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Mortgage News Category

Could Mortgage Interest Rates Go Lower?

You may be a buyer hearing the buzz that housing prices could go even lower. While this may be true, mortgage interest rates are at almost historic low rates. You might wait to buy that place for $10,000 less, but end up paying more because you missed this incredible opportunity.

Look at this graph, provided by Todd Wheeler of Home Services Lending, covering the last 40 years of interest rates:

Chart of Interest Rates Over the Last 40 Years

A mere 1% rise in rates will cost you well over that small savings in a very short time. It really is the right time to make that move.

Call me at 305 794.6570 or leave me a note here, and let’s get started saving your money!

 

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News Buyers Have Been Waiting to Hear

Congress has finally passed two important extensions that will give some buyers reason to jump for joy! The Homebuyer Assistance and Improvement Act deadline for closing has been extended from June 30 to September 30. This applies only to those transactions that have ratified contracts dated prior to April 30 that haven’t closed yet. This program offered qualified buyers up to an $8000 tax credit when purchasing a home.

The other piece of good news is that flood insurance is again available by the Senate’s extension of the National Flood Insurance Program. The bill is retroactive and covers the lapse period from June 1 to the date of enactment. It’s been impossible to close on some properties because this critical form of coverage wasn’t available anywhere and lending institutions were naturally reluctant to close on loans where properties that require flood insurance couldn’t be insured.

I wrote in an earlier post that it had been erroneously reported to have been passed, but this time it is official.

To read more about the extensions, click to be directed to Inman News’ coverage. To discuss your real estate needs give me a call at 305 794.6570 or leave me a note. You can also get my posts directly in your email.

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Reverse Mortgages Subject To More Scrutiny

Senior Couple With Reverse Mortgage

Reverse mortgages can be a useful vehicle for people over 62 who have good equity in their home. Seniors can get funds based upon their age and amount of equity.  Until now, sufficient equity has been pretty much the only requirement to qualify, and there has been minimal or no attention given to credit scores or applicant’s incomes. The typical borrower is not required to make any monthly payments, and no escrows for property taxes or insurance are collected.

The Federal Housing Administration, which runs the dominant reverse mortgage program, reported its first-ever budget shortfall of $798 million for the program during the last fiscal year, in part because of wide-spread declines in the values of the homes that secure its insured loans.

Mortgage experts say that insurance and tax defaults are rising in part because of the housing recession, but also by borrowers who may not be adequately counciled that foreclosure could be the outcome of non-payment. Tax liens take precedence over mortgages, and with no escrows collected seniors may not keep track of property tax and insurance premium notices.

Until recently the FHA and Fannie Mae were pretty lenient when senior borrowers fell behind or stopped paying, not wanting to appear to be “throwing them out into the street” instead of waiting for full repayment upon the sale of the property. Although neither entity provided statistics on the defaults, they say they no longer have the means to look the other way.

Both say they are looking into solutions that will create a mandatory step-by-step system to contact borrowers who are delinquent, determine the cause, and if necessary refer them to charitable groups who can assist them and prevent foreclosure.

I can direct you to the best person for your mortgage needs. You can call me at 305 794.6570 or leave me a note here.

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