http://www.selectbrokersrealty.com
Finally, congressional leaders and the Bush administration are working with Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke to prepare a massive intervention to revive the U.S. financial system.
The proposed plan reportedly includes using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems and allowing them to again lend money.
Paulson and Bernanke urged lawmakers to approve the plan rapidly, presenting what some described as a “chilling” picture of the state of the financial system.
Congressional leaders were told that the consequences would be grave if the legislation doesn’t pass by the end of next week.
Taking over Fannie Mae and Freddie Mac, creating a new source of funding for investment banks, and assuming control of insurance giant American International Group obviously hasn’t been enough to end the crisis. It hasn’t stopped $79 billion in withdrawals from money-market funds, which are a critical source of funding for the U.S. financial system.
"The costs of doing nothing are enormous," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
This is what it's going to take to turn the housing industry around.
If you have been sitting on the sidelines waiting for things to bottom out before you make your purchase - Now is the time to make your move....
Friday, September 19, 2008
Wednesday, September 17, 2008
Home Buyers See Mortgage Rates Plunge Below 6%
http://www.selectbrokersrealty.com
On top of the recently enacted $7,500 tax credit, first-time home buyers received a further boost last week in their efforts to buy a home from a sharp drop in mortgage rates resulting from the recent government takeover of Fannie Mae and Freddie Mac.
The interest-rate decline was also good news for those seeking refinancing as well as the housing market overall.
The 30-year fixed-rate mortgage averaged 5.93% for the week ending on Thursday, Sept. 11, according to Freddie Mac’s Primary Mortgage Market Survey. That was down from 6.35% the previous week and 6.31% a year earlier.
One-year Treasury-indexed adjustable-rate mortgages edged up slightly, to 5.21% from an average of 5.15% for the previous week.
“Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past four weeks, which will help to spur home purchases and loan refinancing in coming weeks,” said Frank Nothaft, Freddie Mac’s chief economist. “This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago,” he said.
“Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors® were off 3.2% from June,” Nothaft said. “The Mortgage Bankers Association reported that refinance applications are up 18% over the past three weeks through September 5th, indicating that refinance activity has already begun to pick up.”
For extensive information on the tax-credit benefit, Visit our Web site — www.selectbrokersrealty.com
On top of the recently enacted $7,500 tax credit, first-time home buyers received a further boost last week in their efforts to buy a home from a sharp drop in mortgage rates resulting from the recent government takeover of Fannie Mae and Freddie Mac.
The interest-rate decline was also good news for those seeking refinancing as well as the housing market overall.
The 30-year fixed-rate mortgage averaged 5.93% for the week ending on Thursday, Sept. 11, according to Freddie Mac’s Primary Mortgage Market Survey. That was down from 6.35% the previous week and 6.31% a year earlier.
One-year Treasury-indexed adjustable-rate mortgages edged up slightly, to 5.21% from an average of 5.15% for the previous week.
“Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past four weeks, which will help to spur home purchases and loan refinancing in coming weeks,” said Frank Nothaft, Freddie Mac’s chief economist. “This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago,” he said.
“Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors® were off 3.2% from June,” Nothaft said. “The Mortgage Bankers Association reported that refinance applications are up 18% over the past three weeks through September 5th, indicating that refinance activity has already begun to pick up.”
For extensive information on the tax-credit benefit, Visit our Web site — www.selectbrokersrealty.com
Friday, September 12, 2008
How to Finance Foreclosure Properties
http://www.selectbrokersrealty.com
Foreclosure properties, REO (Real Estate Owned) property owned by banks and other lenders, and properties threatened with imminent foreclosure all represent great investment opportunities for property buyers. They are the most popular source of affordable deals for those seeking bargain homes, because foreclosures often sell at or below wholesale prices.
Anybody can buy this kind of property. Basically all you need is some money and a willingness to bid. But be aware that if you attend a property auction, you may wind up bidding against professional foreclosure investment specialists who are also looking for cheap houses. If you are unsure about how the foreclosure real estate game is played, learn as much as possible ahead of time in the Learn Section of Bargain Homes, so that you are not at a disadvantage when making your purchase offer.
Before stepping into the foreclosure property arena, it is important to educate yourself. You’ll want to know as much as possible about such things as the pitfalls of hidden costs. For example, when purchasing a house that has a lien against it, the buyer may be responsible to pay back that debt. Such strings-attached baggage can include huge amounts of money owed to the IRS.
And you will want to explore various ways to come up with the money necessary to finance your purchase of a foreclosure. Some lenders don’t lend money for foreclosure property mortgages, while other lenders are eager to make loans to help you buy. To find out more, do some homework ahead of time, so that you can approach the foreclosure auction with confidence and adequate financial backing.
Foreclosure properties, REO (Real Estate Owned) property owned by banks and other lenders, and properties threatened with imminent foreclosure all represent great investment opportunities for property buyers. They are the most popular source of affordable deals for those seeking bargain homes, because foreclosures often sell at or below wholesale prices.
Anybody can buy this kind of property. Basically all you need is some money and a willingness to bid. But be aware that if you attend a property auction, you may wind up bidding against professional foreclosure investment specialists who are also looking for cheap houses. If you are unsure about how the foreclosure real estate game is played, learn as much as possible ahead of time in the Learn Section of Bargain Homes, so that you are not at a disadvantage when making your purchase offer.
Before stepping into the foreclosure property arena, it is important to educate yourself. You’ll want to know as much as possible about such things as the pitfalls of hidden costs. For example, when purchasing a house that has a lien against it, the buyer may be responsible to pay back that debt. Such strings-attached baggage can include huge amounts of money owed to the IRS.
And you will want to explore various ways to come up with the money necessary to finance your purchase of a foreclosure. Some lenders don’t lend money for foreclosure property mortgages, while other lenders are eager to make loans to help you buy. To find out more, do some homework ahead of time, so that you can approach the foreclosure auction with confidence and adequate financial backing.
Tuesday, September 2, 2008
FHA Raises Upfront Premiums
http://www.selectbrokersrealty.com
The cost of obtaining a FHA loan in Braselton, Hoschton and across the nation goes up Oct. 1, 2008.
The Federal Housing Administration announced Tuesday that it is increasing the upfront premiums charged to most borrower to guarantee that a mortgage will be repaid.
Effective Oct. 1, most borrowers will pay 1.75 percent of the loan amount, up from 1.5 percent because the FHA is adopting a “risk-based” pricing system based on borrowers’ credit scores and the amount of their down payment or equity.
On a $300,000 loan, the new upfront premium works out to $5,250, up from $4,500. The annual premiums paid by borrowers would remain at 0.5 percent to 0.55 percent of the loan balance.
The cost of obtaining a FHA loan in Braselton, Hoschton and across the nation goes up Oct. 1, 2008.
The Federal Housing Administration announced Tuesday that it is increasing the upfront premiums charged to most borrower to guarantee that a mortgage will be repaid.
Effective Oct. 1, most borrowers will pay 1.75 percent of the loan amount, up from 1.5 percent because the FHA is adopting a “risk-based” pricing system based on borrowers’ credit scores and the amount of their down payment or equity.
On a $300,000 loan, the new upfront premium works out to $5,250, up from $4,500. The annual premiums paid by borrowers would remain at 0.5 percent to 0.55 percent of the loan balance.
Subscribe to:
Posts (Atom)
