Wendy silver-Hale FHA Fees Reduced in Bid to Assist Loan … · 2012-03-13 · loans to near zero,...
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More Families Can Afford to Buy a Home More families than ever before can afford to buy a home due to today’s low interest rates on home loans and lower home prices, a report released last week concluded. e nationwide pattern, confirmed by the National Association of Realtors Wednes- day, followed on the heels of recent reports from the California Association of Realtors that affordability throughout the Golden State rose to its highest level during the fourth quarter 2011. e percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 55 percent in the fourth quarter of 2011, up from 52 percent in third-quarter 2011 and from 50 percent in the fourth quarter of 2010. e index was the highest since C.A.R. began tracking this statistic in 1988, and equaled a high set in first-quarter 2009. Homebuyers statewide needed a mini- mum annual income of $57,750 to qualify for the purchase of a $282,350 statewide median-priced, existing single-family home in the fourth quarter of 2011. e monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,440, as- suming a 20 percent down payment and an effective composite interest rate of 4.31 per- cent. e nationwide housing affordability index — which tracks median home price, median family income, and the average mortgage rate — in January reached 206.1, the highest level since N.A.R. began track- ing it in 1970. It also was the first time the index broke the 200 mark, meaning the typ- ical family had roughly double the income needed to purchase a median-priced home. “For buyers who can qualify for a mort- gage,” said Moe Veissi, N.A.R. president, “now is a very good time to become a home owner.” N.A.R. projects that affordability will remain high for the remainder of the year, even though dwindling inventories in many markets, including the San Fernando Valley, have declined to a point where conditions are more balanced. “If access to credit improves,” Veissi said, “we could see a more meaningful increase in sales and broader stabilization in prices, es- pecially in regions with stronger job growth.” FHA Fees Reduced in Bid to Assist Loan Refinancings By Wendy Silver-Hale, President, and David Walker, Southland Regional Association of Realtors® While not a cure for all that ails housing, an initiative unveiled Tuesday offered hope that between 2 and 3 million homeowners could refinance to today’s low interest rates, thus reducing monthly payments on average by about $250 per month, or $3,000 per year, while avoiding typical refinancing fees that would result in an additional $1,000 savings. ADVERTISING SUPPLEMENT THE VOICE FOR REAL ESTATE IN THE SAN FERNANDO AND SANTA CLARITA VALLEYS www.SRAR.com | Real Estate Questions? E-mail Wendy Silver-Hale, SRAR 2012 President, c/o [email protected] Wendy Silver-Hale 2012 SRAR President Free Commercial Seminar Master the GRM, CAP Rate, DCR Master the fundamentals of com- mercial real estate financial analysis for investment sales opportunities at a free seminar offered as a member benefit of the Southland Regional As- sociation of Realtors. e Wednesday, March 14, member benefit promotion will be offered from 10 a.m. to noon in the SRAR auditorium, located at 7232 Balboa Blvd., Van Nuys, just north of Sherman Way. A required RSVP must be emailed to [email protected]. Brendan Erickson, vice president of REI Wise, will highlight the REI Wise global software platform that has 10,000 current users and is the platform of choice in over 3,000 commercial real estate offices. Attendees will take away: • A better understanding of financial analysis and how to walk the walk and talk the talk of investment cycles and valuation snapshots • e GRM and who uses it • e CAP rate, its functions, benefits and downfall • e DCR and who uses it • Cash on cash • e internal rate of return. e entire program, including discussion and Q&A sessions, highlights the benefits to attendees who use the REI Wise toolbox in pursuit of professional understanding and financial success. Powered by Southland Regional Association of REALTORS® offers one of the most powerful and robust MLS systems to its members. Powered by CRMLS Matrix, the CRISNet MLS system offers fast, reliable information, quick search & detailed search features, mapping tools, market watch data, CMA’s, Realist Tax, and a host of other tools and benefits to make your MLS experience easy, yet powerful. Other Benefits of CRISNet MLS What is Cloud CMA? Cloud CMA is an online report generator. With Cloud CMA you can generate, for your buyers and sellers, the most comprehensive, informative, personalized, and eye- catching reports in real estate. Cloud CMA includes three report sets; including a buyer tour, a single property report and of course, real estate's most innovative CMA. And best of all, it’s FREE to all CRISNet MLS members!!! Mercado / Smart Fax / Realist Tax Smart Trac / Listingbook CARETS Commercial Global Listing Exchange Goomzee / MongoFax Realtors Property Resource For a complete list of CRISNet MLS benefits, log onto CRISNet MLS from SRAR.com and click on the “Links” tab. One of the newest benefits added to CRISNet MLS is ‘If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices … ’ Homeowners who have Federal Housing Administration mortgages may be able to refinance their loans at a lower interest rate as well as not have to bear the high refinance fees to do so, President Barack Obama announced at a news conference Tuesday. “It’s like another tax cut in people’s pockets,’’ the President said. To qualify, borrowers must be current on their existing FHA-insured mortgages which were written on or before May 31, 2009. An estimated 3.4 million households with loans endorsed prior to that date pay more than a 5 percent annual interest rate on their FHA-insured mortgages. By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year, or $250 per month. e discounted prices assume no greater risk to the Mutual Mortgage Insur- ance Fund and will allow many borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting. Homeowners with FHA- insured loans should contact their existing lender to deter- mine eligibility. e Federal Housing Admin- istration will cut its upfront fees for refinancing loans to near zero, reducing it to 0.01 percent, or $10 for every $100,000. e reduced fee plan is expected to save up to 3 million average FHA borrowers about $1,000, the administration announced. Many borrowers who took out FHA- backed loans several years ago haven’t been able to refinance because FHA insurance premiums increased sharply over the last two years. Consequently, while interest rates have dropped to a level where they typically generate a wave of refinancing, the higher FHA premiums offset savings, thus discouraging borrowers from even trying to refinance. e changes unveiled by Obama Tuesday seek to address that problem. Lowering refinancing fees also should be broadly positive for housing and the economy by reducing foreclosures and free- ing up income for consumers to spend on other goods and services. Additionally, President Obama an- nounced aid to U.S. service members who lost their homes due to wrongful foreclosures. In a process to be overseen by the Justice Department, Obama said that lenders and mortgage servicers will be required to review the cases of all service members who were foreclosed upon since 2006. Any service member found to have been wrongfully foreclosed upon will be compensated — repaid the lost equity in the home plus interest, as well as a flat fee of $116,785. Loan servicers also agreed to provide awards to members of the military who, contrary to law, were charged more than a 6 percent interest rate after requesting a lower rate. e award would be four times the amount overcharged, plus interest. e Southland Regional Association of Realtors® is one of the largest local trade associations in the nation with more than 9,000 members serving the San Fernando and Santa Clarita Valleys.
Transcript of Wendy silver-Hale FHA Fees Reduced in Bid to Assist Loan … · 2012-03-13 · loans to near zero,...
More Families Can Afford to Buy a HomeMore families than ever before can afford to buy a home due to today’s low interest rates on home loans and lower home prices, a report released last week concluded.The nationwide pattern, confirmed by the National Association of Realtors Wednes-day, followed on the heels of recent reports from the California Association of Realtors that affordability throughout the Golden State rose to its highest level during the fourth quarter 2011.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 55 percent in the fourth quarter of 2011, up from 52 percent in third-quarter 2011 and from 50 percent in the fourth quarter of 2010. The index was the highest since C.A.R. began tracking this statistic in 1988, and equaled a high set in first-quarter 2009.
Homebuyers statewide needed a mini-mum annual income of $57,750 to qualify for the purchase of a $282,350 statewide median-priced, existing single-family home in the fourth quarter of 2011. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,440, as-suming a 20 percent down payment and an effective composite interest rate of 4.31 per-cent. The nationwide housing affordability index — which tracks median home price, median family income, and the average mortgage rate — in January reached 206.1, the highest level since N.A.R. began track-ing it in 1970. It also was the first time the index broke the 200 mark, meaning the typ-ical family had roughly double the income needed to purchase a median-priced home.
“For buyers who can qualify for a mort-gage,” said Moe Veissi, N.A.R. president, “now is a very good time to become a home owner.”
N.A.R. projects that affordability will remain high for the remainder of the year, even though dwindling inventories in many markets, including the San Fernando Valley, have declined to a point where conditions are more balanced.
“If access to credit improves,” Veissi said, “we could see a more meaningful increase in sales and broader stabilization in prices, es-pecially in regions with stronger job growth.”
FHA Fees Reduced in Bid to Assist Loan Refinancings
By Wendy Silver-Hale, President, and David Walker, Southland Regional Association of Realtors®While not a cure for all that ails housing, an initiative unveiled Tuesday offered hope that between 2 and 3 million homeowners could refinance to today’s low interest rates, thus reducing monthly payments on average by about $250 per month, or $3,000 per year, while avoiding typical refinancing fees that would result in an additional $1,000 savings.
ADVERTISING SUPPLEMENT
THe VoiCe FoR ReAl esTATe in THe sAn FeRnAndo And sAnTA ClARiTA VAlleyswww.sRAR.com | Real Estate Questions? E-mail Wendy Silver-Hale, SRAR 2012 President, c/o [email protected]
Wendy silver-Hale2012 SRAR President
Free Commercial Seminar
Master the GRM, CAP Rate, DCRMaster the fundamentals of com-mercial real estate financial analysis for investment sales opportunities at a free seminar offered as a member benefit of the Southland Regional As-sociation of Realtors.The Wednesday, March 14, member benefit promotion will be offered from 10 a.m. to noon in the SRAR auditorium, located at 7232 Balboa Blvd., Van Nuys, just north of Sherman Way. A required RSVP must be emailed to [email protected].
Brendan Erickson, vice president of REI Wise, will highlight the REI Wise global software platform that has 10,000 current users and is the platform of choice in over 3,000 commercial real estate offices. Attendees will take away:
• A better understanding of financial analysis and how to walk the walk and talk the talk of investment cycles and valuation snapshots • The GRM and who uses it • The CAP rate, its functions, benefits and downfall • The DCR and who uses it • Cash on cash • The internal rate of return.
The entire program, including discussion and Q&A sessions, highlights the benefits to attendees who use the REI Wise toolbox in pursuit of professional understanding and financial success.
Powered by
Southland Regional Association ofREALTORS® offers one of themost powerful and robust MLS
systems to its members.
Powered by CRMLS Matrix, theCRISNet MLS system offers fast,
reliable information, quick search &detailed search features, mappingtools, market watch data, CMA’s,Realist Tax, and a host of othertools and benefits to make your
MLS experience easy, yet powerful.
Other Benefits of CRISNet MLS
What is Cloud CMA?Cloud CMA is an online report
generator. With Cloud CMA youcan generate, for your buyers andsellers, the most comprehensive,
informative, personalized, and eye-catching reports in real estate.
Cloud CMA includes three reportsets; including a buyer tour, a
single property report and of course,real estate's most innovative CMA.
And best of all, it’s FREE to allCRISNet MLS members!!!
Mercado / Smart Fax / Realist TaxSmart Trac / Listingbook
CARETS CommercialGlobal Listing ExchangeGoomzee / MongoFax
Realtors Property Resource
For a complete list of CRISNet MLSbenefits, log onto CRISNet MLS
from SRAR.com and clickon the “Links” tab.
One of the newest benefitsadded to CRISNet MLS is
‘If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices … ’
Homeowners who have Federal Housing Administration mortgages may be able to refinance their loans at a lower interest
rate as well as not have to bear the high refinance fees to do so, President Barack Obama announced at a news conference Tuesday.
“It’s like another tax cut in people’s pockets,’’ the President said.
To qualify, borrowers must be current on their existing FHA-insured mortgages which were written on or before May 31, 2009. An estimated 3.4 million households with loans endorsed prior to that date pay more than a 5 percent annual interest rate on their FHA-insured mortgages.
By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year, or $250 per month. The discounted prices assume no greater risk to the Mutual Mortgage Insur-
ance Fund and will allow many borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional
underwriting. Homeowners
with FHA-insured loans should contact their existing lender to deter-mine eligibility.
The Federal Housing Admin-istration will cut its upfront fees for refinancing loans to near zero, reducing it to 0.01 percent, or $10 for every $100,000.
The reduced fee plan is expected to save up to 3 million average FHA borrowers about $1,000, the
administration announced.Many borrowers who took out FHA-
backed loans several years ago haven’t been able to refinance because FHA insurance premiums increased sharply over the last two years. Consequently, while interest rates have dropped to a level where they typically generate a wave of refinancing, the higher FHA premiums offset savings, thus discouraging borrowers from even trying to refinance. The changes unveiled by Obama Tuesday seek to address that problem.
Lowering refinancing fees also should be broadly positive for housing and the economy by reducing foreclosures and free-ing up income for consumers to spend on other goods and services.
Additionally, President Obama an-nounced aid to U.S. service members
who lost their homes due to wrongful foreclosures. In a process to be overseen by the Justice Department, Obama said that lenders and mortgage servicers will be required to review the cases of all service members who were foreclosed upon since 2006. Any service member found to have been wrongfully foreclosed upon will be compensated — repaid the lost equity in the home plus interest, as well as a flat fee of $116,785.
Loan servicers also agreed to provide awards to members of the military who, contrary to law, were charged more than a 6 percent interest rate after requesting a lower rate. The award would be four times the amount overcharged, plus interest.The Southland Regional Association of Realtors® is one of the largest local trade associations in the nation with more than 9,000 members serving the San Fernando and Santa Clarita Valleys.
