Waterstone #mortgage unveils zero-down, 20-year, adjustable rate 'wealth building' loan

The “Wealth Building Loan” requires no down payment, and offers eligible borrowers a 7/1 adjustable rate #mortgage with a 20-year amortization. Waterstone said that the “Wealth Building Loan” also eliminates monthly #mortgage insurance payments nearly four years sooner than a 30-year conventional loan with a 3% down payment. http://www.housingwire.com/articles/36310-waterstone-mortgage-unveils-zero-down-20-year-adjustable-rate-wealth-building-loan ❤️ #share #mortgage

Homeowners: 4 tax deductions to maximize your IRS refund

It’s that time of year again. As tax season is well underway, don’t miss out on these four tax deductions that you could possibly be taking advantage of and put money back in your wallet. Or at least prevent you from owing money. Check to see if these apply to you. http://www.housingwire.com/blogs/1-rewired/post/36311-homeowners-4-tax-deductions-to-maximize-your-irs-refund ❤️ #share #mortgage

Community #lenders call for Fannie, Freddie to stop paying dividend to Treasury

With Fannie Mae and Freddie Mac preparing to report their fourth quarter and full-year financial results for 2015 later this week, several national groups of community #lenders are calling on the Federal Housing Finance Agency to suspend the practice of sending dividends from Fannie and Freddie to the Department of Treasury. http://www.housingwire.com/articles/36309-community-lenders-call-for-fannie-freddie-to-stop-paying-dividend-to-treasury ❤️ #share #mortgage

'Millennial leader' highlights impact of housing on 2016 election

Problem solved: Millennials are disenchanted, not disengaged. These resounding words from Morgan Smith, president of the nonpartisan Roosevelt Institute chapter at the University of Denver, are written to correct society’s preconceived notions about Millennials and get to the real issues important to young voters. Because without action, people will be priced out of their own hometown. http://www.housingwire.com/articles/36307-millennial-leader-highlights-impact-of-housing-on-2016-election ❤️ #share #mortgage

The TRID ripples: Time to close #mortgage loans continues to rise

In the months since the implementation of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule last October, evidence has shown what the impact of TRID has been. Now, a new report from Ellie Mae shows more statistical evidence on what kind of impact of TRID has caused, with the time to close a loan climbing again. http://www.housingwire.com/articles/36305-the-trid-ripples-time-to-close-mortgage-loans-continues-to-rise ❤️ #share #mortgage

Fed’s final push for HARP?

The Federal Housing Finance Agency’s Home Affordable Refinance Program is set to expire at the end of 2016. But before it does, the agency will try to reach as many people as possible that can still benefit. There are 367,600 people still eligible, and this new social media campaign should hopefully find them. http://www.housingwire.com/articles/36303-feds-final-push-for-harp ❤️ #share #mortgage

Dotloop announces partnership with Lone Wolf Real Estate Technologies

Dotloop, a Cincinnati-based company that boasts it can simplify real estate transactions by enabling brokerages, real estate agents, and their clients to share, edit, sign and store documents digitally, announced a partnership with Lone Wolf Real Estate Technologies, a provider of residential real estate solutions and services in North America. http://www.housingwire.com/articles/36304-dotloop-announces-partnership-with-lone-wolf-real-estate-technologies ❤️ #share #mortgage

Despite decline, industry still positive on housing starts

Although privately owned housing starts in January dropped 3.8% from December, the industry is still positive on the future of the housing market. According to one housing expert, most of January’s decline can likely be attributed to two main issues. http://www.housingwire.com/articles/36302-despite-decline-industry-still-positive-on-housing-starts ❤️ #share #mortgage

Homeownership Finally Makes Political Debate

Finally, the issue of homeownership has become a platform talking point in this year’s presidential debate. Yesterday, one of the candidates running for President spoke out about the importance of homeownership in America.

Hillary Clinton detailed a new economic agenda yesterday. In announcing her new agenda, she remarked:

“Homeownership is about more than just owning a home. It is about putting roots down in a community with better schools, safer streets and good jobs. And it is about building wealth, as homeowners build equity in their home one #mortgage payment at a time…We must make sure that everyone has a fair shot at homeownership.”

This post isn’t political!

It doesn’t matter that it was Clinton who said it first. It doesn’t matter that she is a Democrat.

What matters is that EVERY candidate for our country’s highest office realizes the important role homeownership plays in the development of our nation.

The fact that homeownership was finally brought to the forefront of the debate is great news – no matter which way you lean politically. http://www.simplifyingthemarket.com/2016/02/17/homeownership-finally-makes-political-debate/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage

Fed's Kashkari: Time to end 'too big to fail'

The fundamental shifts in the country’s economic policy in the wake of the economic crisis were not enough to prevent another catastrophic meltdown and more needs to be done to ensure that a future economic downturn doesn’t turn into another crisis, Neel Kashkari, the newly minted President of the Federal Reserve Bank of Minneapolis, said Tuesday. http://www.housingwire.com/articles/36300-feds-kashkari-time-to-end-too-big-to-fail ❤️ #share #mortgage

National Low Income Housing Coalition names new president

The National Low Income Housing Coalition’s board of directors named a new president on Tuesday since its current CEO is retiring. Diane Yentel, an affordable housing policy expert and advocate, will replace current president and CEO Sheila Crowley in April. http://www.housingwire.com/articles/36298-national-low-income-housing-coalition-names-new-president ❤️ #share #mortgage

Your Guide to the 2016 Mortgage Refi Boom

From the time the Federal Reserve raised rates in December 2015 to mid-February 2016, mortgage rates dropped to their lowest level in three years. We examined why mortgage rates would drop after a Fed hike, and since the downward mortgage rate trend is continuing, here is a refinance reference guide.

2016 rate recap and outlook

Rates drop when economic uncertainty causes investors to sell riskier stocks and buy safer bonds. When bond prices rise on this buying, bond yields (or rates) drop.

This is what’s been happening in 2016 as non-U.S. economic weakness has caused global investors to buy the safety of U.S. Treasury and mortgage bonds.

In December 2015, 30-year fixed rates were about 4% on conforming loans, 4.125% on high-balance conforming loans, and 3.875% on jumbo loans. As bonds have rallied since then, rates on all these loan tiers are down as much as 0.5%, which translates into lower monthly payments as follows: $85 lower on a $300,000 mortgage, $170 lower on a $600,000 mortgage, and $253 lower on a $900,000 mortgage.

This savings alone is strong rationale for a refinance, and rates could drop even further in the next few months if non-U.S. weakness persists. But even in a downward rate trend, rates rise and fall along the way.

Factors driving a 2016 refi boom

Refinances aren’t just about rates. They’re also about income, asset, and property eligibility.

During previous post-crisis rate dips, many refinances were derailed because people owed more than their homes were worth, their income was down or disrupted, and lender guidelines were abnormally tight.

Now the U.S. economy is more supportive of refinances, with stable or increasing home prices, low unemployment of 4.9 percent, income trending up, low inflation helped by a steep drop in oil prices, and lender guidelines more flexible now than any other post-crisis rate dip.

Reasons to refinance

The most obvious reason to refinance is for a lower rate and monthly payment, but there are a few other refinance objectives to consider:

• Shorten your loan payoff period. For example, you could go from a 30-year loan to a 15-year loan, which has lower rates and higher payments because you pay it off in half the time - but when rates dip, payments on 15-year loans become more feasible.
• Access cash. A “cash out” refinance allows you to access your home’s equity for other financial objectives, such as retirement investing or funding home improvements.
• Consolidate debt. If you qualify, you can roll non-housing debt like student loans, credit cards, and car loans into a home refinance. This helps improve your credit score, and also converts that non-tax-deductible debt into tax-deductible debt.
• Eliminate mortgage insurance or a second mortgage. If you bought your home with less than 20 percent down using mortgage insurance or a second mortgage, and your home’s value has increased to the point that you now have 20 percent equity, a refinance can eliminate mortgage insurance or a second mortgage.

Credit score impacts of rate shopping

Credit scoring models know people shop for mortgages, so more than one mortgage-related credit run won’t reduce your score if you finish shopping within 14 days.

Choose a lender early

A rate quote is based on a refinance closing within a certain number of days - typically 30-60 days - and longer rate locks have higher rates. So choose the lender you want to work with early, and get them all of your required documentation so they can perform on the shortest (and therefore cheapest) possible rate lock timeline.

Required documentation

Even if you refinance with a lender you’ve worked with before, federal laws require them to update your employment, income, asset, and debt documentation for a new loan.

Your home must qualify

In addition to you qualifying for the loan, your home must qualify, too. An appraisal report must prove your home is worth enough to make the refinance work, and lenders can require certain repairs prior to loan closing - like water-related damage or safety issues such as loose railings.

If you’re a condo owner, the condo building will be subject to a list of requirements. Ask your lender to brief you on condo requirements in advance of locking your refinance.

Handling your second mortgage

If you have a second mortgage you intend to leave in place, the second mortgage holder must agree to the terms of the refinance before the refinance closes. This is required even if you have a Home Equity Line of Credit (HELOC) with a zero balance. This can add time to the process, and, again, longer rate locks have higher rates.

Cost or no-cost refinance?

Refinance viability is all about how it takes monthly savings from a refinance to repay refinance closing costs ($2,000 to $4,000, depending on your market). But if you paid to refinance, then rates dropped more, you’d risk losing money.

So when rates are declining, you can choose to do a no-cost refinance. The rate will be slightly higher on a no-cost refinance, but then you’re not wasting closing costs if you refinanced again soon after because rates dropped.

Your lender can help determine the best path based on your profile and rate market expectations.

When to lock your rate

Before locking a refinance, find a lender to pre-approve you using your full documentation and home value estimate so you can be sure you’re being locked on a program and timeline the lender can perform on. And if your refinance pre-approval is ready to go, it’s easier to lock rate lows on a moment’s notice as rates bounce up and down on each trading day.

What to do if rates drop after you’ve locked your rate

Rates change daily, and if rates drop after you commit to your rate lock, lenders have renegotiation policies that enable you to capture part of that drop.

For example, if rates dropped .25 percent after your rate lock commitment, typical lender renegotiation policies would allow you to drop your locked rate by .125 percent.

Related:

• Is Refinancing Right for You?
• 4 Simple Strategies to Shave Years Off Your Mortgage
• Can Shopping Around for a Mortgage Keep You from Getting One?

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

from Zillow Porchlight | Real Estate News, Advice and Inspiration http://www.zillow.com/blog/2016-mortgage-refi-boom-192520/

Quicken Loans preps to face U.S. over FHA loan violations

Quicken Loans is revving up to face the Department of Justice after a federal judge tossed Quicken’s lawsuit against the DOJ and the Department of Housing and Urban Development in January. As Quicken Loans prepares for the exceptionally rare case of a #lender stepping up to face the U.S. government, it’s going to have to overcome a few obstacles, starting with where the trial will take place. http://www.housingwire.com/articles/36299-quicken-loans-preps-to-face-us-over-fha-loan-violations ❤️ #share #mortgage

Moving to San Francisco? Here's what you need to know

If San Francisco isn’t the number one hottest housing market for any given month, you don’t have to travel too far down the list to find its name. If you are one of the people considering moving to the nation’s hottest market, here are some things you need to know. Being in the hottest housing market can come at a price. http://www.housingwire.com/blogs/1-rewired/post/36297-moving-to-san-francisco-heres-what-you-need-to-know ❤️ #share #mortgage

Hillary Clinton unveils sweeping economic agenda, including major housing reforms

With the 2016 presidential election inching closer at a seemingly glacial pace, one issue that many of the main candidates have neglected to address is housing and its impact on the country’s economy. But it appears that is about to change as Hillary Clinton, the Democratic hopeful and former Secretary of State, recently announced a sweeping economic agenda that includes some major housing reforms. http://www.housingwire.com/articles/36295-hillary-clinton-unveils-sweeping-economic-agenda-including-major-housing-reforms ❤️ #share #mortgage

Appraisal volume rises 3 weeks straight

Appraisal volume moved higher for the third consecutive week, increasing 4.2% for the week of Feb. 7. The steady rise can be attributed to soft interest rates and the stable employment market. http://www.housingwire.com/articles/36294-appraisal-volume-rises-three-weeks-straight ❤️ #share #mortgage

S&P/Experian: #mortgage default rates steady in January

Data released by global resource Standard & Poor’s and information services company Experian, indicates that while the bankcard default rate increased in January, the first #mortgage default rates remained unchanged. http://www.housingwire.com/articles/36293-spexperian-mortgage-default-rates-steady-in-january ❤️ #share #mortgage

Homebuilder confidence wanes despite positive economic trends

While the market is ripe for growth, homebuilder confidence has yet to benefit from this, coming in below expectations in February. The drop this month can partly be attributed to these two main things. http://www.housingwire.com/articles/36292-homebuilder-confidence-wanes-despite-positive-economic-trends ❤️ #share #mortgage

Play Chess… Not Checkers

Checkers is a simple game with a simple objective; eliminate the other player’s pieces. Even the process of doing so is simple, jump the other player’s pieces and start a collection. There is very little thought as to a defensive strategy and it is often more reactive than strategic.

Even though the objective of Chess is simply laid out — obtain the other player’s King — the process in which to obtain this goal is much more strategic. Chess requires a greater understanding of the ability of each of the 9 different pieces on the board and a risk assessment that takes longer than a simple scan of the board.

“It’s a game in which the winning strategy is dynamic and requires complex thought across many turns, both for the player and their opponent’s turns.  Chess requires a player to understand the context behind the moves on the board rather than just the risks offered by each individual turn.” – Play Chess Not Checkers by Zach West

You may have heard the saying, “Play Chess, Not Checkers” before, but how does this apply to real estate?

Plan past your next move

So you want to sell your house. You can just put a sign in your front yard and call it a day, right? Wrong! The process of listing your home for sale and what happens next is much more complex than that.

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, and who knows what these actions are to make sure that you acquire your dream?

One example, as we’ve reported before, is the fact that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. Most real estate agents have an extensive internet strategy to promote the sale of your home. Do you?

Identify Risks & Defend Against Them

An experienced real estate professional knows the obstacles associated with buying or selling a home and works closely with other professionals to ensure the process is a smooth one.

Practice Makes Perfect

Just like with any skill, practice and experience bring a sense of confidence and expertise. Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Bottom Line

With an experienced Real Estate Professional on your side, even the complex process of buying your next home or selling your house can be strategically navigated. http://www.simplifyingthemarket.com/2016/02/16/play-chess-not-checkers/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage

Fannie Mae offloads more credit risk in latest risk-sharing deal

As part of its ongoing effort to reduce taxpayer burden, Fannie Mae announced last week that it offloaded more credit risk in its latest Connecticut Avenue Securities risk-sharing deal. According to Fannie Mae, its latest Connecticut Avenue Securities deal, CAS 2016-C01, is its first to offer investors a portion of the first-loss position, further reducing taxpayer exposure to credit losses. http://www.housingwire.com/articles/36290-fannie-mae-offloads-more-credit-risk-in-latest-risk-sharing-deal ❤️ #share #mortgage