Category: Financing

Fed payments stopped to 3 mortgage servicers

Three of the nation’s largest mortgage servicers are doing such a bad job at foreclosure prevention that the Obama administration will stop paying them for modifying delinquent loans. Bank of America, J.P. Morgan Chase and Wells Fargo need to make “substantial improvements” in order to collect fees through the Making Home Affordable Program, the Obama …

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Mortgage rates down, June 3, 2011

Mortgage Rates Decline Flooding, Tornados Affect Housing Market Freddie Mac released the results of its Primary Mortgage Market Survey®(PMMS®), which showed fixed-rate mortgages declining for the seventh consecutive week to new lows amid continuing weak economic and housing data.The 30-year fixed averaged 4.55 percent and the 15-year averaged 3.74 percent. Last year at this time, the …

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What’s behind ‘strategic’ mortgage defaults?

Wall Street Journal analyst, Keith Jurow, has recently written a thoughtful and well-documented analysis of what’s called the mortgage ‘strategic default.’ He defines a strategic defaulter as any borrower who goes from never having missed a payment directly into a 90-day default. Why would someone default? In the major metros where prices soared the most …

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Five reasons to get your FHA mortgage now

With the likely installation of QRM (Qualified Residential Mortgage guidelines) looming, it is clear that FHA mortgages will clearly become more popular merely because of the lesser down payment requirements. And as we have all learned, when the demand for something goes up, and the supply remains constant, prices go UP…that is, it becomes more …

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Mortgage times they are ‘a-changing’

Interest Rates Are Increasing Interest rates have increased almost 3/4 of a point in the last six months and most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to …

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Wells Fargo accepting credit scores as low as 500

Wells Fargo says it’s accepting FHA mortgages for borrowers with credit scores as low as 500. The move comes after NAR (National Association of Realtors) and FHA Commissioner David Stevens, among others, late last year criticized the country’s major banks for requiring credit scores as high as 650 in some cases before making loans. At …

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Record levels predicted for 2011 foreclosures

  Hey, I just wrote that foreclosure filings were down in 2010 – then, two weeks later the prediction is for record levels in 2011?? Well, as I reported previously, last year the foreclosure pace was slowed by borrowers exploring foreclosure options and snafus with lender paperwork. However 2011 is a new year… Analysts predict that many foreclosure alternatives, …

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Cost of waiting for home prices to fall adds up

Still sitting on the fence waiting for home prices to hit ‘The Bottom’? It’s a given that cautious buyers want to make sure that they don’t overpay for their new home. Unfortunately, it’s not all about the price… Buyers shouldn’t be so concerned about home prices as they should be about the cost. The cost of a house is made …

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Churches can’t pay the mortgage either

The Number of Religious Facilities Unable to Pay Their Mortgage Is Surging   Traditionally, lenders considered churches a good risk because of tithing, as well as the moral compulsion felt by most pastors to pay down debt.  Historically, churches wanting to build turned to their governing bodies or to specialized lenders that originated fixed-rate 25-year to …

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Strategy for Cutting Mortgage Payments

“Recasting,” or “re-amortization” involves paying off a lump sum of the principal mortgage amount, and then having the monthly payments reset according to the original interest rate and loan terms.