2013 – Tracking 30 year fixed rate
- 3.91 – June 6
- 3.81 – May 30
- 3.59 – May 23
- 3.51 – May 16
- 3.42 – May 9
- 3.35 – May 2
Click on the graphic below for the history
Source: Feddie Mac
Search Rockland County New York Real Estate for Residential, Condo, Townhouses or coops for sale at Rockland County Real Estate, LLC.
2013 – Tracking 30 year fixed rate
Click on the graphic below for the history
Source: Feddie Mac
There are so many wonderful tools on the web today to help buyers and sellers navigate the challenging process of home buying and selling. Click on the graphic to the right for an update on interest rates. What a great time to buy.
Posted on Sun, Apr. 10, 2011
QRM may spell mortgage trouble
By Kenneth Harney
You may have seen reports that the federal government is proposing new mortgage finance rules under which only home purchasers who can afford a minimum 20 percent down payment on a conventional loan would get a shot at the best available interest rates and terms.That is correct, and it’s deeply sobering news for large numbers of first-time and moderate-income buyers who can’t come up with that much cash or afford to pay higher rates.But some of the other requirements that federal agencies and the Obama administration are proposing in the same plan have gotten much less attention, yet could prove just as troublesome for consumers:
• Strict mandatory debt-to-income limits. Under the proposal, to get the best mortgage rates, you’d need to spend no more than 28 percent of your gross monthly income on housing-related expenses, and you couldn’t have total monthly household debt that exceeds 36 percent of your income.
There would be no flexibility to go beyond these ceilings, unlike in today’s marketplace where Fannie Mae and Freddie Mac consider debt-to-income ratios along with other factors through their electronic underwriting systems. Freddie Mac, for example, has an overall debt-ratio limit of 45 percent of an applicant’s stable monthly income.
• To refinance your existing mortgage and replace it with one carrying the best available interest rate, you’d need no less than a 25 percent equity stake in your house to qualify. If you sought to take any additional cash out through a refi, you’d need 30 percent equity. Today’s typical requirements for a conventional refi are nowhere near as strict.
• Pristine credit standards. For example, if you were 60 days late on any credit account during the previous 24 months, you’d be ineligible for a mortgage at the best available terms.
These are all core features of what may be the most sweeping and controversial set of changes in decades for the housing and mortgage markets. The so-called “qualified residential mortgage” (QRM) proposals were released at the end of March by banking, securities and housing regulators, along with the Department of Housing and Urban Development. The agencies were required by the 2010 financial reform legislation to come up with new standards for low-risk conventional mortgages.
Congress did not specify precisely what a “safe” mortgage should look like, but directed the agencies to consider such factors as full documentation of borrower income and assets plus avoidance of toxic features such as negative amortization and balloon payments. Congress was silent on the subject of minimum down payments.
Under the law, loans that do not meet the strict QRM tests will be pushed into a less-favored, higher cost category: Banks and Wall Street securitizers will need to set aside 5 percent of loan balances into reserves to handle possible losses from defaults. This extra capital cost inevitably will be passed on to consumers.
Mortgage industry estimates of the interest rate differential between ultra-safe, QRM-qualifying loans and all others range from three-quarters of 1 percent to three percentage points. In today’s market, this would mean that mortgages that meet the federal agencies’ stringent new standards might go for 5 percent. But all others — the vast majority of today’s conventional loans — could cost anywhere from just under 6 percent to 7 percent and higher.
You can only muster a 10 percent down payment? Tough. You can’t quite fit into the tight confines of the QRM’s debt-to-income ratio rule? Pay up.
Where and when will this all start hitting the marketplace? It won’t change anything much for a while. The proposals are out for public comment through June 10 and won’t likely be put into effect until mid-2012. The agencies’ proposal, though not the legislation, exempts mortgages sold to Fannie Mae and Freddie Mac from the rule as long as both remain under federal conservatorship — a date uncertain. FHA and VA mortgages will not be subject to QRM either.
Meanwhile, builders, consumer groups, banks, realty agents and others are readying campaigns to convince the regulators and the Obama administration to back off some of their harshest provisions. Michael Calhoun, president of the Center for Responsible Lending, argues that if adopted in its current form, the proposal will make it much tougher for modest-income and minority consumers to ever afford a first home.
Jerry Howard, CEO of the National Association of Home Builders, says the agencies and the administration have strayed far beyond Congress’ intent, and their proposals threaten to wreck any recovery in housing and force millions of Americans to rent rather than to own.
“I think we’re in for a hell of a fight,” he says
Kenneth Harney is executive director of the National Real Estate Development Center.
What NOT to do before buying a home
Published by James Troia on Friday February 18, 2011 10:44 AM
For buyers who have the intention of purchasing within the next six months, it’s important to get the finances in order and set a reasonable plan to make your purchase achievable. However, there are also a few things one should not do when preparing to enter the buying process. To ensure a smooth process, you’ll want to avoid the following:
Stay away from making any other large purchase of any kind — especially a new car. Even if you have accumulated the savings to cover it responsibly, control the desire to spend. “A large purchase, a car or otherwise, can affect your mortgage terms when the time comes to seek financing,” says Matthew Rand, Managing Partner of Better Homes and Gardens Rand Realty. After applications are submitted and the numbers are crunched, your extra loan payment will affect the terms you wind up receiving when all is said and done. “The less complicated your finances appear to the loan officer, the better off you will be.”
Avoid any unnecessary moving around of money as well. When a lender reviews your finances for approval, one of the major concerns will be the source of your down payment, closing costs, etc. You’ll also need to provide statements for the last two or three months on any assets. “If you have moved money around recently, there may be large deposits and withdrawals on your accounts, which will make it difficult for the lender to properly document,” says Rand. “Try to leave your money where it is until after you speak with a loan officer; this includes not changing banks either.”
If you can prevent it, don’t voluntarily change jobs while trying to purchase or close on a house. Again, the source of your income is extremely important to a lender. If there is any question about where your money will be coming from, it could put your deal in jeopardy and increase your level of risk to the lender. Although sometimes a change in jobs is unforeseen and unpreventable, try to close your deal before making a professional move. “You need the lender to be confident in your ability to pay back the loan. Showing a long history of steady income is crucial to your success as a buyer,” says Rand.
By appropriately planning and making smart financial decisions throughout the buying process, you will experience less hurdles and a much more efficient transaction.
Reposted from The Rand Blog
Given the current state of mortgage lending, knowing where you stand credit wise is even more important now than ever.
A pre-qualification is normally issued by a loan officer, who, after interviewing you, determines the dollar value of a loan you can be approved for. No credit checks are done, no employment history taken, nothing is submitted to an underwriter. However, loan officers do not make the final approval, so a pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues you a pre-qualification letter. In times past, before houses were selling very quickly (between 1997-2005) we used pre-qualification letters. However during the peak seller’s market pre-approvals (explained in the next paragraph) became the standard in the Greater Hudson Valley Region.
It is important to note that in truth anyone can be “pre-qualified”. Your realtor can do it for you, they simply have to know the lending guidelines. [Read more...]
Due to the home buyer tax credit extension, expect delays when applying for mortgages these days. Between this tax credit and all the refinances taking place processing time can be as long as 4-5 months, rather than the normal 6-8 weeks.
Plan ahead and bring a complete package to your lender for their underwriting department.
Angela Fish Chan, Associate Broker
Keller Williams Hudson Valley
|Monthly Gross Income||$|
|Monthly Debt Expenses [?]
Monthly Debt and Obligations Should Include:
Simply Enter Your Email Below
New City . Nanuet
Airmont . Suffern
Pearl River . Orangeburg
Valley Cottage . Nyack
Copyright @2001 - 2013 Rockland County NY Real Estate | Keller Williams Hudson Valley Realty