September 2007
Monthly Archive
28 Sep 2007 07:23 am
Paying Mortgage Biweekly Can Save You Thousands
| [tag]Solicitations for biweekly payment[/tag] plans have become common as borrowers look to counter the recent “[tag]foreclosure[/tag]” buzz by taking a shot at paying off their homes faster. Instead of the standard one-payment-per-month schedule, some companies specializing in [tag]accelerated payoff program[/tag]s solicit mortgage brokers with a custom option for their loan customers. Simply put, in a do-it-yourself fashion, any additional money added to the monthly payment almost always goes to the principal automatically. If you are aiming at reducing your loan term, consider a 15-year fixed-rate loan because it usually comes with a 0.35-0.4 of a percentage point discount from the 30-year fixed. |
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27 Sep 2007 04:58 am
True Lakefront Lot in Malone Bay on W. Kerr Scott Lake, Wilkes County NC 28697
This one-of-a-kind lakefront lot is truly unique within the Malone Bay community. It is one of the most desirable, if not the most desirable lot among the few remaining properties with waterfront access to W. Kerr Scott Lake.
Malone Bay features 18 lots at W. Kerr Scott Dam & Reservoir. 14 are Lakefront and meet private dock requirements. This is a gated community with Lots ranging from 2.3+- acres to 6.8+- acres On the Hwy 421 side of the lake just off South Minton Road, Wilkesboro, NC 28697
Main Channel Views.
300 feet of waterfront.
Dock with boat slip and 2 jet ski slips.
2.86 acres.
MLS Number: 51155
List Price: $359,000
Lot Size: 2.86 ac.
Apx Acreage: 2.86
Type: Waterfront
Area: Area 2
Suitable Use: Residential
Topography: Rolling
Utilities: Underground Utilities
Road Frontage: Private Road
Restrictions: yes
Water/Sewer: Public Water
Miscellaneous: 1-5 Acres
Location: Malone Way
click here for more information
26 Sep 2007 07:20 am
Lenders Offering No-Cost Mortgages
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Most borrowers are not aware of the [tag]no-cost mortgage option[/tag] currently being offered by some lenders. The loan officers and [tag]mortgage brokers[/tag] with whom they deal are unlikely to volunteer the information because no-cost loans are easier to comparison shop. If the borrower requests a [tag]no-cost mortgage quote[/tag], they will comply, but the quotes are based on cost estimates that can be far off the mark. Borrowers can roll their own no-cost mortgage online. They do this by selecting an interest rate that carries a rebate large enough to cover the settlement costs. This requires that they have access to the complete range of rate/point combinations offered by the lender, as well as the settlement costs. |
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25 Sep 2007 06:28 am
Making Extra Principal-only Mortgage Payments
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A frequently asked question among [tag]mortgage holders[/tag] seems to be “is it better to make an additional principal payment every month, or can we make one lump-sum payment each year?” According to bankrate.com “The interest savings comes from reducing the [tag]outstanding loan balance[/tag]. It doesn’t make much difference which approach you take because with either one you’re reducing your loan balance by an extra $2,400 each year. Bankrate’s Mortgage payment calculator doesn’t allow for biannual payments, but it will let you compare between making additional principal payments monthly or annually. One simple table illustrates an example of the two approaches.”
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24 Sep 2007 05:45 am
Even With Recent Fed Rate Cut, Mortgages Now More Expensive
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[tag]Mortgage rates[/tag] are higher now than last week, back up to 6.5 percent for 30-year, fixed-rate mortgages. Even with the recent rate cut, the market still seems to be listening to the inflation bears, gold bugs and the talk of massive global growth portending inflation concerns. Unfortunately, many believe that they may be right. The economy may receive some small benefit from the cut but the crunch is still in place, especially in the mortgage lending sphere. Big currency moves often involve confidence, and it is disturbing in a time of financial crisis to find money running away from the dollar, the historical safe-haven. Confidence has aspects beyond interest rates and inflation with many questioning the policies of our current President concerning Mid-East matters. |
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23 Sep 2007 07:37 am
Mortgage Rates May Not Decrease With Recent Fed Rate Cut
| From Jan. 3, 2001, to June 25, 2003, the Federal Reserve reduced its target for the federal funds rate 13 times. However, the average 30-year mortgage rate fell eight times and rose five times. It’s not true that a [tag]Fed rate cut[/tag] automatically leads to a drop in fixed [tag]mortgage rates[/tag]. There is zero causation between mortgage rates and the Fed reducing its target for the federal funds rate. Mortgage rates go up and down according to investors’ expectations of long-term inflation. If investors think inflation will accelerate, mortgage rates (and other long-term interest rates) rise. |
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22 Sep 2007 07:08 am
Mortgage Borrowers Realize Slight Help From Recent Rate Cut
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Mortgage borrowers should soon start feeling the impact of Tuesday’s Fed rate cut in the form of [tag]lower borrowing costs[/tag] and stingier savings rates. But the rate cut doesn’t offer much help for the key problems bedeviling many homeowners. The Federal Reserve said it lowered [tag]short-term interest rates[/tag] by half a percentage point, to 4.75%, to combat the effects of a weaker housing market and tighter credit on the broader economy. The steep reduction in the Fed funds rate surprised many on Wall Street who expected a more modest rate cut. Stocks rose sharply after the Fed’s announcement, with the Dow Jones Industrial Average gaining 335.97 points, or 2.5%, to 13739.39. |
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21 Sep 2007 05:49 am
Paulson and Bernanke Counsel Congress On Mortgage Loan Fixes
| At a House Financial Services Committee hearing Thursday, Treasury Secretary Henry Paulson told lawmakers they should send troubled homeowners one simple but urgent message: “Call your lender or [tag]mortgage counselor[/tag] today.” He noted that 50 percent of foreclosures occur without borrowers ever talking to their lenders, and said that he has gotten reports that lenders have tried to reach distressed borrowers to work out more affordable loan terms. “Yet those calls rarely get returned,” he said. Bernanke also warned lawmakers to carefully consider steps they take. In particular, he noted that there are risks associated with one of the proposed remedies: raising the limits on the size of loans that [tag]Fannie Mae[/tag] and Freddie Mac may buy. |
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20 Sep 2007 06:54 am
Executive Country Club Home, Wilkesboro NC Real Estate For Sale
Beautiful Wilkes County NC Executive Country Club Home.
MLS Number: 51211 List Price: $359,000
Bedrooms: 3, Full Baths: 2, Half Baths: 1, Est Total SqFt: 3425+
Type/Style: Tudor, Two Story, Area: 6
Elementary School : Moravian Falls Elementary
Middle School: Central Wilkes
High School: Wilkes Central
Construction: Brick Veneer & Other, Solid Masonry Foundation: Basement, block & brick. Roof: Shingle – Composition, Two Years Old, Floors: Carpet/Hardwood/Tile
Garage/Carport: Garage-Double Attached
Interior Features: Smoke Detector(s), Ceiling Fan(s), Newly Decorated, Painted and Carpeted, Central Vacuum, Large Master Bedroom, Walk-In Closets, Hardwood Floors, Basement, Two Fireplaces (Rock and Brick), Gas Logs, Workshop in Basement, Walk-in Cedar-lined closet, Formal Living Room, Dining Room, Den with Oak Bookshelves and Cabinetry, Cable TV w. broadband Internet
Exterior Features: Tiled Patio/Deck and Walkways, Very Private Yard, Level Lot, Set Back From Street.
Subdivision: Farmington
Lot Size: 1.14 acres
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
click here for more information
19 Sep 2007 07:32 am
Fed Drops The Fed Funds Rate By Half of a Percent
| On Tuesday, September 19, 2007 the [tag]Federal Open Market Committee[/tag] reduced its [tag]Fed Funds Rate[/tag] by a half percent. The Fed Funds Rate is the overnight rate at which banks lend to each other which, with today’s action, is now 4.75 percent. This was the first reduction of the rate in more than three years. Most believe that the Fed dropped the rate in response to the current credit turmoil and to help stabilize the housing sector. “The Federal Reserve today took an aggressive stance toward injecting money into the economy with a half-percent reduction in the Fed Funds Rate,” said Quicken Loans Chief Economist Bob Walters. “It was widely accepted that the Fed would cut the rate, but most expected a quarter percent reduction. With this decision, the Fed is acknowledging that the consumer credit situation needs serious attention.” |
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18 Sep 2007 06:41 am
Foreclosure Rate To Climb With October’s ARM Reset
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October is expected to be a peak month for hybrid [tag]adjustable rate mortgage[/tag]s (ARMs) to reset, with the interest rates on some $50 billion worth of loans poised to go up dramatically. In the past few months, the foreclosure story has become a tale of two regions. Some of the hardest hit states have traditionally been in the Midwest, where plant closings and job losses have hit the economy there hard. The other region is the Sun Belt, which is showing even more significant foreclosure growth as out-sized price increases in the first half of the decade led to virtually unchecked real estate speculation. When housing markets were hot, many delinquent borrowers escaped actual foreclosure because their home equity had grown enough so that it well exceeded the amount of the loan’s debt. That enabled them to sell their properties at a profit or refinance and use the money to pay off past loans. |
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17 Sep 2007 07:46 am
Recent Lending Standards Compromise Home Sales
| As lenders tighten their borrowing standards, fewer people will qualify for mortgages. Fewer qualified buyers can only mean that housing prices will slump further. Worst of all, economists don’t see much chance for a turnaround until mid- 2008 and possibly into 2009. Even before the credit crunch hit, softening home prices had turned into outright price drops in many areas, particularly markets that were red hot a couple of years ago. Prices of luxury homes, mostly immune to the slump until now, may be hit especially hard. Rates on jumbo mortgages have spiked to 7.46 percent, and some lenders are charging more than 8 percent. |
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16 Sep 2007 07:40 am
Lower Rates Help As Many Homebuyers Face A Reset Of Their ARM
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Last week, Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.31 percent with an average 0.5 point for the week ending September 13, 2007, down from last week when it averaged 6.46 percent. Last year at this time, the 30-year FRM averaged 6.43 percent. Interest rates on prime conforming loans fell across the board in the past week, with rates on 30-year fixed mortgages averaging 0.15 percentage points below the previous week’s level. The drop in mortgage rates may give some relief to borrowers who are looking to refinance or purchase a home. All the mortgage products in Freddie Mac’s survey this week were lower than they were at the same time last year. |
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15 Sep 2007 06:54 am
Your Mortgage Company Goes Bankrupt — What’s Next?
| More and more consumers are on edge about the status of their homes should their mortgage company go bankrupt. And rightfully so. What should a person do if they learn their mortgage company is no longer in business? The short answer is nothing. And no, you won’t be able to live in your house for free now that your mortgage provider is out of business. You still owe exactly what you owed before and, rest assured, someone will be expecting you to send in a [tag]mortgage payment[/tag] each month. What happens when a mortgage company goes bankrupt is simply that the mortgages they own are sold to another mortgage company. Nothing else changes. |
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14 Sep 2007 06:15 am
Borderline Borrowers Could Get Some Relief
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The number of adjustable rate mortgages (ARMs) up for reset is set to peak this fall, with an estimated $50 billion worth poised to adjust to higher rates in October. The housing and credit markets are bracing for another blow, but recent trends may mean the reset shock will be less painful than expected, especially if the Federal Reserve drops its Fed Funds rate. Many economists believe there’s a good chance the Federal Reserve will begin to lower the Fed Funds rate next week. Doug Duncan, the chief economist with the Mortgage Bankers Association predicts the rate will drop a quarter percentage point at each of the next two Fed sessions. The yields on [tag]short-term Treasury bills[/tag] tend to follow the same direction as the Fed Funds rate, so ARM reset rates could drop even further into affordable territory. |
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13 Sep 2007 07:00 am
Help May Be On The Way For Re-fi Homeowners
| Thousands of mortgage holders who may be struggling to make their mortgage payments are likely to get some relief in coming months, including more options to refinance into lower-cost, fixed-rate loans and tax relief if they do face foreclosure. It is projected that over 200,000 borrowers of the estimated 2 million with adjustable-rate loans scheduled to reset in the next year already are eligible to refinance into a loan insured by the Federal Housing Administration (FHA). And, roughly 80,000 of them are eligible because of the newly created [tag]FHASecure Act[/tag], which loosens FHA’s criteria for refinancing. |
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12 Sep 2007 06:58 am
The Feds Reviewing Deceptive Mortgage Loan Advertising
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The purposeful lack of full disclosure is at the heart of an investigation announced Tuesday by the Federal Trade Commission. Warning letters have been sent to more than 200 [tag]mortgage broker[/tag]s, lenders and media outlets advising about “potentially deceptive†mortgage advertisements that may withhold information buyers need to understand the true cost of their home loans. “Many mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story,” said Lydia Parnes, director of the FTC’s Bureau of Consumer Protection. Those claims are central to an ongoing debate on Capitol Hill about whether the federal government should step in to help some borrowers now facing [tag]foreclosure[/tag]s who were the victims of predatory lending practices. |
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11 Sep 2007 07:02 am
Valle Crucis NC Luxury Estate Qualifies For 1031 Exchange
$5,850,000
MLS Number: 50913
City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.
39.4 acres with 360 degree view of Blue Ridge Mountains.
5,200 sq. ft. main house built in 1990 on 1.24 acres.
No restrictions and no zoning offer many other options:
* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
click here for more information
10 Sep 2007 06:49 am
Escaping A Mortgage Mess
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Continuing problems and bad press in the nation’s [tag]mortgage industry[/tag] is putting a financial squeeze on home buyers and homeowners alike. Buyers find it harder to obtain home loans. Llenders tighten their credit standards or even go out of business. Homeowners with adjustable-rate mortgages (ARMs) face a double whammy. House prices are falling even as their monthly home payments adjust upward in a big way. So when ARMs reset, many may find they can neither make their payments nor sell the house for enough money to cover the loan. Troubled homeowners may want to run and hide, and lenders may seem unresponsive, but the longer you wait, the fewer options you have for a workout. Keep records of when you called and whom you talked to. |
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09 Sep 2007 07:38 am
What To Do If Foreclosure Seems Imminent
| More and more borrowers, many with adjustable-rate loans, are finding themselves facing possible foreclosure. Nearly one in five subprime borrowers, or those with poor credit, were 60 days or more past due on payments in June, according to First American LoanPerformance. But the problem is spreading to other homeowners: Also in June, 1.24% of second mortgages for so-called prime borrowers, those with better credit, were 60 days or more late, up from 0.54% in the same month last year. And some 4% Alt-A borrowers, who fall between [tag]subprime[/tag] and [tag]prime borrower[/tag]s, were 60 days or more past due in June, up from 1.25% in the same month last year. |
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08 Sep 2007 08:07 am
Little Known Ways to Avoid PMI for Your Next Mortgage
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Homeowners dislike paying [tag]private mortgage insurance[/tag] ([tag]PMI[/tag]). The idea of the mortgage holder paying an insurance premium to protect the lender just doesn’t sit right. Using a piggyback loan structure to avoid paying PMI on the first mortgage is an option. The downside to that is the interest rate on the second mortgage is often at an above-market rate, especially if there was no, or little equity in the property. There are some other options as well. Consumers can shop for a first mortgage that doesn’t require PMI, called a self-insured mortgage when the lender prices the default risk into the loan. These loans usually command a higher interest rate than a conventional mortgage. |
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07 Sep 2007 07:16 am
Mortgage Industry in Crisis
| You’ve probably seen the headlines introducing current issues in the [tag]mortgage industry[/tag]. “Mortgage industry in crisis” or something similar is an all too common headline in today’s news. It seems like daily another mortgage institution is going bankrupt. The problems many mortgage companies are facing are, among a few other things, the result of a secondary market that is avoiding all but the most vanilla of loans. Unfortunately, according to [tag]Fannie Mae[/tag] and [tag]Freddie Mac[/tag], “non-conforming” includes mortgages over $417,000, the maximum amount a mortgage can be without being considered a “jumbo” loan. Despite the obvious consumer need for jumbo loans, anyone needing a loan over $417,000 is pretty much limited to very few options today. |
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06 Sep 2007 07:27 am
How To Avoid Paying “Subprime” Mortgage Rates
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The term “Subprime” references the borrower’s credit worthiness. Therefore, the best method you could ever employ to avoid getting a subprime loan is to have a prime credit rating. You can use Bankrate’s FICO score estimator to get a free estimate or pay for your credit score from one or more of the three main credit bureaus — Equifax, Experian or TransUnion. Other concepts to avoid include [tag]no-equity loan[/tag]s, [tag]no-documentation loan[/tag]s or ninja loans. A [tag]ninja loan[/tag] is slang in the mortgage industry for no-income/no job — the mortgage applicant doesn’t document his or her income or employment. |
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05 Sep 2007 06:01 am
The Federal Reserve Ask Mortgage Companies To Help Their Borrowers Prevent Foreclosure
| The Federal Reserve and other banking regulators issued special guidance Tuesday urging loan service companies to work with borrowers in danger of defaulting on their home mortgages. The guidelines are not mandatory, but the regulators expressed hope that companies that collect payments on mortgages would heed the advice. Mortgage collectors have the authority under existing accounting and tax rules to help deserving borrowers. It is vital that mortgage servicers work proactively with borrowers facing much higher payments as their interest rates reset. |
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04 Sep 2007 07:11 am
The Subprime Lending Crisis Is Changing Buying and Selling Plans
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[tag]Mortgage loan defaults[/tag] are on the rise, subprime lenders are “folding their tent” and fortunes may soon be lost as mortgage-backed securities go up in smoke. How will these trends impact someone who’s trying to buy or sell a home? Lenders are moving back to basics. No down and very low down payment mortgages are available only to buyers with high credit scores. This means the end to 100 percent and 95 percent mortgages for [tag]subprime borrower[/tag]s. Lenders are also backing away from low-documentation and stated-income mortgages. Also, most lenders now require buyers to have a cash down payment, good credit and the ability to verify income. In the recent past, home buyers stretched the price they could pay by using adjustable-rate and interest-only mortgages. And, lenders qualified buyers for these loan products based on the lower initial rates and on interest-only payments. Now, all that is fast changing. |
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03 Sep 2007 07:20 am
Wilkes County NC Timber Frame Home and Mountain Property
Beautiful Wilkes County NC Timber Frame Home and Mountain Property.
MLS Number: 51166, List Price: $898,500
2 Bedrooms, 2 Baths, 2 half baths, 2 car attached garage, full basement, and a barn on 5 acres of land.
These terms are used to describe thousands of homes and yet some things just can’t be described, they have to be experienced. This is one of those homes that really has to be seen to be appreciated.
This majestic Timber Frame home of the Bob Timberlake genre is not just another house, it provides a feeling of home that is not about walls and floors and windows and doors. It creates a feeling of the flow between your outdoor and your indoor environment that is seamless. Everywhere you look there is a view. Everything you touch feels natural and beautiful in a way that cannot be described, only owned.
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
click here for more information
02 Sep 2007 07:33 am
It’s Illogical to Blame The Mortgage Brokers
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Should the Feds more heavily regulate mortgage brokers or should common sense regulate actions of the lenders? The question has arisen in recent months as Washington scrutinizes the number of questionably made loans that are now ending in foreclosure. These loans include those made with little or now down-payment, credit scores as Low as 580, no verification of income or assets and high debt to income rations. If the lenders allow the loans to be made, why shouldn’t the loan brokers do what both the lenders and customers demand, make the loan. |
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01 Sep 2007 07:08 am
A History of the Subprime Mortgage
| In the golden age of American home buying — the years after World War II — savings-and-loan institutions or government agencies supplied returning G.I.’s with fixed 30-year mortgages. Home prices appreciated, steadily but at modest rates, and lending fiascoes were rare. And homeownership rates climbed. The buyers of that era were not necessarily more cautious than today’s; they simply spent what their bankers lent them. The bankers, persnickety folks that they were, required that buyers demonstrate sufficient income to qualify for a mortgage. They did this because a) they would get stuck with the property if the buyer defaulted and b) regulators insisted on prudence. |
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