Archive for the 'NJ Mortgage Update' Category
Avoiding Foreclosure in New Jersey
March 10th, 2008 Categories: NJ Mortgage Update, Selling A Home in NJ
Steve Lupton of MetroCities Mortgage just passed on some excellent words of wisdom if forclosure is around the corner for your New Jersey Home.
Here is some advice for Homeowners & New Jersey Real Estate Agents:
Few things are as devastating as losing your home. Sadly, it’s not always inevitable. In many cases the foreclosure could have been avoided with some outside help.
You are in a unique position to advise your clients in financial matters. If you know that a client is on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs.
1. Finding a new home. Don’t let your clients believe that it will be better to let the foreclosure happen, because after they lose their home, they will still need to find a new place to live. All too often, the price they will need to pay in rent will be almost as high if not higher than their current mortgage payment.
Remember: The owner of the property needs to make his mortgage payment, too, so he’s going to charge a rental payment that’s higher than his mortgage costs.
2. Deficiency judgment. It’s not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.
Despite what many people think, most lending institutions are not anxious to foreclose. It’s a last-ditch effort to recover their money and minimize their losses, and it’s an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that your client should be aware of, and most lenders will be happy to hear that their clients are going to try to keep their home rather than just await a foreclosure. Read the rest of this entry »
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Will NJ Home Buyers Benefit From New Loan Limits?
March 8th, 2008 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
New Jersey Home Buyers should benefit from the new FHA and Fannie Mae-Freddie Mac conforming loan limits released by the US Department of Housing & Urban Development on March 6, 2008.
The new loan limits for FHA and Fannie Mae-Freddie Mac are now calculated at 125% of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.
Use this link to find out the new limits in your area. This will take you to the “mortgage limits” page at the HUD website.
- On that page, enter your state and county information.
- Chose the type of loan from the “Limit Type” drop-down box: FHA Forward (HUD’s name for the temporary FHA loan limit), Fannie/Freddie or HECM.
- Then click the “send” button at the bottom of the page.
- On the results page, you’ll see the new loan limit for the type of loan you selected for your area.
Realtor.org also provides a county-by-county listing of the new loan limits here.
The impact of these loan limit increases on the New Jersey housing market could be significant. Lower interest rates across the board should result with this infusion of capital into the mortgage market. In addition, there will be a direct impact on high-cost areas of New Jersey (ie. Short Hills, Summit, Livingston) that previously required borrowers to take out costlier jumbo mortgages.
NOW is the time to Refinance or BUY A NEW HOME
in New Jersey.
If you need any New Jersey Real Estate advice please contact
Perri K. Feldman at 973.650.4727
or email Perri@MidtownDirectHomes.com
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Why Use a Wholesale Mortgage Banker?
February 20th, 2008 Categories: Buying a Home in NJ, Millburn & Short Hills Living, NJ Mortgage Update
Consider using a Wholesale Mortgage Banker for your mortgage this Spring. Why?
Wholesale Mortgage Bankers have access to two distinct sources of mortgage money:
- Secondary Market:
This source of capital comes from investors that invest in mortgage backed securities. Loans are originated then sold to Wall Street banks, bundled into mortgage backed securities and sold.
If a particular loan fits within FNMA’s guidelines they are then sold to FNMA. Since FNMA loans are a large percentage of the overall mortgage market, their 30 yr fixed rate is often the standard when rates are quoted. These rates are driven by the appetite that investors have for buying mortgage backed securities. Their rates are totally market driven.
In the last two months, the market has driven those rates from 6.375%, down to 5.25% and back up to 6.5%. This is a reflection of investor’s outlook for the future value of mortgage backed securities. Read the rest of this entry »
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More Money for New Jersey Home Buyers?
January 23rd, 2008 Categories: Buying a Home in NJ, NJ Mortgage Update, Real Estate News
Tuesday, January 22, 2008 Fed Lowered Interest Rates and New Jersey Home Buyers May Benefit
Steve Lupton of Metrocities Mortgage Sent Me the Following Alert I Wanted to Share:
NEWS ALERT!!!!
1. Today, the Fed lowered both the Fed Funds Rate and the Discount Rate by 75 basis points. This unusually aggressive move is an acknowledgement that equity and credit market issues are threatening growth in the real economies throughout the world.
2. As of Friday Jan 18th, all of the S&P gains from 2007 were erased and equity markets world wide are in a “bear market” (down 20% off their highs)
3. Since these Fed rate cuts were already priced into the market, we can’t assume that mortgage rates will drop immediately. However, it is safe to assume that the downward trend will continue. I will keep you posted.
4. There MAY be a silver lining for us. If the Fed continues on this path it may give a boost in the arm to those who need to refinance. It may also increase awareness of “low rates and lower housing prices” for the fence sitters.
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Requirements on Jumbo Loans Just Got Tighter From Wells Fargo
December 17th, 2007 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
Wells Fargo is tightening the guidelines on a regular basis.
You may not be in a distressed area but the guidelines are much tighter then 6 months ago and far tighter versus a year ago.
Wells Fargo has increased the FICO requirement on jumbo loans from 620 to now a minimum score of 680. The max DTI went from 50% down to 45%. I know Wells Fargo is usually the front runner in jumbo pricing so if you are quoting a rate to your borrower please make sure this announcement does not eliminate your borrower from going to Wells. They also have changes to the Limited Doc/VOA program.
THE NEW GUIDELINES ARE EFFECTIVE DECEMBER 15, 2007.
Wells Fargo appraisal guidelines are as follows:
- At least three sales closed within the previous six months
- Comps should be within one mile/12 blocks of the subject (urban/surban)
- Rural areas comps must be within 10 miles
Wells is also watching the Soft and Distressed Markets.
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The Real Skinny on the Subprime Freeze Plan: Who’s Left Out
December 12th, 2007 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
Just came across this article from CNN:Money.com that helps to explain the subprime freeze plan on interest rates – it looks like the majority of the people out there in this situation may not qualify for the assistance they so desperately need.
Your buyers are sure to appreciate this insight
The new foreclosure prevention program may leave out most distressed subprime borrowers.
By Les Christie, CNNMoney.com staff writer December 11 2007: 2:51 PM EST
NEW YORK (CNNMoney.com) — Distressed borrowers looking for relief from the recently announced White House foreclosure prevention plan may be in for a disappointment.
In announcing the administration’s plan, which includes a five-year freeze on interest rate hikes for some subprime borrowers with adjustable-rate mortgages (ARMs), the White House estimated it would offer relief to 1.2 million families out of the 1.8 million facing higher interest rates. The initiative comes at a time of record high foreclosure rates.
But there are very strict limitations.
Link to Full Story “Subprime Freeze Plan: Who’s Left Out“
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How to Find the Best Mortgage Rates in NJ
November 26th, 2007 Categories: Buying a Home in NJ, NJ First Time Home Buyers, NJ Mortgage Update
Meeting with your mortgage partner in person is a must in today’s market.
With the mortgage market providing hundreds, if not thousands, of different loan combinations, today’s borrowers need their mortgage banker or broker to cut through the clutter of the products and focus on what works best for that specific customer. For some, a Fixed Rate Mortgage is the best choice – for others, an Interest Only Loan may make the most sense. The job of the mortgage professional is to find out what the customer is trying to accomplish with their mortgage and provide them with the closest fit. Read the rest of this entry »
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