• Blog
  • About
  • Contact

5 Questions to Ask Before Refinancing Your Mortgage

5/18/2017

0 Comments

 
The mortgage checks most homeowners write every month serve as a regular reminder for them to look into potentially refinancing their mortgages at a lower rate.

If that's not enough of a reminder, the mortgage industry is one of the biggest advertisers around, pushing the supposed ease of refinancing with online "speedy mortgages" and the like. But before you decide to pursue a refi, ask yourself:

How long do you plan to stay in the house?

The old rule of thumb was that you need to be there for at least two to three years to justify the costs of obtaining the new loan - but, each situation is different and you really have to run the numbers. In the current low-rate environment, the old rules may not apply because most existing mortgage interest rates are so low in the first place. While you may plan to stay in your house forever, ask yourself, if your income or job situation changed, or if a family emergency were to arise, would you need to move?

How long you plan to stay is a key factor affecting whether the interest rate on your new loan is low enough to justify the costs and trouble of refinancing. Another perspective: How many months of savings on the reduced mortgage payment resulting from the refi would it take to earn back the expenses of the new loan?

For many, the answer today is many months - perhaps more months than you want to have a mortgage, considering that your present mortgage would generally be paid off much sooner than the new one. Before the 2007-2008 financial crisis, 30-year fixed-mortgage rates were in the 5- to 6-percent range. So in the last five years or so, almost anyone with good credit and equity who took out a mortgage in the previous decade was able to refinance their rate down by as much as two percentage points, resulting in a substantial savings in monthly payments.

But in today's low-rate environment, with many existing mortgages set at a rate not much higher than 4 percent, this kind of rate reduction isn't possible. So there's not as much room for a substantial savings in your monthly payment.

You should view these savings through the lens of the seven to nine years Americans typically stay in their homes. Of course, how much of a difference a refi would make depends on when you got your mortgage, how big it was, and the rate you could get now with your income and credit. In the past, when rates were higher, it usually made sense to refi if you could shave two percentage points off your interest rate. You can do the math with one of the many online mortgage calculators available.

One way to improve your rate, even when prevailing rates aren't declining, is to change from a 30-year mortgage to a 15-year loan. Rates on these shorter mortgages tend to be lower, but this will probably increase your payment. However, you will pay off your mortgage much sooner, saving a lot of interest and potentially freeing up this money for paying expenses during retirement.

If you had to move unexpectedly, could you cover the new mortgage payments by renting out the house?

You may not want to be in the rental business, but you never know what life will bring. You could lose your job and find a new one in another area, or you might have to move for family reasons. Selling homes quickly isn't easy - even in the best of markets and locales - because real estate is an illiquid asset and takes time to sell.

I have a client who had a strong bias against renting her house, but after making a year and a half of payments on an empty house, all the while having to pay the mortgage on her new home, her anti-renting bias evaporated. At that point, she was willing to do anything to cover the payments and stop hemorrhaging money needlessly. Having an honest discussion with yourself could save a lot of anguish and cash down the road.

So before you refi, it's a good idea to compare rents for comparable dwellings in your neighborhood to the new mortgage payment. If there's a shortfall, you might want to reconsider refinancing. Sure, your new mortgage payment might be less than what you're paying on your current loan. But you've already paid the costs for that loan. If you can't cover the mortgage with the rent, the difference would put you that much further in the hole.

Are the homes in your neighborhood increasing in value?

If not, refinancing would mean extending your commitment of indebtedness in a neighborhood that may not deliver the appreciation needed to justify getting a new loan.

How much will any cash that you'd have to put down on the new loan lower your cash reserves?

Homeowners need good cash reserves to maintain the property, do repairs and make mortgage payments in case of job or income loss. Significantly lowering these reserves just to save a little every month on your mortgage payment generally isn't a good idea, given the cost of money and the inability of people in dire straits to get loans. These cash reserves are critical for maintaining your home and protecting your investment in it. So it's important to know how much - by what percentage - these costs would lower your cash reserves.

What's the condition of your home?

When will it need a new roof, air conditioner, hot water heater or appliances? When will it need exterior repairs or painting? Are there any deferred maintenance issues that might soon arise, causing you to spend your cash on hand? If so, you should think twice before giving that money to the mortgage company for a refinance. Make sure you have a plan to cover repairs until you can replenish the cash reserves they might consume.

By asking yourself these five questions and exploring the nuances of the answers, you can constructively explore the issue of whether it's a good idea to seek refinancing.

Any opinions expressed in this column are solely those of the author.

Byron L. Studdard is founder and president of Studdard Financial, LLC, a fee-only financial advisory firm based in Sarasota, Florida. Studdard has been listed in the Guide to America's Best Financial Planners published by the Consumers' Research Council of America, an independent research organization. He can be reached at Byron@studdardfinancial.com.

0 Comments

Utah FHA Lender Pays $4.25 M to DOJ, HUD to Resolve Fraud Claims

3/18/2017

0 Comments

 
With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?Yes, but not by much.

47%

Yes, by a lot.

5%

Yes and, heck, we may even do non-QM lending.

14%

No, not at all.

26%

No and we may even tighten credit.

7%

0 Comments

OCC slaps serious sanctions on Wells Fargo as fake account fallout continues

11/20/2016

0 Comments

 
The Office of the Comptroller of the Currency slapped a series of sanctions on Wells Fargo that were previously excluded from its settlement with the megabank over the fake account scandalthat recently shrouded the bank in controversy.

http://www.housingwire.com/articles/38568-occ-slaps-serious-sanctions-on-wells-fargo-as-fake-account-fallout-continues
0 Comments

Mortgage Origination Demand Hit Pre-Crisis High in 2Q

9/13/2016

0 Comments

 


WASHINGTON Home purchase lending hit a post-2007 high in the second quarter as low interest rates and growing consumer confidence continue to support the housing market.

"You are seeing the employment picture brighten," said Bob Walters, the chief economist for Quicken Loans.

He said consumers are more secure in their jobs and feel more comfortable because home prices are again on the rise.

"You go back a few years, people were still afraid home prices could fall again," he said. "So there is a psychological component that is making this home buying season more robust than in the past. Since the crash, this year is the most robust activity that we have seen."

A Wells Fargo Securities report said sales of existing homes rose 1.1% in June to a 5.57 million-unit rate, the strongest pace since February 2007. Sales of new homes rose 10.1% in the first six months of the year compared with the first half of 2015, the report said.

"June was a breakout month for home sales, with both new and existing home sales reaching fresh post-recession highs," it said.

Black Knight reported that lenders originated 1.1 million single-family purchase loans in the second quarter, up from 720,000 in the prior quarter.

"It was a particularly strong for purchase originations," said Ben Graboske, executive vice president at Black Knight Financial Services in Jacksonville, Fla.

Purchase mortgages totaled $297 billion in the second quarter, up from $195 billion in the first quarter.

"At $297 billion, second quarter purchase originations marked the highest level in terms of both volume and dollar amount seen since 2007," Graboske said in a press release.

He predicted that third quarter demand could see another boost due to the June 23 vote by British voters to exit from the European Union, which helped drive interest rates lower.

"We are expecting a pretty strong showing from the Brexit in the refi and probably the purchase numbers as well," Graboske said in interview this week.

The Black Knight data is based on purchase loans originated and closed in the second quarter as reported by mortgage servicers.

Loan data from the Federal Housing Administration, Fannie Mae and Freddie Mac shows the agencies endorsed or purchased 681,000 single-family loans in the second quarter. That was a 13.5% increase from a year earlier but a far cry from others' purchase estimates of over 1 million.

Yet it can take up to two months for lenders to transfer or sell newly originated loans to Fannie and Freddie, resulting in a lag in the reporting data.

When the agencies report their third quarter numbers, they might be picking up a lot of loans originated in the second quarter, Graboske said. "That is just the way the system works," he added.

The Mortgage Bankers Association projects approximately $275 billion in purchase loan originations for the second quarter, according to Joel Kan, MBA's associate vice president for industry surveys and forecasting. That is up from $243 billion in the second quarter of 2015.

MBA's weekly applications survey shows an average purchase loan amount of $304,000 for the same time frame. "It's not an apples to apples calculation, but that would indicate a loan count of about 916, 000," Kan said in a written response to a question on Wednesday.

Economists at CoreLogic are projecting that originations in 2016 will total $1.8 trillion, which would be the highest volume in five years.

It looks like "origination volumes are going to be quite strong in the third quarter," said CoreLogic chief economist Frank Nothaft. "We are expecting an increase in purchase money mortgages and also a pickup in refis."

http://www.nationalmortgagenews.com/news/origination/mortgage-origination-demand-hit-pre-crisis-high-in-2q-1086522-1.html
0 Comments

Freddie Mac Prices $1.1 Billion Multifamily K-Deal, K-F20

9/12/2016

0 Comments

 
MCLEAN, VA--(Marketwired - Sep 8, 2016) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by floating-rate multifamily mortgages with 7-year terms. The approximately $1.1 billion in K Certificates (K-F20 Certificates) are expected to settle on or about September 22, 2016.

K-F20 Pricing

Class Principal/Notional Amount (mm) Weighted Average Life (Years) Discounted Margin Coupon Yield Dollar Price A $1,090.309 6.54 43 1 mo LIBOR + 43 0.9318% 100.00 XI $1,221.455 6.54 Non-Offered XP $1,221.455 N/A Non-Offered

Details

Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Goldman, Sachs and Co. Co-Managers: Amherst Pierpont Securities LLC, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Stern Brothers & Co., and Wells Fargo Securities, LLC

Related Links

The K-F20 Certificates will not be rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The K-F20 Certificates are backed by corresponding classes issued by the FREMF 2016-KF20 Mortgage Trust (K-F20 Trust) and guaranteed by Freddie Mac.The K-F20 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F20 Certificates.The K-F20 Trust Class B, C and R Certificates will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company's business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2015, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2015, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

http://freddiemac.mwnewsroom.com/press-releases/freddie-mac-prices-1-1-billion-multifamily-k-deal-otcqb-fmcc-1276285?feed=429e0be3-9aef-4a3a-9775-43f8e470d510
0 Comments

What Fannie Mae can Do For You

8/4/2016

0 Comments

 
Emergency Government Aid for Homeowners. Mortgages allow it to be possible to spread the instalments out over decades, instead of getting to pay for that home out of pocket. Even self-employed property agents and mortgage loan officers encounter this roadblock en route to mortgages.

Recap of this week's popular programs:. Suze highlights that the stock marketplace is erratic, even as all know. Most housing types are eligible: residential homes, condominiums, townhouses, manufactured homes, new construction and even 1-4 unit rentals (additional conditions apply). The process is streamlined, simple, and advantageous for all those whose income may look smaller in writing than it actually is.

Pacific Gas & Electric Co filed for bankruptcy in 200 This largest utility company fell victim to California's electricity crisis of 2000-200 However, after paying $2 billion to its a huge selection of creditors, it emerged from bankruptcy three years later. Although this increase in mortgage types has added complexity, it in addition has introduced fierce competition, which has subsequently resulted within the option of some very attractive mortgage products for your customer. A fixed-rate loan is the most typical commercial mortgage. Value at bankruptcy: $41 billion (as of Sept.

2006/7 - The last chance to head off disasterIn May of 2006, Senator John McCain (R-AZ), attemptedto introduce legislation that would improve the regulatory treatments for Fannie and Freddie. "Of that group, a lot more than 50 per cent were stretched or at their maximum repayment limit," the report said. Check the Internet or drive around then make contact with a real estate agent. He gave no motive except t0 later claim he was afraid for his own life at times, he was on drugs, and the man even offered up the excuse he was "possessed by a demon".



So, if there's massive saving around like that, why do people not remortgage more often? . Greed is really a human quality. Since research websites are there as well, companies has to be more forthright and therefore are less capable of seem mysteriousand unknowable or untouchable as within the past. The essence of the assignment of mortgage form is always that it states that for a consideration of your specified amount of money the receipt of that is acknowledged, the person acknowledging the receipt of money grants, assigns also as transfers towards the native party and agrees that certain mortgage has been executed on a specified date and the same has been recorded inside the records of the county in the state by which the agreement has had place. But it can't be repaid sooner than five (5) years from the date of origination of course, if you have been greater than thirty days delinquent in your mortgage payment.

8 Tips for Language Learning on a Budget. The VA loan was made to assist those which have helped all of us. And it means a whole lot more business for you! .

Compound interest is among those terms we hear thrown around a lot when we're attempting to know how finances work. A good source for reverse mortgage facts are http://www. Principles of CorporateFinance. Although industry today is facing great negative deficiencies and resource misplacement, the gb home equity was in a position to continually provide for their clients who have been under the distress of lacking funds. By doing how many other people DON'T do, you can set yourself apart from the hundreds of other "me-too" loan officers out there.

0 Comments

Avoiding PMI - Private Mortgage Insurance By Max Hunter

5/20/2016

0 Comments

 
How much house do I qualify for? To get the best answer to that question, you'll have to complete your financial homework. " Those words, obtained from a sermon by Reverend Wright, reflected a world view hostile to capital markets, influencing the man who does eventually get to be the 44th President of the United States. They are almost exactly exactly the same as a regular mortgage with just a couple of differences. Financial institutions that originate mortgages, mostly banks, normally sell the majority of their mortgages to GSEs like Fannie Mae.



e) The central bank will have more dominant place in the economy similar to the developed countries. Although the market today is facing great negative deficiencies and resource misplacement, the gb home equity was in a position to continually provide for their clients who happen to be under the distress of lacking funds. We specialize in loans for folks even if they have poor or have not so great credit.

Closing costs are too high. The positive thing about this can be that there's no significant and inappropriate percentage added inside the contract. Every loan experience ought to be as basic and pain-free as you can so we hope we have exceeded your expectations.



As with any loan, you need to accomplish some comparison shopping so as to find the best deal. Usually a credit assessment then one or two bank statements is sufficient documentation. Thus the lender's mortgage hadn't been recorded, but likely would be soon. You will need to have access towards the information highway and elementary knowledge in regards to the usage of web browsers and search engines are requires. There is More to Your Property Mortgage Refinance than the Interest Rate.

The gb home equity has helped reverse the issue of homelessness through the effective money circulation they'll use in their stock trading department. Tags: Many Faces Of The Security System By: Chris Nguyenn - Now whenever we talk about taking security, what can we exactly mean by it, is taking security is exactly about having some big muscular guys around your corner every time? No it does not mean that, rather security has several aspects and it is not only restricted to this stereotype. By doing the other people DON'T do, you can set yourself apart from the a huge selection of other "me-too" loan officers out there.

Fannie Mae, is really a government sponsored group, that helps individuals to get the loan they need. They know that gives them an edge in a competitive market, and they often realize that self-employed people constitute one of the highest income brackets, and are usually dependable borrowers. Reverse Mortgage is really a type of home equity loan that enables you to convert a few of the equity in your home into cash while you retain home ownership.

2007: Lender Wins. . But for your time being their support is required to reinvigorate the economy and stimulate rise in both residential and commercial property sector. If you're over 62, a reverse mortgage is a financial tool that enables you to convert.

0 Comments

Mortgage Contracting Services relocating to Lewisville, Texas

3/1/2016

0 Comments

 
A Plano, Texas-based property preservation and inspection company is moving its headquarters to the neighboring city of Lewisville.

Mortgage Contracting Services, aprovider of property preservation, inspections, REO property maintenance and valuations to the financial services industry, announced Monday that it leaseda 120,000-square-foot office building at 350 Highland Drive in Lewisville.

Nationstar Mortgage formerly occupied the building, and MCS is expected to move in this summer.

MCS new building will be able to accommodate up to 720 employees. The company's new facility is 50,000 square feet larger than the companys Plano headquarters, which is home to the company's roughly 450 current employees.

This move allows MCS to continue to grow and serve our clients, says MCS CEO Caroline Reaves.

The proximity to major highways and DFW Airport will promote our ability to service clients nationwide and enhance our mission to protect and preserve communities across the country," added Reaves.

MCS was represented in the move by David Wetherington, executive vice president at Colliers International in Dallas.

http://www.housingwire.com/articles/36407-mortgage-contracting-services-relocating-to-lewisville-texas
0 Comments

Fannie Provided $1.6B of Financing in 2015 for Small Multifamily Loans

2/26/2016

0 Comments

 
Fannie Mae touted its financial support to the small multifamily loan market last year, saying it provided $1.6 billion in financing to the sector.

The company defines small loans as those $3 million or less nationwide and $5 million or less in high-cost markets, as well as properties with five to 50 units.

The financial support was made available to about 33,000 small loans last year, the vast majority of which supported affordable and workforce housing. Fannie's product offerings for small loan issuers include streamlined underwriting and processing.

"Small loans are a critical part of the work we do to make affordable, quality rental housing a reality for renters in urban areas and smaller markets across the nation," said Bob Simpson, multifamily vice president for affordable, green and small loans.

The Fannie-certified lenders that produced the highest volume of small loans last year were Greystone Servicing Corp., Arbor Commercial Funding, Walker & Dunlop, Hunt Mortgage Group and PNC Real Estate.

CoreLogic's 4Q Profit Rises Due to RELS Acquisition



Arbor Commercial Mortgage has created an online loan-origination service for multifamily lenders.

CoreLogic more-than-doubled its profit in the fourth quarter, as the benefits from an acquisition helped offset higher...



Interest rates on fixed-rate mortgages fell this week, according to Freddie Mac, after a small rally in the previous two...

');var $text = $('').text(text);var $meta = $('');var $newComment = $comment.append($text).append($meta);if ($('.no-comments').length) $('.no-comments').after($('').append($newComment));$('.no-comments').remove(); else $('#comments-box .comment').last().after($newComment);$('.comments-count').each(function()$(this).text(+$(this).text()+1););unction ajaxBusyTest() buttonOff();setTimeout(buttonOn, 3000);var commentOptions = client_id: 'nationalmortgage_news',story_id: '1072785',user_id: '', comment_message: '' // textarea or NOCOMMENT;function postComment(options, callback, doButtonOff) callback = callback ;function showNotification(message) $.fancybox(message+'

Return to article.'); ;$.fn.extend(charWarden: function (outSelector, limit) return this.each(function()var $this = $(this);var $out = $(outSelector);var _limit = limit;var _chars = 0;function handler(e) _chars = e.target.value.length;var left = _limit - _chars;if (left = (page-1)*listCount && i 3 && (page (pageCount -2)) showMin = pageCount - 4;if (showMin ';if (page > 1) text += '

';while (count ' + count + '';if (showMax != count) text += ' text += '';count++;if (page ';text += '';$(pagination).html(text);function scrollToTop()$('html, body').animate(scrollTop: parseInt($("#comments").offset().top), 700);showPage(page);if (pageCount > 1)buildPagination(page,pageCount);$(pagination+" li.arrow_double_right a").live('click',function()page = pageCount;showPage(page);buildPagination(page,pageCount);scrollToTop(););$(pagination+" li.arrow_right a").live('click',function()showPage(++page);buildPagination(page,pageCount);scrollToTop(););$(pagination+" li.numbers a").live('click',function()page = $(this).data('number');//console.log("pageCount: "+pageCount+" & page: "+page);showPage(page);buildPagination(page,pageCount);scrollToTop(););$(pagination+" li.arrow_left a").live('click',function()showPage(--page);buildPagination(page,pageCount);scrollToTop(););$(pagination+" li.arrow_double_left a").live('click',function()page = 1;showPage(page);buildPagination(page,pageCount);scrollToTop(););$(function() // DOM readypaginateComments();$('.scroll-into-view').each(function(i)if (i == 0) this.scrollIntoView(););$('.reset-form').click(function(e)e.preventDefault();this.form.reset(););$('#comment_message').charWarden('#chars-remaining', 4096);$('.comment-notify').click(function(e) e.preventDefault();var options = comment_notify: 'TRUE',comment_message: 'NOCOMMENT';var notification = function(data) if (data.success) $('.not-following').hide();$('.following').show();showNotification(data.success); else if (data.error) showNotification(data.error);;postComment(options, notification););$('#wrapperForm').on('submit', function(e) e.preventDefault();var options = comment_notify: $('#comment_notify').prop('checked') ? 'TRUE' : '',comment_message: $('#comment_message').val();var notification = function(data) if (data.success) if ($('#comment_notify:checked').length) $('.not-following').hide();$('.following').show();document.wrapperForm.reset();addPostOptimistically(options.comment_message);$('#comment_message').change(); else if (data.error) showNotification(data.error);;postComment(options, notification););$('a.username').fancybox('hideOnOverlayClick': false,'centerOnScroll' : true,'autoScale' : false,'autoDimensions' : false,'width': 435,'height': 205,'onClosed': function() if ($('#do-refresh').length) location.reload(););); // end DOM ready)(jQuery);

http://www.nationalmortgagenews.com/news/origination/fannie-provided-16b-of-financing-in-2015-for-small-multifamily-loans-1072785-1.html
0 Comments

Lease impacts on mortgages to vary

8/11/2015

0 Comments

 
FRUITLAND --�As residents outside Fruitland face a potential gas well integration order by the state, some are wondering how mineral rights leases could affect their home mortgages.

At least one mortgage lender is not accepting oil or gas leases for homes with existing mortgages.



Subscription Required

An online service is needed to view this article in its entirety.

You need an online service to view this article in its entirety.

Login

Or, use your

linked account:

Current print subscribers



Need an account? Create one now.



You must login to view the full content on this page.

Or, use your

linked account:



Thank you for reading 5 free articles on our site. You can come back at the end of your 30-day period for another 5 free articles, or you can purchase a subscription and continue to enjoy valuable local news and information. If you need help, please contact our office at 541-889-0616.

You need an online service to view this article in its entirety.

Login

Or, use your

linked account:

Current print subscribers



Need an account? Create one now.



http://www.argusobserver.com/news/lease-impacts-on-mortgages-to-vary/article_da1f9668-3e46-11e5-9524-2fb9423242d4.html
0 Comments
<<Previous

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    May 2017
    March 2017
    November 2016
    September 2016
    August 2016
    May 2016
    March 2016
    February 2016
    August 2015
    July 2015
    June 2015

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.