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• Mortgage Rates Reach Record Lows as Stock Market Losses Mount

  MSC Marketing 9:11 am on August 11, 2011 | Comments:0
  Tags: Buyer information (31), Credit (21), economy (67), Interest Rates, mortgage (54), stock market (6)   Filed under: Buyer Info, Consumer news and advice, Credit, economy, FHA, Interest Rates, mortgage, Statistics, Stock Market, The Economy, Wall Street

  RISMEDIA, August 11, 2011—Mortgage rates continued to move lower as investor concerns over the health of the U.S. economy increased, reports mortgage rate research website, ForTheBestRate.com. Interest rates advertised on the site have dropped to near their lowest point of 2011 for most products, with the 15 year fixed reaching historical record lows. On August 4, 15 year mortgage rates as low as 3.250% were posted (APR: 3.387%, Lender: Gateway Bank Mortgage).

  Mortgage pricing has edged lower while US and global stock markets are seeing losses, including a drop in the Dow of more than 500 points on Thursday, August 4, the largest single day loss since December of 2008.

  The downward trend of mortgage rates was confirmed in the weekly survey from Freddie Mac, a government sponsored enterprise that purchases residential mortgage loans in the secondary market. The data released August 4 showed a decrease in the average 30 year fixed rate pricing to 4.39% (0.8% points) from 4.55% (0.8% points) from the previous week. 15 year fixed rates fell to a new historical low, an average of 3.54% (0.7% points), after averaging 3.66% (0.7% points) the week before.

  5 year adjustable rate loans also moved lower to an average of 3.18% (0.6 points), down from 3.25% (0.6% points) the week of July 28.

  “While we’d love to see more positive economic news coming from other sectors, right now there is a huge opportunity for homeowners,” comments Shaun Hamman of American Financial Resources, a National mortgage lender offering a range of products including home improvement loans and debt consolidation mortgages. “Buying a home or refinancing a higher rate mortgage at these incredibly low rates can allow one to make a significant positive impact on their long term net worth,” he adds.

  For more information, visit http://www.ForTheBestRate.com.

  http://rismedia.com/2011-08-10/mortgage-rates-reach-record-lows-as-stock-market-losses-mount/

  
   
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• Does Your Lender WANT To Say “Yes!”?

  MSC Marketing 12:08 pm on June 9, 2011 | Comments:0
  Tags: appraisal (3), Buyer info (71), Credit (21), Interest Rates, Mortgage rates (6)   Filed under: Buyer Info, Credit, Interest Rates, mortgage, Property Appraisal

  by Dean Hartman on June 9, 2011

  As people go through the mortgage process today, I believe that they wonder if their lender has gone insane. Lenders ask for documentation repeatedly, constantly updating, asking for further clarification and explanation for everything. Income, credit, assets and appraisals are scrutinized at a level unseen in my 25+ years. It almost seems like they are trying to find reasons NOT to lend.

  But, I assure you, that is not the case. The only way lenders can stay in business is to lend money. It is what funds the operation and pays for salaries, rent and paper clips. Lending is what creates the value of the company. No closings, no revenue, no company.

  So why the perception of over-documentation and over analysis when we know the lenders have to make loans? This is the reality of a post-subprime world. Lenders got too liberal and under-documented files and forgot the primary role of underwriting (judging a borrower’s ABILITY and WILLINGNESS to repay the loan) as they approved files. And now, the pendulum has swung back to a very conservative stance. Common sense seems to have been replaced by a “Cover Your Butt Mentality”.

  No one is immune. Appraisers error on the side of lower valuations and heightened criticism of a home’s condition.  Underwriters labor over pay stubs, tax returns, bank statements and credit information. Closing agents meticulously examine title and closing documents. Each of them has learned that their mistakes, miscalculations, or errors in judgment (no matter how minor) can result in a loss of their job, a bad loan, and/or monetary damages to their companies.

  So, today I just wanted to counsel home buyers. Your lender WANTS to make your loan. However, understand that they have been burned by borrowers, burned by their bad judgment, burned by moronic industry trends of the past. Lenders are going to be a little gun shy. If you can prove that you are willing and able to repay the loan, lenders have lots of money available at incredible (once-in-a-lifetime) rates. When you think your lender is asking for too much, know it’s because they want to say “yes” AND know that their decision is both a good and defendable one.

  http://kcmblog.com/2011/06/09/does-your-lender-want-to-say-%e2%80%9cyes%e2%80%9d/#more-8191

  
   
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• 4 Financial Reasons to Buy Now

  MSC Marketing 9:54 am on April 12, 2011 | Comments:0
  Tags: Buyer information (31), Interest Rates, Mortgage rates (6)   Filed under: Buyer Info, Federal Goverment, Interest Rates, mortgage

  by The KCM Crew on April 12, 2011

  As Dean Hartman said last week, the purchase of a home is a personal decision. However, we want to give everyone four great financial reasons why you should not wait before taking the plunge into homeownership.

  Interest Rates Are Increasing

  Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.

  The 30-Year Mortgage May Disappear

  There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s  Is it curtains for the 30-year mortgage? (More …)

  
   
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• Federal Housing Finance Agency Reports Mortgage Interest Rates

  MSC Marketing 10:21 am on March 31, 2011 | Comments:0
  Tags: Buyer information (31), FHA (6), Interest Rates, mortgage (54), Mortgage rates (6)   Filed under: Buyer Info, Federal Goverment, FHA, Interest Rates, mortgage

  RISMEDIA, March 31, 2011—The Federal Housing Finance Agency has reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.79 percent based on loans closed in February. This is an increase of 0.08 percent from the previous month. This Contract Rate series can be found at http://www.fhfa.gov/Default.aspx?Page=251.

  The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less increased 12 basis points to 4.97 percent in February. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the Feb. 22-28 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-January. (More …)

  
   
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• For Buyers:The Financial Opportunity of a Lifetime?

  MSC Marketing 8:30 am on March 3, 2011 | Comments:0
  Tags: buyers (15), Interest Rates   Filed under: Buyer Info, Interest Rates

  by The KCM Crew on March 2, 2011

  We often point out that a buyer should be more concerned about the COST of a home rather than the PRICE. Price obviously is a component of cost. However, unless you buy all-cash, you must also be concerned about the financing of the purchase. The price and the financing together determine the cost of a home. Today, we want to look at only the financing piece.

  An opportunity exists today because of recent government involvement; an opportunity that may never again be available in our lifetimes. There has been much discussion about what role the federal government should have in supporting homeownership. We will leave our opinions on the debate for another time. However, we want to alert you to two advantages available to a purchaser today that may disappear in the future:

  • Historically low interest rates
  • The ability to lock in these rates for thirty years (More …)

  
   
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• The Cost of Waiting for Prices to Fall

  MSC Marketing 8:25 am on February 14, 2011 | Comments:0
  Tags: Buyer information (31), Interest Rates   Filed under: Buyer Info, Interest Rates

  by The KCM Crew on February 11, 2011

  Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.

  The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.

  PRICES

  The National Association of Realtors (NAR) released their 4^th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year: (More …)

  
   
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• What The Crystal Ball Says About Rates

  MSC Marketing 8:56 am on January 27, 2011 | Comments:0
  Tags: Buyer info (71), Consumer news and advice (159), Interest Rates, mortgage (54)   Filed under: Buyer Info, Consumer news and advice, Interest Rates, mortgage

  by Dean Hartman on January 27, 2011

  Predicting what will happen with interest rates is risky for a person’s credibility.  Last year at this time, I (and the KCM Crew) believed rates would climb after June and for very logical reasons: the end of the Fed’s purchase of mortgage-backed-securities (MBS) and the end of the Tax Credit. What we didn’t anticipate was the collapse of the Greek economy. 

  That being said, I firmly believe that my opinion on the topic has some value. So, here’s my opinion (which assumes the governments of Ireland, Spain and Portugal stay solvent and no other major geo-political event occurs- like a war or terrorist activity).

  The Fed and the federal government have publically stated their desire to get the American Economy back on track.  Their goals:

  • Creating Jobs. They want to put Americans to work.
  • Improving Production in the corporate and manufacturing sectors (which will create jobs and profits)
  • Ratcheting Up Inflation in order to get prices moving upwards (really as a prevention of deflation) (More …)

  
   
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• Regional Spotlight: Florida’s Existing Home, Condo Sales Up in December 2010

  MSC Marketing 8:47 am on January 25, 2011 | Comments:0
  Tags: Buyer info (71), Florida Association of Realtors (5), Interest Rates, mortgage (54), statisics, The Housing Market (27)   Filed under: Buyer Info, Florida Association of Realtors, Interest Rates, mortgage, Statistics, The Housing Market

  RISMEDIA, January 24, 2011—Sales of existing homes and condominiums in Florida rose in December 2010, a positive trend also reported at the close of 2010 as statewide sales activity posted gains over the previous year, according to the latest housing data released by Florida REALTORS®.

  A total of 15,550 existing single-family homes sold statewide in December, up 4% from the 14,923 homes sold in December 2009. The statewide existing home median sales price last month was $133,100; in December ’09 it was $139,800 for a 5% decrease, according to Florida REALTORS’® data. However, December’s statewide existing home median price was higher than the $132,700 reported in November 2010. The national median existing single-family home price was $171,300 in November, according to the latest data available from the National Association of REALTORS® (NAR). The median is the midpoint; half the homes sold for more, half for less. (More …)

  
   
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• 3 Questions You Must Answer Before Buying a Home

  MSC Marketing 9:05 am on January 6, 2011 | Comments:0
  Tags: Agent info (4), Buyer info (71), Consumer news and advice (159), Interest Rates, mortgage (54)   Filed under: Agent information, Buyer Info, Consumer news and advice, Interest Rates, mortgage

  by The KCM Crew on January 4, 2011

  If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And most of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought five years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

  There are three questions you should ask before purchasing in today’s market: (More …)

  
   
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• Pending Home Sales Continue Recovery

  MSC Marketing 9:24 am on January 3, 2011 | Comments:0
  Tags: Buyer info (71), Consumer news and advice (159), economy (67), Interest Rates, NAR (34), National association of Realtors (3), seller info (63), Statistics (62), the economy (18), The Housing Market (27)   Filed under: Buyer Info, Consumer news and advice, economy, Interest Rates, NAR, National Association of Realtors, Seller Info, Statistics, The Economy, The Housing Market

  RISMEDIA, January 3, 2011—Pending home sales rose again in November 2010, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator, rose 3.5% to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0% below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

  (More …)