Stocks have had a rough day in the final session of August. After a sell-off in China hurt investor sentiment in Europe, US equity markets opened lower and have failed to bounce halfway through the day. As of 1:30, the NASDAQ is off 1.39% to 2,000, followed by a 1.22% dip in the S&P 500 to 1,016, while the Dow trades 0.95% lower at 9,453. …(read more)

This 90-second video discusses gives some rate-locking strategies in advance of this Friday’s jobs report. With the housing market seemingly on the mend and Wall Street cutting the week short because of Labor Day, national employment statistics are about to take center stage.

The Mortgage Bankers Association has released their semi-annual report on the largest commercial and multi-family loan servicers. Wells Fargo/Wachovia Bank ranks first as the largest primary and master servicer….(read more)

Optimism that the economy is recovering in the third quarter has allowed the benchmark S&P 500 to rebound by 52% since early March, but in the past week markets were unimpressed with fresh data, even though most of it was positive. Analysts said investors were not sure the rapid 5-month gain in markets was justified, leading many to take profits while they could, pushing their cash from risky equities into bonds. A rally in Treasuries caused the 10-year yield to fall from 3.60% last Monday to 3.45% this morning.
…(read more)

An FHA loan is a federally insured loan made by the Federal Housing Administration, which has been insuring mortgages since 1934.  FHA loans are very good options for borrowers in Northern New Jersey.

1. Easier qualifying! Those with less-than-perfect credit are more easily approved for a loan through FHA programs because the federal government insures them.
2. Low closing costs! Using an FHA-approved lender means lower closing costs than a conventional mortgage in most cases.
3. Low down payment! FHA loans usually require just a three and a half percent down payment. This down payment can also be gifted to the borrower, which makes home ownership more obtainable for the first-time home buyer.
4. Lower overall costs! An FHA loan can have a better interest rate, which cuts down on the overall cost of the loan.  Which could save thousands of dollars over the life of the loan!
5. Higher loan limits! Up to a maximum amount of $729,750 for a single family home in Bergen County.  Check out the New Jersey FHA Mortgage Loan Limits.

Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey office in Bergen County at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

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The FHA Streamline Refinance program has been very popular in Orange County in 2009. Interest rates have been low relative to 2008 for most of the year, allowing people who bought their homes only 1 year ago or less to drop their interest rate any where from .5% to 1% or more with having to go through the approval process like they did when they first bought their home.

Why its Called the FHA “Streamline” Program

It’s not called the “Streamline” program for nothing. Anyone who has been through the loan process in the last few years can attest to the fact that the lender was extremely thorough when it came to documenting their income and down payment. But the FHA Streamline Refinance program does not require near the documentation and the process is very fast. It is “Streamlined”.

Here’s Why it’s Easy for Orange County FHA Borrowers to Take Advantage of the FHA Streamline Refinance Program

• No Appraisal is required. (That’s right. Can you believe it?)
• No income documentation is required. (Some lenders may verify that you have a job, but no paystubs or tax returns needed. Woo Hoo!)
• No Bank Statements or Asset Verification. (There are typically no costs associated with this program, so no need to verify.)

So What Does an Orange County FHA Borrower Need?

There are a few requirements in order to qualify, but they’re easy.

•  You must currently have an FHA loan. This program is not meant for those who have a Fannie Mae or Freddie Mac loan trying to go to an FHA.
• No cash out is allowed. This is not to say that certain things like your final mortgage payment or new impound account can’t be financed into the new loan.
• You must be current on your FHA loan, and with no more than 1 30 daymortgage late in the last 12 months.
• Most lenders do require a minimum FICO score of 620. Some lenders will allow lower scores, but the rate may be higher.
• There must be a benefit to the borrower. This is important. HUD does not want to see a lender taking advantage of an FHA borrower (or anyone for that matter). The borrower should be lowering their interest rate, payment, or term. Also, if the current loan is an adjustable, FHA sees it as a benefit if the borrower Streamlines into a fixed rate.

How Much Money can an Orange County FHA Borrower Save Each Month?

Depending on the loan size, the savings for even a .5% drop can be significant. For example, the difference in payment on a $300,000 loan for a .5% rate drop is $95 per month. A $400,000 loan would have a $127 payment drop. That’s $1,500 per year. Not a drop in the bucket. These savings were calculated using a straight interest rate and loan amount calculation. Every loan is different and the savings will vary depending on how long the borrower has been in the current loan and whether they also want to finance a mortgage payment and a new impound account into the loan.

What is the First Step in Finding out if a FHA Streamline Refinance Makes Sense for Me, an Orange County FHA Borrower?

The first step is to contact an Orange County Direct Endorsed FHA Lender. In order to make sure you are getting an accurate assessment from the loan officer he will need to know how much your current loan balance is, what your current interest rate is, what the original loan balance was on your current loan, the breakdown of your payment (including taxes and insurance) and the escrow account balance. Basically, the loan officer should be requesting your current mortgage statement, which will have most of that information. With this information, an FHA Streamline Expert will be able to give you a very accurate assessment of the benefits and/or savings you will (or will not) have. It is important to know that there is more than one way to get a Streamline done. If you are unsure of your loan officers knowledge with FHA, or you think there may be something better, don’t be afraid to check around. It can’t hurt.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

Contact us for your Orange County FHA Mortgage:

Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.

877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com

*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.

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Business at Fannie Mae was recovering mid-way through the summer, though the total value of its portfolio remains down nearly one-fifth, according to a press release on Thursday.

The government-sponsored purchaser of mortgages said its Book of Business grew at a compound annualized rate of 10.1% in July, helping the year-to-date figure improve to 6.1%. However, its total mortgage portfolio declined at an annualized rate of 18.2%. In July, the portfolio fell by 1.7%, the first dip in three months…(read more)

In housing, the basic law of Supply and Demand bestowed upon buyers an unbelievable amount of negotiation leverage. Want a lower sales price? Just ask for it. Need your closing costs paid for? Write it into your offer letter. Want a quick closing? Sure, whatever you need. But the Buyer Heyday may be over. At least, that’s what recent data suggests.

Stocks are looking to continue the rally from yesterday afternoon, with equity futures pointing upwards between 0.2% and 0.4%. Data at 8:30 could change that, as the Personal Income & Outlays report is one of this week’s key releases. But expectations are that incomes rose slightly and consumption made its third straight gain. If so, markets should open higher when the opening bell sounds at 9:30.

“Financial markets are welcoming more risk this Friday morning, with U.S. stock futures pointing higher, European bourses and most Asian equities rallying, and the USD and JPY slightly weaker,” said Jennifer Lee from BMO. “Buried beneath the green, though, was another worrying selloff in Chinese stocks.” …(read more)

Rates remained close to the summertime lows achieved during the previous week according to information released this morning by Freddie Mac. Both long term mortgage products increased slightly while the 5-year hybrid ARM took a more substantial jump.

…(read more)