Tuesday, April 13, 2010

Housing Wire


Friday, April 9, 2010

FHA Only Needs a 620 Credit Score

Hi Everyone,
Just a reminder, we only require a 620 score for government files. I have received a few calls recently where I was being asked if we needed a 640.
We only need a 620 score for FHA loans.
The other thing I have noticed is that a lot of competitors are placing a negative price adjustor on these files with scores between 620-659. We do not have a negative price adjustor for FHA files. I had a purchase yesterday where we were a full point better on an FHA file with a 220k loan amount that was targeted elsewhere.
Please make sure when you are checking Government rates that you are checking with us. Let me know if you have questions. massmortgageloan.com
One other positive piece of information:
There are no longer any declining markets in Massachusetts for conventional conforming business. That means 95% ltv on single family with a 41% dti, and 720 score.
Please let me know if you have questions. massmortgageloan.com
Thanks very much.

Renting VS. Buying in MASS

Did you know that if you have a credit score of 620 and can prove your income you can qualify to purchase a home and it would most likely be cheaper than renting right now. If you would like to learn more please contact me at massmortgageloan.com or massmortgageloan@gmail.com

Thursday, April 8, 2010

Mass Mortgage News

A heads up to FHA borrowers:

As of Monday April 5th 2010 FHA mortgages just got more expensive. The upfront mortgage insurance premium just went from 1.75% to 2.25% making your loans go higher. for instance: if you have a $200,000 loan your FHA loan amount would have been $203,500. now it would be $204,500. If you would like more information about this please contact me at www.massmortgageloan.com or e-mail massmortgageloan@gmail.com.

Friday, April 2, 2010

Lock in Now For Low Rates Before They Go Up

More trouble for the interest rate sector this morning on the releases of the employment report at 8:30. The headline is an increase in jobs by 162K with the unemployment rate unchanged at 9.7%. While the overall number of jobs was less than expected, the increase in private jobs (non-government hires) was more than thought and the addition of census workers to the job market was much less than expected. The upward revisions to Jan and Feb, increasing the total another 40K frm original releases.

Census workers were expected to have added the majority of the job growth, however not the case. Census workers accounted for only 48K of the jobs, the jump in employment numbers came from an increase of 123K jobs in the private sector, much higher than economists were expecting. Service and manufacturing sectors added 99K jobs, the third consecutive month that saw increases in manufacturing. Another surprise, average hourly earnings actually declined 0.1%; normally average hurly earnings increase at a steady +0.2% each month.

The reaction hasn't been good in the bond and mortgage markets; the 10 yr note jumped to 3.93% +5 BP and mortgage prices at 9:15 were down again 10/32 (.31 bp). The brief futures trading in the equity markets that lasted 45 minutes had the DJIA contract +36. What concerns us is the small number of census workers hired in March, looking forward we can now expect stronger employment reports over the next few months driven by addition of many more census hires than previously expected.

The report is going to be chewed over again on Monday and Tuesday when markets are back to normal. The take away now is more reason for interest rates to increase; the 10 yr note is likely to run up and test 4.00% next week, and mortgage rates up another 12 basis points from present levels. The recent increase in rates is building momentum much quicker than we expected two weeks ago. Next week Treasury has $74B of auctions to conduct, with the strong employment report the concern is the demand for the debt. In last week's auctions of 2, 5 and 7 yr notes there was a noticeable decline in. demand.

Friday, March 19, 2010

What Happens When I Fix My Credit Score for a Mass Mortgage Loan If you have been working at repairing your credit, congratulations! Your credit sco

If you have been working at repairing your credit, congratulations! Your credit score should have improved nicely in the months you have been paying all your bills off diligently. Hopefully, you have been obtaining copies of your credit score as you go along so that you were able to track your score as it went up.

If your score has improved to the point where it is 700 or more, and you still owe money on some credit cards, you may want to think about calling the credit card companies and letting them know what your credit score now is. It is possible that they could lower your interest rate, and if so, this will give you even less to pay off. The companies will not do this on their own – you have to ask them. For more information contact me at www.massmortgageloan.com

Tuesday, March 9, 2010

Mass Mortgage Avice

● If you are in the market for a house, find out if you qualify for the expanded Home Buyer Tax Credit that pays up to $8,000. Even if you didn’t qualify before, you may be eligible now as the rules have been loosened to include more Americans. While this program may be the icing on the cake that you have been waiting for, it’s probably not enough to convert a hardened renter.

However, when you combine the cash incentive with low fixed rate home loans and throw in low prices and cooperative sellers, the mix 
becomes harder to resist. Therefore, consider the advantages of taking the plunge this year.

● Watch for home lenders to adopt the short sale process to a much greater degree than in the past. A short sale occurs when a lender agrees to accept a discounted payoff on a loan it holds. While the sale results in a loss for the lender, it is usually less of a loss than the lender will be forced to accept if the house goes into foreclosure.

The Treasury Department recently announced new guidelines to encourage the parties to accept short sale offers.

Not only will the government offer the carrot of cash payments to lenders and sellers, but it will now require lenders to respond to short sale offers in 10 days or less. This may create a real opportunity for buyers to purchase homes in reasonably good condition at excellent discounts.

● Finally, my advice to all property owners is: “Be patient.” This economy is moving, albeit slowly, in the right direction and will recover. Those who make wise decisions today will be rewarded in years to come.

If you would like to speak to someone about purchasing or refinancing please visit www.massmortgageloan.com

Friday, March 5, 2010

How Much House Can You Afford?

Step One - Calculating Your Monthly Income

When a loan officer pre-qualifies you, he works backwards to figure your maximum mortgage amount. You can do the same thing. The first step is to determine your monthly income. It isn't quite as easy as it sounds. Lenders only count income they can document through paperwork.

If you are a salaried employee, and don't earn bonuses, it's easy. Get out your paycheck. If you get paid twice a month, multiply by two. If you are paid every two weeks, then you multiply by 26 (the number of pay periods in a year) and divide by twelve. Unless you're a teacher. Teachers don't always work year round and they have special rules.

If you are an hourly employee who works a straight forty hours a week and don't earn overtime income, then it's easy, too. Look at your paycheck, multiply your hourly rate by 40, multiply that total by 52, then divide by twelve.

If you earn overtime, bonuses, or commissions -- it isn't as easy. Lenders don't give you credit for what you are currently earning. They average your income from those sources over the last two years, then add that to your regular salary or hourly monthly income. If you want a shortcut that is usually close, get out your W2 forms for the last two years. Add them together and divide by twenty-four. That is your monthly income.

If you are a teacher, a nurse, a seasonal employee, in construction, or earn only part-time income -- you can use that shortcut, too. Add the figures from your last two years W2's, then divide by 24. It generally gets you close.

If you would like more information please contact us at www.massmortgageloan.com

There are variations and exceptions (like those who own their own corporations) but the above should cover most people. If you would like more information please contact us at www.massmortgageloan.com

Thursday, March 4, 2010

Steps to Take Before You Shop or Speak to a Mortgage Company

* Check out your credit report. You can your credit report and scores in many places on the internet or contact os at;massmortgageloan@gmail.com to Get Free Credit Report. We can give you information about your credit report when you inquire.

* If your credit scores are anything less than 620, start looking at ways to improve your credit and scores. You might need to establish more credit, or repair what you have. We can help you with this massmortgageloan@gmail.com

* If your scores are higher than 620, gather up your last 30 days of pay-stubs, your last 2 year’s W-2's, and your last two months of bank statements (if you don’t have a bank account - start one immediately. If you are self employed or you are a commissioned sales person, gather up your last two years of full tax returns.

* Start saving money - stay home for dinner an extra night of the week. Pack your lunch, turn off more electricity when you are not using it, wash your own car, make your own coffee (sorry Starbucks). The more you have in the bank the better. Even if you don’t use it for the home purchase, you’ll want money once you move in to purchase new furniture etc.

* If you are buying your first home then learn more about the home buying process and home ownership and especially read up on FHA Loans.

* No matter whether this is your first home or a move home, or even a vacation home you should get educated on loan programs and control your own destiny. .