What would you do to save $10,000?

HOW SWEET IT IS!

Saving money is a hobby of mine.  Maybe you prefer to save versus waste money.  

But can you imagine the Federal Government saving you some?  Seems they are better at spending than saving...oops shouldn't go there.

Federal Housing Administration believe housing counseling could save you nearly $10,000 over the life of a loan(30 years loan I would guess). 

If you have never purchased a home, this would be a great class!

Or if you had a home but been renting for years, this would be very helpful for you also. 

 For us that have had mortgages for years, we could glean information but most likely would be looking in the rear view mirror wondering why we didn't know this sooner.

As you can see, the goal is to raise home ownership.  A very worthy goal as home ownership improves neighborhoods, cities and the country.

TAKING THIS CLASS COULD LOWER YOUR MORTGAGE COSTS BY THOUSANDS

Class Could Lower Your Mortgage Costs  Would you go to a housing counseling education program if it would save you nearly $10,000 over the life of your mortgage? The Federal Housing Administration is betting you would. It's proposing a new program that would give mortgage insurers premium discounts for homeowners who agree to undergo housing counseling before getting an FHA mortgage. If the program is approved, you'll get a 50 basis point discount in the upfront FHA mortgage insurance premium you pay at closing, after you take the course. A basis point is 1/100th of 1 percent, so 50 basis points is one-half of one percent. You'll also get a 10 basis point reduction on your annual mortgage insurance premium. If you do post-closing counseling and go on to pay your mortgage on time for two years, you'll get another 15 basis points knocked off your annual mortgage insurance premium. How Much You Could Save On the average $180,000 FHA mortgage, you'll save $9,800 over the life of the loan by completing the housing counseling course and paying on time. Why is FHA so hot on homeownership counseling? It has research showing mortgage problems are 29 percent lower for first-time homebuyers who get counseling and 15 percent lower for all homebuyers who get counseling, compared to buyers who get no counseling. During housing counseling, you'll receive individual, objective advice on reaching your housing and financial goals, homeowner rights and responsibilities and managing your credit and savings. Building Homeownership The proposed program is part of a bigger effort to help Americans better manage their credit. This will help further homeownership and build lasting wealth. According to the Urban Institute, the average credit score for loans sold to government sponsored mortgage companies is 752. Currently, there are 13 million people with credit scores ranging from 580 to 680. "Shutting these consumers out of the market hurts American families and undermines our efforts to build more stable communities, create pathways to the middle class and increase homeownership opportunities for minority and low-wealth borrowers," FHA officials said when they announced the proposed program earlier this month.

To HOA or to not HOA

The Home Owner Associaton

Decision

 Home Owner Associations have very common in new construction and it doesn't appear to be letting up any time soon.  Yet, buyers frequently are unaware of the legal implications of purschasing a home in a neighborhood with a Home Owner Association.

Though the legal implications aren't daunting, they are real.  Home Owner Associations are "written" into one home mortgage via an addendum one signs at closing.  Secondly, Home Owner Associations are defined by state authorization and must have their organizing documents and present By Laws, Declarations and General Covenants recorded in Virginia and many other states.  Said By Laws, Declarations and By-Laws can be enforced via court action(hopefully this never happens but could).

Thus, though you may purchase a home with clear title, the Home Owner Association rules are enforceable on one's property just as are the city and state regulations that may be applicable.

As a result, my recommendation to my home buyers to read these documents closely during their 72 hour review period(Va) is a very serious point of discussion.   State law permits a buyer to walk away and get escrow money back/cancel contract if he/she disagrees with any stipulation in the Home Owner Association documents within the 72 hour period.  But State Law regarding Home Owner Associations is also clear that a home buyer accepting the documents and choosing to live in a Home Owner Association is subject to all requirements of the Home Owner Association whether presently enforced or enforced in the future.

Please don't take this wrong:  there is nothing wrong with living in a home owner association!  I live in one and love it. 

Home Owner Associations typically help a neighborhood maintain home values and the appearance of a given neighborhood.  Great opportunities to socialize and to get to know neighbors is part of most Home Owner Associations.  You know what you are buying when you buy in a Home Owner Association and pretty much what it will be years down the road.

It is simply important to knowingly accept the conditions and requirments of living in a Home Owner Association.   By doing so, you will enjoy your new home.

To not understand what you signed up for due to not reading the documents or understanding the legal element will bring much heartache and angst for anyone that fights everything the Home Owner Association requires.  Such a buyer would have be wise to simply have chosen a different home to buy.

So do buy wisely!  

I will always ensure you "Always Make the Smart Move".

FHA Loan Limits....Key Factor for Buyers

FHA MORTGAGES TO SHRINK IN 2014

Know Your Loan Limits For any home buyer seeking a loan down payment, the FHA Loan must be considered.  With the financial market changes, the FHA has  altered the size of loans permitted in numerous markets. Attempting to ensure home buyers, especially 1st Time Hom Buyers, the FHA establishes the maximum loan values by Market Area.  As you may know the home values in Las Vegas or California are much different the Des Moines, IA. Thus, the maximum loan value will be lower in Des Moines than in California. Though numerous areas(including Hampton Roads) saw no change in this maximum  loan value, a large number did change.   You will want to read this article from Al Clark's HomeAgain Newsletter.  It provids a quick overview of the issue. Most importantly, there is a link to the FHA site with loan limits for every market. So whether you read this blog and live outside of Hampton Roads or you will move into or out of this area, you will find the data very helpful. FHA Loan Size Cut By Half In Some Markets The size of the biggest mortgage the Federal Housing Administration (FHA) can guarantee is going to drop by as much as 50 percent in some areas of the U.S. in 2014. Homeowners living in the highest-cost areas of the country will find their FHA loans capped at $625,500, down from $729,750 in 2013. To get a larger mortgage, you'll have to turn to the jumbo mortgage market, where you'll likely pay a higher interest rate because your jumbo loan lacks a government guarantee. The National Association of Realtors? predicts the maximum FHA loan amount will fall 20 percent or more in 146 U.S. counties and 10 percent or more in 300 counties. In some counties, the maximum size FHA loan will fall by more than 50 percent. FHA's website lets you check the loan limits in your county. Be sure to select the 2014 limits if you visit the site. NAR recently wrote to HUD Secretary Shaun Donovan pleading with him to reverse FHA's decision. "While the housing market has improved in many areas of the country, the recovery remains fragile and uneven, especially in many of the areas where HUD has most severely reduced FHA loan limits," NAR's letter said. "Many borrowers in areas affected by the reductions rely on FHA-insured products and would not have qualified under the low loan-to-value and tight credit standards currently required by the private market," the letter continued. "These conditions leave the American dream of home ownership out of reach for many families. Without access to affordable low down payment financing, families are unable to purchase orrefinance homes, and those who wish to sell find it more difficult, all of which will continue to prolong our housing crisis. As proposed, the turbulence these reductions will create runs the risk of reversing progress being made in the economic recovery."

Why to Buy VS Rent

Easier mortgage processes, 
positive attitudes inspire renters 
to buy


Owning a home has been an integral element of the American 
Dream for generations. But is ownership right for you? And if it 
is, how do you know if it’s the right time in your life to purchase 
a home?

Thirty-two percent of American households are renters, according 
to the National Multi Housing Council. Generally, more people 
younger than 30 occupy rentals, while the percentage of people 
who own their home increases with age, NMHC statistics indicate. 
People decide to buy a home for many reasons, but the recent 
real estate market downturn caused many Americans to rethink 
their assumptions about renting and owning.

Even with many real estate experts predicting the market will 
continue to improve, it pays to carefully evaluate how home 
ownership does - or doesn’t - figure into your long-term financial 
goals. 

If you’ve been renting and wondering if it’s time to apply 
for a mortgage and buy your own home, consider these points:

1. Renting isn’t always the cheaper option, and comparing your 
monthly rent payment directly to a mortgage payment won’t give 
you a clear picture of the financial impact of either option. Online 
calculators, like Guaranteed Rate’s rent vs. buy online calculator, 
can give you a better understanding of the comparison. With 
mortgage rates consistently low and rental markets competitive 
across the country, real estate experts agree that in most major 
metropolitan areas it will still be cheaper in the long run to buy than 
continue to rent.

2. While the days of zero-money-down mortgages are essentially
over, it’s a misconception that you need a huge amount of money
to buy a house. Yes, you’ll almost certainly need a down payment,
but different lenders will require different percentages. Research
your mortgage options before you begin house hunting so you’ll
know how much you’ll need to save in order to secure a mortgage
- and the home of your dreams.

3. Although the mortgage application process is detailed, it
doesn’t have to be drawn out and tedious. Many lenders now
allow you to initiate the process online, and Guaranteed Rate
has recently overhauled its website to allow borrowers to apply
for a loan, track the approval process and receive their home
loans all online. The eighth-largest retail mortgage company in
the U.S. allows customers to choose and customize their loans,
submit an application and receive an official approval letter all at
www.guaranteedrate.com. Automating the application process
compresses the traditional time frame from days - sometimes,
even weeks - into minutes. As part of the process, applicants also
receive the credit reports from all three major credit bureaus.

4. Buying a home affords you the opportunity to really grow your
roots, but the flipside is that in order to get the most out of your
investment, you need to stay put for a while. If you anticipate
being in your current job and living in your current town for at
least five years, the long-term investment of buying a house will
make more sense for you. If you anticipate a job change or a
move within a few years, you may want to hold off on buying a
house. The good news is, doing so gives you more time to save
toward a down payment so you’ll look even more appealing to
lenders when you are ready to buy.

While only you can decide if homeownership is right for you and
your family - and if now is the right time to buy - keep in mind
a few statistics from Trulia.com: 42 percent of renters say they
regret not having bought a home, and 31 percent say they want
to buy a home in the next two years.

Article provided by Brandpoint - formerly ARAcontent.
Reprinted with permission.

Courtesy of Jamie Cook, First American Home Warranty

Mortgage Rates Take a Breather

Stop the Presses!!!!

   You have to read Jim Belote's latest Mortgage Matters(below).  

After a quick run up over the past months, interest rates leveled off last week and actually decreased a bit this week!!!!

Though not out of the woods yet, Jim matches up with my opinion that increases in mortgage applications(he sees) and buyers interest in homes(I see) along with good growth in 2013 in new home inventory means the Real Estate Market continue to improve.

No time to wait thought as one can't predict if rates will hold for very long!

Keeping you updated on the market! For the week of  July 22, 2013 MARKET RECAP Fed Chairman Settles Mortgage Markets After sprinting a full percentage higher over the past two months, the 30-year fixed-rate mortgage has finally taken a breather. Last week, the bellwether loan was staid, holding near the prior week's rate. This week, the rate actually fell a few basis points. Lending markets have finally settled down, and for this we can thank Federal Reserve Chairman Ben Bernanke, who assured credit-market participants the Fed is unlikely to taper QE3 in the near future. This means the Fed will continue to purchase long-term U.S. Treasuries and mortgage-backed securities. In short, mortgage rates have likely plateaued for the near future, which gives frantic buyers some breathing room. The interesting lesson in the mortgage-rate surge is that it failed to materially impact the purchase market. Indeed, the four-week purchase-application trend held steady. What's more, the latest data from the Mortgage Bankers Association show purchase applications actually rose 1% last week. Purchase applications are obviously related to home sales and building activity. On the latter, there's concern rising rates could translate into falling activity because of falling consumer demand. The latest data on housing starts, released Wednesday, raised a few eyebrows, and a few concerns. Housing starts were down significantly, dropping 9.9% to 836,000 units on an annualized basis in June. After the news was released, we ran across a number of comments forecasting the end of the housing recovery. Upon closer inspection, though, it appears housing's imminent demise was highly exaggerated. We say that because the drop in starts was lead by the smaller and more volatile multifamily component, which declined 26.2% in June after rising 28.2% in May. In contrast, the larger and more stable single-family component slipped a modest 0.8% for the month after rising 0.5% in May. It's informative to consider the longer-term starts trend; by this measure, the residential construction industry looks quite healthy. Over the first   half of 2013, multifamily starts are up nearly 34% from the same year-ago period, while single family starts are up 20%. These are meaningful increases in activity and tell us we've come a long way in a short time. Moreover, there is plenty of room left to run. Starts remain low when viewed from a historical perspective. From 1959 through 2000, roughly 1.5 million housing units were started annually. (And keep in, the population was meaningful smaller back then.) So, yes, we've come a long way on residential construction, but we still have long way to go. This suggests that housing will remain healthy and will remain a key economic driver for at least the next couple years. And even if mortgages continue to climb, we think that's unlikely to change. Economic Indicator Release Date and Time Consensus Estimate Analysis Existing Home Sales (June) Mon., July 22, 10:00 am, ET 5.25 Million (Annualized) Important. More supply coming to market will lead to higher sales volume in coming months. FHFA House Price Index (May) Tues., July 23, 9:00 am, ET 0.5% (Increase) Moderately Important. Home prices will continue to post gains across most local markets. Mortgage Applications Wed., July 24, 7:00 am, ET None Important. Purchase activity should show noticeable improvement thanks to stabilizing rates. Durable Goods Orders (June) Thurs., July 25, 8:30 am, ET 1.0% (Increase) Moderately Important. Rising orders are reflective of rising consumer confidence. Don't Look Back, Look Ahead Anchoring can be a difficult psychological trait to overcome. By that, we mean the inclination to believe that the past will either return or be will maintained in the future. Anchoring occurs frequently in the investment world. Investors buy a stock, see it's share price cut in halve, and yet despite poor prospects, they'll continue to hold, believing that it's inevitable their purchase price will again prevail. We see the same phenomenon in the mortgage market. Many potential borrowers believe it's inevitable that mortgage rates will again hit multi-decade lows of a few months ago. Tomorrow will somehow present yesterday's opportunities. This isn't to say yesterday's prices can't return, but yesterday isn't today: the outlook and the variables influencing today's market are decidedly different. Today, we are looking at stronger economic growth and stronger residential construction across most of the United States. Neither variable bodes well for lower lending rates. The point we want to emphasis is to keep focused on the future, and the variables – Federal Reserve tapering, job growth, rising consumer spending, higher housing demand and construction – that will prevail in the future. With the future in mind, it's becoming increasingly difficult to make a case for a lower-rate lending environment.

Interest Rates Rise....Still Great Rates...But Higher Rates coming?

You won't have to do anything but scan this Mortgage Matters
to catch the drift that interest rates are up and the pressure to rise is there.

As referenced in the article, home buyers looking for rate to go down are living in a 'dream world'.   The Fed has indicated that the Fed will buy fewer  Mortgage Backed Securities.  As a result the
market is responding.

If you are planning to buy a larger home, downsize or relocate, now is the time before interest rates go higher.

YOU SNOOOOOZE...You will lose

No one ever wants to cry

 

 

 

 

So keep talking about HOME MORTGAGES

 

 

                  And

 

 

May say you are

 courtesy nutsforlife.com

 

 

Yet to not remind every one that  now is the best time to buy a home in some time, would be almost insane.

 

 

Closing questions:  Are you willing to pay hundreds more for on a 

 

                                                  home mortgage

 

                                                                            in a year or so???

 

 

OR

 

 

                             Love paying more to rent the same size of home

 

                                                 as the home you could buy

 

                                     while missing out on tax deduction???