Mortgages and Credit
The New Conforming Mortgage Guidelines, Effective September 1, 2009
August 28, 2009 by MikeRosen · Leave a Comment
As a reminder, Fannie Mae is rolling out new lending guidelines Tuesday, September 1, 2009.
Starting next week, being approved for a home loan could be much more difficult.
The new rules mark the first major underwriting update since April of this year. The changes are mostly geared at fraud prevention.
Among the updates:
Stock options are no longer [...]
To Use The $8,000 First-Time Home Buyer Tax Credit Program, There’s Now Just 6 Weeks To Find A Home
August 20, 2009 by MikeRosen · Leave a Comment
If you plan to use the First-Time Home Buyer Tax Credit program, time is running out. The program expires November 30, 2009 and closing on a home can take up to 60 days.
That leaves you 6 weeks from today to find a home and go under contract.
The First-Time Homebuyer Tax Credit program was passed as [...]
Is Mortgage Underwriting Getting More Friendly?
August 18, 2009 by MikeRosen · Leave a Comment
It looks like banks are less scared of mortgage loans these days.
In its quarterly survey to member banks, the Federal Reserve asked senior bank loan officers whether “prime” residential mortgage guidelines had tightened in the last 3 months.
Just one-fifth of banks said guidelines tightened last quarter, a dramatically lower figure versus last quarter — a [...]
A Reason To Lock Your Mortgage Rate Within The Next 29 Hours
August 11, 2009 by MikeRosen · Leave a Comment
The Federal Open Market Committee kicks off a two-day meeting this morning.
It’s one of 8 scheduled meetings the FOMC holds annually.
The FOMC purpose is to discuss the nation’s economic health and, as appropriate, makes new policy that either stimulates or retards economic growth.
The FOMC’s most well-known tool for reaching this goal is the Fed Funds Rate, currently [...]
July Jobs Data Is Weak, But Strong Enough To Sock Mortgage Rates
August 7, 2009 by MikeRosen · Leave a Comment
This morning’s jobs report is doing a number on mortgage rates, putting another dent in home affordability nationwide.
Despite the slightly flat Unemployment Rate, the government’s July Non-Farm Payrolls report reinforced the notion that the recession may be ending soon, if it hasn’t already.
Just 247,000 jobs were lost last month — much fewer than analysts had [...]
VIDEO : Who Should — And Should Not — Be Paying Down Their Mortgage
July 31, 2009 by MikeRosen · Leave a Comment
Financial advice is rarely one-size-fits-all, but this interview with Suze Orman is worth a watch.
In 5 minutes with NBC’s The Today Show, Ms. Orman covers a ton of relevant ground for homeowners and the public-at-large:
Who should — and shouldn’t — be paying down their mortgage
What backlash to expect from the Dow’s 40% run-up since [...]
The Little-Known Reason Why Mortgage Rates Are Rising This Week (And Why They May Go Higher Still)
July 30, 2009 by MikeRosen · Leave a Comment
After starting the week with a run lower toward 5 percent, mortgage rates have reversed course.
It started mid-day Tuesday and the culprit is Basic Economics. Here’s why.
Mortgage rates are based on the price of mortgage-backed bonds and — like most things — mortgage-backed bonds prices are based on Supply and Demand.
When bond supplies [...]
Mortgage Rates Drop On Ben Bernanke’s “Exit Strategy”
July 22, 2009 by MikeRosen · Leave a Comment
Mortgage markets rallied Tuesday while Fed Chairman Ben Bernanke gave his semi-annual testimony to Congress.
By the time the day was over, some conforming mortgage rates were down by as much as 0.250 percent.
One of the leading causes for the market rally was Chairman Bernanke revealing an “exit strategy” from its massive market stimulus.
Until Tuesday, [...]
Change Your Closing Date To Get A Lower Mortgage Rate
July 10, 2009 by MikeRosen · Leave a Comment
Sometimes, saving money on your mortgage is as simple as picking a better closing date.
It’s all about Rate Lock Commitments.
A Rate Lock Commitment is a bank’s promise to honor a specific mortgage rate for a specific period of time. They are a lender’s prediction of what mortgage markets will look like at some point [...]
Fannie Mae Restricts 2-Unit Borrowing
July 8, 2009 by MikeRosen · Leave a Comment
For the first time in nearly six months, Fannie Mae is imposing strict, new guidelines on American homeowners.
This time, the hardest hit demographic is owners of 2-unit homes.
In its official announcement, Fannie Mae listed the following changes to its 2-unit financing programs, separated by occupancy type.
Primary Residence
Purchase: Maximum loan-to-value drops to 80%; FICO minimums reset to 640.
Rate-and-Term Refinance: [...]
