The stock market had a good week which almost always means a bad week for interest rates and this week was no exception. Here is an FYI and hopefully some helpful advice. Due to lending restrictions and Declining Market Policies, Private Mortgage Insurance is no longer available on a condo in Maricopa County above 90% Loan to Value. Along the same lines, there are currently no 2nd mortgages that go above 90%. Conventional financing requires either Private Mortgage Insurance or a Combo 2nd mortgage in order to go above 80%. So what does this mean? Basically, the only way to buy a Condo with less than a 10% down payment is with an FHA loan (or VA). But…..in order to do this the condo must be an FHA approved condo. Use this link to find all the FHA approved condos for a particular zip-code https://entp.hud.gov/idapp/html/condlook.cfm It is important that all you do is type in the zip-code and then hit send in order to get the full list. If you have a Listing on a condo and the complex is FHA approved you have a huge advantage. I would recommend putting FHA APPROVED in big capital letters on your Property Description, Sign Riders and anywhere else that you advertise. Hope that helps – Good Luck!
As of 4/18/08 based on a 200k purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
95% 30 Year Fixed = 6.25%
95% 15 Year Fixed = 5.75%
97% FHA 30 Year Fixed = 6.25%
80% 30 Year Fixed = 6.375% (Stated Income Stated Assets)
80% Jumbo 5 Yr ARM = 5.625% (417k+ Loan Amount)
Keep in mind…….FHA loans are not affected by Declining Market policies which means maximum financing is still available. We have access to programs such as AmeriDream which allow the seller to contribute for the borrower’s entire down payment and all of their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1550 E Missouri #203
Phoenix, AZ 85014
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Tuesday, April 15, 2008
by Phoenix Heritage Real Estate Group
The country's two largest sources of mortgage money have a blunt warning for anyone thinking about joining the growing "walkaway" trend, where homeowners stop making payments and months later send the house keys back to their lender: You will feel the pain.
On March 31, Fannie Mae sent out new guidelines to lenders intended for walkaways and other foreclosure situations. Fannie will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years, unless there are "documented extenuating circumstances." In those cases, the mortgage prohibition is for three years.
Even after five years, borrowers with foreclosures in their files will be required to make at least a 10 percent down payment, and will need minimum FICO credit scores of 680.
Freddie Mac, Fannie's rival, counts foreclosures as major credit blots for seven years, and a senior official said the company is now aggressively pursuing some walkaway borrowers "to preserve our deficiency rights" where permitted under state law.
The walkaway trend is particularly noteworthy in former housing boom markets - including California, Florida and Nevada - where many homeowners find themselves upside down on their loans, owing tens of thousands more than the current market value of their houses. If they invested little or nothing in down payments, some owners reason, continuing to make payments - even if they can afford to - may be throwing good money after bad.
A number of Web sites have popped up claiming to cut the hassles of bailing out of a mortgage. One company promises that clients "will be able to live in (the) home for up to eight months with no mortgage payments," after paying $895 for a customized plan. The same site says it will provide clients with "legal credit repair" to "improve your FICO scores."
Another Web site claims that "your credit can be repaired and (you will) be able to purchase a house in as few as two years" - after paying a $495 fee. Still another company says walkaways can expect "up to one year living payment free" as the lender goes about filing for foreclosure. That company charges $995 for its how-to-do-it kit.
Fair Isaac Corp. of Minneapolis, developer of the FICO scores used in most mortgage transactions, is unhappy at any suggestion that a foreclosure could be minimized or wiped away in a short period of time. Its scoring model counts foreclosure as a long-standing and severe event, nearly comparable with bankruptcy, with negative consequences for all forms of credit that walkaways might seek to obtain. That includes credit card applications, auto loans, student loans - and even insurance and employment.
FICO spokesman Craig Watts said that the impact of a foreclosure on an individual's score depends heavily on the payment history, length and number of credit trade lines in a consumer's file, but "it is always significant."
Robin Stout Migala, consumer outreach manager for Freddie Mac, said in an interview that "there are so many bad reasons for walking away" from a home loan. Not only are borrowers' credit standings wrecked - forcing them into excessively high interest rates on any credit they can manage to obtain. But they also face other potential problems, including federal income tax liabilities.
Federal legislation enacted last year allows homeowners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven. Walkaway borrowers, by contrast, have nothing forgiven, and the IRS may demand income taxes on the balance they never paid, according to Migala.
Many borrowers facing foreclosure today have endured serious financial crises, said Migala - loss of employment, loss of an income-earning spouse, medical issues, and predatory loan terms - that led to their inability to make their mortgage payments.
When they apply for a loan from either Freddie Mac or Fannie Mae, she said, the standard application form asks whether they have ever experienced a foreclosure or handed over their deed in lieu of foreclosure.
If applicants check "yes," the loan is immediately shifted to manual underwriting. Every piece of information is scrutinized by underwriters, who probe for the facts surrounding the loss of the house.
For borrowers who faced genuine financial hardships leading to foreclosure, underwriters are likely to be more sympathetic a few years down the road. But if you walk away, here's the deal: Don't expect to get a new home loan - certainly not one with favorable terms - for five to seven years.
Saturday, April 12, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates held steady this week. It was a surprisingly quiet week on the economic and interest rate front.
As of 4/11/08 based on 200k purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
95% 30 Year Fixed = 5.875%
95% 15 Year Fixed = 5.375%
97% FHA 30 Year Fixed = 6%
80% 30 Year Fixed = 6% (Stated Income Stated Assets)
80% Jumbo 5 Yr ARM = 5.625%
Keep in mind…….FHA loans are not affected by Declining Market policies which means maximum financing is still available. We have access to programs such as AmeriDream which allow the seller to contribute for the borrower’s entire down payment and all of their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1550 E Missouri #203
Phoenix, AZ 85014
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Friday, April 04, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates dropped this week. Nearly all of the gains came on Thursday and this morning as the Labor Department came out with 2 dismal jobs reports. The rule of thumb is that most economic reports that are bad news for the stock market are good news for interest rates. The exception to this rule is inflation which is bad news for both. Luckily, inflation still seems to be under control but this is a constant worry due to energy prices.
As of 4/4/08 based on 200k purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
95% 30 Year Fixed = 5.875%
95% 15 Year Fixed = 5.5%
97% FHA 30 Year Fixed = 6%
85% 30 Year Fixed = 6% (Stated Income Stated Assets)
80% Jumbo 5 Yr ARM = 5.625%
Keep in mind…….FHA loans are not affected by Declining Market policies which means maximum financing is still available. We have access to programs such as AmeriDream which allow the seller to contribute for the borrower’s down payment and their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1550 E Missouri #203
Phoenix, AZ 85014
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Monday, March 24, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates kept their momentum and dropped lower again this week. On Tuesday, the Fed lowered their Funds Rate by .75%. The mortgage interest rate market was happy that they did not lower by a full 1% as many had expected. The Fed’s policy statement also noted that they were keeping a close eye on inflation which the mortgage market likes as well. There was another item that did not get as much press but was equally as important in our market for mortgage interest rates. The government lowered Fannie Mae and Freddie Mac’s liquid reserve requirement which will allow them to buy more mortgages. This allows the lenders of the world to “create” more loans – and they do so with lower interest rates.
As of 3/21/08 based on 250k purchase (or a no cash out refi), 10% down payment (or 10% equity in the case of a no cash out refi), 720+ Credit, Full Doc Employment, paying no discount points and no origination fee. For No Income or Asset Verification with 10% down; 720+ fico = add .125% to rate, 700-719 fico add .25%, 680-700 fico add .375%. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
30 Year Fixed = 5.75%
15 Year Fixed = 5.25%
Jumbo 5 Yr ARM (417k+ Loan Amount with 20% down) = 5.625%
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1550 E Missouri #203
Phoenix, AZ 85014
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com
Monday, March 17, 2008
by Phoenix Heritage Real Estate Group
“A Paper” Interest Rates continued their see-saw and dropped this week. There has been more volatility in the market in the first 2 hours this morning than we used to see in a week. The market opened with a very tame Consumer Inflation reading for February (great news for interest rates). Then news hit that Financial Brokerage and Investment Giant Bear Stearns had seen is liquidity position deteriorate to the point that JP Morgan Chase and the Fed stepped in to lend them money to rescue them from possibly going out of business. These 2 events basically guarantee that Fed will lower its Fed Funds rate by .75% on or before next Tuesday’s meeting (bad news for mortgage interest because it could spur inflation in the future). In this market, we are seeing unforeseen surprises on a weekly and even daily basis. There is really no way to predict what mortgage interest rates (and the stock market) will do today, let alone next week. My opinion is that flipping a coin will probably be more accurate than anyone’s prediction for the future. Last, but definitely least……the FHA loan limit for Maricopa County has been increased to $346,250. This is great, great news for our market.
As of 3/14/08 based on 250k purchase (or a no cash out refi), 720+ Credit, Full Doc Employment, paying no discount points and no origination fee. For No Income or Asset Verification with 10% down; 730+ fico = add .125% to rate, 700-729 fico add .125%, 680-700 fico add .25%. Rates apply to Primary Residence and Second/Vacation Homes. Please note, this information is intended for Real Estate Professionals and not a solicitation to consumers.
90% Loan 30 Year Fixed = 6.125%
95% Loan 30 Year Fixed = 6.375%
15 Year Fixed = 5.375%
Jumbo 5 Yr ARM (417k+ Loan Amount with 20% down) = 5.625%
For more information contact:
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1550 E Missouri #203
Phoenix, AZ 85014
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com