“This is a very encouraging sign that we are at or near the bottom of the current housing depression,” said NAHB Chief Economist David Crowe. “With the prime home buying season now underway, builders report that more buyers are responding to the pull of much-improved affordability measures, including low home prices, extremely favorable mortgage rates, and the introduction of the $8,000 first-time home buyer tax credit.”
Each of the HMI’s component indexes recorded substantial gains in April, with a 10-point increase in the component gauging builder sales expectations for the next six months, bringing that index to 25. The component gauging current sales conditions and the component gauging traffic of prospective buyers each rose five points, to 13 and 14, respectively, according to the report.
Builder Confidence Rises. Highest Level Since Oct. 2008 is a post from: SD Foreclosure Insider
]]>E-mail messages and Web sites may ask for bank account information and use it to drain consumers’ accounts of money or commit identity theft. Web sites also may persuade consumers to clink on links that will download malicious software or spyware that can be used to make them a victim of identity theft, or entice consumers to pay a small fee in order to capture their credit card information.
“Web sites may advertise that they can help you get money from the stimulus fund,” said Eileen Harrington, acting director of the FTC’s Bureau of Consumer Protection. “Many use deceptive names or images of President Obama and Vice President Biden to suggest they are legitimate. They’re not.”
To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant at https://www.ftccomplaintassistant.gov/ or call (877) 382-4357.
FTC Warns Consumers About Economic Stimulus Scams is a post from: SD Foreclosure Insider
]]>MAKING SENSE OF THE STORY FOR CONSUMERS
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Most Families Can Now Afford A House is a post from: SD Foreclosure Insider
]]>Current mortgage rates and changes in loan underwriting standards have led some borrowers to make mistakes when applying for a mortgage loan. One old adage that many borrowers fall into is not paying up-front points. In previous real estate cycles, paying one percentage point was equivalent to shaving off approximately a quarter of a percentage point of interest. In today’s market, one percentage point can lower the interest rate by as much as 1 percent, changing a 6 percent interest rate into one that is 5 percent.
Another common mistake some borrowers make is not locking in an interest rate, especially when the rates are at historic lows, as they are currently. Many borrowers believe that if a favorable rate is available this week, a lower one will likely be offered next week. Mortgage experts advise clients to lock in a rate if the numbers work and not try to wait for a better rate that may not come.
To read the full story, please click here.
Larger Mortgage Rates Still Carry Higher Rates
Some homeowners, especially in high-cost areas, are finding that the best interest rates are only available for conforming loans, those that are below $417,000. In high-cost areas, many homes fall into the jumbo conforming loan category — $417,000 to $625,500 or the jumbo loan category – above $625,500.
Last year, Congress created the jumbo conforming loan category as the intermediate category of loans, hoping to stimulate the mortgage market. Congress’ intent was to lower rates for loans below the jumbo loan limit of $625,500; however, that did not happen, and many jumbo conforming loans and jumbo loans still carry higher interest rates than true conforming loans.
To read the full story, please click here.
February Mortgage Update is a post from: SD Foreclosure Insider
]]>MAKING SENSE OF THE STORY FOR CONSUMERS
To read the full story, please click here.
Home Price Plunge Helping Buyers is a post from: SD Foreclosure Insider
]]>MAKING SENSE OF THE STORY FOR CONSUMERS
To read the full story, please click here.
To read additional articles about the Economic Recovery Package, please visit:
Homebuyers get a bonus in the stimulus bill
Global Worries Over U.S. Stimulus Spending
Biden: Stimulus Package Will Get Better With Changes
House Passes Stimulus Package is a post from: SD Foreclosure Insider
]]>Congressional leaders from both parties have been lobbying President-elect Obama to increase the limits of conforming loans – mortgages eligible to be purchased by Government Sponsored Enterprises (GSEs), like Fannie Mae and Freddie Mac – in high cost areas from $625,500 to $729,750 as part of an economic stimulus package. Qualified borrowers with conforming loans receive the best interest rates, because many in the financial industry believe conforming loans carry less risk.
Last year, as part of the federal government’s economic stimulus package, the conforming loan limit was temporarily increased to $729,750 in high-cost areas. Beginning Jan. 1, 2009, the conforming loan limit was lowered to its original level of $625,500 for high-cost areas.
In California, the new conforming loan limits for metropolitan areas range from $474,950 in the Sacramento-Arden-Arcade-Roseville metropolitan area, covering El Dorado, Placer, Sacramento, and Yolo counties to $625,500 in the Los Angeles-Long Beach-Santa Ana metropolitan area.
To read the full story, please click here.
Homeowners who find themselves with extra cash may be considering paying down their mortgage. While this can help some people in certain situations, like seniors close to retirement age or those with adjustable-rate mortgages, it may not be the best choice for all homeowners. Paying down the mortgage more quickly can save homeowners a significant amount in interest in the long run. However, some financial experts advise clients, especially those with fixed-rate loans at favorable interest rates, to use extra money to pay down high-interest debt and build up an emergency fund.
To read the full story, please click here.
The Federal Reserve’s announcement that it’s purchasing up to $500 billion of securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae, has contributed to a reduction in mortgage rates to record lows. However, some mortgage experts warn that the low rates may not last long and could actually rise as early as this summer.
According to Celia Chen, senior director of housing economics at Moody’s Economy.com, in the second half of this year, the Federal Reserve’s program will have run its course and other issues will move to the forefront, which could push mortgage rates higher.
To read the full story, please click here.
Lower mortgage rates have led to a flurry of homeowners seeking to refinance, but limited staff at many banks has resulted in processing and approval delays. Due to the large number of applications to refinance, Wells Fargo no longer is allowing its loan offers to lock in rates for less than 90 days. The 90-day lock is designed to allow enough time to close the loans.
The record-low rates that have led many homeowners to refinance are typically for 30-year, fixed-rate mortgages that meet the purchase requirements of Fannie Mae and Freddie Mac. Because so many factors determine the interest rate a borrower is actually offered, some banks may not post rates on their Web sites.
It is important to note that a lower rate accompanied by higher points and/or fees may not be the best option. Many times, a slightly higher rate with no points and/or fees is the better choice.
To read the full story, please click here.
After the government started purchasing mortgage-backed securities, interest rates at some of the nation’s top banks started falling below 5 percent. On Jan. 8, JPMorgan Chase & Co. was offering 30-year mortgages as low as 4.75 percent on its Web site; Wells Fargo & Co. was advertising rates of 4.875 percent; and Bank of America Corp. at 5 percent. All posted offers were for borrowers with excellent credit – FICO scores of 720 and higher – and with a 20 percent down payment.
To read the full story, please click here.
January Mortgage Update is a post from: SD Foreclosure Insider
]]>The second annual Southern California Home Buyers Fair is scheduled for Saturday, April 18 and Sunday, April 19 at the Los Angeles Convention Center in downtown Los Angeles.
The event is free to the public, and will feature more than two dozen educational how-to seminars presented in both English and Spanish, including:
The Southern California Home Buyer’s Fair also will feature more than 65 exhibit booths where attendees can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
For more information, please visit www.homebuyersfair.com
Southern California Home Buyer’s Fair is a post from: SD Foreclosure Insider
]]>To read the full story, please click here.
Mortgage Rates Fall To New Low is a post from: SD Foreclosure Insider
]]>The Federal Reserve this week reduced the federal funds rate to a range of zero to 0.25 percent. The rate cut likely will not impact 30-year, fixed-rate mortgages. The real impact will be on consumer loans tied to the prime rate, such as home-equity lines of credit and credit cards with variable interest rates. Borrowers with loans tied to the prime rate may see an interest rate decrease.
To read the full story, please click here.
James Lockhart, director and chairman of the Oversight Board of the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks, is predicting mortgage rates to go “well below 4 percent,” as a result of the government’s efforts to ease consumer credit and jump-start home sales.
To read the full story, please click here.
After hearing news that the U.S. Treasury Dept. is working on a plan that could reduce interest rates to as low as 4.5 percent, many consumers were reluctant to complete their applications for new mortgages, thinking they may receive a better rate in a few weeks. Consumers worried about missing out on a low rate can ask their broker or loan officer to lock in today’s rate with the stipulation that they can receive a lower rate should one become available within 60 days. Some brokers offer 60-day locks with that option, while others may charge a fee.
To read the full story, please click here.
A proposal by the Federal Deposit Insurance Corporation to raise the insurance premiums on banks that finance loans through borrowing from the Federal Home Loan Banks could make it more difficult for consumers to get mortgages from small community banks.
To read the full story, please click here.
December Mortgage Update is a post from: SD Foreclosure Insider
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