Financial resources
When purchasing a home, many buyers expend considerable time and effort in lining up the most cost-effective mortgage financing plan. But they don’t take steps to minimize their closing costs particularly in one of the most expensive areas, being title insurance. In fact, title insurance is something of a mystery for many consumers. In most cases when buying a home, …
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This is a different kind of conventional loan. With a low down payment requirement that can include gift funds, seller contributions and community seconds, this loan may be the perfect choice to help you buy the home of your dreams! MyCommunity is a different kind of Conventional Loan With only a 3% down payment required, Up to 100% of the down payment can come
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Expect to look at more than a few houses. It can take a while to find the perfect one. Expect to provide documents. It may feel a little overwhelming, but we only ask for what we need. Expect it to take some time. There are moments when it seems like nothing is happening, but that’s when we are busy putting
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Have you heard about MyHome? MyHome is a downpayment assistance program through CalHFA Qualified first time buyers can get up to 5% in down payment and/or closing cost assistance With low interest rates and deferred payments, MyHome can be combined with any CalHFA 1st mortgage, including CalPLUS w/ ZIP Contact us to find out how MyHome can help you buy
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Interest Rate is the percentage used to calculate your payment Annual Percentage Rate (or APR) is the TOTAL cost of the loan expressed as a percentage It’s what the interest rate would be IF it included things like origination fees, mortgage insurance premiums, settlement fees and “points” Although it doesn’t affect your monthly payments, APR can be useful as a
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When purchasing a home, many buyers expend considerable time and effort in lining up the most cost-effective mortgage financing plan. But they don’t take steps to minimize their closing costs particularly in one of the most expensive areas, being title insurance. In fact, title insurance is something of a mystery for many consumers. In most cases when buying a home,
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An increasing number of complaints are coming from homeowners who have succumbed to pressure from mortgage brokers and lenders to refinance their property or take out large equity loans. Many of today’s refinancing transactions are definitely justified. In certain situations it can save the consumer a substantial sum of over the term of the loan. But in too many cases,
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A new type of home mortgage loan makes it possible for more persons with “marginal” qualifications and income to finance a home purchase. It’s an interest-only loan, at least for the first 15 of its 30-year term. The loan, now approved by Fannie Mae (the nation’s largest buyer of existing mortgages), allows borrowers to pay interest-only for monthly payments for
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A new era is dawning in the mortgage industry. First, the use of credit scores by lenders in determining whether or not to grant a loan to an applicant is now commonplace. It’s also used to structure the terms offered in the loan. Up to this point, those scores were kept as a secret to most consumers – the persons
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This is a particularly appropriate time to take strategic steps to save energy costs in homes. Real estate brokers and mortgage lenders should advise clients on ways they can help control those cost. Energy sources are rising in cost dramatically in most areas this winter, and to maintain a family’s financial ability to keep making mortgage payments and handling other
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Surprisingly, young people with limited incomes continue to comprise the largest segment of entry-level homebuyers in the country. About 52 percent of these buyers are between the ages of 25 and 34, and an additional 11 percent are under the age of 25. Considering the continuing increase of home prices in most markets, this is an amazing statistic. It shows
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The retirement home preferences of senior homebuyers have changed significantly in recent months and years. And these affects the type of mortgage loans they seek to finance their retirement homes. A few years ago, new communities designed for seniors were primarily comprised of small condominium units with a swimming pool and clubhouse where residents could play pool or shuffleboard. And
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What is your “mortgage score?” The answer could determine whether or not you qualify for a loan to finance the next home you’d like to purchase — or the terms you are offered by a lender to refinance your present mortgage. Or if you are a mortgage lender, your clients’ score will be a major factor in determining whether or
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There has always been a veil of mystery and uncertainty for consumers when applying for a home mortgage loan. Consumers have been in the dark about many aspects of the mortgage processing procedure. Frequent questions have been: What takes place in the process of deciding whether or not an applicant is qualified for the loan? How are costs calculated? What
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Interest rates for fixed-rate mortgages continue to climb, motivating more home owners to refinance their adjustable-rate loan and lock-in a fixed rate before those fixed rates climb further. On June 1 the average fixed rate for a 30-year mortgage was 6.62 percent as reported by Freddie Mac 6.66 percent as reported by the Mortgage Bankers Association (for loans no more
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Despite continually rising home prices and interest rates, many people are deciding to purchase and finance a needed home now. Or perhaps they are taking action because of those rising prices and interest rates. This was the focus of a study recently completed by Harvard’s Joint Center for Housing Studies. Prospective home and condo buyers are looking at those rising
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During the last week in March, mortgage interest rates and the number of mortgage applications both increased a bit. Also during the week, the Federal Reserve increased the Fed short-term rate by yet another quarter of one percent to 4.75 percent.That’s the 15th consecutive increase, reaching the highest rate in the past five years. “The Fed’s most recent rate increase
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An increasing number of homeowners are refinancing their homes with a new cash-out mortgage, according to Freddie Mac, a major buyer of existing home mortgage loans and supplier of funds for new loans. This means the new mortgage had a higher balance than the old loan, thus creating cash for the homeowner in the refinance process. Most of the new
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The Federal Reserve raised its short-term interest rate a quarter of one percent on January 31. This could potentially push mortgage rates higher in coming weeks and months. The Fed board, at their last meeting where Alan Greenspan presided as chairman, also indicated there may be more raises in the Fed rate in the future, putting more pressure on mortgage
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With slowly rising mortgage interest rates, some new trends are surfacing. For example, more mortgage applicants are selecting an alternative type of mortgage plan instead of the traditional 30-year, fixed-rate mortgage. Plans such as the interest-only mortgage or a hybrid plan are increasingly popular as a means of minimizing the monthly payment. With an interest-only mortgage, there is no reduction
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Home financing and refinancing this year will probably reach the second highest level of activity on record, according to Fannie Mae, one of the nation’s largest buyers of existing home mortgages and supplier of funds for new loans. And an increasing proportion of those borrowers are obtaining a refinance fixed-rate mortgage to replace their adjustable-rate loan. The volume of applications,
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Major mortgage organizations are extending a helping hand to victims of Hurricane Katrina. For example, Freddie Mac has extended its mortgage relief policies for borrowers affected by the infamous hurricane in locations declared Major Disaster Areas by President Bush. Freddie Mac also announced it is donating $50,000 to the American Red Cross to support hurricane relief efforts. In addition, the
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Mortgage interest rates have lowered in recent weeks, motivating more people to buy and finance a home now or refinance their existing mortgage before rates start climbing again. On July 1, the average mortgage rate is down to 5.53 percent for a 30-year, fixed-rate mortgage (per Freddie Mac). Last year at this time, the average rate was 6.25 percent. However,
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As mortgage interest rates dip, the number of refinance mortgage applications continue to increase. That’s the scenario in late May, according to a report from the Mortgage Bankers Association. Borrowers obviously want to lock in a money-saving mortgage rate when refinancing their existing loan, before those rates push upward again. Rates have declined over the past few weeks, said the
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Sales of new and previously owned single-family homes is surpassing all previous expectations. The strong sales of newly built homes shows there’s plenty of demand in today’s marketplace, said David Wilson, president of the National Association of Home Builders. That demand will probably grow in coming weeks with mortgage interest rates lowering. At this writing it’s down to 5.78 percent
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Mortgage interest rates have been slowly but steadily increasing in recent weeks from 5.10 percent in mid-February to 6.08 percent on April 1 for a 30-year, fixed-rate mortgage, according to the Mortgage Bankers Association. All indicators point to continuing increases. The key culprit for rising rates is the fear of growing inflation. This has motivated the Federal Reserve to increase
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Spanish-speaking families are receiving special help in their efforts to purchase and finance a home of their own. This includes a widening variety of mortgage plans and other areas of support. An example of this emerging trend is a new program announced by Freddie Mac, one of the nation’s largest buyers of existing home mortgages and supplier of funds for
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This will be a very strong year for the mortgage industry, with GDP growing slightly above trend at 3.6 percent, down somewhat from the 4.4 percent growth rate last year, according to Doug Duncan, chief economist for the Mortgage Bankers Association. We see the market getting stronger, with continued strong gains in productivity. There will likely be a slight uptick
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The mortgage market will remain strong and active in year 2005 due to several key factors, according to leading analysts. First, interest rates remain at near record low levels. At this writing, the average rate for a 30-year, fixed-rate mortgage is only about 5.7 percent. It’s expected to slowly rise reaching an average rate for the year of about 6.2
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Finally, the mystery and secrecy that has long embraced personal credit reports and credit scores has been unveiled, or soon will be. You, as a consumer, can access your own credit report, along with detailed information about factors determining your score, without charge. Your personal report and credit score can greatly impact your finances. It can influence your ability to
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New reports from major real estate organizations point to good news for future home buyers and sellers. General consensus of reports: Home sales will remain strong, with more marginal buyers being able to purchase a home of their own. Mortgage interest rates will rise, but only modestly over the next few years. With long-term mortgage rates below 6 percent and
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Nearly all key real estate organizations are now revising their projected volume of mortgage loan originations this year. It appears the mortgage business will be significantly more active in coming months than forecast at the beginning of the year. For example, Fannie Mae, the nation’s largest buyer of existing home mortgages (a government-sponsored enterprise), recently pushed their predicted volume of
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Some homeowners are still reluctant to tap the equity in their homes to generate needed cash. They seem to think there’s a negative stigma in drawing cash from their equity the one sure method of forced saving that should not be touched except in dire emergencies. However, an increasing number of homeowners are using a portion of their growing equity
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A zero down payment mortgage plan is being developed by the Federal Housing Administration (FHA). Its objective is to allow more families to achieve their goal of home ownership. The proposal is part of the Housing and Urban Development’s (HUD’s) Fiscal Year 2005 budget request. It would eliminate the statutory requirement of a minimum three percent down payment for FHA-insured
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Year 2004 will be a robust year for the housing and mortgage market. Home sales might even surpass the activity records set in 2003, according to leading analysts. The nation’s homebuilders are particularly enthusiastic about the growing demand for homes and apartments. They are positioning themselves for another record year of activity and sales. Based on our expectations for mortgage
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Mortgage interest rates are continuing to rise, according to a recent report from The Meyers Group, a research and consulting firm. Regionally, rates are lowest in the West and highest in the Northeast Region. Though we might see mortgage rates move upwards in the months ahead, they will likely remain within most homebuyers comfort zones for the remainder of the
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The home mortgage refinance boom is still plugging along full-steam. One reason for the continuing high number of refinance transactions, in addition to the continuing low interest rates, is the growing popularity of the FHA Streamline Refinance program. Many homeowners are learning about and taking advantage of this fast and low cost method of refinancing their home loan. Many others
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New mortgage plans will soon be introduced that will help an additional 40,000 families each year enjoy the benefits of homeownership. It’s part of the government’s plan to make homeownership attainable to a greater proportion of families. Under the plan, adjustable-rate mortgages (ARMs) will become more flexible, meeting the home financing needs of a greater range of families. The new
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I was recently contacted by an executive from Fannie Mae, the nation’s largest buyer of existing home mortgages and supplier of funds available to lenders for new mortgages. He asked that I pass along clarifying information about a new ruling that seems to be confusing many consumers. Cash-out refinance mortgages are still available under our new guidelines, he said. The
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For months most real estate analysts, representing the nation’s largest real estate organizations, have been telling us to not worry about a bursting housing bubble (related to home prices). It wont happen, we were assured. Now a noted Yale professor, Robert J. Shiller, tells us we should be vigilant about the possibility of a housing bubble burst. This could influence
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New developments are constantly emerging in the home mortgage field, offering new benefits for borrowers. Now we have a mortgage plan that allows the borrower to skip payments when money is particularly tight. It’s a plan developed by Fannie Mae, the nation’s largest buyer of existing home mortgages. It’s now being tested in several markets around the country. Fannie Mae
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Homeowners are on a remodeling kick, and an increasing number of mortgage loan applications this year will be to generate funds for remodeling projects. Last year owners spent more money on remodeling projects than ever before, despite a slowdown period following September 11. Remodeling activity is now again on the upswing. Consumers spent about $161 billion on home remodeling during
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Some significant changes appear to be surfacing this year in the mortgage industry. These changes could save money for homebuyers and owners who want to refinance their existing mortgage loan. One change could be the elimination of formal appraisals that have long been an integral part of a mortgage or refinance application. Determining a reasonable estimate of the property’s value
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With mortgage interest rates creeping up, a home financing plan that shaves 2 percent off the top of a mortgage rate looks very appealing to consumers. That can be accomplished with a shared appreciation mortgage, a plan that was a hot product a couple of decades ago, but was shelved when the variable rate mortgage took center-stage. Now, the variable
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By Jim Woodard The tragic events of September 11 are having a profound impact on the housing and mortgage market, along with other major segments of our economy. There are some striking similarities between today’s economic environment and that of eleven years ago, it was noted in a report from the Meyers Group, a real estate research and consulting firm.
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