Archive for the 'NJ Mortgage Update' Category
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 BenefitÂ
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.  Â
THE NEW GUIDELINES ARE EFFECTIVE DECEMBER 15, 2007.Â
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.Â
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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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