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 :
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(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.
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:
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.
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?
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.
Chicago Tribune: 30-year Mortgage Rates Dip to 3.62%(1)
Chicago Home Loans – How to Compare the Best Lenders?(1)
Locating the Best Chicago Home Loans
Because of today?s historically competitive loan rates, countless folks within the Windy City are generally asking ways they can attain the most beneficial Chicago harp refinance rates. Here are a couple of ideas for helping shoppers source the hottest deal.:
Chicago Home Loans – Broker Vs. Banker:
Understanding Price Structures and How These Institution’s Bring In Revenue is Significant to Getting You the Best Chicago Home Loans:
It is essential to realize that Broker businesses commonly have the lowest overhead costs which will result in the absolute lowest rates. Even so, countless consumers still frown upon them because they also generally use outside agencies for many of the necessary services that involve getting your loan to the closing table which might bring about a few of the headaches described above in Tip Number 1. Conversely, the
Lenders Closing Costs and Finding the Best Chicago Home Loans:
You may have seen several lenders advertising and marketing “no costs”, primarily for refi transactions. Use caution though because quite often they already have rolled those costs in to the rate in one way or another. For example, it should be up to you the shopper whether you’d like the closing fees paid at closing with cash, rolled into the new transaction, or, paid for by the mortgage lender but in exchange for a marginally greater rate. Traditionally with mortgage bankers including Bridgeview Bank, they’re now able to pay for the majority of or all of your closing expenses and also still get you a rate that is lower compared to any of the “big banks”.
Blogger “Joe Mortgage” is a sales innovator who is owner of hotratequote.com and is rather committed to delivering readers with pertinent and also helpful advice. Find out more about the following hyperlink for a 100 % free refinance consultation and professional counsel on how to obtain the best chicago home loans.
Harp 2.0 – Making Home Affordable Refinance Program – Valiant Enough Effort?(2)
Making Home Affordable Refinance Program
Many homeowners have been inquiring about how the new “Making Home Affordable Refinance Program”, also known as “HARP 2.0”, can benefit them. So what can Making Home Affordable do for you? In short, this newer version improves on the initial HARP program by removing the 125% LTV limitation. However, there don’t seem to be any of the “big banks” who are servicing the majority of the country’s existing mortgages stepping up and actually adopting these new capabilities, unless that is, you already have your loan with them.
Making Home Affordable Refinance Program – Who gets access and it enough?
HARP 2.0 Mortgage Program – What are the benefits of the program?(3)
HARP 2.0 – What are the
benefits of the program?
Everyone we know seems to be talking about the new “HARP 2.0” program which is the newest edition of government-sponsored mortgage relief. So what can HARP 2.0 do for you? In short, this newer version improves on the initial HARP program by removing the 125% LTV limitation. In plain terms, many folks who couldn’t qualify for the first edition of HARP because their homes are horribly under water would qualify now. Other new features of HARP 2.0 include reduced pricing hits at these higher LTV’s for shorter term loans (15yr fixed) and transferable PMI, but the key enhancement of HARP 2.0 is definitely the no-limit LTV.
There are a few key requirements to qualify for the HARP 2.0 program. First, to qualify for HARP 2.0, your mortgage must currently be insured by Fannie Mae(DU Refi Plus) or Freddie Mac( known as “Open Access”). Next, you need to have been making your mortgage payments on time to qualify for HARP 2.0. Finally, the loan had to close on or before May 31, 2009. One additional requirement for HARP 2.0 is that you cannot have already refinanced using the original HARP.
HARP 2.0 – Tip#2: Relaxed underwriting guidelines.
One additional benefit of the HARP 2.0 refinance program is the somewhat relaxed underwriting guidelines. Specifically, the guidelines related to late mortgage payments on your existing loan. Under the new HARP 2.0 program, you can actually have paid your existing mortgage late one time within the last 12 months, as long as the late payment occurred more than six months ago.
When you compare mortgage rates for a HARP 2.0 refinance, the most important factor is talking to a lender that is an expert in the HARP 2.0 guidelines.
HARP 2.0 – Tip#3: What does this mean to the industry?
One thing is for sure, this new HARP 2.0 program should definitely help kick-start the mortgage industry a bit while also helping many homeowners enjoy month savings that come with historically low interest rates who otherwise would not be eligible to refinance. While there will likely still be millions of homeowners still left high and dry, this updated version of HARP looks like it will help some folks who need relief the most: those who are seriously upside-down on their mortgage.
Author Joe Karns is sales and marketing leader and master of the HARP 2.0 is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders. Or, click here for a free quote on a HARP 2.0.
|Simple Fixes To Help Your Home Sell More QuicklyComments Off on Simple Fixes To Help Your Home Sell More Quickly|
|Best Jumbo Lenders – How to Source the Best Mortgage Rates(1)|
|How to Find the Best Refinance Lenders in Today’s Market(1)|
|VA Streamline | IRRRL | Mortgage Refinance Loan(22)|
Contacts and information
Most Popular Articles
Hot Rates, Clear Terms, Cool Savings
Most popular categories