As the Fed was planning to exit the mortgage market at the end of last month, more and more experts were calling for the exit to be uneventful. Their belief was that there was ample demand sitting on the sideline ready to replace the Fed’s role. Well it is now a week later and let’s […]
I have long been irked by mortgage “pre-approvals” that say a borrower is qualified to purchase a non-specific home for a specific loan amount. Why? Because, lenders don’t qualify borrowers based on the Purchase Price of a home, we qualify them for a particular Mortgage Payment (and payments vary based on a number of factors […]
This past weekend, I saw a decent movie… Hot Tub Time Machine and one of the running themes in the movie reminded me of the shift in the bond market last week (and what our immediate future looks like). Without giving away the whole movie, I want to explain…. In the movie Crispin Glover plays […]
There’s only a few days left until The Fed exits the Mortgage Back Securities Purchase market…..and there is no shortage of opinions of what that means for mortgage rates available to consumers. In one camp are those who believe that when the only purchaser of any product (whether they be mortgages or pencils) decides to […]
If you are considering whether or not to purchase a home in the near future, let us discuss why this might be the optimal time to do so. There are five excellent reasons to buy a home now instead of waiting until later. Let’s go over them quickly in this post. 1.) The Homebuyer’s Tax […]
Imagine for a moment that you have been told that you need surgery. You have a choice between two surgeons: The first has a wonderful disposition. He holds your hand as he explains the procedure, the risks, the rewards, and the likelihood of success. He may even shed a tear as you deal with the […]
Many experts believe that 30 year mortgage rates will rise quickly and dramatically once the Fed ends their policy of purchasing mortgage-backed-securities at the end of this month. However, as we get closer to the Fed’s exit there seems to be debate as to how much of an impact it will have. On one side […]
Whenever you are selling anything, it helps to have an idea what your customer is thinking. I had the opportunity to attend a session at the Luxury Portfolio Summit in Las Vegas which covered the findings of the Survey of Affluence and Wealth in America 2010 produced by American Express Publishing and the Harrison Group. […]
There has been an improvement in the interest rates available for Jumbo Mortgages, and that is encouraging news. In addition, some lenders are even lowering the amount of down payment required in the Jumbo loan programs- which is even more good news. Let’s begin with some basics. Jumbo mortgages are those mortgages which exceed the […]
Here is Part 2 of Skip Schenker’s two part series on understanding the FHA 203(k) and its real value. In case you missed yesterday’s, here is a link to Part 1. How Is the Appraisal Completed? The appraiser is given a detailed report from either a licensed contractor [for the “Streamline” 203(k)]; or from an […]
Many readers have requested a post on the FHA 203k program. I was lucky to meet Skip Schenker, a national expert and instructor on the subject, while we were both speaking at a conference in Dallas last month. I asked him to share some of his thoughts. Here is his contribution. – Steve Harney The […]
There is no doubt that the immediate future of today’s housing market is, at best, cloudy. However, there is at least one silver lining which oft times goes unmentioned – affordability. We sometimes tend to concentrate on the seller in this market. There is no doubt that many sellers have seen much, if not all, […]
Last week, we began with a premise…that Buyers have a WANT (the lowest monthly payment, even more than the lowest Sales Price) and Sellers have a NEED (to differentiate their home from all the others on the market), and that creative approaches to financing is a method to satisfy both Buyers and Sellers. Part I […]
Let’s start with the premise that buyers do NOT buy big ticket items (like a home or a car) based on its sales price; rather, they buy based on their proposed monthly payment (or cost). Additionally, when looking to sell your home with so much availability of homes on the market, the biggest challenge a […]
There seems to be a long held American belief currently under attack. For over two hundred years, homeownership in this country was a desire of almost every American family. Recently however, more and more people have been pontificating on the fact that owning your own home should never have been held in such high regard. […]
Finally, some good news from the FHA. Effective February 1st, the FHA is waiving their requirement of the “90 day holding period” before home sellers (predominantly real estate investors and speculators) can resell a piece of real estate to a buyer who uses FHA Insured financing. Given the recent increase of the UFMIP, coming reduction […]
I have been reading some interesting things this week in regard to the effect of the Fed exiting from their program of buying mortgage backed securities (MBS) on March 31 this year as they announced they would last Wednesday. There seems to be some people who do not believe that the Fed’s exit will have […]
First, let’s look at today’s announcements by the Fed…. As expected, they held the Fed Funds Rate constant (more on what that means later). They re-affirmed their prior pledge to stop purchasing Mortgage Backed Securities by March 31. They said that they expect rates to stay in this range for an extended time. As was […]
The Fed is scheduled to exit the housing market this spring. The Home Buyer Tax Credit ends on April 30, 2010 (the date the house must be in contract). The Fed has already announced that their program purchasing mortgage-backed securities will expire on March 31, 2010. Most anticipate a quick and dramatic rise in interest […]
Today, after weeks of speculation, the FHA announced their plan to secure the solvency of the Insurance Fund. And it is NOT good news for Homebuyers, and therefore, NOT good news for sellers either. I’ll discuss the particulars in a minute; but first, let’s look at how this is the THIRD nail in the coffin […]
Yesterday, I posted on the fact that my son is in the process of buying a home. I gave my reasons for agreeing with his decision. However, some have questioned whether purchasing real estate at this time makes sense. Let me give more support to the point that this is the best time to buy […]
My son received word today that the sellers of the house he loved accepted his purchase offer. Our whole family is very excited. Not just because he is taking the first step toward home ownership, but instead, because he is purchasing a home at the best time to buy residential property in American real estate […]
Operating in the current real estate market is no easy task. Whether you are selling a house, buying one, or doing both, it requires the skill of a surgeon to carefully slice through the layers of information available in order to get to the core issues. At the same time, you must have the insight […]
This article is brought to you by guest blogger and mortgage planning specialist, Dean Hartman. Feel free to leave Dean any questions or comments below. More and more, consumers are learning that there is much more to getting a mortgage than just the interest rate and points. A good mortgage planner is more in the […]
News Update: Mortgage Rates have increased from 4.71 to 5.14 in 4 weeks. As Steve Harney has said, the cost of a home has two major components: the price and the expense of the financing. Unless you are paying cash for the house, the mortgage interest rate is a key determining factor in what the home will […]
