Archive for the ‘Mortgage News’ Category

Mortgage Rates Dip to New Record Lows

Mortgage Rates Dip to New Record Lows

 Mortgage rates moved into record low territory again last week, with the average rate on the benchmark 30-year fixed mortgage rate ticking lower to 4.09 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage rate pulled back to 3.28 percent—also a record low t—while the jumbo 30-year fixed mortgage held at 4.61 percent. Adjustable mortgage rates were mixed, with the average 3-year adjustable down for a third consecutive week to a new low of 3.06 percent, while the 7-year and 10-year ARMs both inched higher, to 3.20 percent and 3.53 percent, respectively.

Although corporate earnings have been strong, recent economic data has been more suspect and the European debt crisis is an ongoing saga. Together, these are keeping both bond yields and mortgage rates at historic lows. Mortgage rates are closely related to yields on long-term government debt.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.09 percent, the monthly payment for the same size loan would be $965.24, a difference of $276 per month for anyone refinancing now.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com

I have a handful of great lenders I can refer you to.  Give me a call!

Joel Thompson RE/MAXAlliance

joelathompson@hotmail.com 303-877-0060

Search all of Boulder County homes for sale

Advertisements

Successful Short Sales: Giving the Lender What They Want

Successful Short Sales: Giving the Lender What They Want

Short sales are enjoying a much-needed resurgence as lenders become more motivated to move short sale transactions through the pipeline more quickly. So, if you’ve soured on short sale business, now is the time to rethink your position as the lending landscape begins to change.

Your approach to successful short sales must be focused in two areas: making sure the seller is truly a short sale candidate  and making sure you foster the right relationship with the lender.

A little secret nobody realizes is that many lenders are desperately looking for a competent real estate partner in the short sale arena. I walked into my local bank, for example, and discovered that they were getting barraged with calls from clients inquiring about a short sale on their property. While a lot of us think that banks are against short sales, the reality is, they just don’t have the time to handle the volume.

This is where huge opportunity lies for real estate professionals. Take the time to build a relationship with your local lenders, understand exactly what they need in order to process a short sale, and then be the conduit throughout the entire process. In other words, work with your clients to give lenders what they want. This will eliminate notorious delays and save you, your client and the lender precious time.

Following is the lender package that I require all short sale clients to complete. When it comes to short sales, the devil is truly in the details.

Required Items: Before the Sales Contract
1. Cover letter
2. Table of contents (this lets the lender know right away that everything they need is included)
3. Third-party authorization
4. Seller’s tax returns from the previous two years
5. Seller’s bank statements from the previous two months (six months is even better)
6. Most recent paystubs
7. Seller’s hardship letter
8. Bank worksheets (financial situation)
a. Current
b. Projected in next three months
c. Projected in next six months
9. Listing agreement

Required Items: After the Sales Contract
10. Necessary short sale addendums
11. History of listing – market report
12. Sales activity report
13. Local community economic report
14. CMA/absorption rate
15. Sales contract
16. HUD-1
17. Buyer’s pre-approval letters
18. Earnest money verification
19. Damage report with photos
20. Carry cost estimate
21. Agent personal letter

By providing banks with the right information, you are helping them push through the glut of short sale requests. Make sure you become their partner in this effort.

Short sales aren’t as complicated as you may think. Let me help walk you through the process.

Joel Thompson RE/MAXAlliance

joelathompson@hotmail.com 303-877-0060

Search all of Boulder County homes for sale

Foreclosure Proceedings Can Make or Break Local Market Recovery

Foreclosure Proceedings Can Make or Break Local Market Recovery

 

 The housing market seems to be on the upswing, and some experts say that by 2014, the market will be back on track. Last week NAR noted that investment properties are on the rise, and the National Institute of Home Builders reports that contractors have high expectations  for remodeling this year. According to data from the Federal Housing Finance Agency, home price indexes for 38 states ended 2011 above their early-year lows and 30 states reported more than two quarters of growth by the end of 2011.

However, Kiplinger.com notes that how each individual state recovers will depend largely on how it deals with foreclosures; in states that require judicial review before signing off on a foreclosure, backlogged properties can slow down the progress in the market. States that do not require judicial review—like Texas and Delaware—are speeding through foreclosure processes in impressive time. In Florida, it can take over 800 days to complete a foreclosure; in Arizona, it can take less than 200. This may be part of the reason Phoenix gained 2.7 percent in the fourth quarter, despite its 55 percent plunge from 2006 levels.

Joel Thompson RE/MAX Alliance

joelathompson@hotmail.com 303-877-0060

Search all of Boulder County homes for sale

Tips to Avoid Getting Ripped Off on Craigslist

Tips to Avoid Getting Ripped Off on Craigslist

 Buying and selling on Internet classified sites such as Craigslist can be a great way to find a deal and make extra cash. But it can also expose you to a host of scams. Here are some tips to help keep you from being ripped off:

Meet the other party in person. By following this single rule, according to Craigslist, you will avoid 99 percent of attempted scams on the site. Any time the other party is unable or unwilling to meet face to face, it should be a huge red flag. Continue reading

Consumers Can Learn Credit Awareness

Consumers Can Learn Credit Awareness

As many people celebrate the arrival of warmer weather and Spring Break vacations, the freecreditscore.com™ band took to the sun and surf to star in the newest freecreditscore.com television commercial, “Credit Wipeout.” The new 30-second spot, draws attention to the situations that can impact a person’s credit status while encouraging consumers to learn more about those factors.

“Every individual’s personal credit story is unique, and we’ve found that bringing financial factors to life in a fun and relatable way, such as in the new commercial, helps people understand the impact simple actions can have on their credit scores,” says Ken Chaplin, senior vice president of marketing for freecreditscore.com. “Experian Credit Advisors, Inc. helps individuals better understand how to take control of their credit.”

Experian Credit Advisors, Inc. (an affiliated company, in partnership with the iQual Corporation), offers freecreditscore.com members personal, one-on-one sessions, designed to empower consumers to proactively manage their credit through education and useful tips, in an effort to provide a better understanding of credit and the role it plays in their lives.

“Through our agreement with Experian Credit Advisors, Inc., iQual Corporation will offer credit advisory sessions to freecreditscore.com customers who purchase the service,” says Jeff Mandel, CEO of iQual Corporation. “We provide Experian Credit Advisors, Inc. customers with highly trained credit advisors, timely access to credit education, and online resources focused on financial literacy and empowerment, which may help individuals improve credit scores, qualify for new credit, and even reduce unnecessary monthly interest expense.”

For more information, visit www.freecreditscore.com  or http://www.experianplc.com

Joel Thompson RE/MAX Alliance

joelathompson@hotmail.com 303-877-0060

Search all of Boulder County homes for sale

Freddie Mac Reports a Market Revival

Freddie Mac Reports a Market Revival

Posted By Freddie Mac (OTC: FMCC) recently released its U.S. Economic and Housing Market Outlook for March showing signs the housing market is awakening from its depression-like condition of the past few years and beginning, though slowly, to make a nascent recovery.

The report showed that a stronger economic growth this year will translate into a further reduction in the unemployment rate below 8.3 percent.

With stronger economic growth, home sales and originations forecasts have been revised upward and we can expect 30-year fixed-rate mortgages to gradually increase throughout the year to about 4.5 percent.

New rental construction for 2012 is likely to be the highest since 2005 if the current pace is maintained, and even with a 1 percent dip in new and existing homes sales in February, median sales prices moved up 0.3 percent on a year-over-year basis—a hint that home values may be stabilizing in more markets around the nation.

“The housing market continues to struggle amid strong economic headwinds,” says Frank Nothaft, Freddie Mac, vice president and chief economist. “However, a variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery, and more neighborhoods may see a stabilization in overall demand and housing values this spring.”

Click here  to view the complete March 2012 U.S. Economic and Housing Market Outlook.

For more information, visit www.freddiemac.com

Joel Thompson 303-877-0060 joelathompson@hotmail.com

Boulder Real Estate

Mortgage Applications Increase in Latest MBA Weekly Survey

Mortgage Applications Increase in Latest MBA Weekly Survey

Mortgage applications increased 4.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 30, 2012.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5.0 percent compared with the previous week. The Refinance Index increased 4.0 percent from the previous week. This is the first weekly increase in the Refinance Index after six weeks of consecutive declines. The seasonally adjusted Purchase Index increased 7.2 percent from one week earlier to its highest level since December 2, 2011. The unadjusted Purchase Index increased 7.6 percent compared with the previous week and was 2.4 percent higher than the same week one year ago.

“Applications to buy a home picked up last week, and are running more than two percent above the level reported at this time last year. Home purchase applications for conventional loans are now about 10 percent above last year’s level,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Applications for government loans increased by more than 10 percent over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April.”

The four week moving average for the seasonally adjusted Market Index is down 2.07 percent. The four week moving average is up 3.48 percent for the seasonally adjusted Purchase Index, while this average is down 3.73 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 71.2 percent of total applications from 71.9 percent the previous week. This is the lowest refinance share since July 29, 2011. The adjustable-rate mortgage (ARM) share of activity increased to 5.5 percent from 5.4 percent of total applications from the previous week.

In February 2012, among home purchase applications, 85.8 percent were for fixed-rate, 30-year loans, 6.6 percent were for 15-year fixed loans and 5.9 percent were for ARMs. The share of purchase applications for “other” fixed-rate mortgages with amortization schedules other than 15- and 30-year terms was 1.7 percent of all purchase applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.16 percent from 4.23 percent, with points decreasing to 0.43 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.46 percent from 4.54 percent, with points increasing to 0.49 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.89 percent from 3.96 percent, with points increasing to 0.58 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.40 percent from 3.50 percent, with points decreasing to 0.41 from 0.42 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.93 percent from 3.00 percent, with points decreasing to 0.35 from 0.42 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

For more information, please visit www.mortgagebankers.org

Joel Thompson 303-877-0060 joelathompson@hotmail.com

Boulder CO Real Estate