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Friday, September 23, 2016

Chapter 7 Bankruptcy and my Mortgage was included!!

Ever wonder about why you couldn't refinance your home loan within the guidelines 3 years for FHA and 4 years for FNMA and Freddie MAC. Well lenders will not release the mortgage liability at the same time as the Bankruptcy discharge date. Want to know more? Give us a call. Will A. Rudloff Loan Professional NMLS# 225332

Tuesday, July 19, 2016

Owning Beats Steep Rents Sometimes

Owning Beats Steep Rents Many renters would be better off buying a home than continuing to pay steep rental costs, finds a new study. The monthly payment on a median priced home is more affordable than the monthly fair market rent on a three-bedroom property in 76 percent of the U.S. counties, according to RealtyTrac’s Residential Rental Property Analysis, which encompassed 461 counties nationwide with populations of at least 100,000. Overall, Researchers found that fair market rents represented 28 percent of the estimated median household income, while monthly house payments on a median-priced home – which included a 10 percent down payment and property taxes, home insurance, and mortgage insurance – represented 24 percent of the estimated median income. “From a purely affordability standpoint, renters who have saved enough to make a 10% down payment are better off buying in the majority of markets across the country,” said Daren Blomquist, vice president at RealtyTrac. Of the 461 counties analyzed, 351 had house payments on a median-priced home in the first quarter of this year that was lower than fair market rents on a three-bedroom home. Source: RealtyTrac Note: This study did not necessarily take into account the fact that a portion of the mortgage payment goes to reduce the principal on the loan, building equity for the homeowner--while the entire rent payment goes to the landlord. Want to see how principal reduction, tax benefits and inflation affects the comparison? Contact us for an example--and a free individual analysis. Mr. Will 904-298-3015
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Tuesday, July 12, 2016

Sellers Market and good to know

From time to time we see information from our Lenders that we like to share hope this is helpful. Mr. Will Economic News Consumer & Realtor Corner This news is designed to help you by providing information that will be helpful to provide to your previous clients and other segments of your sphere. Feel free to forward these to your database, post on blogs, websites and more. Winning in a Seller’s Market In a seller's market, home buyers need to be willing and able to act fast to snag the home they want. This summer, areas across the country are facing a limited number of homes for sale. Realtor.com® offers up a cheat sheet for surviving a seller's market. • Be on call. "If you're only looking now and then when it's convenient, you're probably wasting your time," says James Malmberg, a real estate professional in Sherman Oaks, Calif. He suggests treating house hunting like job hunting. If someone calls with a lead, follow up promptly to gauge whether it could be a good fit and don't linger. • Bring the paperwork. To be taken seriously, buyers would be wise to get a mortgage pre-approval letter as well as a "proof of funds" form from their bank to show they have enough to cover a down payment. They'll be able to act quicker when they do find the right house. • Limit the contingencies. In a seller's market, buyers may need to drop some of the contingencies to score the house. Sellers prefer the fewest number of hurdles to closing as possible. If your buyers come in with several contingencies — such as "if" they secure financing — the sellers are more inclined to bypass their offer and take another with less hassle. Also, "don't waste your time low-balling a seller," advises Sean Kelley, a real estate professional with Howard Hannah in Pittsburgh, Pa. "Always put in an aggressive offer." • Cast a wide net. Search for homes outside prime locations if faced with limited or high-priced choices. Buyers need to carefully consider what they're willing to compromise on. "Sometimes properties sit, even in a seller's market, because of a problem that is scaring other buyers away," such as some renovation work that may need to be done, Malmberg says. Those "flaws," however, might not be a big deal to your buyers. "Finding a house this way can also cut down on the amount of competition you will face," Malmberg adds. Source: realtor.com® _____________________________________

Wednesday, July 6, 2016

Homeowners and Buyers to Benefit

This news is designed to help you by providing information that will be helpful to provide to your previous clients and other segments of your sphere. Feel free to forward these to your database, post on blogs, websites and more. Homeowners and Buyers to Benefit Brexit happened. And one of the biggest, and most immediate, effects on everyday Americans is how it will change interest rates on home loans. Greg McBride, chief financial analyst at Bankrate, said rates could sink to record lows in the coming weeks. “If you’re a borrower, don’t wait to lock your rate,” he said, “as this opportunity may not last long.” They’ve already hit rock bottom this year. In the past month alone, 30-year fixed-rates on home loans have hovered around 3.7 percent, nearly a three-year low. Britain’s vote to leave the European Union is expected to drive rates even lower. Rates have been about 17 percent lower than the median of this decade. However, McBride said his long-term outlook does not change with the Brexit vote. He still estimates a rebound from ultra-low rates by year’s end. Mortgage Bankers Association chief economist Michael Fratantoni forecast a rate of 4.8 percent by December 2017. That would be the highest rate since 2009, and a 30 percent boost from current levels. By the end of 2016, Fratantoni expects rates to reach 4 percent. He noted that he’s turned his estimates more conservative in recent months, but predicts an increase nevertheless. That could change with the Brexit referendum passing, however. He noted that Treasury rates had already dropped about 20 basis points the morning after the vote. “At this point, it is unclear whether this will just be a short term disruption, or whether it will have a longer-term impact,” Fratantoni said. “Our best guess at this point is that the impact on the residential real estate sector will be to keep rates on home loans lower for longer, likely leading to another pickup in refinance activity.” Source: The Washington Post

Thursday, June 23, 2016

Credit changes Revolver or Transactor

Are you a “transactor” or a “revolver” when it comes to your credit? Terms like these never have mattered much to home buyers seeking a home loan. You’ve probably never heard of them. Yet they are about to become more important to millions of home loan-seekers and they may even help determine whether you qualify for a loan in the first place. A transactor is someone who pays off credit bills in full every month or makes more than the minimum required payment. A revolver is the opposite: someone who routinely makes the minimum payment on credit cards and other debts, rolling balances over to the next month. Credit industry statistical research suggests that, all other factors being equal, revolvers tend to present higher risks of future default to lenders, especially when they are accumulating substantial unpaid balances. Transactors tend to be lower risks. Until now, lenders and investors had difficulty distinguishing revolvers from transactors. Credit reports told them whether you as an applicant were late on card payments and whether you defaulted on your car loan, but they didn’t show what you paid on your balances month by month over extended periods. Fannie Mae, a dominant player in the housing market, will soon begin evaluating how all loan applicants have managed their credit over the previous two years: how much they owed in revolving debt each month, the minimum payment allowed on each debt and how much they actually paid. As a general rule, according to Eric Rosenblatt, Fannie’s Vice President of Credit Risk Analysis and Modeling, the new system will “benefit borrowers who regularly pay off revolving debt” and should “provide more creditworthy borrowers access to credit.” Starting June 25, the new reach-back data will become an integral part of Fannie’s automated underwriting, an online system that is used by the vast majority of lenders to determine whether applicants are eligible for the loan they’re seeking. Source: Ken Harney, The Nation's Housing Note: The date of implementation is likely to be delayed by Fannie Mae

Tuesday, June 14, 2016

VA Loans

Active Military Are Buyers Active-service military buyers between the ages of 18 and 35 are purchasing homes at a “far greater rate” than non-military buyers – 51 percent versus 34 percent, according to the National Association of Realtors®’ newly released Veterans & Active Military Home Buyers and Sellers Profile. This is the first time NAR has released such an in-depth look at the military with the aim of evaluating the differences between active-service/veteran real estate clients and those who’ve never served. Despite their lower median income ($76,800), active-service military members tend to have more job security, says Lawrence Yun, NAR’s chief economist. "No-down payment financing options...are giving aspiring home owners in the military a deserving advantage over their civilian peers,” he adds. “Furthermore, their tendencies to marry and raise a family at an earlier age and carry less student debt make buying a home a more desirable and achievable option.” Because of the tendency to marry and have children at younger ages, active-service members often purchase larger homes that cost more than those purchased by non-military buyers and veterans alike, according to the study. The loans available to the military prove to be a big perk. Veterans Affairs loans offer 100 percent financing for veteran and active-service home buyers. Source: National Association of Realtors®

Saturday, June 11, 2016

The 3 C's of Mortgage lending

From an earlier post this week. The 3 "C's" of lending why it is important to have a Mortgage Originator take you through the process. Credit: An acceptable credit reputation is established by a history that, when viewed as a whole, evidences a borrower’s willingness to make timely payments on obligations. Capacity: The borrower must have the ability to repay the mortgage in the amount and terms stated. Adequate capacity is established by documenting stable monthly income and/or assets along with other information about how the borrower paid obligations in the past that, when viewed as a whole, evidences a borrower’s ability to make periodic payments approximating the amount of the proposed monthly debt payment. Regardless of the level of the borrower’s previous monthly payments, the file must contain evidence of the borrower’s ability to meet all new obligations after the new mortgage is made. When the borrower’s obligations will increase significantly with the mortgage, the Brokers Transmittal Summary must contain an explanation as to how the borrower will meet the higher payment. Collateral: The collateral must meet minimum property requirements as specified herein. Each property must also have an established value to support the loan transaction. This value will help in determining the risk associated with the loan transaction. Just Saying Mr. Will

Wednesday, April 20, 2016

A Homeowner’s Perspective

Writer Jason Zweig recently wrote a forward-looking letter to his grandchildren for The Wall Street Journal that documents the joys of home ownership and what many young adults may miss out on if they continue to be lifelong renters. Zweig writes that it took him decades to learn the true value of home ownership, beyond the advantages of equity building. Zweig reminisces in the letter as he and his brother help to move out their 87-year-old mother from the place she called home for half a century. The home contained memories for the family – where the family grew up and even where her husband died in 1981. Their mother had turned the home almost into a museum of family treasures over the years. As the mother told her sons: “I have no emotional attachment to the house; I never liked it physically. But everything important that ever happened in our life as a family is here, and I can’t just leave all that behind.” Zweig’s letter talks about the true treasures of owning a home and the difficulty in saying goodbye to a place you call home for so many years. “A home is more than an investment,” he writes. “It is the place that helps shape who we are. Your generation may well be thankful that you don’t have to bear the burdens of owning one – the mortgage, the maintenance, the pain of pulling up roots that run decades deep. My generation, and my mother’s, are thankful we had the blessings.” , Source: NAR & The Wall Street Journal