One immediate benefit of The Economic Stimulus Act of 2008 is the increase in loan limits for high-cost areas of the country. By raising the Federal Housing Administration’s loan limits on what qualifies for lower-cost FHA, Fannie Mae and Freddie Mac loans, the bill could help a quarter of a million families purchase or refinance their homes at a lower cost. Combined with record low interest rates, the change could improve the financial picture for many now facing foreclosure. The options and loan ceilings vary, however, from county to county and only a Certified Mortgage Planner can weigh all the options to determine if a new loan makes sense for an individual homeowner.
The increase is only temporary, however, so homeowners looking to shed the premium they pay for subprime or jumbo loans required to live in their state need to act quickly to take advantage of these federally-guaranteed loans.
FHA loan limits that will range from $271,050 to $729,750 with the largest loans available in high-cost metropolitan areas such as New York, Los Angeles, San Francisco and Washington, D.C. But even smaller markets could see increased activity in the housing market when the new loans become available.
Monday, April 21, 2008
Tuesday, April 8, 2008
Washington Mutual Closes Loan Centers
Some of you may have heard recently that Washington Mutual was exiting the wholesale lending business. According to the Wall Street Journal today, the rumors have been confirmed. Washington Mutual is reportedly closing all 186 of its stand-alone home loan centers and laying off 3,000 employees. According to Bloomberg, "Washington Mutual will stop making loans through mortgage brokers and...focus on its 2,500 bank and small business lending offices."
Thursday, March 6, 2008
How Stimulus Package affects local real estate market
In February, the President signed into law the Economic Stimulus Package in an effort to revive our battered economy. I wanted to be sure you knew that the legislation is about more than just rebate checks; it can also have a positive impact on current and future homeowners.
Many of your readers may not be aware of how this bill could create opportunities to save money on their home financing. Here are some of the questions I believe your readers should consider, and I would be happy to lend my experience and expertise to help explain how our community may be able to take advantage of the temporary rules created by this important legislation:
NEW FHA and Conforming Loan Limits https://entp.hud.gov/idapp/html/hicostlook.cfm
What impact does the Stimulus Package have on borrowers?
¨ “The Economic Stimulus Act of 2008 is a $168 billion plan intended to jumpstart the sliding U.S. economy. The new bill is designed to help certain ‘high-cost regions’ of the struggling housing market by 1) Temporarily increasing the ‘conforming loan limit’ from $417,000 to as high as $729,750 in specified areas; and
2) Temporarily increasing the size of loans the Federal Housing Administration (FHA) can insure from $362,000 to as high as $729,750 in specified areas.”
What do these new provisions mean for our community?
¨ “For those looking to purchase or refinance real estate in a ‘high-cost region,’ this is great news. These temporary increases could help consumers avoid the higher interest rates associated with ‘non-conforming’ or jumbo, loans – which are currently more than a point higher than rates on conforming loans. This means more consumers will be able to take advantage of great real estate deals and get more home for less money. In fact, many homes that some borrowers could not afford just a few years ago could now be within reach, thanks to this temporary government program.The Stimulus Package is also very good news for homeowners looking to refinance out of their expensive jumbo loan and into a new ‘conforming loan.’ While the legislation limits new mortgage contracts to 2008, it does not exclude the refinancing of any past mortgages. This means that, if borrowers qualify, they can take advantage of the new conforming loan limits no matter how many years have passed since they obtained their mortgage – as long as they get it done before the end of 2008.”
How is a high-cost region determined? And does our community qualify as one?
¨ “A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Not to be confused with the average home price, the median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes. If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine and publish what the median home price is for regions across the country. I can easily access and interpret these figures for our local residents, and help them calculate the new conforming and/or FHA loan limits within minutes.”
Many of your readers may not be aware of how this bill could create opportunities to save money on their home financing. Here are some of the questions I believe your readers should consider, and I would be happy to lend my experience and expertise to help explain how our community may be able to take advantage of the temporary rules created by this important legislation:
NEW FHA and Conforming Loan Limits https://entp.hud.gov/idapp/html/hicostlook.cfm
What impact does the Stimulus Package have on borrowers?
¨ “The Economic Stimulus Act of 2008 is a $168 billion plan intended to jumpstart the sliding U.S. economy. The new bill is designed to help certain ‘high-cost regions’ of the struggling housing market by 1) Temporarily increasing the ‘conforming loan limit’ from $417,000 to as high as $729,750 in specified areas; and
2) Temporarily increasing the size of loans the Federal Housing Administration (FHA) can insure from $362,000 to as high as $729,750 in specified areas.”
What do these new provisions mean for our community?
¨ “For those looking to purchase or refinance real estate in a ‘high-cost region,’ this is great news. These temporary increases could help consumers avoid the higher interest rates associated with ‘non-conforming’ or jumbo, loans – which are currently more than a point higher than rates on conforming loans. This means more consumers will be able to take advantage of great real estate deals and get more home for less money. In fact, many homes that some borrowers could not afford just a few years ago could now be within reach, thanks to this temporary government program.The Stimulus Package is also very good news for homeowners looking to refinance out of their expensive jumbo loan and into a new ‘conforming loan.’ While the legislation limits new mortgage contracts to 2008, it does not exclude the refinancing of any past mortgages. This means that, if borrowers qualify, they can take advantage of the new conforming loan limits no matter how many years have passed since they obtained their mortgage – as long as they get it done before the end of 2008.”
How is a high-cost region determined? And does our community qualify as one?
¨ “A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Not to be confused with the average home price, the median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes. If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine and publish what the median home price is for regions across the country. I can easily access and interpret these figures for our local residents, and help them calculate the new conforming and/or FHA loan limits within minutes.”
Thursday, November 8, 2007
Annual Mortgage Reviews Bring Borrowers Closer to Achieving Financial Goals
Yearly reviews are a great way to keep on track with your financial goals. You’re probably already meeting with your financial advisor and other asset manager for quarterly or annual reviews, and you should do the same with your Mortgage Planner as well. An annual mortgage check-up is an ideal way to make sure your mortgage is still having the maximum positive impact on your overall financial plan.
A lot can happen in one year. The market can take turns that can open up new opportunities, such as reduced interest rates, new loan products or changes in home values. Furthermore, your personal and financial situation could be mildly to radically different than it was just 12 months prior. Perhaps one or more of the income earners got a raise or lost a job. Maybe you received an inheritance. Even a minor, one-year change in one of your kids’ college plans could impact your financial situation in a way that would benefit from an adjustment in your mortgage strategy.
Periodic reviews serve several purposes. First, they establish a consistent path toward achieving your financial goals. Secondly, they ensure that you stay on track with your goals. Sometimes plans need minor adjustments, but without the knowledge that comes from a thorough evaluation, those minor adjustments may go unnoticed. Often, by the time an adjustment becomes apparent, you may have already lost valuable time and/or resources that could have been spared with a few minor modifications along the way. Finally, periodic reviews help to keep you accountable toward your commitment to achieve your objectives. Without accountability, it’s very easy to let your savings and investment actions fall by the wayside, especially when unexpected expenses arise. Knowing that you’ll be discussing your action steps will help to keep you committed to your goals.
Consider scheduling a periodic review with your Mortgage Planner in conjunction with your asset manager’s review. In addition to saving time, you’ll also gain the advantage of your own personal management team for your financial asset-building program.
Remember that getting clarity on your financial situation is never a waste of time. If you find that your current financing is more desirable than the financing that is available in today’s market, you’ll know that your Mortgage Planner did a great job advising you last time. If you find that your changing circumstances have dictated that a new loan will better suit your new situation, your Mortgage Planner can bring you one step closer to achieving your financial goals.
A lot can happen in one year. The market can take turns that can open up new opportunities, such as reduced interest rates, new loan products or changes in home values. Furthermore, your personal and financial situation could be mildly to radically different than it was just 12 months prior. Perhaps one or more of the income earners got a raise or lost a job. Maybe you received an inheritance. Even a minor, one-year change in one of your kids’ college plans could impact your financial situation in a way that would benefit from an adjustment in your mortgage strategy.
Periodic reviews serve several purposes. First, they establish a consistent path toward achieving your financial goals. Secondly, they ensure that you stay on track with your goals. Sometimes plans need minor adjustments, but without the knowledge that comes from a thorough evaluation, those minor adjustments may go unnoticed. Often, by the time an adjustment becomes apparent, you may have already lost valuable time and/or resources that could have been spared with a few minor modifications along the way. Finally, periodic reviews help to keep you accountable toward your commitment to achieve your objectives. Without accountability, it’s very easy to let your savings and investment actions fall by the wayside, especially when unexpected expenses arise. Knowing that you’ll be discussing your action steps will help to keep you committed to your goals.
Consider scheduling a periodic review with your Mortgage Planner in conjunction with your asset manager’s review. In addition to saving time, you’ll also gain the advantage of your own personal management team for your financial asset-building program.
Remember that getting clarity on your financial situation is never a waste of time. If you find that your current financing is more desirable than the financing that is available in today’s market, you’ll know that your Mortgage Planner did a great job advising you last time. If you find that your changing circumstances have dictated that a new loan will better suit your new situation, your Mortgage Planner can bring you one step closer to achieving your financial goals.
Friday, November 2, 2007
What a week.
On October 31st, the Fed announced its second consecutive decrease in rates, cutting another 0.25% from the Fed Funds Rate 4.5%. This change could directly impact millions of American borrowers. Are you one of them?
Unemployment remains steady at 4.7% are you employed?
Manufacturing grew in October at the weakest pace since March, suggesting that ongoing troubles in the housing and credit markets have seeped into the industrial sector.
Oil prices finished at a record close Friday, as light, sweet crude for December delivery settled at $95.93 a barrel, up $2.44 from Thursday's close. Earlier in the session, oil prices hit an intraday high of $96.00.
Gold prices reached its highest level in 28-years, as COMEX gold for December climbed $14.80 to $808.50 an ounce.
Adjustable Rate Mortgages
If you currently have an ARM that is scheduled to reset in the next 14 months, then this news is good for you. Now is the time to investigate your options. Even if you have a pre−payment penalty or you're behind in your payments, don't delay. There may still be options available to get you out of your ARM and into a mortgage you can afford, including FHA or the new FHA Secure program introduced by the President. Important: The FOMC does not meet in November, so ask yourself this: Can you really afford to roll the dice until its next meeting in mid−December?
Buying at the Bottom of the Market
If you're looking to invest in real estate in the next six to twelve months, and recent rate cuts have inspired you to start
taking action, now is the time to prepare yourself for intense credit scrutiny. There are a lot of great real estate deals to be had today. But if your credit doesn't stand up in today's tight−fisted credit environment, then you could easily miss out on an exceptional opportunity.
What's the point of taking advantage of discounted home prices if you can't qualify for the right mortgage or interest rate that makes it all worthwhile? Get pre−approved now and know exactly what you can afford. And with the right REALTOR® on your side, you can have incredible negotiating power in a buyers' market!
Refinancing − Know Your Options
While rate cuts often spark ideas of refinancing, this may not be the best choice for everyone. In some cases − especially in a market where home values are declining − refinancing may be impossible or disadvantageous. Call me today for a free mortgage review. Based on your individual goals and financial needs, we can explore every available option for you and your family.
I look forward to hearing from you soon.
Unemployment remains steady at 4.7% are you employed?
Manufacturing grew in October at the weakest pace since March, suggesting that ongoing troubles in the housing and credit markets have seeped into the industrial sector.
Oil prices finished at a record close Friday, as light, sweet crude for December delivery settled at $95.93 a barrel, up $2.44 from Thursday's close. Earlier in the session, oil prices hit an intraday high of $96.00.
Gold prices reached its highest level in 28-years, as COMEX gold for December climbed $14.80 to $808.50 an ounce.
Adjustable Rate Mortgages
If you currently have an ARM that is scheduled to reset in the next 14 months, then this news is good for you. Now is the time to investigate your options. Even if you have a pre−payment penalty or you're behind in your payments, don't delay. There may still be options available to get you out of your ARM and into a mortgage you can afford, including FHA or the new FHA Secure program introduced by the President. Important: The FOMC does not meet in November, so ask yourself this: Can you really afford to roll the dice until its next meeting in mid−December?
Buying at the Bottom of the Market
If you're looking to invest in real estate in the next six to twelve months, and recent rate cuts have inspired you to start
taking action, now is the time to prepare yourself for intense credit scrutiny. There are a lot of great real estate deals to be had today. But if your credit doesn't stand up in today's tight−fisted credit environment, then you could easily miss out on an exceptional opportunity.
What's the point of taking advantage of discounted home prices if you can't qualify for the right mortgage or interest rate that makes it all worthwhile? Get pre−approved now and know exactly what you can afford. And with the right REALTOR® on your side, you can have incredible negotiating power in a buyers' market!
Refinancing − Know Your Options
While rate cuts often spark ideas of refinancing, this may not be the best choice for everyone. In some cases − especially in a market where home values are declining − refinancing may be impossible or disadvantageous. Call me today for a free mortgage review. Based on your individual goals and financial needs, we can explore every available option for you and your family.
I look forward to hearing from you soon.
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