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Floodplain Insurance Requirement Dropped.

Hundreds of Scottsdale residents in the Grayhawk master-planned community have been removed from the Rawhide Wash 100-year flood plain. This revision to the flood insurance rate maps means pricey flood insurance is no longer mandatory for those home owners with a federally-backed mortgage that are now outside the boundaries of the 100-year flood plain. Those […]

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Have you Been Tortured by a Lender?

Lenders have put some borrowers through the ringer due to enhanced underwriter guidelines. Although better qualified buyers are a good thing, idiotic and illogical requirements delay the process and make an already stressful process worse. Karen Deis, the operater of MortgageCurrentcy.com, has collected dozens of these tales of woe on her Facebook page. These stories […]

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Is Another Boom Going to Bust?

The Canadian real estate market has been very strong for a long time. Continued rising prices would appear to be unsustainable, as they can’t continue indefinitely. We learned that lesson in Arizona when our real estate boom busted. But Canadians claim that scenario won’t happen there. Do they know something we don’t, or are they […]

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Its Time to Borrow!

Freddie Mac reported that mortgage rates set new record lows the first week of September. Rates on 30-year fixed-rate mortgages averaged 4.12%; the lowest since 1971. That’s down from 4.22% the week before, and from a 2011 high of 5.05% in February of this year. Rates on 15-year fixed-rate mortgages averaged 3.33%, down from the […]

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Getting a Loan could get Ugly

Rumblings from the loan industry are that loans could be much harder to get in the future. Restrictions are being imposed upon government related loans, which are big part of current financing. Nationally, Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) buy or insure approximately 97% of residential mortgages. FHA loans are important […]

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Borrow Now and Save!

Mortgage rates in 2010 were the lowest in six decades. Will they stay low, or will they rise, making the purchase of a home more expensive in 2011? In November of 2010, the 4.17 percent interest rate was the lowest since Freddie Mac began tracking rates in 1971, and the lowest since World War II, […]

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Is a Reverse Mortgage Right for You?

A reverse mortgage usually pays a lump sum and is not used to acquire a property. Because these characteristics differ from the type of loan used to buy a home that we are all used to, it has been given the “reverse” moniker. Typically a reverse mortgage borrower uses the equity in the home to […]

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Removal of Mortgage Insurance Premiums (Part 2)

In my last blog I wrote about the slim possibility of getting a refund of “private mortgage insurance”. Mortgage insurance is required by lenders when a down payment is less than 20%. Usually those payments are non-refundable unless the lender agrees otherwise at the time the loan is made. During the boom years the question […]

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Refunds of Mortgage Insurance Premiums – Are you Eligible?

Recently, I was asked the question: Can I get PMI payments refunded? What was being asked pertains to “private mortgage insurance”, which is required if a down payment is less than 20% of the value of the home. In that event, the lender requires the borrower purchase a policy that insurers the lender against loss […]

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Should you Buy Down a Mortgage Loan?

Conventional wisdom by mortgage professionals was to never pay points when refinancing or at the closing of a real estate sale. Mortgage “points” are equal to 1% of the loan amount, and are paid at closing in order to lower a mortgage interest rate. Lowering the interest rate should lower your payments, and has the […]

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How Much Mortgage You Can Afford?

Here are four general rules of mortgage affordability you can use to help you determine how much debt you can handle when buying a home. What is your Income? You can typically afford a home priced two to three times your gross income.  So if you earn $100,000, you can usually afford a home between […]

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