Where do I stand in regards to current mortgage rates!!!!
Information from Bankrate.com.
Product
This Week Rate
Trend
Last Week
Sam’s Rate/w 0% Origination This Week (+.125 to .25 APR)
30 Year FHA Fixed
3.9%
Up From
3.84%
3.81%
15 Year FHA Fixed
3.17%
3.16%
3.00%
5/1 FHA ARM
2.86%
2.87%
My rates are both lower and they include 0% origination with lender fees other than underwriting being paid by investor. Hope this helps.
Feb 10, 2012 – So, there is a new $26 Billion Dollar mortgage settlement in place. The “New Mortgage Deal” (as CNN calls it) has lots of support behind it as 49 of the 50 state Attorney Generals have signed it. What’s my take on it you may ask? If I were to rank its positive impact on a scale of 1 to 10 (We can call this “The Sammy Scale”) I would put it in a range of about 3-5 depending on the perspective being looked at. There is no doubt about it, this will help “some people” that are in trouble; however, that being said the settlement is fundamentally flawed; as Oklahoma Attorney General Scott Pruitt puts it.
According to the way the settlement is written up it would offer principle reductions to certain homeowners that are upside down. This means that there would be debt forgiven and the principle balance on a participating mortgage would be reduced. So, what’s the issue? The issue is that homeowners that are paying their mortgages on time will not qualify!!!! Let me explain why this is so bad.
· Because of the settlement homeowners will be encouraged to default on their mortgages.
· Many of the homeowners that are currently defaulting on the mortgages don’t have the income they once had so even if they were to have a principle reduction they still would not be able to make their mortgage payments.
The above being stated, I still agree with the settlement; however, in order to really have an impact they need to repeal the “Ultimate Evil Act of Satin and the New World Order” in conjunction with this settlement. By the way, you may know the “Ultimate Evil Act of Satin and the New World Order” as the Frank Dodd Act.
In short, the settlement makes some sense but in the end only good policy and time are going to make the difference. Let me know what you think.
Mortgage Rates Based on Bankrate.com FHA
Rate
+/-
30 Year Mortgage Fixed
3.89%
Up
3.85%
15 Year Mortgage Fixed
3.21%
3.18%
5/1 Fixed Rate Arm
2.88%
2.85%
Residential and Commercial Loan Officer
Office: (210) 257-0642
Mobile: (210) 286-7267
Fax: (210) 257-0510
www.yourloanofficer4life.com
www.streamlinefha.org
www.streamlinefha.net
www.texasjumbomortgage.org
http://approvalwarehouse.com/u/?id=SamuelM
NMLS: 295626
Recommended credit Repair Company: Sky Blue Credit Repair
Feb 10, 2012 – So, there is a new $26 Billion Dollar mortgage settlement in place. The “New Mortgage Deal” (as CNN calls it) has lots of support behind it as 49 of the 50 state Attorney Generals have signed it. What’s my take on it you may ask? If I were to rank its positive impact on a scale of 1 to 10 (We can call this “The Sammy Scale”) I would put it in a range of about 3-5 depending on the perspective being looked at. There is not doubt about it, this will help “some people” that are in trouble; however, that being said the settlement is fundamentally flawed; as Oklahoma Attorney General Scott Pruitt puts it.
This week we saw a slight rise in mortgage rates from the week prior but we expect mortgage rates to stay near historic lows for the foreseeable future unless some major event causes hyper-inflation.
On a side note the bigger banks continue to have problems with thier mortgage products. This week Bank of America announced that it was backing out of the Cash-out refinance market.
Once again, if you are looking refinance or if you need to get a pre-qualification in order to shop for a new home please do not forget about me. Or, if you are a merchant and you want to be able to offer financing for your clients to purchase your product, I now have a product for you.
What is going on this week with mortgage rates? (See below)
Average Rate Given to Consumers This Week and Last
30 Year Fixed Mortgage
3.92% Up from
3.91%
15 Year Fixed Mortgage
3.26% Up from
3.22%
5/1 Fixed ARM
2.88% Up from
Rates shown are sourced from Bankrate.com and may include points.
Samuel Morales
I have now expanded my product offering to merchant financing, I can now offer lines of credit to merchants and set them up so that their clients can receive financing to purchase their product. Minimum loan amount $1,000.
Other news: More and more legislators are coming to the conclusion that mortgage brokers have unjustly become the whipping boys for the current mortgage crisis. My comment on this,
“Where were your thoughts when the Frank-Dodd Act was being enacted? Too little, too late; the damage has been done. It’s obvious that the financial power players were at fault and people that could have done something were either bought off or did not care. The result is that brokers have been placed in a position where they are participating in an un-level playing field and the entities that were at fault have been rewarded”.
The result of this injustice is still in play.
Rates are still pretty close to rock bottom. Overnight averages on mortgage rates per Bankrate.com listed below.
OVERNIGHT AVERAGES PER BANKRATE.COM
1/9/2012
30 Year Fixed Mtg
3.92%
3.94%
15 Year Fixed Mtg
3.25%
3.27%
5/1 ARM
As of last week HUD announced that it will continue to loosen its guidelines in regards to home flipping in order to assist banks in getting rid of their foreclosed inventory. On the contrary to this many mortgage banks are maintaining their overlays that will prevent this. I’m curious to see if mortgage banks will follow suite, if they do it may open up the market for investors flipping properties.
Market Update from Bank Rate FHA :
Dec 29, 2011 At 1:00PM (On average my rates are about .2% below the market average for the same period with 0% origination)
30 Yr Fixed
3.96% Up
15 Yr Fixed
3.28% Dn
3.29%
Happy Holidays to my Realtors and clients.
Happy Holidays to all my wonderful clients and Realtors (Market Update Below)
In case you have not heard, this week we once again hit a “record low” for mortgage rates. This morning I priced out a VA 30 Year fixed at 3.75% and this is with 0 (ZERO) POINTS!!!!! (APR 3.875%)
And better yet: Texas Vet VA is at 3.23% for a 30 year fixed (APR 3.35%)
I know you’ve heard this before but rates cannot get any lower. Homes values are down in this buyer’s market and interest rates are the lowest they have ever been.
Happy Holidays,
Rumors are emerging that HUD my further increase premiums; this will hurt FHA refinances. Should monthly premiums go up FHA clients refinancing will not see their payments go down even if their interest rate is being lowed. This may mark the second increase in FHA premiums in the past year. What does this mean? If you’re going to refinance your FHA mortgage, do it soon?
Market Update:
As suspected FHA rates have dropped about .25% per issues with the Eurozone. Looks like a solid plan is in place for the Euro; so expect some recovery in the DOW which will lead to a slight increase in mortgage rates back up about .25 to .5%.
FHA Update: Loan Limits
On November 18, 2011, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act 2012 (HR2112). Section 238 of HR 2112 re-establishes the FHA loan limit at the higher of the dollar limit in Section 203(b)(2) or the dollar limit prescribed in Section 202 of the Economic Stimulus Act of 2008 for Forward mortgages.
What Does This Mean?
This means that FHA loan limits will be going back to what they were prior to Oct 1, 2011. The Following changes will be made in regards to FHA loan limits in Texas:
Atascosa County - $332,500
Bandera County - $332,500
Bexar County - $332,500
Comal County - $332,500
Guadalupe County - $332,500
Kendal County - $332,500
Medina County - $332,500
Wilson County - $332,500
Bastrop County - $288,750
Caldwell County - $288,750
Hays County - $288,750
Travis County - $288,750
Williamson County - $288,750
I will be updating (www.yourloanofficer4life.com/FHAlimits) as soon as HUD updates their information.
Samuel MoralesResidential and Commercial Loan OfficerOffice: (210) 257-0642Mobile: (210) 286-7267Fax: (210) 257-0510www.yourloanofficer4life.comwww.streamlinefha.orgwww.streamlinefha.netwww.texasjumbomortgage.org NMLS: 295626
We are in some scary times right now but also exciting times as we are living in a historic moment. How we handle this fragility in our situation will dictate policy that impacts all Americans for generations to come.
Much of what we hear in the news about the housing market making a comeback is not correct. Over the past 12 months I’ve seen stories claiming that many areas have seen housing sales increase and home prices have been inching up. While this may be true the numbers are being doctored; let me explain. Last year in the USA there were a total of about 5.5 million foreclosures. So far this year Bank of America alone has over 5 million foreclosures, this figure does not account for Wells Fargo, Chase, Citibank or any other lending institution. The banks are holding on to inventory and in some cases are renting homes back to the parties that have been foreclosed on. Should the banks flood the market with this inventory what do you think will happen to the home prices across Texas and the rest of USA? You guessed it; the housing market which is the biggest indicator of how an economy is doing would completely collapse and home prices would plummet. Immediately, this situation is killing the refinance market because banks are going with the most conservative appraisal approach when approving refinances. Just in the past 6 months I have lost several refinance deals due to appraisals coming in lower than market value. However; we are not having the same issue with purchases as banks need to get rid of inventory.
What’s the flip side? I do see a possibility of recovery. In a previous blog post I noted that during the mortgage and real estate boom we saw rental rates go down and mortgage rate along with home prices go up. Which meant it was more expensive per month to purchase a home than it was to rent. That trend has now reversed, we will be seeing home prices continue to drop and mortgage rates will stay very low (unless hyper-inflation occurs) for at least 2-5 years. Rental rates are skyrocketing so now it is less expensive per month to purchase a home than it is to rent. This reversal, in my opinion is what will get us out of our current situation and help in the reset of our economy. Assuming our congress gets their act together the recovery mentioned above has a high probability; if not, hyper-inflation will happen and we may be screwed for a long time to come. I don’t know about you but I’m crossing my fingers and hoping for best in this historic moment in time.
As of yesterday the House voted in favor of increasing FHA loan limits back up to their previous limits prior to Oct 1, 2011. We should be hearing if congress is to OK the legislation in the coming days. If I had to make an educated guess I would say the legislation will pass considering the amount of inventory the large banks are holding in regards to foreclosures; they need all the help they can get.
Average Overnight Mortgage Rates Per BankRate.com
Rate FHA
Rate Conventional
4.03%
4.4%
3.38%
3.75%
On average I am .02 - .25% lower than the overnight average.
Today I found a new tool (www.ReiFreeClassifieds.com) for my realtors and clients that may be in the market for investment properties. It was recently launched so usage is not that high but the concept is great and I think it has the potential to take off. The website was founded by John Lydic, a friend of mine. If my referral partners and clients would like to help this promising upstart please post your listings. It is always a good thing when good people help good people. I should have my next market update out on my blog in the next few days.
I have been getting a few calls from clients and my Realtors that are not aware that the FHA loan limit for Bexar County and many counties in Texas have decreased as of October 1, 2012. The FHA loan limit for Bexar County has moved from $332,500.00 down to $287,500.00. To find out the new FHA Loan limit for you county you can go to http://www.yourloanofficer4life.com/FHAlimits
If you are trying to refinance your FHA mortgage and you have questions because your loan balance is above the new FHA limits please contact me and I go over your scenario with you.
As always please keep me in mind for your mortgage!!!
I have finally squared away my updated web page (www.texasjumbomortgage.org)
I have elected to keep my old web pages and I have just added the updated site as a completely different web page. www.texasjumbomortgage.org
All of my back end functions are back up and running so if you need to log on to get an update on your file the system is up and running smoothly. Thanks for all of your patience.
Mortgage Lic
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