Here is an article that is close to my heart. People do not understand the consequences of refinancing their homes.... it always sounds great. I will lower my monthly payment, then pay off some bills... Sounds great right? Wrong... My experience and I do mean personal experience says that within months your revolving debt is higher. We will spend too whatever capacity we have... it is human nature... OK enough about me, I hope you learn from the below article.
Homeowners who are current on their mortgage payments and have equity in their homes may want to consider taking advantage of the lower mortgage rates offered by many financial institutions. However, refinancing may not be the best choice for all homeowners.
KEEP THIS IN MIND
• Refinancing often requires fees for title insurance, a new appraisal, document processing, and a
fee for the mortgage broker or lender. While it may appear the refinance is free, the costs often are added to the total loan amount or the borrower is charged a higher rate. Because there are fees typically associated with a refinance, many financial industry specialists recommend borrowers not refinance unless they plan to occupy the house for at least two years. Although there will be a reduction in the monthly payment, it can take a few years to break even on the refinance.
• Loan options are more limited today than a few years ago. Generally, the best rates are offered on traditional loans, such as 15-year and 30-year, fixed-rate mortgages, and loans for borrowers with at least 20 percent for a down payment for buyers or existing home equity for those seeking to refinance.
• Some subprime loans made during the house boom carry prepayment penalties–a fee or
percentage the homeowner pays the lender in the event the mortgage is paid early. Some lenders may waive prepayment penalties and allow the borrower to refinance with another lender if doing so prevents foreclosure.
To read the full story, please click here:
http://www.msnbc.msn.com/id/28302078/
Jeffrey Hall
Long Beach Home Solutions
www.jeffhallrealtor.com
jeff@jeffhallrealtor.com
Thursday, December 25, 2008
Saturday, December 20, 2008
Mortgate Rates Plunge
We have all heard about his all week... Here is a recapt from the Wall Street Journal.
Mortgage Rates Plunge to Record Lows In response to the Federal Reserve's cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.17 percent during the week ended Dec. 18--down from 5.47 percent last week and the lowest since the survey's inception in 1971. Interest on 15-year fixed loans slipped to 4.92 percent from 5.20 percent. Meanwhile, the five-year hybrid adjustable mortgage rate dropped to 5.6 percent from 5.82 percent; and the one-year ARM dipped to 4.94 percent from 5.09 percent. A year ago, the 30-year fixed rate stood at 6.14 percent, the 15-year fixed rate at 5.79 percent, the five-year hybrid ARM at 5.9 percent, and the one-year ARM at 5.51 percent. Source: The Wall Street Journal, Steve Kerch (12/19/08)
Have a great Holiday,
Jeff
Mortgage Rates Plunge to Record Lows In response to the Federal Reserve's cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.17 percent during the week ended Dec. 18--down from 5.47 percent last week and the lowest since the survey's inception in 1971. Interest on 15-year fixed loans slipped to 4.92 percent from 5.20 percent. Meanwhile, the five-year hybrid adjustable mortgage rate dropped to 5.6 percent from 5.82 percent; and the one-year ARM dipped to 4.94 percent from 5.09 percent. A year ago, the 30-year fixed rate stood at 6.14 percent, the 15-year fixed rate at 5.79 percent, the five-year hybrid ARM at 5.9 percent, and the one-year ARM at 5.51 percent. Source: The Wall Street Journal, Steve Kerch (12/19/08)
Have a great Holiday,
Jeff
Thursday, December 11, 2008
MORE THAN HALF OF MODIFIED LOANS DELINQUENT WITHIN SIX MONTHS
I found this information interesting this morning from the California Association of Realtors. It is an insight into how messy the housing market really is right now. A few years ago when I first started selling Real Estate in Long Beach; the company I worked for was pushing people into loans they could not afford. Once I saw what was happening I left... it only took about two weeks to figure this out.
Real Estate like many careers attracts both the good and bad. Many agents just care about getting the job completed fast and getting paid. Many will not show homes if the commission is too low.
I feel it is important to take care of the client and when you do it all works out. When working with a client I often have them explain what type of loan they are getting to hopefully keep them out of hot water. If they cannot afford it... the should not buy. If the home is not right... they should not buy...
It is very important to work with an agent who keeps your best interest in mind. At all times!
So, all they being said... take a look at the following information.
New data shows that more than half of loans modified in the first quarter of 2008 fell delinquent within six months."After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent," said U.S. Comptroller of the Currency John C. Dugan. A report scheduled to be published later this month will show continued increasing delinquencies and foreclosures in process for all first-lien mortgages held by the largest national banks and federally-regulated thrifts, Dugan said. However, new foreclosures decreased by 2.6 percent from the second quarter.The mortgage metrics report covers nearly 35 million loans worth more than $6.1 trillion, or about 60 percent of all first-lien mortgages in the United States. The quarterly reports are unique in that they are not merely surveys, but instead consist of validated, loan level data using standardized definitions for prime, Alt-A, and subprime mortgages, and standardized definitions for loan modifications.
I hope you found this interesting as well.
Have a great day,
Jeff
http://www.jeffhallrealtor.com/
jeff@jeffhallrealtor.com
Real Estate like many careers attracts both the good and bad. Many agents just care about getting the job completed fast and getting paid. Many will not show homes if the commission is too low.
I feel it is important to take care of the client and when you do it all works out. When working with a client I often have them explain what type of loan they are getting to hopefully keep them out of hot water. If they cannot afford it... the should not buy. If the home is not right... they should not buy...
It is very important to work with an agent who keeps your best interest in mind. At all times!
So, all they being said... take a look at the following information.
New data shows that more than half of loans modified in the first quarter of 2008 fell delinquent within six months."After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent," said U.S. Comptroller of the Currency John C. Dugan. A report scheduled to be published later this month will show continued increasing delinquencies and foreclosures in process for all first-lien mortgages held by the largest national banks and federally-regulated thrifts, Dugan said. However, new foreclosures decreased by 2.6 percent from the second quarter.The mortgage metrics report covers nearly 35 million loans worth more than $6.1 trillion, or about 60 percent of all first-lien mortgages in the United States. The quarterly reports are unique in that they are not merely surveys, but instead consist of validated, loan level data using standardized definitions for prime, Alt-A, and subprime mortgages, and standardized definitions for loan modifications.
I hope you found this interesting as well.
Have a great day,
Jeff
http://www.jeffhallrealtor.com/
jeff@jeffhallrealtor.com
Monday, December 8, 2008
Everyone Loves a Parade
It's that most wonderful time of the year... and for me the starting point is the annual Christmas Parade in Belmont Shore. This year like past years the streets were crowded with people waiting to enjoy the sights and sounds of a grand tradition. I always enjoy seeing the bands that come from near and far, the floats and of course Santa Claus...Another Long Beach tradition is the Daisy Lane Parade that happens Saturday the 13th at 5:00 p.m.
No matter what your season traditions may be... please be safe and careful. For many 2008 was a very hard year... Let's begin to look forward to 2009 and a year of new beginnings. Happy Holidays, Jeff
Jeff Hall
Long Beach Home Solutions
www.jeffhallrealtor.com
jeff@jeffhallrealtor.com
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