government assistance mortgage

FHA Makes Homeownership More Affordable — But Not Until October 1, 2008

September 24, 2008

Earlier this year — and for the first time in its history — the FHA changed its funding fees and mortgage insurance structure. Effective October 1, 2008, it’s repealing those changes. Partly to keep FHA home loans affordable, and partly to comply with new laws, the FHA is rolling back its up-front fees and ongoing mortgage […]

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What Happens To Mortgage Rates When Crude Oil Adds $25 In One Day

September 23, 2008

Crude oil prices jumped $25 at one point Monday, ending the day up by 16 percent. This is an unwelcome development for home buyers because the same market forces that pushed up oil prices had a similar impact on mortgage rates. It all comes down to the U.S. dollar. Because both crude oil and mortgage-backed […]

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Looking Back And Looking Ahead : September 22, 2008

September 22, 2008

In a historic week for American Finance, mortgage rates rose considerably, reversing a 3-week trend through which rates had fallen. The U.S. Treasury is the biggest reason why most conforming mortgage rates increased by a half-percent. Hank Paulson’s government group helped to restore investor confidence that had steadily eroded from concern to fear since July 2007, before […]

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How To Lower Your Mortgage Rate Every Time The Market Dips

September 19, 2008

Getting a great, low mortgage rate is often a combination of luck and preparation. Consider what happened in conforming mortgages this week: Monday, mortgage rates plunged to their lowest levels of the year Tuesday, they bounced back in full Wednesday, they clicked higher by a eighth-percent Thursday, they clicked higher by another eighth-percent And so, […]

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What’s Good For Home Sellers Is Bad For Home Buyers : Builders Are Dialing It Back

September 18, 2008

In August, home builders broke ground on the fewest number of homes since January 1991. It was the 16th straight month in which Housing Starts declined. But, although the press labels these statistics indicative of a recession, home sellers nationwide quietly applaud them. With fewer new homes coming on the market, home sellers are finding that there’s […]

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The Strength In New Home Sales Shows That Banks And Builders Have Figured Out The Market

September 17, 2008

Despite turmoil on Wall Street, the housing sector continues to deliver good news. Last month, led by a 22 percent surge from the West Region, New Home Sales rose 2.7 percent over August. A “new home” is a newly-built residence, never before lived in. New homes are usually built and sold by real estate development […]

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The 2 Groups Of People That Benefited From Wall Street’s 6th Largest Point Loss Ever

September 16, 2008

Yesterday, the stock market suffered its largest one-day point loss since September 17, 2001, and its sixth-largest point loss in history. Not everyone got punished, however.  Two groups of people, in particular, welcomed yesterday’s losses: Home buyers out shopping for a mortgage Homeowners that snoozed through last week’s mortgage rate drop See, as the stock […]

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Making English Out Of Fed-Speak (September 2008 Edition)

September 16, 2008

For the third consecutive meeting, the Federal Open Market Committee left the Fed Funds Rate unchanged at 2.000 percent. Of interest to mortgage rate shoppers, the FOMC led its press release with comments about the health of the financial and labor markets, calling them “strained” and “weakened”, respectively.  The relative weakness in both of these […]

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Looking Back And Looking Ahead : September 15, 2008

September 15, 2008

In a week overdone with market-altering news, conforming mortgage rates shed a quarter-percent overall last week.  It was the third straight week in which rates improved. The biggest story, by far, was the government’s takeover of Fannie Mae and Freddie Mac. The two quasi-government agencies were nationalized into bona fide government agencies, converted mortgage-backed debt into risk-free, government […]

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Comparing Payback Periods On 15-Year, 20-Year and 30-Year Mortgages

September 12, 2008

On all principal + interest home loans, the first few years of payments include a lot more money going to interest than to principal. This is because mortgage repayment schedules are front-loaded with interest, meaning large-volume principal reduction won’t occur until late in the mortgage’s lifecycle. Comparing products at a 6% mortgage rate, did you know […]

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Conforming Loan Limits Set To Decrease In Certain High-Cost Areas

September 11, 2008

Conforming mortgages are limited by loan size, based on “typical” housing costs around the country.  Since 1980, as home prices have increased, so have conforming loan limits. The current conforming limit on a single-unit property is $417,000. Earlier this year, as part of the Economic Stimulus Act of 2008, Congress authorized conforming loan limits increase in […]

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New Mortgage Rules Put Limits On Residential Real Estate Investors

September 10, 2008

In its last act as a semi-independent company, Fannie Mae altered mortgage guidelines for real estate investors last Friday. It was Fannie’s 22nd update this year. The first part of the guideline change limits the number of properties owned by any one person. Fannie Mae will now decline any mortgage application for a second home or […]

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Why The Government’s Takeover Of Fannie Mae and Freddie Mac Is Lowering Mortgage Rates

September 9, 2008

When comparing two investments with equal risk, a rational person will choose the investment with a higher rate of return. This behavior is called Risk Aversion and is a basic tenet of personal investing. An off-shoot of Risk Aversion is that a rational person will only invest in an instrument of greater risk if the […]

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Looking Back And Looking Ahead : September 8, 2008

September 8, 2008

Mortgage markets improved last week on Hurricane Gustav’s less-than-expected damages and a strengthening U.S. dollar. Even factoring in Friday’s 0.125 percent run-up on most mortgage products, rates improved overall. It’s the second straight week in which mortgage rates improved. But for all the news that we could dissect from last week, it should be the news […]

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Mortgage Rates Fall As The Unemployment Rate Rises

September 5, 2008

On the first Friday of every month, the government releases its Non-Farm Payrolls report. More commonly called the “jobs report”, the two-page analysis examines the nooks and crannies of the U.S. economy to see which industries are hiring and which are firing. The August jobs report was released this morning and it shows that the […]

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Simple Real Estate Definitions : Home Inspection

September 4, 2008

A home inspection is a complete, top-to-bottom, visual check-up of the structure and systems of a house. It is meant to be an objective determination of a home’s condition. A home inspection usually takes 3-6 hours to complete, depending on the size of the home. During the inspection process, the inspector will examine all of the […]

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See How Mortgage Rates Are Trending With Oil Prices

September 3, 2008

Mortgage rates are hugely important to household budgets. Lower mortgage rates free up household cash for spending and long- and short-term saving. Higher mortgage rates, of course, do the opposite. Unfortunately, it’s impossible to predict the future of mortgage rates with any bit of certainty.  This is because there are countless influences on mortgage markets, […]

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Looking Back And Looking Ahead : September 2, 2008

September 2, 2008

For the first time in 4 weeks, mortgage rates closing a week lower than where they opened it Markets shrugged off uncertainty about Hurricane Gustav and chose to rally on the backs of strong economic data. Overall, rates were down by about 0.125 percent, or $96 per year per $100,000 borrowed. Markets were influenced by […]

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How Labor Day Weekend Complicates Mortgage Rate Shopping

August 29, 2008

As we get closer to Labor Day, volume on Wall Street is dwindling as market players get a head start on their long weekend. Today could be a difficult day to shop for mortgage rates.  Expect volatility. This is because mortgage rates are based on the price of mortgage bonds and, on Wall Street, bonds trade […]

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To See Where Mortgage Rates May Go This Week, Keep An Eye On The Weather Channel

August 28, 2008

Three years to the week after Hurricane Katrina caused $81.2 million in damages, Tropical Storm Gustav is charting a similar Gulf of Mexico path. Memories of Katrina are making oil traders nervous.  The 2005 storm shut down 30 platforms and 9 refineries.  And, this week, oil prices are up nearly 4 percent on fears that the […]

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