Mortgages and Credit
How Will Interest Rates be Effected with the S&P Downgrade?
August 9, 2011 by MikeRosen · Leave a Comment
This is a question that I am getting asked a lot these days. I just found this video post by the National Association of Realtor’s Chief Economist Lawrence Yun. I think it’s worth taking a look to get his perspective on rates, lending, and the effect on the housing market.
Because Of The Federal Reserve, You Should Lock Before 2:15 PM ET Today
November 4, 2009 by MikeRosen · Leave a Comment
The Federal Open Market Committee caps off a scheduled, 2-day meeting today in the nation’s capital, its 8th meeting of the year.
The group adjourns at 2:15 PM ET and, as is customary, will issue a press release reviewing its monetary policy and the health of the U.S. economy.
The FOMC’s post-meeting statements are brief but comprehensive. They’re a window into the [...]
Simple Real Estate Definitions : Escrow Account
October 20, 2009 by MikeRosen · Leave a Comment
An escrow account is a designated savings account into which funds get deposited for a specific purpose.
With respect to real estate and home loans, escrow accounts are used to pay real estate tax bills and homeowners insurance payments.
Escrow accounts are managed and disbursed by lenders.
When a homeowner “escrows” his mortgage, along with his scheduled monthly [...]
The FHA Is Changing Its Streamline Refinance Guidelines November 2009
October 19, 2009 by MikeRosen · Leave a Comment
Beginning November 17, 2009, the FHA will make it harder to qualify for its popular Streamline Refinance program.
Available exclusively to homeowners with existing FHA home loans, the streamline program is meant to help homeowners reduce mortgage payments as simply as possible.
As such, the program carries minimum eligibility requirements.
In fact, the FHA Streamline Refinance is more notable for [...]
The Fed Thinks The Economy Is Improving And What It Means For Home Affordability
October 16, 2009 by MikeRosen · Leave a Comment
Mortgage rates are higher after the Federal Reserve released the internal notes of its September 22-23, 2009 meeting.
Known as the ”Fed Minutes”, the report details the conversation and cross-currents that led to the Federal Reserve’s decision to vote “unchanged” on the Fed Funds Rate after its last meeting.
The Fed Minutes are the lengthy companion to the more famous, [...]
You’ve Got 15 More Days To Use The First-Time Home Buyer Tax Credit
October 1, 2009 by MikeRosen · Leave a Comment
The government’s First-Time Home Buyer Tax Credit program expires November 30, 2009 — a scant 60 days from today.
Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.
Buyers not under contract by October 15 have little chance of meeting the November 30 deadline [...]
Fannie Mae Passes New, Tougher Mortgage Guidelines
September 29, 2009 by MikeRosen · Leave a Comment
Getting approved for a mortgage is about to get harder.
For the second time in less than 3 months, Fannie Mae announced changes to its mortgage guidelines.
In its official announcement, Fannie Mae details the updates, meant to reduce the mortgage firm’s overall risk.
The first major change is with respect to credit scoring. All Fannie Mae loans — [...]
A Simple Explanation Of The Federal Reserve Statement (September 23, 2009 Edition)
September 23, 2009 by MikeRosen · Leave a Comment
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
It also reiterated plans to support the mortgage market to the tune of $1.5 trillion.
In its press release, the FOMC noted that the U.S. economy is “picking up following its severe downturn” and that financial markets have “improved [...]
Ben Bernanke Leaves Clues About The Future Of Mortgage Rates
September 16, 2009 by MikeRosen · Leave a Comment
On the 1-year anniversary of the Lehman Brothers collapse, Fed Chairman Ben Bernanke said Tuesday that the “recession is very likely over at this point”.
His comments were supported by a Retail Sales report for August that was much better-than-expected.
Equities improved on the day, mortgage markets worsened, and home affordability suffered.
The days of ultra-low mortgage rates [...]
Why An 800 Credit Score Doesn’t Really Matter
September 10, 2009 by MikeRosen · Leave a Comment
Since 2007, mortgage lenders have clamped down in many areas of underwriting, but none more so than in the area of credit scoring.
Minimum FICO levels are up 120 points or more and conforming mortgage lenders now levy large fees on borrowers whose scores are below 740.
Keeping your credit scores high is a worthwhile goal, but it’s not always [...]
