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Find A Mortgage Rate Strategy Ahead Of Friday’s Job Report Find A Mortgage Rate Strategy Ahead Of Friday’s Job ReportComments Off on Find A Mortgage Rate Strategy Ahead Of Friday’s Job Report

Friday morning, the government’s Bureau of Labor Statistics will release its Non-Farm Payrolls report, more commonly called the “jobs report”.

Depending on how the jobs data reads, FHA and conforming mortgage rates may rise, or fall. This is because today’s mortgage market is closely tied to the U.S. economy, and the U.S. economy is closely tied to job growth.

Economists expect that employers have added 125,000 net new jobs to their payrolls in October 2012, up from September’s tally of 114,000 net new jobs. Jobs have been added to the economy over 24 consecutive months leading into Friday’s release, and approximately 4.7 million jobs have been created in the private sector since early-2010.

So, what does this mean for home buyers and refinancing households throughout Washington, DC ? It means that mortgage rates may get volatile beginning tomorrow morning.

Improving jobs numbers tend to push mortgage rates up, as it signals to investors that the U.S. economy is strengthening. If the actual jobs reports shows more than 125,000 net new jobs created, therefore, look for mortgage rates to rise.

Conversely, a weaker-than-expected report injects fear into the market, causing investors to purchase safer assets including U.S. Treasury bonds and mortgage-backed bonds. This moves mortgage rates lower.

Markets will also watch for the monthly Unemployment Rate. After falling to a 4-year low of 7.8 percent in September, economists anticipate that October’s unemployment rate will rise 0.1 percentage point to 7.9%.

The good news for rate shoppers is that mortgage rates remain low. Freddie Mac’s weekly mortgage rate survey puts the 30-year fixed rate mortgage below 3.50% nationwide for borrowers willing to pay 0.7 discount points. Furthermore, a forecast from the Mortgage Bankers Association predicts that the 30-year fixed rate will remain below 4% for at least the next 8 months and low mortgage rates help to keep home payments low.

The Bureau of Labor Statistics releases the jobs report at 8:30 AM ET Friday.

19 of 20 Case-Shiller Index Markets Improve In August 19 of 20 Case-Shiller Index Markets Improve In AugustComments Off on 19 of 20 Case-Shiller Index Markets Improve In August

Home value rose to close out the summer, according to the S&P/Case-Shiller Index, a national home-valuation tracker.

Nationwide, values rose 0.9% between July and August 2012 with 19 of 20 tracked markets showing improvement. Only one tracked city — Seattle, Washington — showed a decrease, falling just 0.1 percent.

On an annual basis, 17 of the 20 Case-Shiller Index markets improved, led by Phoenix. Home values in the Arizona city are up 18.8 percent from August 2011. The next closest city in terms of home price gains is Detroit, Michigan at 7.6 percent

We should temper our excitement for the August Case-Shiller Index, however. Although it suggests an ongoing U.S. housing recovery, the methodology of the Case-Shiller Index is far-from-perfect. In fact, one could argue that the index is more effective for policy-makers than for actual buyers and sellers of real estate.

There are three reasons for this :

  1. The Case-Shiller Index tracks home prices of single-family homes only. Multi-unit homes are excluded.
  2. The Case-Shiller Index can be distorted by “discounted” home sales (e.g.; foreclosure, short sale).
  3. The Case-Shiller Index publishes on a two-month delay — data is hardly current.

Beyond the above three points, however, the Case-Shiller Index falls short in another area — it ignores the basic tenet of housing that “all real estate is local”. In using 20 cities to represent the entire United States, the Case-Shiller Index reduces more than 3,100 municipalities into a single “market”.

Even within its 20 tracked cities, the Case-Shiller Index fails short as a housing market barometer. This is because — even with cities — home values vary. Some Arlington, VA zip codes perform better than others, for example, as do some streets. The Case-Shiller Index can’t capture markets with that level of detail.

National housing data helps in spotting broader trends of growth but provides very little for today’s active buyers and sellers of real estate who need “real-time” data. For that, talk to a local real estate agent.

Advantages Of VA Streamline Refinances with Gus Dahleh Advantages Of VA Streamline Refinances with Gus DahlehComments Off on Advantages Of VA Streamline Refinances with Gus Dahleh

Advantages Of VA Streamline Refinances with Gus Dahleh

Pending Home Sales Index Suggests Housing Momentum Into 2013 Pending Home Sales Index Suggests Housing Momentum Into 2013(1)

The home resales is expected to finish the year with strength.

Last month, for the fifth straight month, the Pending Home Sales Index hovered near its benchmark value of 100, registering 99.5 in September.

he Pending Home Sales Index tracks homes under contract to sell, but not yet sold, and is published by the National Association of REALTORS®. The index is a relative one. It compares today’s housing market activity to the housing market activity of 2001 — the index’s first year of existence.

The Pending Home Sales Index has averaged 99.1 this year.

Among housing market indicators, the Pending Home Sales Index is unique. It doesn’t report on prior market activity as the Existing Home Sales and New Home Sales reports do. By contrast, the Pending Home Sales Index is a forward-looking indicator.

The real estate trade association tell us that 80% of U.S. homes under contract go to closing within 60 days, and many of the rest go within Months 3 and 4. In this way, the monthly Pending Home Sales Index can foreshadow to today’s Washington, DC home buyers and sellers what’s next for housing.

Based on September’s Pending Home Sales Index, then, we should expect to see closed home sales stay strong through November and December. That said, home sales are expected to vary by region.

Here is how the Pending Home Sales Index broke down by area last month as compared to one year ago on a seasonally-adjusted, annualized basis :

  • Northeast Region : +26.1% from September 2011
  • Midwest Region : +19.3% from September 2011
  • South Region : +17.6% from September 2011
  • West Region : +0.8% from September 2011

Often, the last few months of a year are considered to be a “slow” period for the housing market. Based on regional, annual Pending Home Sales Index improvements, though, 2012 may be different. The market looks poised to finish with momentum that may carry home prices higher into 2013.

For today’s home buyers, mortgage rates remain low and home prices have only started to climb.

Article author Gus Dahleh of Bridgeview Bank is a proficient mortgage expert dedicated to bringing his readers important and also useful information.  Would you like a free mortgage quote? Check out the following website for a no-cost quote and expert suggestions on helping you discover the best mortgage rates.

Partnering With An FDIC Bank by Gus Dahleh Partnering With An FDIC Bank by Gus Dahleh(1)

Why is partnering with an FDIC Bank a wise decision?

First of all, Partnering with an FDIC bank will essentially allow access to funds with very low interest rates.  The banks can borrow money from each other at the interest rate at which FDIC Banks lend money to each other.  FDIC banks are not subject to state mortgage lender laws. FDIC banks are characteristically overseen by the Office of the Comptroller of the Currency, which is an agency within the U.S. Treasury Department, pursuant to the National Bank Act.

FDIC banks can service their own products. Mortgage banks, in most cases, are contractually barred by covenants in their warehouse line agreements from servicing loans closed with warehouse funds. Also, the interest rate on funds borrowed from the warehouse facility is high enough that they quickly make a loan unprofitable.

Partnering with an FDIC Bank to manage turbulence

Because mortgage banks are mostly in the business of originating residential home loans (purchase and refinance loans), the residential housing crash, with the resulting economic problems, has caused many issues for businesses that are completely tied in with the market. In response to our economic issues, mortgage banks have gone out of business or sought to affiliate or partner with FDIC banks because they are better able to manage changes in the home loan market for the following reasons.

While the level of inspection aimed by the OCC is noticeably more intense, FDIC banks that partner with clients are usually relieved from state-imposed mortgage-loan originator licensing requirements. This permits FDIC banks to hire loan originators who might not otherwise be able to obtain state licensing because of bankruptcy filings or other non-financially related criminal histories.

For the past year, the Fed Fund Rate has been 0.25 percent (one-quarter of 1 percent). FDIC banks borrow money directly from a Federal Reserve Bank (at the Federal Discount Rate). For the past year, the Federal Discount Rate has been 0.75 percent (three-quarters of 1 percent).

Pit falls of partnering with an FDIC Bank

Joining forces with an FDIC bank doesn’t come without problems/limitations.  For example, careful thought should be given to the transition in order to compartmentalize liabilities in each respective entity and to avoid successor liability concerns.

Mortgage bankers moving to an FDIC bank platform should be informed that financial regulations on the FDIC side are increasingly more complicated and closely scrutinized by regulators. Care must be taken to avoid any fast and loose work when the OCC is evaluating  a company partnering with an FDIC bank.

Author “Gus Dahleh” is a sales leader who is owner of GusDahleh.com and is rather dedicated to providing readers with important as well as useful information and facts. Take a look at the following website link for more info on why its beneficial partnering with an FDIC bank.

Understanding Chicago Mortgage Loans Understanding Chicago Mortgage Loans(1)

Understanding Chicago Mortgage Loans

Only the most organized and financially knowledgeable mortgage borrowers can locate the lowest Chicago mortgage rates without additional assistance.  Luckily for the average person, there is my blog available to help out.  Your search for the most premium mortgage loan can be described in the following steps:

  • Figuring out your potential savings and current budget
  • Comparing interest rates and different types of mortgages
  • Finding a suitable mortgage lender

With the information and tips provided on my website, you can gain insight about the types of Chicago mortgage loans and rates, getting you ready for your first Chicago mortgage loan.

Fixed Rate Chicago Mortgage Loans

For people with a low tolerance risk, a fixed-rate mortgage loan (FRM) could be the right choice.  Many Chicago area borrowers favor the fixed-rate mortgage structure because of the security of a locked-in rate and the predictability of the monthly payment amount.  FRMs are also wholly remunerating, so there are no balloon payments that need to be refinanced.  Often times, FRM’s mature in 30 years, but there are shorter and longer terms obtainable.  Through understanding your budget, you can obtain the lowest rate fixed-rate Chicago mortgage by choosing one with the shortest payoff term.

Comparing Chicago Mortgage Loans

The best way to save money on your mortgage loan is to collect a set of written offers.  Start by contacting any qualified and knowledgeable mortgage broker, including myself, and find out what kinds of services they are offering.

Don’t make your final loan decision based on just the payment amount.  Sometimes a low payment works well for a budget, but only up to a point.  A low payment usually means a slower rate of payoff.  Belated debt payoff commonly raises interest costs and reduces the build-up of home equity.  Since the penalties may not be directly obvious, you should sort your mortgage offers by loan type primarily.  Review any FRM quotes together, and then individually look over your adjustable-rate mortgage (ARM) offers.  Make sure you are finalizing your decision based on carefully assessing your personal needs and what your budget constraints are.

To summarize, build a collection of mortgage loan offers and carefully look over them to make the right decision based on your own needs.  Your top priority should be to fully understand the different types of fixed-rate and adjustable-rate mortgages available in Chicago.

Article author Gus Dahleh of Bridgeview Bank is a proficient mortgage expert dedicated to bringing his readers important and also useful information.  Would you like a free mortgage quote? Check out the following website for a no-cost quote and expert suggestions on helping you discover the best Chicago mortgage loans.

Locating the Best Milwaukee Mortgage Rates by Gus Dahleh Locating the Best Milwaukee Mortgage Rates by Gus Dahleh(1)

Milwaukee Mortgage Rates by Gus Dahleh:

Due to today’s historically competitive loan rates, a large amount of folks throughout the Windy City are generally asking about how they could attain the most beneficial Milwaukee refinance rates rates. The following are a couple of pointers to help consumers identify the hottest deal.:

Broker Vs. Banker:
Generally there are just a couple of major varieties of mortgage providers for consideration. The first are brokers that technically will not fund the closings with their money, but they typically provide the largest options of “big bank” investors to place the loans with (these banks being Wells Fargo, Citibank, Chase, and GMAC to name a few). The negative effects connected with the broker not using their own funds to actually fund your transaction is their outsourcing of essential services. This could sometimes bring about additional hassles for consumers hoping for the smoothest dealing possible. As opposed to brokers, mortgage bankers offer a similar experience but in most cases have in-house underwriters that approve the mortgage loan to close plus they eventually close the loans on their own giving them the last say in approving conditions.

Studying Closing Cost Structures and How These Institution’s Bring In Revenue can be Critical to Acquiring You the Best Milwaukee Mortgage Rates with Gus Dahleh:

It is crucial you grasp that Broker organizations commonly have the cheapest expenses which will mean the absolute lowest rates. Nonetheless, quite a few borrowers still frown upon them because they also typically delegate many of the important services that involve getting your loan closed and that can lead to some of the head aches stated above in Tip #1. Conversely, the “Big Banks” including Wells Fargo, Chase, and Citi provide the absolute highest overhead costs and that usually end up charged to to the buyer in undesirable rates. The “Big Banks” have substantial continuing carrying costs such as billboards, tv and radio commercials, web banner advertisements, numerous levels of operations, loss mitigation departments, legal departments, and on and on. For this reason, you can typically obtain the best Milwaukee mortgage rates by selecting the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers generally have relatively low expenses yet nevertheless have the control of crucial services in house, specifically underwriting and closing departments.

Lenders Closing Costs and Getting the Best Milwaukee Mortgage Rates with Gus Dahleh:

You may have seen several banks advertising and marketing “no closing costs”, particularly on refinances. Be cautious though because quite often they’ve already built those fees in to the rate one way or another. For instance, it should be up to you the borrower whether you’d like the closing expenses paid at closing in cash, built in to the new transaction, or, paid for by the lender but in exchange for a marginally increased interest rate. In general with mortgage bankers like Bridgeview Bank, they could cover the majority of or all your closing expenses and also still enable you to get a rate that is lower compared with any of the “big banks”.

Article writer “Gus Dahleh” is a sales innovator who is owner of GusDahleh.com and is focused to delivering readers with important and also helpful tips. Find out more about the following link for a Complimentary refinance assessment as well as skilled assistance on how to obtain the best Milwaukee mortgage rates with Gus Dahleh.

How to Find the Best Washington Mortgage Rates How to Find the Best Washington Mortgage RatesComments Off on How to Find the Best Washington Mortgage Rates

Finding the Best Washington Mortgage Rates:

With today’s historically competitive mortgage rates, many folks within Seattle, Tacoma, Spokane, and Vancouver appear to be asking what the best way is to obtain the best washington mortgage rates. Here are a few suggestions to assist consumers in identifying the best mortgage rates:

Broker Vs. Banker:

There can be two main types of mortgage providers to consider. The first are brokers who from a technical perspective tend not to fund the transactions using their own money, nevertheless they generally feature the greatest selection of secondary market investors to place the mortgage loans with (these “big banks” being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The downside connected with a broker not utilizing their own funds to actually close your transaction is their outsourcing of essential services. This will sometimes bring about extra headaches for borrowers hoping for the easiest transaction conceivable. As opposed to brokers, mortgage bankers are similar but almost always have in-house underwriters that approve the transaction to fund and they ultimately close the mortgage loans independently which gives them the last authority in accepting closing conditions.

Understanding Cost Structures and How These Banks Bring In Money is really Crucial to Getting You the Very Best Washington Mortgage Rates

It is crucial you fully understand that Broker organizations usually have the smallest expenses which could mean the absolute lowest rates. However, a large number of buyers still shy away from them because they also commonly outsource many of the important aspects that go into getting your loan to the closing table and that can bring about some of the head aches outlined above in Tip #1. On the other hand, the “Big Investors” such as Wells Fargo, Chase, and Citi have the absolute greatest expenses and that often end up charged to to the customer in the form of undesirable rates. The Big Banks have to carry enormous on-going expenses such as billboards, tv and radio commercials, web banner advertisements, countless levels of operations, loss mitigation departments, legal departments, and the list goes on. Due to this, you can usually getgoing with the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers usually possess relatively low overhead costs however still have the control of crucial services in-house, specifically underwriting and closing departments.

You may have seen some lenders advertising and marketing no costs, especially for refinance transactions. Be cautious though because in most cases they have rolled those fees into the rate in one way or another. For instance, it should be up to you whether you’d prefer the closing fees paid at closing in cash, built into the new mortgage, or, taken care of by the mortgage lender but in exchange for a slightly increased interest rate. Characteristically with mortgage bankers that include Bridgeview Bank, they might cover the majority of or all of your closing costs and still get you a rate that is more favorable compared with any of the “big banks”.

Article author “Joe Mortgage” is a sales pioneer who is owner of hotratequote.com and is focused to delivering his subscribers with important and also valuable information. Take a look at the following url for a Zero cost refinance consulting as well as knowledgeable assistance on how to obtain the best washington mortgage rates.

15 vs 30 Year Mortgage – The Pro’s and Con’s 15 vs 30 Year Mortgage – The Pro’s and Con’s(1)

15 vs 30 Year Mortgage

If you’re like many homeowners you’ve probably contemplated going with a 15 year mortgage vs the more common 30 year fixed program. So what are differences and I can I get a better rate by going with a shorter term? Below are some pro’s and con’s associated with the 15 vs 30 year mortgage programs:

15 vs 30 Year Mortgage – The Rate Difference:

The up side of going with a 15 vs 30 year mortgage is that the 15 year mortgage will come with a bit lower rate. For example, today the average 15 year mortgage would go for about 3.25% while its 30yr counterpart would go for 3.75%. Rates on the 15 year mortgage are lower because the lender is theoretically taking on less risk by having its money out there for a shorter period of time. As a rule of thumb, the shorter the term of the mortgage, the lower the rate will be.

15 vs 30 Year Mortgage – Monthly Payments

One important factor to consider when weighing out the pro’s and con’s of a 15 vs 30 year mortgage is the monthly payment. Payments with the 15 year mortgage are going to be much larger than the longer term since the loan repayment is spread over half the number of months (180 months vs 360 months). It’s therefore sometimes more difficult to qualify for a 15 year mortgage in regard to DTI (debt to income ratio) because you will need to have a relatively high amount of monthly income to support the larger payment associated with a 15 year mortgage vs its 30 year counterpart.

15 vs 30 Year Mortgage – Total Cost Comparison:

If you have sufficient income to support the larger payment that comes with the 15 year mortgage, it may very well be worth consideration since the total interest paid within the 360 payments associated with the 30 year mortgage is much more costly than that of the total interest paid within the 180 payments associated with the 15year mortgage. The total paid on either mortgage is shown on the TIL (Truth In Lending) document which is included in your loan application package as well as again at closing. Many consumers are shocked to see how much their home will ultimately cost by the end of the repayment term. This is perhaps the most compelling reason to consider a 15 year mortgage if you can handle the larger monthly payments.

Author “Joe Mortgage” is a mortgage industry leader who is owner of hotratequote.com and is committed to bringing readers relevant and important information. Find out more at the following link for a expert consultation on considering a 15 vs 30 year mortgage.

FHA Construction Loans – Real or Myth? FHA Construction Loans – Real or Myth?(1)

 

FHA Construction Loans vs the 203K Program

There is a common misconception that the “FHA construction loan” and the FHA 203 renovation loan are one in the same.  This is not true.  Many lenders will tell you they are the same because those folks do not know about the true FHA construction-to-perm program.  The true HUD sponsored FHA construction to perm program is different in that it allows for a completely new home to be built, either a traditional stick-built home, or, a brand new systems-built(AKA “modular) home.  This is also not to be confused with a traditional FHA end loan for a newly built home.  Some lenders will try and tell you they can do FHA loans for newly built homes but that is not the same either.  Simply providing an FHA loan for a just-completed home is much different than a true construction-to-perm loan where by the land is acquired at initial closing with this loan, then draws are make to the builder as each phase of construction is complete.  This is a true construction-to-perm loan, not just an FHA loan that acts as the “end loan”.

FHA Construction Loans – The Benefits

Many folks ask why its so hard to find a bank that will even offer construction loans these days.  There are a number of reasons why construction loans are viewed as being high-risk these days but perhaps the most important one is the appraisal issue.  Because of the turbulent real estate market we are in right now, if you were to get conventional construction-to-perm financing from a bank and your builder begins construction of your home, the property might very well be worth less in just the short 5 months it takes to complete the home!  This is possible these days due to poor home sales in the same area negatively affecting the current value of your home which is still under construction.  To overcome this, the FHA construction home loan program is a 100% true “single close” transaction.  This means that there is no 2nd appraisal at the end, no re-qualifying the borrower, no re-pulling the credit report, and no re-verifying employment.  Once the initial closing is complete, the borrower is essentially out of the equation until the builder finishes the home.  You can use this loan to build your next dream home, and it works great with small builders as well as any of the big “track builders” such as Toll Brothers, Ryland, Pulte, D.R. Horton, and William Ryan Homes just to name a few.

What Banks offer FHA Construction Loans?
As you may have discovered already, very few banks offer the true FHA construction loans.  This is because significant infrastructure is required to facilitate these unique construction mortgages including the draw center, construction/builder underwriting dept, and more.  Also, the bank must be willing to lend their own funds during the construction phase and up until the home is complete, which very few banks are willing to do.  Still, there are a couple good banks out there who specialize in this program.  One of which is Joe Karns at Bridgeview Bank.

Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare construction lenders. Want a free construction loan consultation?   Check out Joe Karns at the following link for FREE expert advice on helping you source the best FHA construction loans.

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