Richmond Home Shopper » Mortgage Info

Jumbo Loans More Available!

RHS Publisher — Tue, 07 Sep 2010 18:00:22 +0000

A year ago, even the most creditworthy borrowers struggled to secure home loans of more than $729,750—the cutoff for conventional conforming loans backed by Fannie Mae and Freddie Mac. But since this spring, the interest-rate spread between conforming and jumbo loans has narrowed and the number of lenders offering the loans has jumped.

As of late July, lenders were offering jumbo loans at a typical rate of about 5.5 percent, down from almost 7 percent a year earlier and not too different from what’s available for conforming loans, according to data available on Bankrate.com. NAR Chief Economist Lawrence Yun said in a late-July press conference that sales of existing homes priced at $750,000 and above jumped 30 percent from mid-2009. “Credit was extremely tight a year ago, but now it is beginning to loosen up,” he said.

Among the big players in the market: Citigroup, which says in a July 10 Wall Street Journal article that it has seen a 30 percent rise in jumbo business, and Bank of America, which in an interview with REALTOR® Magazine late last year said it was making a big push in the jumbo arena.

Skye Bruce Properties offers full service mortgage services through our affiliation with Benchmark Mortgage. Benchmark Mortgage is a state chartered mortgage banking firm headquartered in Richmond. Benchmark offers a variety of loan programs, complimentary pre-qualifications and a dedicated mortgage officer to manage your loan from start to finish.

Contact:
Ben Burkett
Benchmark Mortgage
4413 Cox Road
Glen Allen, VA 23060
804-521-8958 (office)
804-833-4303
bburkett@benchmarkmortgage.com

Mortgage Market Update

RHS Publisher — Mon, 22 Jun 2009 14:13:31 +0000

Positive inflation numbers helped mortgage rates move lower early last week, but stronger than expected economic data turned them higher later in the week, leaving mortgage rates nearly unchanged from the previous week. The announcement of larger than expected Treasury auctions next week ($104 billion) also was negative for mortgage rates.

Last week’s Consumer Price Index (CPI) and Producer Price index (PPI) data indicated that inflation is not a concern in the short-term. A significant decline in energy prices from one year ago resulted in a very low overall annual inflation rate. Even Core CPI, which excludes food and energy, rose at a tame 1.8% annual rate. However, the benefit from the favorable inflation news was offset by stronger than expected economic growth data. In particular, the Philadelphia Fed manufacturing index showed surprising improvement. In addition, May Housing Starts rose 17% from April, while Building Permits, a leading indicator of future activity, also exceeded expectations. Last week’s data sets the stage for this week’s Fed meeting. With inflation currently low but at risk of increasing if the economy continues to improve, the Fed may be reluctant to introduce more stimulus, opting instead to wait and see how the economy performs.

President Obama has proposed broad new rules for regulating the financial system. One proposal under the Obama plan would create a consumer protection agency which would have the authority to set rules for the mortgage industry. The details may not be known for quite a while, as the plan now faces a lengthy debate in Congress.

With major economic data, Treasury auctions, and a Fed meeting, this week will be a busy one. Existing Home Sales and New Home Sales on Tuesday and Wednesday will provide a look at activity in the housing sector. Also on Wednesday, Durable Orders will be an important indicator of overall economic activity. Personal Income and the Core PCE inflation index will come out on Friday. There will be large Treasury auctions on Tuesday, Wednesday, and Thursday. The announcement from the Fed meeting will be released around 2:15 et on Wednesday. Investors are divided about whether the Fed’s next move will be to increase or decrease the level of stimulus. Even if the Fed takes no action next week, the wording of its statement will be likely to have a significant impact on mortgage markets.

Be smart and meet with knowledgeable REALTOR and mortgage lender. Skye Bruce Properties, The Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com has a support team industry experts including mortgage lendors. Contact them today!

National Real Estate News Update

RHS Publisher — Mon, 23 Feb 2009 13:15:27 +0000

Fears about the economy led to a stock market decline and pushed mortgage rates a little lower during the week. Even with Tuesday’s passage of the new $787 billion stimulus plan, economic growth forecasts from Wall Street economists and from the Fed were revised lower.

Wednesday, President Obama announced the $275 billion Homeowner Stability Initiative, which contained broad outlines of three major elements intended to help prevent foreclosures and falling home values.

First, the government will make it easier for many borrowers who currently may not be able to refinance their loans to refinance. Only existing owner-occupied loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible for consideration under the plan. The government estimates that 4 to 5 million borrowers will be eligible for this program. Details regarding qualification and procedures for this refinance program are expected to be released in coming weeks.

Second, the government will increase its commitment to Fannie Mae and Freddie Mac from $200 billion to $400 billion and will raise the portfolio size limits for the two firms by $50 billion each. In addition, the government pledged to continue to support purchases of mortgage-backed securities to help keep mortgage rates low.

The third program provides incentives for servicers to work with borrowers at imminent risk of default to modify the terms of the mortgage, bringing payments down to affordable levels. If successful, the government hopes to prevent an estimated 2 to 3 million foreclosures, which would keep these homes from adding to the inventories currently on the market.

This final week of February will reveal a number of important indicators of economic growth. Existing Home Sales and New Home Sales will be released on Wednesday and Thursday, respectively. Durable Orders will also come out on Thursday. Revisions to fourth quarter 2008 Gross Domestic Product (GDP) will be released on Friday, along with the Chicago PMI national manufacturing index. Consumer Sentiment and Consumer Confidence are on the schedule as well. Fed speakers, Treasury auctions, and new information about government programs also may have a significant impact on mortgage markets throughout the week. It will be interesting to see what the markets will do this week after the news!!!

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Thinking of buying or selling real estate in the Richmond, Virginia area? Contact Skye Bruce Properties, The Official REALTOR and Buyer’s Agents of RichmondHomeShopper.com

Obama’s Foreclosure Plan

RHS Publisher — Wed, 18 Feb 2009 18:47:06 +0000

President Obama to set aside $75 billion to slow foreclosures! Goal to bring mortgage payments down to 31% of income!

The Obama administration has rolled out a plan to help 9 million troubled homeowners modify their mortgages at a cost of $75 billion to taxpayers. There are two parts of the plan to help:

#1 To help refinance 5 million home owners in trouble with loans owned or guaranteed by Fannie Mae or Freddie Mac.

#2 To make loan modifications with government subsidies to lenders to reduce monthly interest payments.

Some highlights….

Make lenders responsible for bringing down interest rates so the monthly mortgage payment is no more than 38% of pre-tax income.After that the government would match the amount reduced by the lender to bring the payments down to 31% of their pre-tax income.

Offer a $1,000 incentive for loan services for each successful loan modification and additional funding for each month the borrower stays current on its loan. Homeowners would also receive $1000 a year for five years, as long as they stay current on their loan payments.

Offer other types of incentives to mortgage lenders who modify risky loans before the borrower has problems.

As part of the larger housing plan, it is expected that there will be an announcement that lets bankruptcy judges alter mortgages and lower interest rates for troubled homeowners

Check out great article on MarketWatch on Obama’s plan to help slow down foreclosures!

In the market for a home in the Richmond area? Be smart and meet with a knowledgeable REALTOR and mortgage lender. Skye Bruce Properties, The Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com has a support team of industry experts including mortgage professionals. Contact them today!

Stimulus Falls Short For Real Estate

RHS Publisher — Tue, 17 Feb 2009 22:00:35 +0000

Late last week the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. This was a measure which experts say could have quickly energized the real estate markets. Instead, the government will leave in place an existing $7,500 tax credit, applicable to only first time homebuyers. The good news and primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $7,500 tax break is less than $3 billion.

5 Ways To Control Your Homeowners Insurance Costs

RHS Publisher — Mon, 16 Feb 2009 13:59:24 +0000

Some great tips from the Richmond Farmers Insurance Team to control your Homeowners Insurance Costs. In our tougheconomic environment this is good advice. Sometimes we over-look evaluating things like this which can save us hundreds of dollars. It all adds up!

Shop around. Remember, cheaper insurance rarely means better insurance. Ask your friends, realtor, or mortgage broker who they recommend. Seek out a trusted professional to explain vital coverage differences. You can also check the National Association of Insurance Commissioners (www.naic.org). They will have information to help you choose a reputable insurer in your state.
Raise your deductible. Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible is the lower your premiums are. A typical Home Owner deductible is $500. If you can afford to raise it to $1,000 you can save as much as 25% in your premiums.
Buy your home, auto and life insurance from the same insurer. You can save up to 40% by bundling your insurance while developing a relationship with that one carrier.
Improve your home security. You can usually get discounts of 5% for installing fire/burglar alarms. Not every system will qualify for a discount so check with your insurer first.
Maintain a good credit rating. Insurers are increasingly using credit information to rate home owners. To protect your credit rating pay your bills on time, don’t obtain unnecessary credit and keep your balances to a minimum. You should check your credit on a regular basis and have any discrepancies corrected as soon as possible. Consider purchasing an identity monitoring program that some insurers offer as a special endorsement to help maintain your credit rating.

Some other help tips are to seek out other discounts (affinity or electronic pay discounts). You should inquire about additional coverage as needed (umbrella policies, Identity protection and a personal articles floater). You should plan on meeting with your agent at least once a year to review your policies.

Thanks to Anthony DiBuccio at Farmers Insurance Group/Richmond (phone-804-814-2212 email- adibuccio@farmersagent.com) for this information!

Cash Gives You An Edge When Buying Richmond Real Estate

RHS Publisher — Mon, 02 Feb 2009 23:00:55 +0000

In these difficult and challenging times cash can give you an edge in buying a home. Cash, equtes to more buying clout now in these tough financial times. In the past, people have sought out more liquid investments for their cash on hand and grab an easy to get low interest mortgage. Today with the equity markets depressed at the same time that mortgage lending has tightened the tables have turned. Those wielding ready cash in a recession are always ahead of the game. Having cash gives you a leg up in securing better terms for your mortgage and in negotiating with sellers. Sellers that know you are well qualified will spend much more time negotiating because you will be viewed as serious buyer.

Don’t have cash on hand? Start a down payment fund? The goal should be to amass as much as possible to bring to the table when buying a home. Set monthly saving goals. Shore up the family budget. Work an extra job if you must. The pain will precede a gain: a better mortgage loan, a lower purchase price, lower house payments and higher equity in the future.

Fix Rate Mortgages Drop To 2003 Levels!

RHS Publisher — Tue, 09 Dec 2008 20:15:25 +0000

Richmond area mortgage lenders are reporting that rates moved even lower last week, helped by economic weakness and recent actions by the Fed and the Treasury. Conforming fixed-rate mortgage rates dropped to levels last seen in 2003. According to Freddie Mac, the weekly decline in rates was the largest since 1981, over its Wednesday to Wednesday measurement period.

The Fed and the Treasury are looking at additional programs to boost the economy. On Wednesday, the Treasury confirmed that it is considering a plan which would offer below-market mortgage rates for select loans used to purchase homes. The lower rates would not be available for refinancing loans. At this point, it’s not certain if, when, or in what form this latest idea will be acted upon. As we have seen recently, most notably with the $700 billion TARP rescue plan, government programs often change significantly before their implementation.

On the economic front, the November Employment data was even worse than expected. The economy suffered the largest monthly loss of jobs since 1974. In addition, the figures from October and September were revised sharply lower. The Unemployment Rate rose from 6.5% to 6.7%, the highest level since October 1993. The manufacturing and construction sectors continued to shed jobs, and the service sector was hit hard as well. The weak report makes additional fiscal stimulus programs more likely.

During the first half of this week, Pending Home Sales on Tuesday will be the only economic data. Import Prices and the Trade Balance will come out on Thursday. Friday will be the big day with the PPI inflation data, Retail Sales, and Consumer Sentiment. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products. The Retail Sales report is a major indicator of spending levels by consumers, who account for about 70% of economic activity. Treasury auctions and Fed speakers may also have an impact next week.

Now is a great time to buy a house in Richmond, Virginia! Mortgages rates are low, sellers of existing homes are very motivated and builders of new homes in Central Virginia are offering incredible incentives. Skye Bruce Properties, the Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com can help you find the perfect home at the lowest possible price and our industry support team can even help you with a mortgage! Contact Skye Bruce Properties today!

Home Buying Tip: The Importance of Mortgage Pre-Approval

RHS Publisher — Thu, 06 Nov 2008 21:57:39 +0000

Getting pre-approved for a mortgage is a great first step in the home buying process, but the amount you get approved for should not always be taken as your perfect spending amount. Often times, the amount you are pre-approved for is based off of monthly payments that might be outside the range that you are prepared to pay. Especially in our current economy it is prudent not to set your budget based on your maximum mortgage approval level.

This is very important to understand and should be considered before you take a pre-approval mortgage amount and use it as your budget. Make sure that the terms included in your mortgage approval are acceptable to you, meaning you feel confident that your mortgage payment works in your personal budget.

In addition, a mortgage pre-approval can save you from future credit or legal problems. Don’t make the mistake of making an offer on a home you cannot get approved for or cannot afford. Breaking a contract can be difficult and costly especially if the seller takes the home off the market based on your contract.

Making an offer on a home when you are pre-approved for a mortage puts you in a strong negotiation position which is important in today’s buyers market. Sellers are much more likely to negotiate if they know the potential buyer is serious and is pre-approved for the mortgage.

Getting an accurate mortgage pre-approval and making offers based on what fits within your budget can save you money, time and insure your credit history is not damaged.

First Time Homebuyer Mortgage Myths

RHS Publisher — Mon, 03 Nov 2008 15:05:00 +0000

As first-time home buyer’s grow curious about the home-buying process, they often turn to friends and family for advice about purchasing a home. While these sources can provide useful tips and information, they also may perpetuate some common home-buying myths.

While family and friends may have the best intentions when sharing their purchase experiences, it is important to make sure that first-time homebuyers have accurate information.

There are many resources first-time buyers can use for learning about the home-financing process, including attending local mortgage seminars or researching online. Well-known mortgage lenders often have educational resources and mortgage tools on their Web sites.

So what are some common home-buying myths?

Myth 1: You need perfect credit.

An individual’s credit score will significantly affect his or her mortgage loan approval and interest rate. Credit scores may range from 500 to 850, but the majority of scores are between 600 and 700. The higher the score, the more options you will have when looking for a mortgage. Along with your credit score, lenders will need to consider other factors before they approve a loan. Carefully review your credit report and immediately contact the credit reporting bureaus to correct any errors. You will want your credit report to be accurate by the time you apply for a mortgage.

Myth 2: Owning a home is more expensive than renting.

In many markets, owning can be as affordable as renting, especially when you consider the tax advantages of owning a home. Unlike rental costs, which increase over time, fixed-rate mortgages provide consistent monthly principal and interest payments for the life of the loan. As you make payments, the money will be applied toward the principal, increasing the equity in your home over time. Historically, owning a home has been one of the easiest ways of building wealth in America as home prices generally increase over time.

Myth 3: Lenders share your personal information.

Your personal information is protected by federal and state privacy laws. Generally, lenders must get your permission to share personal financial information with non-affiliates.

Myth 4: The mortgage process is too long and complicated.

With the right resources, the process of buying a home and obtaining a mortgage can be simplified. Expect an experienced loan officer to review the home financing process with you, define terms, and address concerns to find the financing option that’s right for you. In addition, many home lenders offer a number of online resources such as payment calculators, appraisal tools and a glossary of commonly-used mortgage terms to simplify the home-buying process.

Myth 5: Lenders love to make you wait.

Mortgage lenders don’t enjoy making you wait, but it does take time to review your application. Although some lenders may give you a preliminary and conditional pre-approval based on the information provided in an application, they will need to verify this information. This typically involves confirming employment and income, financial assets, and assessing the value of the home you’re purchasing. Other documents, such as a payoff statement, may have to be ordered as well. Because lenders must rely on the response time of third parties, the process may take longer than anticipated. Ask your lender about what to expect when you submit an application and to keep you informed of unexpected delays.

Skye Bruce Properties has a great working realtionship with several Richmond area mortgage lenders who can make your loan process experience a positive one. Contact Skye Bruce Properties today for more information on these lenders!