FHA Loan Apps Rise as Borrowers Try to Beat Fee Hikes

FHA Loan Apps Rise as Borrowers Try to Beat Fee Hikes

NeighborWorks America Offers Five Tips as New Homebuying Season Begins

Seeking Professional Homeownership Advice in the Beginning Is Critical for Long-Term Success

WASHINGTON, DC, Mar 21, 2012 (MARKETWIRE via COMTEX) — NeighborWorks(R) America, one of the largest community development corporations in the U.S. and a leading provider of homebuyer education and advisory services that helped more than 13,000 people become homeowners in 2011, today released a list of top-five things a potential homebuyer should consider as the 2012 home buying season begins.

“Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today’s market,” said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez. “But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner.”

1. Get mortgage ready. When searching for a home, whether you’re a first-time homebuyer or a repeat purchaser, make sure that your credit is as strong as it could be. Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost. Working with a homeownership advisor from a NeighborWorks HomeOwnership Center or other NeighborWorks organization is a good way to start the homeownership process. A list of NeighborWorks HomeOwnership Centers and NeighborWorks organizations can be found atwww.nw.org/homeownership . Homeownership advice from NeighborWorks is provided free or at very minimal cost, typically less than $50.

2. Cost isn’t just the mortgage payment. A mortgage is just one part of a homeowner’s monthly housing budget. Being aware of utility, maintenance and transportation costs is also important when deciding whether a home is affordable. A NeighborWorks HomeOwnership Center advisor or other NeighborWorks organization staff can help prepare a realistic and sustainable budget that helps to make homeownership successful over the long-run.

3. Not all mortgages are created equal. NeighborWorks organizations helped homebuyers obtain more than $2 billion of home financing in 2011, so they’re expert at helping a consumer obtain a mortgage. Fixed-rate mortgages offer payment certainty, while adjustable rate mortgages frequently provide lower initial monthly payments, which could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.

4. Get a Realtor who knows the market. Searching for a home over the Internet is one thing, actually going through the process and closing on a home without professional assistance is another. 

5. Don’t rush. Buying a home is not a race. Moving too quickly because the “dream home” just came on the market could be the first of many mistakes. Take the time to obtain a home inspection, look over the neighborhood and investigate the school district. As with many of the steps to home buying, work with a homeownership advisor.

Read More: http://www.marketwatch.com/story/neighborworks-america-offers-five-tips-as-new-homebuying-season-begins-2012-03-21

Mortgage Rates Follow Bond Yields Higher - Mar 15, 2012

Mortgage Rates Follow Bond Yields Higher - Mar 15, 2012 - Freddie Mac

Mortgage rates are staying low by historical standards, despite inching slightly higher this week following a positive job report and increasing bond yields, Freddie Mac reports in its weekly mortgage market survey. 

The following is a closer look at rates for the week ending March 15: 

• 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.8 point, inching up from last week’s 3.88 percent average (which was only 0.01 percent above an all-time record low). A year ago at this time, 30-year rates averaged 4.76 percent. 
• 15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.8 point, climbing from last week’s record reaching 3.13 percent average. Last year at this time, 15-year rates averaged 3.97 percent. 
• 5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.8 point, also slightly up from last week’s 2.81 percent average. Last year, 5-year ARMs averaged 3.57 percent at this time of year.
• 1-year ARMs: averaged 2.79 percent, with an average 0.6 point, rising from last week’s 2.73 percent average. Last year, 1-year ARMs averaged 3.17 percent.  

Nationwide List Prices Rise Nearly 7%

Nationwide List Prices Rise Nearly 7%

Most Home Owners Unaware of Gov't Aid Programs

Most Home Owners Unaware of Gov't Aid Programs

More than 70 percent of home owners are unaware of government mortgage modification programs to help underwater borrowers, according to a new survey by FreeScore.com, an online credit servicer. 

Fed Renews Vow to Keep Rates Low

Fed Renews Vow to Keep Rates Low

Seniors, Young Adults Will Influence Housing

Seniors, Young Adults Will Influence Housing

More Details Emerge in $25B Mortgage Deal

More Details Emerge in $25B Mortgage Deal

Facts on the 3.8% Health Care Tax

Facts on the 3.8% Health Care Tax

BofA to Reduce Mortgages of Some Underwater Borrowers

BofA to Reduce Mortgages of Some Underwater Borrowers

Housing Affordability Soars to Record High

Housing Affordability Soars to Record High

$71.1M Construction Loan for Founders Square High Rise in Arlington, VA - Citybizlist Washington DC

$71.1M Construction Loan for Founders Square High Rise in Arlington, VA - Citybizlist Washington DC

How Much is Too Much?

by Realty Executives

Don’t leave affordability to chance and emotion.

You’ve found the home of your dreams. It’s expensive, but it’s beautiful, it has room to grow, and you can just squeak by if you’re careful–maybe.

This is a common situation, and all too frequently, it ends poorly–just look at the number of foreclosures on the market. Buying a home is an emotionally loaded process. Deciding how much home you can afford shouldn’t be.

As a general rule of thumb, a home that costs more than three times your gross income is too much of a stretch. Twice to 2.5 times your gross income is generally a safer bet, though that may be difficult to find in high-priced areas like California or the northeast.

To get a more specific estimate, you’ll need to include credit score, interest rate, closing costs, and taxes into your calculations, and these vary by location, and even day of the week. There are a number of mortgage calculators online, and they can be a great resource for examining different scenarios. To examine your situation in more detail, visit BankRate or another calculator, and input today’ states. If you’re unsure of which loan type to choose, stick with a 30-year fixed rate.

Once you arrive at a monthly payment, compare it to your current rent or mortgage payment. At this point, honesty is critical. Are you able to make your current payments without any problems? Are you falling behind? Banking extra each month? Determine a realistic payment and work backward. If you’re currently renting, you may need to include new types of payments like repairs, but the tax benefits of homeownership should allow you to spend roughly 30 percent more while maintaining the same standard of living–provided you can wait until the end of the year to see your return.

Utilities, student loans, credit card payments, and other monthly debt will also factor into your ability to pay. Lenders will generally cap total monthly debt payments at 41 percent of your gross income, so be sure to pay down those expensive credit cards as much as possible before yo start your search.

Mortgage Rates Drop Closer to All-Time Lows

Mortgage Rates Drop Closer to All-Time Lows

FHA's new limits on financial concessions from sellers to buyers

FHA's new limits on financial concessions from sellers to buyers

Fannie Needs $4.6 Billion More in Bailout Money

Fannie Needs $4.6 Billion More in Bailout Money - REALTOR Magazine

Selling Jitters

What can happen when a home goes up for sale? Five things. Here’s a list from the best-case scenario to the worst case.

1. Multiple Offers: Flurry of showings that produce multiple offers, resulting in a sale price above asking. The property was underpriced, either by accident or design.

2. Great Offer: Lots of showings produce one very strong offer, at or near the asking price. The price was spot-on.

3. Acceptable Offer: Eight to 12 showings in 30–45 days produce an offer adequate to satisfy seller and lead to closing. This is the norm.

4. No Offers/Unacceptable Offers: Eight to 12 showings in 30–45 days but no offers or only unacceptable offers; a clear indication of a property problem. Agents and buyers are visiting the property, only to be disappointed on arrival. If the problem can be fixed (say, by painting over bright paint colors), then the seller should fix it. If not, the problem must be overcome by offering buyers a better price.

5. Nada: Little or no showing activity. Agents and buyers are looking at listing details and electing not to even visit the home. Clearly, the price exceeds the market’s expectations.

If you’ve tried in the recent past to sell your home — and you’ve only gotten unacceptable offers or none at all — it’s likely that your listing was overpriced or there’s a problem. Contact us to discuss your home so we can help you sell successfully.

From our March 2012 E-Newsletter