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Resurgence of PMI Could Force FHA to Cut Premiums
In last month’s Housing Finance Chartbook the Urban Institute showed how a recent surge in issuance of private mortgage insurance (PMI) had come at the expense of the Federal Housing Administration’s (FHA’s) Mortgage Insurance Fund (MIF). PMI grew from a 33 percent share of the market in Quarter
Mortgage Rates Near 2-Month Lows
Mortgage Rates maintained their recent winning streak today, falling for the 5th straight day. The average lender is now offering the best rates in nearly 2 months. You’d have to go back early August or late July. It depends on the lender to see a better combination of rate and upfront cost. This raises a c
MBS Day Ahead: Are Bond Markets Reading From Same Scary Script?
There are no significant economic reports or scheduled events on tap for today. This will give us an opportunity to feel out the new trading ideas, not only for the rest of the week (which ends with Friday’s NFP), but for the month of October in general. It turns out that October is historic
‘Massive’ shortage of appraisers causing home sales delays
Housing demand is rising rapidly, but a key cog in the wheel to homeownership is in deep trouble. The people most needed to close the deal are disappearing. Appraisers, the men and women who value homes and whom mortgage lenders depend upon, are shrinking in numbers. That is causing growing delays in closings,
1 in 10 borrowers may be missing out on mortgage savings
The average rate on the popular 30-year fixed mortgage has been so low for so long that a good chunk of borrowers can't even contemplate the idea of it ever going higher. Why should they? Every time we warn of rising rates, or see a tiny bump up, some global economic tantrum pushes them back down. Most borrowers
Specialty Mortgage Planning: Explore Your Options
Not every mortgage question fits one standard checklist. NorthStar Funding helps borrowers compare conventional, government, jumbo, renovation, investment-property, alternative-documentation, asset-based, bank-statement, and other specialty options. The useful first step is identifying what is distinctive about y
FHA Compensating Factors and DTI Guidelines
FHA compensating factors can matter when a mortgage requires manual underwriting, but no single debt-to-income (DTI) number approves every FHA borrower. A lender must review the full loan file, including income, debts, credit, cash to close, and the property. The older version of this page presented a 56.99% DTI
How Decreasing Migration Affects The Mortgage Market
Americans are staying put, both in their homes and in their jobs. The two appear to be related but which is the driving force? In a recent Urban Institute blog researcher Bhargavi Ganesh points to the decreasing incidence of state-to-state migration, a trend that started in 1990. Her cites research from Raven Mol
The Dos & Don’ts Of Credit Scores
Here are some important facts about credit scores you should know! Don't Apply For New Credit during the loan process. Every time that you have your credit pulled by a potential creditor or lender, you can lose points from your credit score immediately. Don't Close Credit Card Accounts. If you close a credit card
Use The Slower Real Estate Market To Your Advantage
According to the National Association of Realtors, existing home sales rose strongly in September. But the winter and holiday months are typically a slower time of year for real estate. That can work to the buyer’s advantage, though. Fewer real estate transactions can translate to less compet
Purchase Power: Low-Down-Payment Mortgage Planning
Purchase power is more than a home-price estimate. It is the relationship among your available funds, monthly payment comfort, credit profile, debts, income, property type, and the mortgage options that can be reviewed for the complete file. NorthStar Funding helps borrowers identify those questions before they m
Bank Statement Mortgage Planning for Self-Employed Borrowers
Bank-statement mortgage planning can be a useful topic for self-employed borrowers whose business activity and documentation deserve a closer review. Bank statements are one type of record that may be considered; they do not by themselves establish qualifying income, product availability, or an approval outcome.