Show me the MORTGAGE money!

WSJ... Lenders Put Borrowers Through the Wringer...

Lenders Want to Know Everything

By AMY HOAK

As a home buyer or refinancer, you'd expect to submit recent pay stubs and bank-account statements when applying for a mortgage loan.

But a copy of your divorce decree?

That's exactly what happened to a recent borrower who was asked... (Read on...)

Fed cuts estimates for economic growth....

The recent FOMC meeting cut estimates for GDP and sighted slow increase in household spending which seems to indicate we are not out of the woods yet. The FED further indicated rates would be kept low through 2012 which is good news for home buyers.

Mortgage rates have been easing steadly downward (not sure how much lower they can go) with 30 year fixed rates averaging about 3.74% according to Freddie Mac as of June 14th.

 

The Myth of the National Housing Market.....WSJ

By Nick Timiraos

The housing boom and bust gave rise to the myth of a “national” housing market. After all, prices rose in almost every part of the country until 2006, when they began dropping from coast to coast.

But today’s story in the Journal looks at..... (READ ON...)

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.

READ ON:...

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."

Read on...

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.

READ ON...

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%.

read on...

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.

read on...