Roger and Hugh talk about the brave Men and Women who serve in the United States Military and the special financing program dedicated to them.  The VA IRRL  Steamline loan.

The Mortgage Minute for May 15th 2012

The Mortgage Minute for May 14th Parts 1 & 2

The real estate debacle was supposedly caused by the sub-prime  industry giving loans to anyone who applied without any reasonable  underwriting standards as a guide.  The problem wasn’t rules and  regulations it was taking unnecessary risks by lowering the down payment  to zero (no personal skin in the game) and the credit score to 580.

Even though proof of earnings were required from borrowers which were  either from tax returns or the deposits on 12 to 24 months of bank  statements those at the top simply winked at a 580 credit score.

When I first saw a 580 credit score my first reaction was “not with  my money”!

580 is a score for someone who doesn’t ever pay their bills on time.

Lenders felt that Fannie Mae and Freddie Mac could handle  the risk and the ever increasing market prices of homes would bail them  out of any problem.  Best of all Wall Street had a voracious  appetite for these loans even if Fannie or Freddie wouldn’t buy them.

Those in the know who were in charge on Wall Street were  dealing with other peoples money and they weren’t worried that even if  the party ended they were smart enough to rid themselves of the  risk before it was too late.

Now we look at J.P. Morgan and say how could they possibly lose that  type of money,today, especially since we have all these new rules and  regulations  brought to us by the Dodd-Frank law.n Take a few chances, knowing it  isn’t your money; overlook a few safeguards because the rewards are  humongous and prepare to celebrate.  Those who took the chances to win  big could lose their jobs, but not their money.

In closing I don’t believe that bankers and other financial managers  are so cavalier that a big loss doesn’t matter.  What I do believe,  however,  is without their own money on the table these occurrences will always  be with us.

WEAK JOB’S REPORT = LOWER MORTGAGE RATES Friday May 4, 2012.

Today the Labor Department announced that 115,000 jobs were created in the month of April. This was a disappointing number falling below the downward revised 125,000 job estimate. The labor participation rate also dropped into the 63% range as more prospective workers have given up as their benefits have run out and job prospects are not very good.

THIS COULD TAKE US TO NEW ALL TIME LOWS IN MORTGAGE RATES!

Those who have been waiting for another slide may find today’s action the beginning of another leg downward in mortgage rates.
All conforming rates, up to a maximum $417,000 loan balance for a single family dwelling and higher for duplexes, triplexes and fourplexes, are in the 3% range or lower.

The 10 year fixed is in the high 2% range with the 15 year seemingly poised to get into the high 2% range as well. Twenty year loans are in the middle 3% range and 30 years in the high 3% range. All of are arms are in the 2% to low 3% range and are excellent alternatives for the 30 year fixed. They are amortized over 30 years but fixed for a shorter period before becoming a variable.
They are fixed for 3,5,7 or 10 years.

Jumbo rates up to $2 million or higher are in the 3% range for arms and the 15 year fixed. 30 year fixes are in the 4% range Those who have patiently waited for this break should actively seek the program they want as rates will come down and quickly reverse their direction.

The Mortgage Minute April 25th 2012

The Mortgage Minute April 23rd, 2012 Parts 1 & 2

The Mortgage Minute April 19th, 2012

The Mortgage Minute April 18th, 2012 Parts 1 & 2

The Mortgage Minute April 17th, 2012