Delinquency Rate on Single Family Mortgages

September 18, 2012 By Leave a Comment

Delinquency Rate on Single Family Residential Mortgages  jumped from 10.28% to 10.61% from Jan 2012 to April 2012.  Data was published by Board of Governors of the Federal Reserve System 09/18/12.  This data includes charge-offs and is  seasonally adjusted.

This is hard to believe how long and how high this rate has stayed above 10%.  This is the “mythical” shadow inventory – at least one data set of potential foreclosures working their way into the market.  There is some lag time with this data set, but it does illustrate the degree.

2008-01-01   3.68
2008-04-01   4.39
2008-07-01   5.24
2008-10-01   6.63
2009-01-01   7.84
2009-04-01   8.64
2009-07-01   9.65
2009-10-01  10.44
2010-01-01  11.24
2010-04-01  11.20
2010-07-01  10.83
2010-10-01  10.09
2011-01-01  10.37
2011-04-01  10.69
2011-07-01  10.45
2011-10-01  10.15
2012-01-01  10.28
2012-04-01  10.61

 

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‘Mortgage Cops’ coming for you. OIG goes after Strategic Defaulters

September 18, 2012 By Leave a Comment

Chicago Tribune Article: Mortgage Cops

FHFA’s Office of the Inspector General (OIG) is going after Strategic Defaulters according to Chicago Tribune’s article and Realtor Magazines article.

Strategic Defaulter is someone who walked away from their mortgage and home even though they had the ability to pay, but chose to default because they were upside down on loan to value.

 The Office of the Inspector General is a separate statutory agency within the FHFA that answers only to Congress. Its mission, in large part, is to root out fraud, waste and abuse within the FHFA. The agency has a staff of 130 investigators, auditors, attorneys and prosecutors that it describes as “extremely talented and seasoned.”

And because Fannie and Freddie are on the hook for the $187 billion in taxpayer money that the Treasury has invested so far to keep them afloat — by some estimates, the tab eventually could reach more than $360 billion — the OIG is on the prowl for people who owe it money.

Chicago Tribune Article

 

“We’re not just going to demand repayment,” says Heather Wolfe, OIG assistant inspector general for audits. “We’re going to lock [people] up.”

Realtor Magazine Article

Bad Boys, Bad boys, whatcha gonna do.  whatcha gonna do when they come for you.  Although I have more of an image of Sergeant Joe Friday knocking on the door, “just the facts maam”.

I am not an attorney, but how would they prove that?  It seems to me this could be a difficult case to make unless there was an egregious situation.

Hopefully this does not become a slippery slope.  It makes me question whether or not I  want a Fannie Mae or FHFA mortgage if they are also a police power – sounds kind of like borrowing money from the mob. (I am unclear from these articles if this is just an investigation unit or actual police power.)

Perhaps eliminating Fannie Mae might reduce fraud by letting the private banking system make loans based on risk analysis?  Okay, now I am just talking Crazy…

 

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Mortgage Rates and Operation Twist 2

June 22, 2012 By

Mortgage Rates remain low as we are experiencing record low rates partly due to Operation Twist, which I am record of criticizing.   Operation Twist has been extended and the Treasury will continue to buy long term bonds in order to keep rates artificially low.

The reason I don’t agree with this is not that I don’t want to see low mortgage rates, but rather it that is another form of artificially propping up the housing market.  I don’t believe the housing market needs this given the low inventory levels.  Jobs is more of a factor to housing than interest rates.  There will be a price we pay for Operation Twist down the road…

In the meantime, you might as well take advantage of these record low mortgage rates…   The chart below shows how the 30 year Mortgage Rates trend with the 10 Year Treasury even though they are not directly tied together.

 

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HARP 2.0 – MN Refinancing Options for underwater mortgages

February 20, 2012 By

The HARP program has been enhanced to help borrowers who’s value has dropped significantly. With the new harp loan borrowers have the ability to refinance without worrying about the value of there home. Take a look at some of the features of this program that will help borrowers take advantage of the low interest rates available today. Below are a few highlights for you to consider.

  • Borrowers must be current on there mortgage payment and the mortgage must be held by fannie or freddie
  • Appraisals are not required on most of the refinances saving you time and money
  • Most transactions require no income documentation
  •  LTV requirements are relaxed to allow borrowers to take advantage of the great rates even if there value is negative. Borrowers with 1st and 2nd mortgages are a great example of people who can now be helped
  • Occupancy – many borrowers have elected to rent there previous home and buy a new primary residence. The rental property can now be refinance with HARP 2.0, where it previously would not qualify

 

 

Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup Tools.

 

 

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Edina Realty Mortgage Rates for Jan 06 2011.

January 6, 2012 By

The Average 30 Year Mortgage Rate was released yesterday and we are starting out the New Year at extremely low interest rates.  The national average for a 30 year fixed rate mortgage is at 3.91% according to Freddie Mac.  Below is a chart to put these rates into Historical Perspective.

If you are not refinancing or buying now – you may want to rethink that.  I personally don’t believe I will live long enough to see these kinds of rates again in my lifetime…

Check out Edina Realty Mortgage Rates for today.

Today’s mortgage rates

Interest Rate APR
30yr Fixed Conforming 3.875% 4.055%
30yr Fixed FHA 3.750% 4.550%
15yr Fixed Conforming 3.250% 3.566%
7yr ARM Conforming 2.500% 3.143%
5yr ARM FHA 2.750% 2.908%
30yr Fixed Jumbo 4.000% 4.140%

Rates as of 1/6/2012 9:00 AM Central

Important disclosures, assumptions
and APR View/print

Get more rates »

Rates provided by: Edina Realty Mortgage

 Click here if you would like to get more information about refinancing or purchase with Edina Realty Mortgage.

Will Rates go up?  Of Course rates are going to go up, the question is When and by How Much….

If you want a barometer to what direction rates might head, you can watch the 10 Year Bond.  Mortgage rates tend to track closely to the 10 year bond even though they are not directly tied to each other.

Below is an interactive Chart of the 10 Year Bond.  I marked the date Operation Twist was announced.

[wikichart align="left" ticker="tnx" showannotations="true" livequote="true" startdate="06-07-2011" enddate="06-01-2012" width="390" height="245"]

 

 

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Get your mortgage before January 1 2012 to beat the new fees

December 19, 2011 By

The Payroll Tax Extension was funded by new fees on FHA, Fannie Mae, and Freddie Mac mortgages.  To avoid the new fees you will want to get your mortgage before January 1, 2012.  This was signed into law under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The plan is to stimulate the

My Mortgage Docs to be Reviewed by an Expert

Image by Casey Serin via Flickr

national economy by lowering taxes.

This does not apply to Existing Mortgages.

 

Quit Waiting for Rates to drop further, because Fees are going up…

 

My first reaction was, why are they putting more burden on the struggling housing market?  As I thought further about this, I am beginning to think this not such a bad thing.  I’ll try to explain my logic; these new fees are only on FHA, Fannie Mae, and Freddie Mac mortgages.  These new fees will likely put consumer demand onto private mortgages which I believe would help out the real estate market.  Or at least it will make the private mortgages a little more competitive.

 

How much are these new fees:

 

From The Mortgage Reports:

 

From Title IV of the bill’s final form, these costs will be recouped via the mortgage market. The section is titled “Mortgage Fees And Premiums“. In it, Congress instructs Fannie Mae and Freddie Mac, and the FHA to take following specific measures :

  • Fannie Mae and Freddie Mac : Increase loan guarantee fees by 10 basis points or more versus current levels, and do not decrease other costs to compensate
  • FHA : Increase mortgage insurance premiums by 10 basis points

The extra fees amount to roughly $10 per month per $100,000 borrowed.

 

 

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Mortgage Rates hovering at all time lows, a gift for this holiday season!

December 15, 2011 By

Here is a Gift Idea or a New Years Resolution – refinance at these low rates and save on your monthly payments!

Here are today’s rates for purchase, add about .25% for refinancing..

 

Today’s mortgage rates

Interest Rate APR
30yr Fixed Conforming 3.875% 4.055%
30yr Fixed FHA 3.750% 4.550%
15yr Fixed Conforming 3.250% 3.566%
7yr ARM Conforming 2.625% 3.200%
5yr ARM FHA 2.750% 2.908%
30yr Fixed Jumbo 4.000% 4.140%

Rates as of 12/15/2011 9:15 AM Central

Important disclosures, assumptions
and APR View/print

Get more rates »

Rates provided by: Edina Realty Mortgage

 

The Gift that keeps on Giving…

I ran a scenario of refinancing a $225,000 mortgage that is at 5.5% and refinanced it at 4% and came up with a savings of $15,463 over the next 7 years!  That’s approx $184/month savings.

Run your own scenario in this Refinance Calculator and see what kind of savings you can make on refinancing.

Want to get a quote on refinancing from Edina Realty Mortgage?  Follow the steps here.

 

 

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Average 30 Year Fixed Rate mortgage dips below 4% again

December 8, 2011 By

The average 30 year fixed rate mortgage dipped below 4% according to Freddie Mac.  It is hard to believe we will see these rates for an extended period of time even though many experts believe they aren’t going to go up.  My argument is that they are going to go up, the question is when.  Here is a graph of the 30 Year Fixed Rate Mortgage for some historical perspective:

Edina Realty’s Mortage Rates today were at 3.875% !!!   This is unbelievable.  If it goes much lower it is “free” money…    Look at the rates on the ARMS or even the Jumbo at 4%.

If you have not refinanced yet or purchased yet, you may want to consider doing so soon.  Historically speaking, there has never been a better time when prices are low AND rates are also low.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 12/08/2011 12:10 PM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 3.875% 4.055%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.250% 3.566%
7-Year ARM 2.625% 3.200%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.000% 4.140%
Equal Housing Lender
If you would like further information about refinancing or pre-qualifying for a mortgage with Edina Realty Mortgage, this page will get you started to see what Edina Realty Mortgage can offer.

 

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Average 30year Fixed Rate Mortgage dips below 4%

November 23, 2011 By

The average 30 year fixed rate mortgage dipped below 4% to 3.98%.   If you have been reading the blog for a while you will recall the 10 year Treasury as a benchmark for where the 30 year fixed rate mortgage might go.  They are not directly tied to each other, but it is a good barometer to watch to predict if rates might go up or down.  Below is the Average 30 Year Fixed Rate mortgage updated 11/23/2011 and the 10 Year Treasury updated 11/21/2011.  I am not a mortgage banker or an economist, I just like to watch this kind of stuff.  Based on the chart below, do you think the 30 year fixed rate mortgage will trend further down or nudge back up?  It’s kind of hard to predict the future huh?

If we take a look at the what the 10 Year Treasury has done since 11/21/2011 – it is given the indication of downward trend.  I marked the date when Operation Twist was announced on the chart, it is interactive so you can select specific ranges.  Again, it is not a crystal ball but it is a good barometer.

[wikichart align="right" ticker="TNX" showannotations="true" livequote="true" rollingdate="3 months" width="300" height="245"]

 

 

 

 

Below is the Rates from Edina Realty Mortgage.  They haven’t quite followed the national average for 30 year fixed rate mortgages today, but they are really close.

Today’s Mortgage Rates

The current interest rates shown below are based on a purchase of a single-family, primary residence. For current refinance rates, contact us

as of 11/23/2011 09:15 AM Central

Product Interest Rate APR
Conforming1 and FHA1 Loans
30-Year Fixed 4.000% 4.181%
30-Year Fixed FHA 3.750% 4.550%
15-Year Fixed 3.250% 3.566%
7-Year ARM 2.875% 3.248%
5-Year ARM FHA 2.750% 2.908%
Jumbo1 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 4.250% 4.392%
Equal Housing Lender
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Mortgage Interest Costs Drop 21%; Refinance Without Having To “Start Over” For 30 Years

November 14, 2011 By

Great Article from TheMortgageReports that I wanted to share.  With the record low rates, it costs 21% less in interest payments to own your home.  That is a huge savings over the life of the loan making it a great time to buy and even a better time to refinance.  I hae been posting about the low rates, but this article puts this into a practical real-world explanation on what it means.

Homeowners Paying 21% Less To Own Their Homes

Mortgage rates have plunged this year, driving down the long-term costs of homeownership. Regardless of loan type — either FHA, USDA, conforming or jumbo –mortgage payments are downright cheap as compared to just six months ago.

REALTORS® will tell you it’s a great time to buy a home. That may be true.

It’s an even better time to refinance one.

Here’s why : When you make your mortgage payment each month, a portion of your payment is interest. The lower your interest rate, the less interest you pay each month. This math applies to all amortizing loans — 30-year schedule, 15-year schedule or otherwise.

Over the life of a loan, the interest cost savings can be substantial.

As a real-life example of two 30-year fixed rate mortgages for $300,000 — one from April 2011 and one from today :

  • April 2011 : The $300,000 mortgage requires $275,000 in interest paid over time
  • November 2011 : The $300,000 mortgage requires $217,000 in interest paid over time

In other words, at today’s rates, with a $300,000 mortgage, you can chop $57,000 off your long-term mortgage interest costs as compared to a mortgage from just 6 months ago.

That’s a 21% savings and the math applies to all loan sizes…

Read Full Article from TheMortgageReports.com for more details

 

 

The article goes on to talk about amortization schedule, the major reason that prevents me from wanting to refinance all the time.  Each time you refinance the amortization starts all over.  However with this big of drop in rates, that is becoming a non factor – click on their article to find out why.

 

 

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The views expressed on this blog are my own and do not necessarily reflect the views, opinions, or positions of my Broker.