Recent Posts: Mortgages + Lending

Post Image

Decoding Sale and Loan Docs, Part 4.

A major priority should be checking the documents to make sure you are getting the deal promised to you. To do that, you need to review those that contain the loan related figures and closing charges. These are found in the Good Faith Estimate (from your lender), the Truth in Lending (lender), and the “pre-audit” […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Decoding Sale and Loan Docs, Part 3.

Educational documents/documents you may need after closing.  Educational documents mainly are directed at the buyer/borrower, and most give information about the mortgage process. These contain info which may be useful and should be read. The loan related papers can generate questions that the loan officer should be able to answer. Documents that may be needed […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Interest Rates Fall Again.

30 year mortgage rates fell below 4% last week to the lowest amount this year. And the 15 year rate was only 3.19%.

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

What Do You Need to Afford a Home?

The monthly amount necessary to acquire/own a home should be no more than around 28-30% of gross income. Include in this payment the monthly anticipated loan principle and interest, homeowners insurance, real estate taxes and association fees. To calculate that amount divide your gross income by 12, then multiply by .28 or .30.

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Paying Mortgages Is History.

It would seem that the payment of a mortgage is a relatively recent activity historically. But lending has a long history, and may be as old as writing. For example, there is evidence of lending in Mesopotamia for grain purchases as far back as 3000 B.C.E.  As to real estate, from at least 400 B.C.E. […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Green Your Home With a Loan.

Fannie Mae announced HomeStyle Energy mortgage program last year, to help borrowers finance energy and water upgrades to make their home more energy efficient when buying or refinancing a home. The loan makes buyer-owners eligible to receive up to 15% of the as-completed appraised value of the home/condo to use for energy efficient upgrades. An […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

You Already Have A Down Payment, Part 2.

In part 1, I showed how lack of awareness of low-down-payment mortgage options can discourage potential buyers from trying to purchase a home. Historically only 5% of the purchase price is enough. And one way to get there is a government sponsored down payment assistance program, such as the AzHFA Home Plus Mortgage Program. Home […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Banks Are Back in the Home Loan Market?

Not too long ago in Banks Leaving the Mortgage Business, I wrote about a report that large #banks have left the home #loan market – originating just 52% mortgages in 2014, down from more than 70% seven years earlier. But bank portfolio loans (the mortgages they make and hold and don’t sell) are rising, growing […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Closing Costs – Who Pays and How Much?

Part 4 – Loan Related. Like many pre-paids, these are the sums paid to the buyer’s lender or as a result of the lender’s requirements. Examples include a credit report fee, flood certificate fee, and a tax service fee. Fees payable directly to the lender, such as discount and loan origination and processing/underwriting fees, may […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

You Already Have A Down Payment! (part 1).

A recent NAR survey of more than 2,700 Americans showed that more than 80% of consumers across all ages, income brackets, and education levels believed a down payment of 10% percent or more was required to purchase a home. However, the average median down payment for a first-time buyer has been 5% percent for about […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Mortgage Rates Near New Low.

Mortgage rates continue to hover around all-time lows, with the 30-year fixed-rate averaging around 3.43% this week, making this the ninth consecutive week that mortgage rates have been below 3.5%. Want even a lower rate? 15-year fixed-rate mortgages averaged 2.74%.

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Banks are Leaving the Mortgage Business.

MPA Magazine (www.mpamag.com) reports that large banks are leaving the home mortgage business. They originated just 52% mortgages in 2014, down from more than 70% seven years earlier. The magazine cites the CEO of BankUnited (a Florida based bank) who said “We can’t make money in the business. We realized that this was the lowest-margin, […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

It’s Getting Easier to get a Mortgage.

Over the past few years the federal government and lenders have taken several steps to open up the credit box. Signs that the efforts were paying off came last fall when credit scores on closed loans lowered to 723. As of April 2016, the average FICO score was still 723 – but nearly one-third of […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Appraisers Are Dying – Literally!

MarketWatch.com reports that the number of appraisers is down 20% from 2007, and the number in that profession is expected to decline steeply in the next five years. Residential has been hit harder than commercial, with predictions that the decrease could continue by 3% each year for the decade. One reason is that 61% of […]

Area: sqft Bed Room:  Price: 
City:  Location: 
Post Image

Get a Free Down Payment.

The AzHFA Home Plus Mortgage Loan Origination Program provides down payment assistance to Arizona home buyers with an annual household income less than $89,000 using a Fannie Mae, 30-year fixed mortgage. The down payment assistance can be used to purchase a home under $357,000 for the down payment and closing costs equal to 4% of […]

Area: sqft Bed Room:  Price: 
City:  Location: