It”s nearly impossible for the average citizen to keep track of all events directly impacting housing and mortgage markets. Professional mortgage lenders monitor the live trading of Mortgage-Backed Securities (MBS). Government and conventional mortgage rates are directly based upon MBS. So…what exactly is a MBS?
Compliments of Wikipedia
A mortgage-backed security (MBS) is an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans, most commonly on residential property.
First, mortgage loans are purchased from banks, mortgage companies, and other originators. Then, these loans are assembled into pools. This is done by government agencies, government-sponsored enterprises, and private entities, which may offer features to mitigate the risk of default associated with these mortgages.
Mortgage-backed securities represent claims on the principal and payments on the loans in the pool, through a process known as “securitization”. These securities are usually sold as bonds, but financial innovation has created a variety of securities that Read the rest of this entry »
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The Federal Housing Administration, FHA, has kept mortgage rates and Mortgage Insurance Premiums, MIP, lower than the market dictated for some time to encourage home buyers to shore up the economy.
MIP premiums are about to increase; the date is April 5th. On case numbers dated after April 4th, MIP premiums go from 1.75% of the total loan value to 2.25%. It’s not as dreadful as it sounds. On a $200,000 mortgage, the increase, based on today’s interest rates, is approximately $6 per month–stay out of…to read the rest of my article, see OnlyKaty.com.
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Katy neighbors: Shopping for a home? About to start house hunting? Now is better than later! Mortgage rates are destined to rise in the near future. Predictions are that rates may go up to 6% by April. While this sounds high, please remember it is still very low considering historical data. When I started selling Katy real estate in 1989, interest rates were barely below 20%!
Normally, I don’t write articles explaining why rates are fluctuating. If you are like me, you just want to know what the rate is today. However, a recent change will raise rates and we will also probably see them continue to increase in the future.
Read my entire article at OnlyKaty.com.
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According to CNN News, the homebuyers tax credit has been extended; the bill now goes to President Obama for signature:
“The legislation would extend the $8,000 homebuyer tax credit to contracts signed by April 30, 2010 and closed by June 30, 2010. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The credit would be available only for the purchase of principal residences priced at $800,000 or less.
The bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.”
I am a Katy Specialist having sold many houses in Katy over the last 20 years, both new construction and resale. This includes both working as a listing and selling agent. Call me for more information and for outstanding professional representation.
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While at this time it is only available to Fort Bend buyers, there is a new loan program that makes financing a first home much more affordable and easier. It saves the homeowner up to $2000 off their taxes each year for the life of the loan.
The Mortgage Credit Certificate allows the lender to qualify for more home or to get approved if they have been denied in the past. The Mortgage Credit Certificate Program can be used to gross up income or ratios to enable the borrower to qualify for a mortgage loan.
The Mortgage Credit Certificate Program is available to first-time homebuyers, defined as a person who has not owned a home as a primary residence in the last three years.
One of the most exciting features of this program is that it can be combined with the current first-time homebuyer’s $8000 tax credit resulting in a credit savings of $10,000 in 2009! However, the $8,000 tax credit program expires on November 30, 2009 so it is important to buy your home prior to that date. If you act quickly, there is still time to shop for and close on a home.
The Mortgage Credit Certificate allows the homebuyer, if there is a tax liability, the benefit of a dollar-for-dollar reduction of their tax bill. The program enables the homeowner to claim a tax credit of 30% of annual interest paid, not to exceed $2000 per-year, for the life of the loan.
This program is not for investors but for those who will purchase and occupy a home for at least nine years. If the Mortgage Credit Certificate borrower sells his house within nine years, Read the rest of this entry »
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According to The Washington Post, “Two Dallas-area congressmen - one a Democrat, the other a Republican – have introduced bills that not only would broaden the reach of the current housing tax credits to almost everybody, but would keep the program going until either mid-2010 or the end of that year.”
The current credit program expires on the last day of November 2009. H.R. Bill 2619, sponsored by Republican Kenny Marchant, would expand the current $8,000 federal tax credit to all homebuyers–not just first-time buyers. The bill would also extend the federal program through June 2010.
“The bill would also create an unprecedented $3,000 credit to help offset Read the rest of this entry »
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Many Katy Realtors still do not understand the process of a Short Sale even though there are many such properties in Katy. What does it take to get a get a Short Sale written and closed? Acquaint yourself with the basics by reading this article and call me at 713-818-2404; I am an expert in the field of Short Sales!
Let’s start at the beginning, what is a “Short Sale”. A Short Sale is where the net proceeds from the sale of a property are less than what is owed to mortgage companies and other lienholders. The seller receives no funds from the sale and all lienholders must agree to the transaction.
The seller’s best interest is served by having any sale approved by the mortgage company. Although the seller’s credit is adversely affected, Read the rest of this entry »
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Want an extra $8,000? If you’re a first-time homebuyer, you’re in for a nice gift.
Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers, an income tax credit of up to $7,500. The rules were simple: You must have been a first-time homebuyer, (as defined by not owning a home in the previous three years), and you met certain income restrictions.
The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It’s not a deduction, it’s an actual credit. Unlike Read the rest of this entry »
Spoken by Julie Q. Fuelling |
Say we are working together to purchase your next home. (Thanks for your confidence in me!) What’s the very first thing you should do in the home buying process? I, like most Realtors, will tell you to get a Pre-Approval letter. You ask me, “Julie, what is that and why do I need one?”. You might say, “I already have a Pre-Certification letter. What’s the difference?”
So, what’s a Pre-Approval letter? Unlike a Pre-Certification letter, the lender will not just take your word for your financial status, the lender will verify the information you provide. Instead of receiving your letter that same day via fax, the lender will confirm your employment, check on the source of Read the rest of this entry »
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Mortgage loans are getting harder and harder to get. The reins have just tightened again with the government takeover of the secondary loan market known as Fannie Mae. The failure yesterday, September 29, to pass the massive bailout legislation only adds to this troubling situation in the home lending sector.
Partially Reprinted from Wikipedia
The Federal National Mortgage Association (FNMA) , commonly known as Fannie Mae, is a publicly traded government sponsored enterprise (GSE). It is a stockholder-owned corporation authorized to make loans and loan guarantees.
Fannie Mae is the leading participant in the U.S. secondary mortgage market, which serves to provide liquidity to the primary mortgage market to ensure that mortgage companies, savings and loans, commercial banks, credit unions, and state and local housing finance agencies have enough funds to lend to home buyers.
As of 2008, Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) own or guarantee Read the rest of this entry »
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