Show me the MORTGAGE money!

Mortgage rates fall to new lows again...USA Today

WASHINGTON – Average rates for 30-year and 15-year fixed mortgages fell to fresh lows this week.

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Refi quandry???...Mortgage deduction vs monthly savings.....

Recently a refinance question was posed to me that I thought was very interesting. And, I had never been asked the question before.

The mortgage applicant was questioning whether refinancing to a lower rate was a good idea because they would pay less interest and therefore have less of a deduction.

Coincidentally I also saw an article along similar lines in today's Star Ledger.

The bottom line is this, as the ledger article says very well, "Don't let the mortgage interest deduction on your income taxes be the tail wagging the dog when it comes to managing the financing on your family home. What you want to manage is the after-tax interest expense on your mortgage."

In other words if you refinance and lose $1,000 in interest deduction over the next 12 months however you save $3,000 in mortgage expense, you win!

All this can be determined with an amortization schedule and brief analysis. I recommend consulting your tax adviser before making a final decision.

CNN Money Mortgage payments at lowest level in decades.......

By Beth Braverman @Money April 23, 2012: 5:18 AM ET

(MONEY Magazine) -- For today's homebuyers, the weight of the monthly mortgage bill is the lightest it's been in decades.

Put 20% down on a median-priced ($154,400) existing home, and your payment will come to $616 a month, only 12.1% of the median U.S. family income.

In 98 of the top 100 metro areas, it's now cheaper to buy than rent.

"If you have good credit," says IHS Global Insight economist Patrick Newport, "this is the best time in 40 years to buy."

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a look back.....at house values

...I was a real estate broker in the late 70s and all through the 80s. When asked by homebuyers what they could expect in the way of appreciation in the value of their home we used to advise 4-5 years.

It was nothing less than shocking to witness and be apart of the feeding frenzy that took place in the early to mid 2000s. With multiple bids (12-30 offers on a house at a time) price appreciation was instantaneous!

Looking back, we all knew the other shoe had to drop eventually. But being in it at the time was like being caught up by a big wave. We just have to ride it out.

WSJ...Report: Sellers’ Asking Prices Rose in March.

By Nick Timiraos

Here’s a sign that sellers are feeling more optimistic about their prospects this spring: median asking prices in March jumped by 5.6% from a year ago, and were up 1% from February, according to a report released Tuesday.

The jump in median asking prices comes amid a sharp drop in the number of homes listed for sale from one year ago. While listing inventories in March rose by 1.5% from February, they were still 21.5% below last year’s levels.

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WSJ Are Mortgage Credit Standards Loosening? (Hint: No).

By Nick Timiraos

It’s no surprise to anyone who has applied for a loan recently that banks are being far more careful. But a new report shows just how tight conditions have become — and how even borrowers with favorable credit profiles are being denied.

Loans closed by banks and mortgage lenders in February had borrowers with a credit score of 750, up from 740 six months earlier, and an average loan-to-value ratio of 76%. The average denied loan had a credit score of 699 and a loan-to-value ratio of 83%.

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WSJ...As Home Rents Head Higher, Owning Regains Its Appeal .

By DAWN WOTAPKA and NICK TIMIRAOS

Climbing rents for apartments are combining with a continued decline in home prices to push once-reluctant home buyers into finally taking the plunge, say economists and real-estate agents, helping what appears to be a good start to the housing industry's all-important spring selling season.

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First Time Buyers are starting to get serious...

Why? Rates are at all time lows and home prices have been rolled way back. Many young people are looking at home ownership again.

Example: I recently assisted with mortgage financing of a single family residence purchased by first time buyers. For the low $200's they got a lot of house in a great neighborhood. The rate was 4%, no points.

Fortunately they had 20% down. But, in a prior post you will see a purchase with an FHA mortgage with just 3.5% down. The lower rate offers some compensation for the Mortgage Insurance Premium.

Latest Transaction: Purchase, first time buyers, 3.5% down payment, got them a 30 year fixed FHA mortgage at 3.75%, no points, and $1,700 lender's credit at closing.

WSJ ...Sellers Brace for New Mortgage Caps

October Change Is Meant to Reduce the Government Footprint in Housing, but Industry Fears It Could Lead to Lower Prices

By NICK TIMIRAOS And ALAN ZIBEL

The federal government is readying its first retreat from the mortgage market, with the size of loans eligible for government backing set to decline in October

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