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Posts Tagged ‘Fannie’

Weekly Primary Mortgage Rates – April 18, 2013

April 18, 2013 Leave a comment

From Freddie Mac…..Click here for the rates

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Weekly Primary Mortgage Rates – March 21, 2013

March 21, 2013 Leave a comment

Weekly Primary Mortgage Rates – January 12, 2012…WOW LOOK AT THESE RATES!

January 12, 2012 Leave a comment
Regional Breakdown 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 3.89 % 3.16% 2.82% 2.76 %
Fees & Points 0.7 0.8 0.7 0.6
Margin N/A N/A 2.74 2.76

From Freddie Mac

Dave & David Warner

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Mortgage Rates – June 2, 2011

June 2, 2011 1 comment

http://www.freddiemac.com/pmms/

Had to provide a link today, sorry.

 

Have a good one….

Dave & David Warner

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Weekly Mortgage Rates – April 14, 2011

April 14, 2011 1 comment
Regional Breakdown 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.91 % 4.13 % 3.78 % 3.25 %
Fees & Points 0.6 0.7 0.6 0.6
Margin N/A N/A 2.74 2

Dave & David Warner
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Homeownership: What Americans Think

March 8, 2011 Leave a comment

The conversation has shifted over the past week or so from –  is it the time to buy to should I buy at all?  As always, our friends at Keeping Current Matters are tracking with our theme and their most recent post will give you an insight into what Americans as a whole think about that.  Before we get to their post though I’d like to draw attention to a statement made by John Paulson.  He was the manager of several hedge funds who ultimately became a multi-billionaire…and a celebrity.  But now that housing has crashed, Paulson likes the other side of this trade. He thinks US houses are a buy.

“Paulson made three big financial calls [late last year] that you need to know about,” The Wall Street Journal’s Brett Arends reported at the time, “First, he said that gold could go to $2,400 an ounce based on the fundamentals – and that momentum could carry it to $4,000 an ounce… Second, he said you should get out of bonds while you can: You’re much better off investing in blue chip stocks with good dividend yields than bonds. And third, he said you should buy a home. Now.”

“If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”

Homeownership: What Americans Think

There is a growing number of people debating whether the government should continue its level of support for homeownership. Mortgage assistance is being pulled back and even the mortgage-tax-deduction is now up for debate. We want to look at how the people of this country view owning a home and the reasons they buy. Last week, Fannie Mae released the National Housing Survey. Here are the survey’s more interesting findings.

Belief in Homeownership

  • 96% of all homeowners said homeownership has been a positive experience.
  • 84% of Americans still believe that owning a home makes more sense than renting. Even 68% of renters believe owning makes more sense.
  • 64% consider buying a home as a safe investment. Buying a home was considered safer than buying stocks by over three times the number of people (64% vs 17%).
  • 2 in 3 Americans believe that lifestyle benefits of homeownership (65%) are superior to the financial benefits (32%).

Top Non-Financial Reasons to Buy a Home

Lifestyle Benefits: The broader security and lifestyle benefits of homeownership, such as providing a good and secure place for your family and children, where you have the control to make renovations and updates if you want, and in a place that’s in a community and location that you prefer.

  1. It means having a good place to raise children and provide a good education
  2. You have a physical structure where you and your family feel safe
  3. It allows you to have more space for your family
  4. It gives you control over what you do with your living space (renovations & updates)
  5. It allows you to live in a nicer home
  6. It allows you to live in a location that is closer to work, family, or friends

Top Financial Reasons to Buy a Home

Financial Benefits: The financial benefits of homeownership: its value as an investment (especially compared to paying rent), its value as a way to build up wealth for retirement or to pass on to your family, and the tax benefit.

  1. Paying rent is not a good investment
  2. Buying a home provides a good financial opportunity
  3. Owning a home is a good way to build up wealth and pass it along to my family
  4. It is a good retirement investment
  5. Owning a home provides tax benefits
  6. Owning a home gives me something I can borrow against if I need it

Bottom Line

The people of this country have always seen great value in owning their own home. They still do. We believe we should never underestimate the importance of homeownership as a crucial piece of the American Dream

Thinking of Flipping a Property in 2011?

January 20, 2011 1 comment

Property flips are not inherently illegal and not all transactions involving a rapid purchase and resale are improper. Legitimate property flips are acceptable transactions.  Both Conventional and FHA financing is allowed on property flips as long as all guidelines are met. Many of the guidelines overlap, i.e., must be arms-length, seller listed on title report, etc. There are a few differences as to when and if a 2nd appraisal is required.  Below is a list of the requirements for all property flips, in general if ownership has changed within 12 months for Conventional financing and 90 days for FHA financing. General Property Flip Guidelines· No seller financing allowed, usual seller contributions towards closing costsallowed.· Property must have been exposed to the open market through MLS, traditional auction, or developer marketing.· Buyer and seller cannot be represented by the same agent or broker.· No re-dating of purchase contract.· Seller must be listed on title report.· No simultaneous closings.· No more than 1 title transfer, other than a financial institution or government agency, within the last 12 months.· If ownership is in a LLC or corporation, a full review of the legal documents is required to ensure buyer is not affiliated.· Must be arms-length.  For Conventional financing, generally property flip guidelines will be required if seller has owned property less than 12 months.  Cannot be purchased as investment property· If seller is on title less than 90 days, maximum financing for buyer is 80% LTV.· 2 full appraisals required if new sales price is 15% higher than what seller paid.  If  increase is less than 15%, an exterior-only appraisal is required (in addition to the 1st appraisal). New value must be justified through appraisals. Appraisal cannot be done concurrently.· Lender will use the lower of the two appraised values for decisioning.

FHA Financing in the past, FHA financing was not allowed on properties if the seller had owned the property for 90 days or less, no matter if there was an increase in value or not.A waiver is now in place for contracts dated Feb. 1, 2010 through Feb. 1, 2011, allowing financing as long as they meet the guidelines mentioned previously. Enhanced guidelines are required for increases in price of 20% or greater:· A 2nd full appraisal is required. Appraisals cannot be done concurrently.· New value can be justified through the appraisals with complete details of property improvements. If no improvements were made but property was originally bought well below market value and is now selling at market value, this  must also be addressed.· The lower of the two appraised values will be used for decisioning.· A full property inspection must be provided to the borrower.· Both the inspection and the 2nd appraisal can be paid by the borrower.· Any health and safety issues noted in the appraisals or inspection report would need to be repaired prior to closing. Full inspection of the repairs would also be required.If seller has owned the property between 91 – 180 days, no additional requirements unless new value is 100% greater than what seller paid. If  so, then the above requirements must be met.

From Mike Harper

Bankers Funding Trust LLC

Dave & David Warner

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